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Performance Appraisal HRM
Performance Appraisal HRM
Introduction:
The history of performance appraisal is quite brief. Its roots in the early 20th
century and can be traced to Taylor's pioneering Time and Motion studies. But this
is not very helpful, for the same may be said about almost everything in the field of
modern human resources management. As a distinct and formal management
procedure used in the evaluation of work performance, appraisal really dates from
the time of the Second World War - not more than 60 years ago. Yet in a broader
sense, the practice of appraisal is a very ancient art. In the scale of things historical,
it might well lay claim to being the world's second oldest profession.
People differ in their abilities and their aptitudes. There is always some
difference between the quality and quantity of the same work on the same job
being done by two different people. Therefore, performance management and
performance appraisal is necessary to understand each employees abilities,
competencies and relative merit and worth for the organization. Performance
appraisal rates the employees in terms of their performance.
Performance appraisals are widely used in the society. The history of
performance appraisal can be dated back to the 20th century and then to the second
world war when the merit rating was used for the first time. An employer
evaluating their employees is a very old concept. Performance appraisals are an
indispensable part of performance measurement. Performance appraisal is
necessary to measure the performance of the employees and the organization to
check the progress towards the desired goals and aims.
The latest mantra being followed by organizations across the world being
get paid according to what you contribute the focus of the organizations is
turning to performance management and specifically to individual performance.
Performance appraisal helps to rate the performance of the employees and evaluate
their contribution towards the organizational goals. If the process of performance
appraisals is formal and properly structured, it helps the employees to clearly
understand their roles and responsibilities and give direction to the individuals
performance. It helps to align the individual performances with the organizational
goals and also review their performance.
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Performance Management
Performance appraisal is considered as a most significant and indispensable
tool for an organization as it provides highly useful information in making various
decisions regarding various aspects such as promotions, training and development,
retirements, transfer, salary administration, etc. it also provides basis for judging
the effectiveness of the employees. Accurate information collected through
performance appraisal plays a vital role in an organization as a whole. Hence,
performance appraisal should be done accurately following an objective method of
judging the relative worth or abilities or performance of an individual employee in
performing the tasks entrusted to him. The effectiveness of performance appraisal,
to a large extent, depends upon how well the organization has prepared itself for
doing it. It is a basic function of performance management. Performance
management is nothing but managing the performance appraisals of the employees
periodically and systematically and covers basically the following areas or steps.
1. Setting of proper standards for the purpose of appraising the performance.
2. Measuring actual performance of employees by adopting suitable method/
methods.
3. Comparing it with standards.
4. Finding out measures for deviations from standards.
5. Taking corrective actions to eliminate these reasons.
6. Revising of performance stands and adopting suitable method of
performance appraisal according to the needs or changing circumstances or
requirement.
All the above mentioned important tasks which are required to be performed by
the performance management, it is the important function of the performance
management to lay down a well and neatly designed performance appraisal
process or plan. Following points make clear the utility of such plan.
It unifies the appraisal procedure:
The procedure of performance appraisal is basically dependent upon the
purpose or purposes of appraisal. Once the procedure is laid down, in the
same manner, the performances of all the employees should be evaluated
or judged. Then it becomes possible to compare the performance of the
employees properly by finding out their weaknesses and strength.
It provides useful information:
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Self Appraisals.
Superior Appraisals.
Subordinates Appraisals.
Peer Appraisals.
Self appraisal gives a chance to the employee to look at his/her strengths and
weaknesses, his achievements, and judge his own performance. Superiors
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appraisal forms the traditional part of the 360 degree appraisal where the
employees responsibilities and actual performance is rated by the superior.
Subordinates appraisal gives a chance to judge the employee on the
parameters like communication and motivating abilities, superiors ability to
delegate the work, leadership qualities etc. Also known as internal customers, the
correct feedback given by peers can help to find employees abilities to work in a
team, co-operation and sensitivity towards others.
Self assessment is an indispensable part of 360 degree appraisals and
therefore 360 degree. Performance Appraisal has high employee involvement and
also has the strongest impact on behavior and performance. It provides a "360degree review" of the employees performance and is considered to be one of the
most
credible
performance
appraisal
methods.
360 degree appraisal is also a powerful developmental tool because when
conducted at regular intervals (say yearly) it helps to keep a track of the changes
others perceptions about the employees. A 360 degree appraisal is generally found
more suitable for the managers as it helps to assess their leadership and managing
styles. This technique is being effectively used across the globe for performance
appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance
Industries etc.
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Traditional methods
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The Rater is given a checklist of the descriptions of the behavior of the employees
on job. The checklist contains a list of statements on the basis of which the rater
describes the on the job performance of the employees.
7. GRAPHIC RATING SCALE
In this method, an employees quality and quantity of work is assessed in a graphic
scale indicating different degrees of a particular trait. The factors taken into
consideration include both the personal characteristics and characteristics related to
the on-the-job performance of the employees. For example a trait like Job
Knowledge may be judged on the range of average, above average, outstanding or
unsatisfactory.
8. FORCED DISTRIBUTION
To eliminate the element of bias from the raters ratings, the evaluator is asked to
distribute the employees in some fixed categories of ratings like on a normal
distribution curve. The rater chooses the appropriate fit for the categories on his
own discretion.
Modern methods
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MBO PROCESS:
2. 360-DEGREE APPRAISAL
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Self Appraisals.
Superior Appraisals.
Subordinates Appraisals.
Peer Appraisals.
3. ASSESSMENT CENTRES
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TRAINING
Meaning of Training:
Training is a learning experience in that it seeks a relatively permanent
change in an individual that will improve his ability to perform on the job. Training
can involve the changing of skills, knowledge, attitudes or behavior. It may mean
changing what employees know, how they work, their attitudes towards their work,
or their interaction with their co-workers or supervisors.
Training often has been referred to as teaching specific skills and behavior.
Examples of training are leaning to fire a rifle, to shoot foul shots in basketball and
to type. It is usually reserved for people who have to be brought up to performing
level in some specific skills. The skills are almost always behavioral as distinct
from conceptual or intellectual.
Training is meant for operatives. Training aims to improving a special skill
relating to a job. Training is one shot deal. Training is mostly the result of
initiatives taken by management. It is the result of some outside motivation.
Training seeks to meet the current requirements of the job and the individual. In
other words, training is a reactive process. Training focuses on the personal growth
of the employee.
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Need of Training:
Training is a vital and necessary activity in all organizations. It plays a major
party in determining the effectiveness and efficiency of the establishment. Some of
the reasons why training is needed are outlined below:
Reduced learning time: By having qualified instructors and carefully
controlled learning situations, management in numerous cases has been able
to obtain shortened learning periods and ensure higher productivity from
new employees.
Improved performance: Training applies not only to new employees but to
experienced people as well. It can help employees increase their level of
performance on their present job assignments.
Attitude formation: A common objective of company training programs is
the moulding of employee attitudes to achieve support for company
activities and to obtain better cooperation and greater loyalty.
Aid in solving operational problems: Training of both supervisory and
hourly aid employees can help reduce turnover, absenteeism, accidents, and
grievance rates. For example, inept supervisor is often a cause of employee
dissatisfaction and grievances. Supervisory training in such areas as labor
relations, leadership, human relations, and administration may improve
superior subordinate relationships. Other operational problems that training
can solve are low morale, poor customer service, and excessive waste and
scrap loss, and poor work methods.
Managing manpower needs: One manufacturing company found it
impossible to recruit sufficient skilled mechanics and toolmakers. Hence, it
concluded that the best way to solve this manpower problem in the long run
was to establish its own apprentice training program.
Benefits to employees themselves: As employees acquire new knowledge
and job skills, they increase their market value and earning power. The
possession of useful skills enhances their value to their employer.
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Training methods:
The most popular raining methods used by organizations can be classified as
either on the job rotation. Apprenticeship, committee assignments, etc, or off the
job training vestibule training, role-playing, lecture method, conferences,
programmed instructions, etc). In the following paragraphs, we will briefly
introduce the better known techniques of each category. The most widely used
training methods take place on the job. This can be attributed to the simplicity of
such methods and the impression that they are less costly to operate. On the job
training places the employees in actual work situations and makes them appear to
be immediately productive. It is learning by doing. For jobs that either is difficult
to stimulate or can be learned quickly by watching and doing, on the job training
makes sense.
One of the drawbacks of on the job training can be low productivity while
the employees develop their skills. Another drawback can be the errors made by
the trainees while they learn. However, when the damage, the trainees can do is
minimal, while training facilities and personnel are limited or costly, and where it
is desirable for the workers to learn the job under normal working conditions, the
benefits of on the job training frequently offset its drawback.
Apprenticeship Program: People seeking to enter skilled trades to become
for example, plumbers, electricians or iron workers are often required to
undergo apprenticeship training before they are accep0ted to expert status.
Typically, this apprenticeship period is form 2-5 years. During the
apprenticeships period, the trainee is paid less than a fully qualified worker.
Apprenticeship training put the trainee under the guidance of a master
worker. The argument for apprenticeship program is that the required job
knowledge and skills are so c0omplex as to rule out anything less than a
long time period where the trainee studies under a skilled master. Long
apprenticeship may also create barriers to entry and help keep wages high.
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Vestibule training: Under this method, employees learn their jobs on the
equipment they will be using, but the training is conducted away from the
actual work floor. Many large cash registers which are much more complex
because they control inventory and perform other functions in addition to
ringing up orders are kept in specially created vestibule laboratories that
stimulate the actual checkout counter environment. This is generally used
for training employees on sophisticated, modern equipment and machinery.
This kind of equipment and machinery usually involves heavy investment.
Job rotation: It broadens understanding of several business situations. This
is suitable for the young newcomers who are fresh from to learn by doing.
Its major limitation is prevention of specialization by concentrating on
several problems and procedure of different specialized departments.
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