You are on page 1of 3


The scope of any performance appraisal should include the following: provide employees
with a better understanding of their role and responsibilities; increase confidence through
recognizing strengths while identifying training needs to improve weaknesses; improve working
relationships and communication between supervisors and subordinates; increase commitment to
organizational goals; develop employees into future supervisors; assist in personnel decisions
such as promotions or allocating rewards; and allow time for self-reflection, self-appraisal and
personal goal setting

Performance Appraisal Systems is the main theme of this article. The Article tells
abouth o w m a n y p e r f o r m a n c e a p p r a i s a l m e t h o d s a r e u s e d b y t h e o r g a
n i z a t i o n s u n d e r consideration and under analysis? It tells about what performance
appraisal is accordingto these organizations? The main purpose of collecting and analyzing this
information isto know about organizations performance appraisal methods, to know that how
employeesare appraised and what kind of criteria is used in this regard? The article covers the
whole performance appraisal systems to evaluate the exact output of these methods either
thesemethods are according to the standards and procedures as mentioned by that organizationor
not? Every organization needs a formal approach to track individual contributions
and p e r f o r m a n c e a g a i n s t o r g a n i z a t i o n a l g o a l s a n d t o i d e n t i f y i n d i v i d u a l s t r
e n g t h s a n d opportunities for improvement. This article is about the performance appraisal
systems of
Alfalah Limited
Mobilink GSM
. First there is data analysis of Bank AlfalahL i m i t e d w h i c h u s e s
Forced-choice rating or Bell Curve method
for PerformanceAppraisal of its Human Resource. Typically, this system involves
placing employeesalong a performance curve or classifying employees into
categories of percentiles for p e r f o r m a n c e . I s o f t e n a s s o c i a t e d w i t h a 2 0 - 6 0 2 0 d i s t r i b u t i o n t h e t o p 2 0 p e r c e n t i s rewarded for best performance, the middle
60 percent is rated average and the
bottom2 0 p e r c e n t i s c o a c h e d f o r i m p r o v e m e n t . T h e r a n k - a n d - y a n k s y s t e m
a u t o m a t i c a l l y terminates employees in the bottom category, allowing organizations
to purge the worst performers. These reviews are mainly dependent on perceptions.
But, Perception is the paradox of mind. Is there a way out to overcome the perception
based evaluations? It
ist h e r o l e a n d d u t y o f t h e a d m i n i s t r a t o r s t o d e s i g n a s y s t e m t

o g i v e a p p r o p r i a t e opportunities to the individuals to gain maximum credit

points. Forced distribution isuseful for jobs that are structured with strict
quantitative criteria. Finally there is
dataa b o u t P e r f o r m a n c e A p p r a i s a l S ys t e m o f
Mobilink GSM
which uses
Multi-raterassessment (or 360-degree feedback).
This method of appraisal gives the
employeesf e e d b a c k f r o m t h e i m m e d i a t e s u p e r v i s o r , p e e r s , s u b o r d i n a t e s a n d
c u s t o m e r s . T h e supervisor usually does the actual appraising. The HR department serves a
policy makingand advisory role. The supervisor needs to conduct an appraisal
interview in which thewritten appraisal is presented. The manager needs to review the
definition for the job andappraise the performance in relation to the written job
description. In addition, the
jobd e s c r i p t i o n o f t e n i s n ' t s u f f i c i e n t t o c l a r i f y t h e m a n a g e r ' s e x p e c t a t i o n s s
i n c e t h e j o b description is normally written for groups of jobs rather than specific positions.
Strengthso f t h e n e g o t i a t e d p e r f o r m a n c e a p p r a i s a l a r e i t s a b i l i t y t o p r o m o t e c
a n d i d t w o - w a y communication between the supervisor and the person being
appraised and to help thelatter take more responsibility for improving
performance. In contrast, in the traditional performance appraisal, the supervisor acts
more as a judge of employee performance thanas a coach

Performance Appraisal is a critical activity for the organizations that are looking for
the growth and profit maximization in this ever-increasing competitive environment.
The essential components of an effective performance appraisal system consist of
understanding its foundations and the essential steps that lay the foundation.
Finally lot of brainstorming is required to be done to devise a sound appraisal
system by evaluating available techniques and implementation processes. One
must remember that Performance Appraisal (PA) is an inexact, human process and it
is quite a challenge to actually implement it successfully. Performance appraisal
system has gone through a change over a period of time. In the beginning the
process was non-transparent and the employee was kept in dark about his
performance. Systematic exercise was done in the entire process. The current
processes of performance appraisal involve self-appraisal by the employee too. Thus
the system has gone through the phase of non-transparency to transparency. In the
transparent system of appraisals appraise is taken into confidence and the whole
process is interactive. Review process with employees is designed in such a way

that employees become aware of what is expected from them, receive timely
feedback and recognition for their achievements

Today, performance appraisal (PA) has increasingly become part of a more strategic
approach to integrating HR activities and business policies and may now be seen as
a standard term covering a variety of activities through which organizations seek to
assess employees and develop their competence, improve performance and share
out rewards. The success of an organization depends on the performance of the
employees and it is the human tendency to judge everything and everyone around
them. If there are no fixed standards of judging they will start judging based on
informal standards that can create lack of enthusiasm and impact the performance
of the employee and in turn, the organization. Hence, it is essential that we set the
right standards to judge the performance of the employees. At a strategic level, the
need for speedy and effective organizational change in today's vibrant social,
economic, and political environment requires that employees continually re-align
their performance with the sprouting goals and objectives of the organization.
KEYWORDS: Performance appraisal, motivation, Affective commitment, Work
performance, Turnover ___________