Performance Appraisal

Meaning:


Performance Appraisal is a process supporting the use of human resource in an organization. It is possibly managements most powerful tool in controlling performance and productivity of human resources in the organization. Used effectively, it can have tremendous strategic potential for governing employee behaviour and in turn, organizations direction through its dynamic links to selection, training, careercareer-path planning and reward systems.

Definitions


Scott, Clothier and Spriegel: Performance Appraisal is the process of evaluating the employees performance on the job in terms of requirements of the job.

Definitions


Yoder: Performance Appraisal refers to all formal procedures used in working organizations to evaluate personalities and contributions and potential of group members.

Definitions


Performance Appraisal is the systematic, periodic and an impartial rating on an employees excellence in matters pertaining to his present job and to his potentialities for a better job.

Performance Appraisal vs. Job Evaluation



Performance Appraisal identifies the differences among the employees in terms of their performance. But Job Evaluation is the analysis of various jobs to know the demands which the normal performance of particular jobs make on average performance of the employees concerned.

Performance Appraisal vs. Job Evaluation



The chief purpose of PA is to appraise the he performance of individuals to take decisions like increase in pay, transfer, promotion, training etc. It also provides the employees with information regarding their strong and weak points. But the purpose of Job Evaluation is very limited i.e. to determine the worth of the job on the basis of demands made by it on the average workers.

Performance Appraisal vs. Job Evaluation



Performance Appraisal rates the man and not the job as it is concerned with assessing the abilities of the individuals. Job Evaluation rates the jobs in the organization that will be fair and equitable. It is used as a basis of wage structure in the organization.

Scientific basis for judging the merit or worth of employees  Sound basis for promotion, demotion, transfer or termination of employees.  Helps in distinguishing between efficient and inefficient workers.  It reveals the defects in the selection procedure


Need, Importance and Advantages of Performance Appraisal

Need, Importance and Advantages of Performance Appraisal

Helps to know the potentials of the subordinates systematically.  Helps correct placements.  It helps in constructively guiding the employees.  It prevents grievances and develops a sense of confidence  Protects the management against the charges of discrimination.


Essentials of Effective Performance Appraisal

The employees should be made aware in terms of goals, targets and behaviour  Job-related Job Performance-based Performance Uniform and non-variable non Fair, just and equitable  Appraisers should be honest, rational and objective


Essentials of Effective Performance Appraisal

Superiors should be well trained to ensure uniformity, consistency and reliability  Reports should be examined meticulously before taking any positive or negative action.  Intra and inter-departmental interconsistency and uniformity should be ensured.


Essentials of Effective Performance Appraisal



There should be provision of appeals against appraisals to ensure confidence of the employees and their associations/unions.

Traditional methods of Performance Appraisal

Ranking Method  Paired Comparison  Graphic Scale method  Forced Distribution Method  Check-list Method Check Critical Incident Method  Field Review Method