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A

Report

On

Performance

Appraisal
EXECUTIVE SUMMARY

Managing employee performance in an organization is the most important


task of the HR manager. HR manager need to continuously monitor the
performance of each and every employee as well as every branch. On that
basis HR manager give rating to individual employee and branch. If HR
manager found good performance of any employee than he need to
appreciate employee to continue the performance or enhance the
performance. If HR manager found that work of employee or branch is not
at the level the firm needs than either discouraging them HR manager has
to encourage them by giving motivation. Overall, HR manager need to
appraise the performance of employees.

The department of human resource needs to find various ways of


performance appraisal of employees. HR manager need to plan different
ways of performance appraisal like better reward, better infrastructure
facility, better basic facilities like food, water etc. HR manager need to plan
better mechanism for performance appraisal.

To achieve the objective of organization HR manager need to identify goals


of organization. They need to accomplished and communicate individual
and organizational goals with the employees. HR manager need to
understand the demand of employees. What they exactly wanted fro the
organization? It may be reward, facility or anything else. So, for success of
any organization performance appraisal is needed.

The HR management focus on various process for performance appraisal


as follows:

 Planning : of work and goal


 Monitoring performance of employees and branches
 Developing the ability of employees so they become able to perform
 Rating Give rating to employees and branches on the bases of performance
 Rewarding If HR manager found good performance of employee or branch
than he should reward the employee or branch.
BACKGROUND
The duty of HR manager is not only to recruit and select the right candidate for
the right job. After the process of employee selection, HR manager need to focus
on performance appraisal of the employees. I think performance appraisal is the
most important task of HR manager. Performance appraisal can do in many
ways. First, give the proper reward for the appraisable work done by employee or
branch. Second, understand the demand of the employees and try to fulfill it.
Third, try to solve the problems of employees and branch as early as possible.
Fourth, encourage them by arranging various motivational seminars or training
sessions. There is one basic rule of industry that is, “if you give good to your
employees, you will get good in return.”

The HR manager can also arrange the negotiated appraisal. If there is two way
communication in the organization means top to bottom and vice versa than top
level can understand the need of the operational level employees. While in
traditional performance appraisal process there is only one way communication.
So, top manager can not understand the need of operational managers. So, this
is not an effective way for performance appraisal. Is that meaning that we should
not use the traditional approach for performance appraisal? No, experts are
experts they know the current scenario of the organization. So, they know that
what to do for improving performance of individual and organization. If any
employee argues about raising of salary than top management can take wise
decision for raising salary. For example they can suggest employee for
performance base pay that what you perform that you will get as reward. So, I
can say that using negotiable performance appraisal approach is not always a
good idea. The other disadvantage of the negotiable performance appraisal
approach is that it takes almost 12 months time to respond because top
management take view of every employee so it become very lengthy process.
While traditional approach have not require that much of time.

Why Performance Appraisal?

The one question comes in mind that why we need performance appraisal.
Performance appraisal is a way to validate the organizational processes like
selection and training. It provides feedback to employees for improvement of
performance in the organization.

Validating organizational actions

Employee’s recruitment process from interview to training is a very complex


process. But above that performance appraisal is more complicated process than
that process of recruitment. When top management announced any different
method for incentive pay than they need to monitor the action that whether
employees are satisfied with the new method or not. They need to evaluate the
performance of employees and branches after implementing new method for pay.
The evaluation of method may give new idea for organization for establishing
new practices. For example HR manger fund that store manager has more
conflicts than any other employees after implementing new method of pay. The
other options for appraisal may be paying more attention to new employees,
encouraging communication between employees, giving supervision individually.

The data we found after adopting various performance appraisal techniques are
very interesting. Employees are able to plan for long term, employee encourages
to perform more, and employees behave with more discipline. HR manager need
all the data after performance appraisal to know the current situation of the
organization but it is very lengthy process to achieve whole data.

Employee need for feedback

Performance appraisal is not a one way process. After establishing performance


appraisal HR manager need feedback from the employees that what they
actually get, whether they really encourage by the method implementation. HR
manager need to take feedback of every employee after implementing the
performance appraisal method. For example if HR manager implement new time
duration for work than HR manager need to find out all the employees in the
organization are happy or not. HR manager has to take feedback of every
employee what they fill after implementation of new time duration.

It is true that HR manager is always wondering for positive feedback from their
employees but it can be not possible all the time. Once HR manager selects any
person as an employee in the organization than that person has to follow all the
rules and regulation of the organization. HR manager can take feedback of new
employee also what they fill after working in the organization. On the bases of the
experience of new employee HR manger can change his policy of performance
appraisal. For better performance HR manager need to continuously monitor the
performance of every employee and every branch. For better performance HR
manager need to be more flexible with the employees so employees can share
their views and onions with them. HR manager can know the need of employees
and help them for improving the performance.

HR manager receives both type of feed back it may be qualitative or quantitative.


We know that qualitative comment can be more descriptive explaining the entire
thing in more detail. while quantitative comments are more base on numerical
performance in terms of growth of organization or any other numerical
information. I think HR manager needs both type of feedback for better
performance in the organization.

RESEARCH AIMS AND OBJECTIVES


Title of the Project:
“A study of performance appraisal for the human resource department toward
encouraging the employee for better performance”

Objectives:
 To study what is performance appraisal and why organization needs it.

 To study the different ways of performance appraisal.

 To study traditional and negotiable performance appraisal methods.

 To study challenges for HR manager for performance appraisal.

Scope
 Study of performance appraisal, its techniques and its implementation.
METHODS OF DATA COLLECTION

Primary methods
Questionnaire

Secondary methods
1. Magazines.

2. Newspapers

3. Websites

4. Books

5. Other projects.

Here, I will use only secondary methods for the analysis of this project because
of limited time duration.
DISCUSSION
“Performance techniques tell employees of organization what they are
doing and standards of those techniques tell them what they can do”

Performance appraisal is a technique for evaluating the performance of


employees and encouraging them to work more efficiently. The word efficient
includes both quantitative as well as qualitative performance.

There are various ways for performance appraisal we will understand each in
detail as follows:

1 - Planning
In any organization work is always planned in advance. It included setting of
performance standards and goals for organization as well as for individual.
Involving employees in the planning process help them to establish the goal of
organization. Employees can know what they are doing and what they can do to
accomplish the goal of the organization.

HR manager uses several documents or sources to establish better planning for


employees and organization. These things include following things:

 Goals and objective of the organization need to be mentioned in the


strategic plan

 HR manager need to established Specific performance goals for a given


task for a particular employee and also need to mention in the
performance plan

 HR manager also need to established plane for particular branch

 HR manager also need to define functional or organizational goals

 HR manager need to established all the policy related with the


management

 HR manager need to know the all the legal consideration

 HR manager also need to take regular feedback of customers and


stakeholders time by time
 HR manager need to describe position of all the employees

2 - Monitoring
HR manager always looking for effective and timely feedback during the period of
monitoring. This is very important task for the HR manager for establishing
standards elements of a successful performance management program.
Employees themselves need to know their own performance means they need to
monitor themselves. The need to know how they are performing and what they
can get with their performance. They need to know themselves for area of
improvement although HR manager also monitor them.

HR manager can get feedback from various sources like by observing the
employee, by rating the employees and branches, by measuring the system
overall performance (numerical data), by taking feedback of customers and other
stakeholders, by taking direct feedback of employees. Whatever is the way for
feedback but HR manager need to know the performance of employees.

Some issues that are related with the monitoring the employees are as follows:
(For both employees & supervisors)

 Good communication skill

 Training whenever they needs (OJT or formal)

 HR manager need to provide sufficient knowledge about different skills so


they can know perform better.

 HR manager need to explain the employees about work they are doing
that is challenging or satisfactory

 HR manager need to handle the delegation of assignments

 HR manager need to be sure that he is Getting/giving regular feedback


3 –Developing Employees
The process of performance appraisal gives an excellent way to identify the
needs of the employees. During planning and monitoring of performance HR
manager faces several problems, but this problems are helpful in development of
employee by providing them better facilities and working conditions. The effort of
performance appraisal help HR manager to established the better and improve
working environment in the organization.
Development of employees means not just giving training to the employees but it
is more than that. Developing employees includes all the things like learning,
means employees learn something new in the organization everyday. When HR
manager focuses on not just giving training to the employees but also focuses on
development of the employees so employees can handle any difficult situation.
SO, employees can survive in any circumstances.
While developing any employees HR manager can arrange various techniques
as follows. This can be not possible in any formal training.

 Feedback: It is a very neutral process that any HR manager can get


feedback from any employees at any time. The feedback can be in any
form by observing the employees, by taking feedback of customers and
stake holders, or by taking direct feedback of employees

 Job rotations and special assignments: It is also one of the good


options for development of employees, if work of employees gets changed
regularly than they can learn new things.

 Coaching and counseling: HR manager can arrange expert seminars


which guide the employees for better performance

 Mentoring: HR manager take care of employees to clarify their goals,


understanding the need of the organization and analyzing SWOT analysis
of employees themselves.

 Using the manager as an informal teacher: HR manager can be an


informal teacher of employees who guide the to learn the management
tactics

 Learning teams: HR manager can develop one team who learn the other
employees for better performance
 Self-development: HR manager can arrange various techniques for self
development of the employees like showing encouraging videos etc. at
other organizations.

4 - Rating

After doing so much hard work of development of employees HR manager


works doesn’t over. He needs to now give rating to the various employees
and branches on their performance. This rating should be give on
performance of entire 12 moths or he can temporary give rating for quarter
period. If HR manager found good rating of the employee or branch than
he may give reward in terms of money or any other thing. If HR manager
found lower rating of any employee or branch either discouraging them
HR manager need to encourage them for better performance next time.

5 - ACTIONS BASED ON PERFORMANCE

After rating individual employee and branch HR manager need to give


some reward to the employee or branch that perform better and have
higher grade in rating. The HR manager can reward them with the money
or He can arrange one function for appreciating their performance and can
give them award in the function so other employees can see the thing and
encourages getting award next time. So, it becomes one kind of
competition among employees. The employees or branches who fail to
achieve the higher rank for that HR manager need to apply more effort
and try to encourage them.
CONCLUSION

I can conclude that performance appraisal is an important task for HR manager


for development of the organization. The main objective of performance appraisal
includes validation of employees and other management practices, helping
employees to understand and taking responsibility for their performance and
making decisions about rewards.

The main task of HR manager is to get useful information which can determine
the type if data to be collected as we; as who can be appreciate for his work this
all thing is depends upon rating of the employees or branch which is given by HR
manager on overall performance of the employee or branch for whole year.
Typical rating includes how employee works, how employee make decisions in
any situation after looking the entire criteria HR manager decided rating of
different employee.

The negotiated performance appraisal techniques are useful in making additional


decisions for employees and owner. This technique includes two way
communication so employee can also give their feedback to the top
management. So this technique is very useful in establishing a better
performance management. The only disadvantage of this technique our
traditional performance appraisal technique is that it is more time consuming.

Finally, I can say that performance appraisal is the necessary task for
organization. Always employees want to know that what top management is
thinking for their work they are doing. So, this performance appraisal is a good
technique to interact employers and employees
REFRENCES

1. Performance management
<http://www.mbaguys.net/t1825/>
(Accessed on 21st Aug 2009)

2. Performance appraisal
<http://www.mbaguys.net/t1826/>
(Accessed on 21st Aug 2009)

3. Performance Appraisal Handbook


A Guide for Managers/Supervisors and Employees
<http://www.doi.gov/hrm/guidance/370dm430hndbk.pdf&ei=fYGOSunMCIyJkQW
0PW7Cg&sa=X&oi=spellmeleon_result&resnum=1&ct=result&usg=AFQjCNFgQ
ptmtWDPwKQ2AEOsFKOX972wzA>
(Accessed on 21st Aug 2009)

4. Archer North
Introduction to Performance Appraisal
<http://www.performance-appraisal.com/intro.htm>
(Accessed on 21st Aug 2009)

5. Performance appraisal
From Wikipedia, the free encyclopedia
<http://en.wikipedia.org/wiki/Performance_appraisal>
(Accessed on 21st Aug 2009)

6. Performance Appraisal (Negotiated Approach)


University Of California
<http://www.cnr.berkeley.edu/ucce50/ag-labor/7labor/06.htm>
(Accessed on 21st Aug 2009)