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Performance Management is the mechanism that ensures that the employee achieves the objectives set by the organization and the organization thereby achieves the objectives that it has set itself in its strategic plan. Performance Appraisal is a part of staffing processes, like recruitment, selection, placement, & indoctrination. It is a process of evaluation an employees performance of a job in term of its requirements. Heyel observe, It is the process of evaluation the performance & qualification of the employees in terms of requirements of the job for which he is employed, for purpose of administration including placement, selection for promotion, providing financial reward and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally. In short, Performance Appraisal is a process of evaluating an employees past and current performances relative to the persons performance standards in terms requirements of the job for purpose of placement of selection of promotion & providing financial rewards.
Performance management is a goal-oriented system to ensure that organizational processes exist to maximize the productivity of employees, teams and, ultimately, the organization. A performance appraisal is a formal system of review and evaluation of individual or team performance. Performance management is an ongoing organizational process that is conducted to maximize the productivity of employees with the overall intention of improving the organizations effectiveness. It is strategic in nature and involves every person and all HR processes in the organization. All are directly tied to achieving the organizations goals. The performance appraisal is a periodic event to reflect and evaluate past performance with the intent to identify strengths and weaknesses of an employees performance and to identify developmental goals. A performance appraisal is just one part of a performance management system.
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performance appraisal system is to fulfill an ethical obligation. We answer the first question, what do you expect of me, at the start of the year when we talk about goals and projects and key job responsibilities. We answer the second question, How am I doing, at performance appraisal time. About the Author Dick Grote has been a management consultant for almost thirty years, specializing exclusively in the field of employee performance appraisal and management. As a consultant, he has created employee performance management systems for several hundred of the worlds best known and most respected companies, including Texas Instruments, JCPenney, Miller Brewing Company, American Airlines, Macys, Raytheon, Burlington Northern Santa Fe Railroad, and Herman Miller. His company, Grote Consulting, specializes in employee performance appraisal, employee improvement and talent management.
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Management by Objectives
Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives. Management by objectives (MBO) involves setting specific measurable goals with each employee and then periodically discussing his/her progress toward these goals. The term MBO almost always refers to a comprehensive organization-wide goal setting and appraisal program that consist of six main steps: 1. Set the organizations goals. Establish organization-wide plan for next year and set goals. 2. Set departmental goals. Here department heads and their superiors jointly set goals for their departments 3. Discuss and allocate department goals. Department heads discuss the department's goals with all subordinates in the department (often at a department-wide meeting) and ask them to develop their own individual goals; in other words, how can each employee contribute to the department's attaining its goals? 4. Define expected results (set individual goals). Here, department heads and their subordinates set short-term performance targets. 5. Performance review and measure the results. Department heads compare actual performance for each employee with expected results. 6. Provide feedback. Department heads hold periodic performance review meetings with subordinates to discuss and evaluate progress in achieving expected results.
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provokes. For those for whom accuracy is a great concern, BARS are superior but require much more time to develop and use. Critical incedents by themselves are seldom sufficient for making salary raise decision. 3. Keep a Diary whatever else you do keep diary of employees performance over the year. One study involved 112 first-line supervisors. Some attended a secial diary-keeping training program. The conclusion of this and similar studies is that compiling critical incidents as they occur reduces appraisal problem. 4. Get Agreement on plan the overriding aim the appraisal should be to improve unsatisfacotry performance. The appraisals end product should therefore always be a plan for what the employee must do to improve his or her efforts. 5. Be Fair perhaps most important make sure the every appraisal you give is fair. One study found that a number of best practics such as have an appeal mechanism.
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Assessment problems: It is difficult to observe behavior and interpret it in terms of its causes, effects and desirability. Rating behavior on an appraisal form is quite difficult. The human element plays a significant role in the appraisal process and introduces subjectivity and bias. This can be minimized by documenting performance from time to time basing criteria for evaluation on observable behavior training the supervisors effectively communicating the expectations which management has of staff.
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Conclusion
Performance management is an effective way for a company to achieve their goal also a good way to get better performance from the employees. In any business PM consider some common objectives such as assign the goal, make a plan, train the workers for the specific goal, give them feedback about their job what they have done. PM is the only one process to manage the business in the right way. Business target should be in range, thats should be achievable, also it should be in touch of workers. Another thing is management should give the workers proper payment for their work, they should get more than that what they expect from the company. If companies can come to this decision then they can easily achieve their target. Performance appraisals are one of the most essential supervisory tools to communicate expectations, provide feedback, plan work, acknowledge contributions, and help employees gain the skills to be successful. As an orgnization is committed to do away with disparity and establish justice in the economy, trade, commerce and industry, build socio economic infrastructure and create employment opportunities. So Company should do justice with the employees while appraising them perfectly on the basis of their performance. The appraisal system has to be reliable and consistent, and should include both objective and subjective ratings. The appraisal format should be practical and simple. The process should be participatory and open. It should be linked with rewards. Feedback is an important part of appraisal, and has to be timely, impersonal and noticeable. It should be noted that an appraisal system can be effective only if it is accepted by employees and if management is fully committed.
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Reference
Text book. Human Resource Management by Gary Dessler and Biju Varkkey, 12 Edition www.chainlinkresearch.com www.networkworld.com www.slideshare.net www.scribd.com
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