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Performance appraisal hrm

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I. Contents of getting performance appraisal hrm

An organisation cannot build a good team of working professionals without good Human
Resources. The key functions of the Human Resources Management (HRM) team include
recruiting people, training them, performance appraisals, motivating employees as well as
workplace communication, workplace safety, and much more. The beneficial effects of these
functions are discussed here:
Recruitment and Training
This is one of the major responsibilities of the human resource team. The HR managers come up
with plans and strategies for hiring the right kind of people. They design the criteria which is best
suited for a specific job description. Their other tasks related to recruitment include formulating
the obligations of an employee and the scope of tasks assigned to him or her. Based on these two
factors, the contract of an employee with the company is prepared. When needed, they also
provide training to the employees according to the requirements of the organisation. Thus, the
staff members get the opportunity to sharpen their existing skills or develop specialised skills
which in turn, will help them to take up some new roles.
Performance Appraisals
HRM encourages the people working in an organisation, to work according to their potential and
gives them suggestions that can help them to bring about improvement in it. The team
communicates with the staff individually from time to time and provides all the necessary
information regarding their performances and also defines their respective roles. This is
beneficial as it enables them to form an outline of their anticipated goals in much clearer terms

and thereby, helps them execute the goals with best possible efforts. Performance appraisals,
when taken on a regular basis, motivate the employees.
Maintaining Work Atmosphere
This is a vital aspect of HRM because the performance of an individual in an organisation is
largely driven by the work atmosphere or work culture that prevails at the workplace. A good
working condition is one of the benefits that the employees can expect from an efficient human
resource team. A safe, clean and healthy environment can bring out the best in an employee. A
friendly atmosphere gives the staff members job satisfaction as well.
Managing Disputes
In an organisation, there are several issues on which disputes may arise between the employees
and the employers. You can say conflicts are almost inevitable. In such a scenario, it is the
human resource department which acts as a consultant and mediator to sort out those issues in an
effective manner. They first hear the grievances of the employees. Then they come up with
suitable solutions to sort them out. In other words, they take timely action and prevent things
from going out of hands.
Developing Public Relations
The responsibility of establishing good public relations lies with the HRM to a great extent. They
organise business meetings, seminars and various official gatherings on behalf of the company in
order to build up relationships with other business sectors. Sometimes, the HR department plays
an active role in preparing the business and marketing plans for the organisation too.
Any organisation, without a proper setup for HRM is bound to suffer from serious problems
while managing its regular activities. For this reason, today, companies must put a lot of effort
and energy into setting up a strong and effective HRM.

III. Performance appraisal methods

1. Essay Method

In this method the rater writes down the employee

description in detail within a number of broad categories
like, overall impression of performance, promoteability
of employee, existing capabilities and qualifications of
performing jobs, strengths and weaknesses and training
needs of the employee. Advantage It is extremely
useful in filing information gaps about the employees
that often occur in a better-structured checklist.
Disadvantages It its highly dependent upon the writing
skills of rater and most of them are not good writers.
They may get confused success depends on the memory
power of raters.

2. Behaviorally Anchored Rating Scales

statements of effective and ineffective behaviors
determine the points. They are said to be
behaviorally anchored. The rater is supposed to
say, which behavior describes the employee
performance. Advantages helps overcome rating
errors. Disadvantages Suffers from distortions
inherent in most rating techniques.

3. Rating Scale
Rating scales consists of several numerical scales
representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc.
Each scales ranges from excellent to poor. The total
numerical scores are computed and final conclusions are
derived. Advantages Adaptability, easy to use, low cost,
every type of job can be evaluated, large number of
employees covered, no formal training required.
Disadvantages Raters biases

4. Checklist method

Under this method, checklist of statements of traits of

employee in the form of Yes or No based questions is
prepared. Here the rater only does the reporting or
checking and HR department does the actual evaluation.
Advantages economy, ease of administration, limited
training required, standardization. Disadvantages Raters
biases, use of improper weighs by HR, does not allow
rater to give relative ratings

5.Ranking Method
The ranking system requires the rater to rank his
subordinates on overall performance. This consists in
simply putting a man in a rank order. Under this method,
the ranking of an employee in a work group is done
against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It
may also be done by ranking a person on his job
performance against another member of the competitive
Advantages of Ranking Method
Employees are ranked according to their
performance levels.
It is easier to rank the best and the worst
Limitations of Ranking Method
The whole man is compared with another
whole man in this method. In practice, it is very difficult
to compare individuals possessing various individual
This method speaks only of the position where an

employee stands in his group. It does not test anything

about how much better or how much worse an employee
is when compared to another employee.
When a large number of employees are working,
ranking of individuals become a difficult issue.
There is no systematic procedure for ranking
individuals in the organization. The ranking system does
not eliminate the possibility of snap judgements.

6. Critical Incidents Method

The approach is focused on certain critical behaviors of
employee that makes all the difference in the
performance. Supervisors as and when they occur record
such incidents. Advantages Evaluations are based on
actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases,
chances of subordinate improvement are high.
Disadvantages Negative incidents can be prioritized,
forgetting incidents, overly close supervision; feedback
may be too much and may appear to be punishment.

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