Performance Appraisal

 

Performance Appraisal 

After an employee has been selected for a job, has been trained to do so, and has worked at it for a period of time, his performance should be evaluated. Performance Appraisal is the process of deciding how employees do their jobs. Performance here refers to the degree of completion of the tasks that make up an individual's job. Performance Appraisal indicates how well a person is meeting the job requirements. Performance is always measured in terms of results. Evaluation is different from judgment: the former refers to performance, the latter to the person. Evaluation has to do with the achievement of objectives, while judgment divides people into first class citizens and second class citizens and, therefore, they are resisted.

The Performance Appraisal is the process of assessing  employee performance  by way of comparing present performance with already established standards which are already communicated to employees, subsequently providing feedback to employees about their performance level for the aim of improving their performance as needed by the organisation.

Performance Appraisal in any organisation are going to be done at a specific period, like annually or half yearly or quarterly or even regularly. Everything depends upon the nature or size of the organisation. The frequency of formal appraisals will depend upon the nature of the organization and on the objectives of the system. Most employees receive a formal appraisal annually, although more frequent appraisals are often needed for exposure of new employees, for promoted or transferred employees who have moved to new posts or for those who are below acceptable performance standards.

Features of Performance Appraisal:

1. Performance Appraisal is a systematic process.

2. Try to find out how well the employee is doing the job and try to establish a plan for future improvements.

3.  The Performance Appraisal is carried out periodically, according to a defined plan. It is certainly not a one shot deal.

4. Performance Appraisal is not a past-oriented activity, with the intention of identifying poor performers. Rather, it is a future oriented activity that shows employees where things have gone wrong, how to put everything in order, and get results using their potential in the right way.

5. Performance Appraisal is not job evaluation. Performance Appraisal refers to how well someone is doing an assigned job.

6. Performance Appraisal is not limited to ‘calling the fouls’. Its focus is on employee development.

7. Performance Appraisal can be formal or informal. The informal evaluation is more likely to be subjective and the formal system is likely to be more fair and objective.

Objectives of Performance Appraisal:

The main objective of Performance Appraisal is to quantify and improve the exhibition of workers and increment their future potential and incentive to the organization. Different destinations incorporate giving criticism, improving correspondence, understanding, preparing needs, explaining jobs and obligations and deciding how to assign rewards.

Appraisal of employees serves several useful purposes:  (Candy; Smither)

1. Compensation Decisions: Performance Appraisal can serve as the basis for wage/salary increases. Managers need a performance appraisal to identify employees who are performing at or above expected levels. This approach to compensation is at the heart of the idea that raises should be awarded for merit rather than for seniority.

2. Promotion or Demotion Decisions: Performance Appraisal can serve as a useful basis for promotion or demotion. When merit is the basis for reward, the person who does the best job receives the promotion and the person who does the worst job receives the demotion.

3. Training & Development Programmes: Performance Appraisal can serve as a guide to formulate appropriate training & development programmes. Performance Appraisal can inform employees of their progress and tell them what skills they need to develop to become eligible for pay raises or promotions or both.

4. Feedback: Performance Appraisal lets the employees know how well they are performing at work. Performance Appraisal tells you what you can do to improve your current performance and move up the ‘organisational ladder’.

5. Personal Development: Performance Appraisal can help reveal the causes of good and poor employee performance. Through discussions with individual employees, a line manager can find out why they are performing the way they do and what steps can be taken to improve their performance.

Process of Performance Appraisal:

1. Establish Performance Standards: The evaluation system requires performance standards, which serve as benchmarks against which performance is measured. To be useful, standard must relate to the desired results of each job. The performance standards must be clear to both the appraiser and the appraisee. Performance standards or goals should be developed after a thorough job analysis.

2. Communicate the Standards: Performance Appraisal involves at least two parties; the appraiser who performs the appraisal and the appraisee whose performance is being evaluated. Both are expected to do certain things. The appraiser must prepare job descriptions clearly; help the appraisee establish his goals and targets; analyse the results objectively; offer training and guidance to the appraisee when necessery and reward good results. The appraisee must be very clear about what he is doing and why he is doing it.

3. Measure Actual Performance: Once performance standards are established and accepted, the next step is to measure actual performance. This requires the use of reliable performance measures, the ratings that are used to evaluate performance. Performance measures – to be helpful – must be easy to use, reliable and report on the critical behaviours that determine performance.

4. Compare Actual Performance with Standards and Discuss the Appraisal: Actual performance may be better than expected and may deviate at times. Whatever the consequences, there is a way to communicate and discuss the final results. Assessing someone else’s contribution and ability is not an easy task. It has serious emotional overtones as it affects the self-esteem of the appraisee.

5. Taking Corrective Action, is Necessary: Corrective action is of two types: one puts out fires immediately, while the other destroys the root of the problem permanently.

Methods of Performance Appraisal

References:

1. Rao, V S P, (2010). “Human Resource Management Text and Cases”, 3^rd ed., Excel Books, New Delhi.

2. R.L. Candy, K.P. Carson, "Total Quality and the Abandonment of Performance Appraisal", Journal of Quality Management, 1996.

3. J.W. Smither(ed), "Performance Appraisal", San Francisco, Jossey-Bass, 1998.