Performance Appraisal

Performance Appraisal

               Appraising the performance of individual groups is a common practice of all societies. Appraisal process is formal or informal and is integral part of daily activities.

Meaning:

               Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the qualitative & quantitative aspect of job performance. Here the performance refers to the degree of accomplishment of the task that makes up an individual job. It indicates how well an individual is fulfilling the job demands. Performance is always measured in terms of result and not in efforts.

• Need of Performance appraisal:

1. To create and maintain satisfactory level of performance.

2. To contribute to the employees growth & development through training and self & management development program.

3. To help the superior to have a proper understanding about their subordinate.

4. To grid, the job changes with the help of continuous ranking.

5. To facilitate fair and equitable compensation based on performance

6. To facilitate for resting & validating selection test, interview techniques through comparing their scores with performance appraisal.

7. To providing information for making decision regarding lay off, retrenchment, retirement.

8. To suggest changes in employees behavior.


• Process of performance appraisal:


1. Establish performance standards

2. Communicate standards/ expectation to employees

3. Measure actual performance

4. Adjust the actual performance due to environmental influence.

5. Compare adjust performance with that of other and previous.

6. Compare actual performance with standards and find out deviation if any.

7. Communicate actual performance to concerned employees

8. Suggest changes in job analysis and standards if necessary.

9. Follow up performance appraisal report.

*Modern Methods of performance appraisal:


1. BAARS (Behavioral anchored rating scales):
I. Collect critical incident


II. Identify performance dimension.

III. Reclassification of incidents

IV. Assessing scale values to the incidents.

V. Producing final instruments.

2. 360 degree

3. MBO

Joint goal setting

Action planning

Self-control

Periodic progress review

4. Assessment center

In this approach, individuals from various departments are brought together, to spend two or three days working, as on individual or group assignment similar to the ones they would be handling when promoted. Observers rank the performance of each and every participant in order of merit. This appraisal is mainly used for promotion purpose.

5.Psychological Appraisal:

Large organizations employ full time industrial psychologist. Here psychologists are used for evaluations they assess an individual’s future potential and not past performance.