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Sunday 9 October 2011

BMS - HRM set 4

Appraisal is the evaluation of worker, quality or merit. In the organizational
context, performance appraisal is a systematic evaluation of personnel by superiors or
others familiar with their performance. Performance appraisal is also described as merit
rating in which one individual is marked as better or worse in comparison to others. The
basic purpose of merit rating is to ascertain an employee’s eligibility for promotion.
However performance appraisal would be used to decide training and development, salary
increase, transfer and discharge also C. Heyel defines, “performance appraisal is the
process of evaluating the performance and qualifications of the employee in terms of the
requirements of the job for which he is employed, for the purposes of administration
including placement, selection for promotion, providing financial rewards and other
actions which require differential treatment among the members of a group as
distinguished from actions affecting all members equally”. Beach has defined,
“performance appraisal is the systematic evaluation of the individual with regard to his or
her performance on the job and his potential for development.
Performance appraisal is a systematic and objective way of judging the relative
worth or ability of an employee in performing his job. It emphasizes on two aspects;
systematic and objective. All performances are to be evaluated in the same manner,
utilizing the same approaches. This would facilitate appraisal of different persons
comparable. This makes it systematic, as such an appraisal is taken periodically according
to plan; it is not left to chance. This makes the system objective. Both those who rate and
who are rated knows the system of performance appraisal and its training. Human bias
and prejudices are set aside, and so objective in this respect also.
Objectives
The objectives of performance appraisal are as follows:
1. Salary increase:
Performance appraisal plays a role in making decision about salary increase.
Normally salary increase of an employee depends on how he is performing his job. The
hike in salary to different employees may be according to their efficiency and ranking.
2. Promotion
Performance appraisal plays a role in making decision about promotion. Normally
internal promotion of an employee depends on how he is performing his job. There is
continuous evaluation of his performance either formally or informally. Most of the
organizations often use a combination of merit and seniority for promotion. Performance
appraisal precedes promotion decision.
3. Training and Development
Performance appraisal tries to identify the strengths and weaknesses of an
employee on his present job. This information can be used for devising training and
developing programmes appropriate for overcoming weakness of the employees. In fact,
many organisations use performance appraisal as means for identifying training needs of
employees.
4. Feedback
Performance appraisal provides feedback to employees about their performance. It
tells them where they stand. A person works better when he knows how he is working,
how his efforts are contributing to the achievement of organsiational objectives. Besides,
if they know their weakness, they will try to overcome them.
5. Pressure on employees
Performance appraisals puts a sort of pressure on employees for better
performance. If the employees are conscious that they are being appraised in respect of
certain factors and their future largely depends on such appraisal, they tend to have
positive and acceptable behaviour in this respect. Thus, appraisal can wok automatically
as a control device.
Performance Appraisal Process
Performance appraisal can be undertaken either on informal basis or on formal and
systematic basis. In comparatively smaller organizations appraisal either based on traits or
performance or a combination of both, is done informally through the observation of
concerned employees. In larger organization, appraisals are more systematic as evaluation
reveals lot of useful information.
Defining objectives
The first step in the systematic appraisal system is to define the objectives of the
appraisal itself. Appraisal is used for different purposes from motivating the appraise to
controlling their behaviour. In each case, the emphasis on different aspects of appraisal
differs. For example, reward providing appraisal, such as salary revision or promotion
differs from appraisal for training and development.
Defining appraisal norms
Appraisal is done in the context of certain norms or standards. These may be in the
form of various traits of the apprises or their expected work performance results. Since
one of the basic long-term objectives is to improve performance, appraisal is more
performance oriented. Hence performance norms are to be specified in the beginnings of
the period for which appraisal is concerned.
Designing appraisal programme
In the design for appraisal programme, types of personnel to act as appraisers,
appraisal methodology and types of appraisal are all to be decided. Ideally speaking all
personnel of the organization should be covered by the appraisal system. But generally
various organizations keep lower level employees out of the purview of formal appraisal.
Generally, the superior concerned appraises his subordinates. However, the present trend
in appraisal suggests the concept of 360 degree appraisal, which involves appraisal by the
apprises himself known as self appraisal. The next issue is the methodology to be used in
appraisal system. Should it be through structured forms and questionnaire or personal
interview of the appraises or a combination of both is to be decided. Along with this the
time period and tuning of the appraisal should be decided.
Implementation
In implementing appraisal programme, the appraisal is conducted by the appraisers
and they may also conduct interview if it is provided in the appraisal system. The results
of the appraisal are communicated to HR department for follow up actions which should
be oriented towards the objectives of the appraisal.
Appraisal feedback
Appraisal feedback is the most crucial stage in appraisal process. If they are rated
high or performance highly applauded, naturally they are happy and feel their self –
esteem is high. On the other if they are rated low they resent, cry and may even be illtempered.
But the fact is fact. Even in such cases, their plus points should be listed out.
Their weaknesses may be put clearly through counselors and advised.
Post – Appraisal action
Rewards, promotions, training and patting on the back follows in the post –
appraisal action
Methods of performance appraisal
Time – honoured methods
For a long time, the following methods were used:
a) Ranking method
b) Paired comparison
c) Grading
d) Forced distribution method
e) Forced choice method
f) Checklist method
g) Critical incidents methods
h) Graphic scale method
i) Essay method
j) Field Review Method
In recent times the additional methods used are
i. Appraisal by results or objectives
ii. Behaviourally anchord rating scales (BARS)
iii. Assessment centres
iv. 360-degree appraisal

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