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Basics of Performance Appraisals.pdf - Performance...

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Performance Appraisal:Performance appraisal is the process of obtaining, analyzing and recording information about the relativeworth of an employee. The focus of the performance appraisal is measuring and improving the actualperformance of the employee and also the future potential of the employee. Its aim is to measure what anemployee does.According to Flippo, a prominent personality in the field of Human resources, “performance appraisal is thesystematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to hispresent job and his potential for a better job." Performance appraisal is a systematic way of reviewing andassessing the performance of an employee during a given period of time and planning for his future.It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze hisachievements and evaluate his contribution towards the achievements of the overall organizational goals. Byfocusing the attention on performance, performance appraisal goes to the heart of personnel management andreflects the management’s interest in the progress of the employees.Objectives of Performance Appraisal:To review the performance of the employees over a given period of timeTo judge the gap between the actual and the desired performanceTo help the management in exercising organizational controlHelps to strengthen the relationship and communication between superior – subordinates andmanagement – employeesTo diagnose the strengths and weaknesses of the individuals so as to identify the training anddevelopment needs of the futureTo provide feedback to the employees regarding their past performanceProvide information to assist in the other personal decisions in the organizationProvide clarity of the expectations and responsibilities of the functions to be performed by theemployeesTo judge the effectiveness of the other human resource functions of the organization such asrecruitment, selection, training and developmentTo reduce the grievances of the employeesProcess of Performance Appraisal:Establishing Performance Standards:The first step in the process of performance appraisal is the setting up of the standards which will be used to asthe base to compare the actual performance of the employees. This step requires setting the criteria to judgethe performance of the employees as successful or unsuccessful and the degrees of their contribution to theorganizational goals and objectives. The standards set should be clear, easily understandable and inmeasurable terms. In case the performance of the employee cannot be measured, great care should be taken todescribe the standards.Communicating the Standards:Once set, it is the responsibility of the management to communicate the standards to all the employees of theorganization. The employees should be informed and the standards should be clearly explained to the. Thiswill help them to understand their roles and to know what exactly is expected from them. The standardsshould also be communicated to the appraisers or the evaluators and if required, the standards can also bemodified at this stage itself according to the relevant feedback from the employees or the evaluators.

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Term
Fall
Professor
Maxine

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