What is performance appraisal? Describe the uses or benefits
of performance appraisal.
Explain the various techniques of performance appraisal.
Describe the limitations of performance appraisal.
PERFORMANCE APPRAISAL
(1) According to Edwin Flippo,
"Performance Appraisal is the systematic, periodic and impartial rating of
an employee's excellence, in matters pertaining to his present job and his
potential for a better job."
(2) According to Dale Beach,
"Performance Appraisal is the systematic evaluation of the individual with
regards to his or her performance on the job and his potential for
development."
APPRAISAL PROCESS
The Performance Appraisal process involves the following
steps :
(1) Establish
the Standards of Performance.
(2) Communicate
these standards to employees.
(3) Measure
the actual performance.
(4) Compare
actual performance with the standards established.
(5) In case of
variation, initiate corrective action.
(6) Communicate
the rating to the employee.
(7) Discuss
the feedback with the employee.
(8) Conduct
post-appraisal Interview.
(9) Initiate
corrective action if required.
PURPOSE / USES
The main purposes of employee assessment are as follows :
(1) Identify
employees who are eligible for salary increase.
(2) Generate
data to take personnel decisions such as promotion, transfer and lay- off or
termination decision.
(3) Determine
the training and development needs of the employees.
(4) Validate
the selection process.
(5) To measure
whether standards laid down has been achieved by the employees or not.
(6) Estimate
the future requirement of work force.
(7) Helps to recognize
potential of promising employees.
(8) Last but
not the least, performance appraisal also helps in motivating employees by
providing feedback about their level of performance.
ADVANTAGES OF
PERFORMANCE APPRAISAL:
(1) SWOT Analysis :
Performance Appraisal gives a complete idea of the employee's strength,
weaknesses and based on that their opportunities and threats.
(2) Career
Planning : On the basis of one's own SWOT analysis, an employee can have his
career plans.
(3) Suitable
Placement : Performance appraisal enables a company to give suitable placement
to an employee based on their talents and skills.
(4) Self-Development
: Performance Appraisal is very much a positive activity which enables an
employee to know his own weaknesses and also enables him to remove their
weaknesses and lead to self-development.
(5) Effective
Training Programmed : Training programmers can be drawn out on the basis of the
needs of employees to remove their weaknesses.
(6) Sound
Personnel Policies : Personnel policies for promotions, transfer must be sound
and objective. Performance Appraisal provides valuable information and reliable
data for such decisions.
(7) Employee –
Employer Relations will be healthy if performance Appraisal information will be
used for personnel management. This will minimise grievances and improve
confidence in the management.
(8) Higher Employee Productivity : Employer morale will be
high because there can be a system of rewards for employees with higher
performance. This will improve organization productivity.
(9) Performance Appraisal will help in potential human
resource planning.
METHODS OF
PERFORMANCE APPRAISAL
(1) Ranking
Method
(2) Paired
Comparison Method
(3) Forced Distribution
(4) Forced Choice Method
(5) Check List
Method
(6) Critical
Incident Method
(7) Graphic
Rating Scale
(8) Essay
Method
(9) Field
Review Method
(10) Confidential
Report
(11) Person-to-Person
Method
(1) MBO
(2) BARS
(3) Assessment
Centres
(4) 360o
Appraisal
(5) Cost
Accounting Method
