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VSRD-IJBMR, Vol. 2 (1), 2012, 8-16

RESEARCH COMMUNICATION RESEARCH COMMUNICATION

Performance Appraisal and Career Development

1

Shubhangi Sharma*, 2Shalini Singh, 3Priyanka Singh and 4Pratibha Singh

ABSTRACT
The paper present on the topic Performance Appraisal and Career Development is mainly focused on how a company appraises the performance of their employees. This paper mainly focuses on the different methods adopted by any company. There are two types of methods, (1) Traditional methods like Straight ranking method, Essay method, Paired comparison method, critical incidents methods, Field review method, Checklist method. And (2) Modern methods like 360 degree method, MBO, Assessment centre, BARS method, Human recourse methods. It also helps to understand that how Performance appraisal is helpful for career development. The study of career development looks at: (1) How individuals manage their careers within and between organizations and, (2) How organizations structure the career progress of their members, it can also be tied into succession planning within some organizations. Performance appraisal & career development includes the area of career development, which is an extremely interesting and important area of occupational psychology and one which offers a great deal of job satisfaction. Keywords : Performance Appraisal, Career Development, Traditional Method, Modern Method, 360 Degree, MBO, Succession Planning, BARS.

1. INTRODUCTION
Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims. The latest mantra being followed by organizations across the world being "get paid according to what you contribute" the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. If the process of performance appraisals is formal and properly structured, it helps the employees to clearly understand their roles and responsibilities and give direction to the
____________________________ 1,2,3,4

Assistant Professor, Department of Management Studies, Lucknow Model Institute of Management, Lucknow, Uttar Pradesh, INDIA. *Correspondence : ani_shub@yahoo.co.in

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individuals performance. It helps to align the individual performances with the organizational goals and also review their performance. Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees. Performance appraisal is a part of career development. The latest mantra being followed by organizations across the world being "get paid according to what you contribute" the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. Performance appraisal as Career Development leads to the recognition of the work done by the employees, many a times by the means of rewards and appreciation etc. It plays the role of the link between the organization and the employees personal career goals. Potential appraisal, a part of Performance appraisal, helps to identify the hidden talents and potential of the individuals. Identifying these potential talents can help in preparing the individuals for higher responsibilities and positions in the future. The performance appraisal process in itself is developmental in nature. Performance appraisal is also closely linked to other HR processes like helps to identify the training and development needs, promotions, demotions, changes in the compensation etc. A feedback communicated in a positive manner goes a long way to motivate the employees and helps to identify individual career developmental plans. Based on the evaluation, employees can develop their career goals, achieve new levels of competencies and chart their career progression. Performance appraisal encourages employees to reinforce their strengths and overcome their weaknesses.

2. TECHNIQUES OF PERFORMANCE APPRAISAL

The various methods and techniques used for performance appraisal can be categorized as the following traditional and modern method:

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3. TRADITIONAL METHODS OF PERFORMANCE APPRAISAL 3.1. Essay Appraisal Method

This traditional form of appraisal, also known as "Free Form method" involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.

3.2. Straight Ranking Method

This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.

3.3. Paired Comparison

A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.

3.4. Critical Incidents Methods

In this method of Performance appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behavior as and when they occur.

4. Field Review
In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors personal bias.

5. Checklist Method
The rate is given a checklist of the descriptions of the behavior of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.

6. Graphic Rating Scale

In this method, an employees quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on the job performance of the employees. For example a trait like Job Knowledge

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may be judged on the range of average, above average, outstanding or unsatisfactory.

7. Forced Distribution
To eliminate the element of bias from the raters ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.

8. MODERN METHODS OF PERFORMANCE APPRAISAL 8.1. Assessment Centre

An assessment centre typically involves the use of methods like social/ informal events, tests and exercise, assignment being given to a group of the employees to access their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics.

8.2. Behaviorally Anchored Rating Scales

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for e.g. the qualities like inter personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents. In this method, an employees actual job behavior is judged against the desired behavior by recording and comparing the behavior with BARS. Developing and practicing BARS requires expert knowledge.

8.3. Human Resource Accounting Method

Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the Performance appraisal of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.

8.4. 360 Degree Performance Appraisals

360 degree respondents for an employee cab be his/her peers, managers, subordinates, team members,

customers, suppliers- anyone who come into contact with the employee and can provide valuable insight and

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information or feedback regarding the on-the-job performance of the employees. 360 Degree Performance Appraisal 1. Self appraisal 2. Superior appraisal 3. Subordinate appraisal 4. Peer appraisal Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superiors appraisal forms the traditional part of the 360 degree performance appraisal where the employees responsibilities and actual performance is rated by the superior. Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superiors ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees abilities to work in a team, cooperation and sensitivity towards others.

Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees performance and is considered to be one of the most credible performance appraisal methods. 360 degree performance appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.

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9. MANAGEMENT BY OBJECTIVES
The concept of Management by objective was first given by Peter Drucker in 1954. It can be defined as a process whereby the employees and the superior come together to identify common goals, the employees set their goals to be achieved, the standard to be taken as the criteria for measurement of their performance and the contribution and deciding the course of action to be followed. The essence of MBO is participative goal setting, choosing course of action and decision making. An important part of MBO is the measurement and the comparison of the employees actual performance with the standard set. Ideally, when employees themselves have been involved with goal setting and the choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities. THE MBO PROCESS

10. CAREER DEVELOPMENT

In organizational development OD), the study of career development looks at: How individuals manage their careers within and between organizations and, How organizations structure the career progress of their members, it can also be tied into succession planning within some organizations.

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In personal development, career development is: The total constellation of psychological, sociological, educational, physical, economic, and chance factors that combine to influence the nature and significance of work in the total lifespan of any given individual." The evolution or development of a career - informed by (1) Experience within a specific field of interest (2) Success at each stage of development - and (3), educational attainment. The lifelong psychological and behavioral processes as well as contextual influences shaping ones career over the life span. As such, career development involves the persons creation of a career pattern, decisionmaking style, integration of life roles, values expression, and life-role self concepts."

Performance appraisal & career development includes the area of career development, which is an extremely interesting and important area of occupational psychology and one which offers a great deal of job satisfaction. Having developed a strong interest in this field through my work in coaching and other experience, I started studied about working of The Careers Group, University of London which provides products and services designed to help individuals achieve and maintain job satisfaction throughout their working lives. Example : Mr. X is currently based at University College London and his work is multifaceted and draws from several areas of Occupational Psychology. Most of his work is with undergraduate and post graduate students, providing career education and career guidance, both on a 1-to-1 basis and in groups. This could involve anything from providing practical help with CVs, applications forms, interview/assessment centre preparation and career planning to working with individuals who have no idea what they want to do as a career. He also do work for the consultancy arm of The Careers Group, C2, which involves working with individuals at any stage of their career who may be looking to explore options open to them, change direction or transition into a new career.

11. RELATION BETWEEN PERFORMANCEAPPRAISAL ANDCAREER DEVELOPMENT

Career development and performance appraisal can be more meaningful for organizations and their employees when each system draws on the strength of the other the now orientation of performance appraisal and the future orientation of career development. To accomplish this mutually strengthening process, the two systems must be viewed as contributing to the same goal talent development. Talent development involves promoting

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employees' skills and knowledge and can best be achieved by displaying concern for current performance as well as future contributions. More and more, workers join organizations with an eye toward making ongoing and increasing contributions. Organizations can cultivate this by using data about current performance to help in plans for future development.

12. ROLE OF HUMAN RESOURCES PROFESSIONALS: MAKING THE MATCH

HR professionals can play a vital part in establishing and nurturing the relationship between performance appraisal and career development by keeping the concept of talent development clearly in mind and by cultivating systems and individuals that support it. This constitutes a significant shift in perspective. Thus the HR professional must take on the role of change agent by introducing and initiating a stronger relationship between performance appraisal and career development. He or she will need to promote this relationship and lay the groundwork for managers and employees new roles and for this new perspective. Essentially the initial intervention for creating an interactive system is training and education. However, the HR person must keep these three realities in mind: (1) The system is the client; (2) change and resistance are not such strange bedfellows; and (3) the form is not the system. First, it is best to look at performance appraisal and career development as management systems, rather than as a management responsibility. Then the client in the change effort is the system. With this view, the HR professional can concentrate on activities that will reduce resistance to change rather than get caught up in the training of managers and employees. The HR professional, therefore, must have an intervention strategy rather than a training focus. When the system is the client, success indicators are stronger, more effective systems-not simply people who are happy with training they have received. HR professional needs to clarify this view of the client with others involved, possibly through some mutual psychological contracting and through design of models that can demonstrate the point. Second, it is important to remember that any change will be met with resistance. HR must develop ways to recognize resistance, work with and through it, and establish all key players as winners in the process of talent development. At the outset they must undertake commitment-building strategies to help alleviate problems. For example, it is critical to spend appropriate time clarifying questions related to both career development and performance appraisal in the organization. It might be helpful in some cases to start small with a carefully placed pilot experience-and then evaluate it and publicize any successes. Of course, success criteria should be established at the beginning to clearly signal the favorable consequences being sought for the organization. Finally, FIR professionals must remember that the form is not the system. Performance-appraisal and careerdevelopment activities both have certain methods of operation, procedures, timetables, and paperwork. These establish the form, but should not be confused with the system. Successful integration of the systems will not occur if too much time is spent worrying about how the forms do or do not relate to one another. The key to strengthening the two systems is in redirecting them to a common goal for talent development. The form may change or remain the same within that framework; the important question is, To what extent do our performance-appraisal and career-development systems work to support talent development?

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The challenge for the HR professional is not only to keep these three realities in mind when trying to implement change, but to discuss them with others in the organization. The separate but related concept of performance appraisal and career development is new. Managers and employees are right to ask, What difference will it make if we use this concept? It is up to the HR professional to create the opportunities that can demonstrate how the concept works in practice and then show how it contributes to talent development. Talent development- Talent development involves promoting employees' skills and knowledge and can best be achieved by displaying concern for current performance as well as future contribution.

13. CONCLUSION
Performance appraisal & career development includes the area of career development, which is an extremely interesting and important area of occupational psychology and one which offers a great deal of job satisfaction. Career development and performance appraisal can be more meaningful for organizations and their employees when each system draws on the strength of the other the now orientation of performance appraisal and the future orientation of career development. HR professionals can play a vital part in establishing and nurturing the relationship between performance appraisal and career development by keeping the concept of talent development clearly in mind and by cultivating systems and individuals that support it. Talent development involves promoting employees' skills and knowledge and can best be achieved by displaying concern for current performance as well as future contribution.

14. REFERENCES
[1] Ivansevich Human Resource Management [2] V.S.P. Rao- Human Resource Management [3] 2004 Anne-Wil Harzing and Joris Van Ruysseveldt (eds.), SAGE Publications Ltd., London [4] Anne-Wil Harzing and Joris Van Ruysseveldt [5] 2011 Thomson Reuters, Journals Citation Report

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