4/21/2016

Performanceappraisalwhatishumanresource?

Searchthissite

HomePage

HRMPowerPointPresentations

HRMBooks

Feedback

ManagerialEconomics

Sitemap

RecentSiteActivity

Performanceappraisal

Theperformanceappraisalistheprocessofassessingemployeeperformancebywayofcomparingpresent
performancewithalreadyestablishedstandardswhichhavebeenalreadycommunicatedtoemployees,
subsequentlyprovidingfeedbacktoemployeesabouttheirperformancelevelforthepurposeofimprovingtheir
performanceasneededbytheorganisation.
Assaidabovetheverypurposeofperformanceuprisingistoknowperformanceofemployee,subsequentlyto
decidewhethertrainingisneededtoparticularemployeeortogivepromotionwithadditionalpayhike.
performanceappraisalisthetoolfordeterminingwhetheremployeeistobepromoted,demotedorsacked(
remove)incaseofverypoorperformanceandnoscopeforimprovement.
Everycorporatesectorusesperformanceappraisalasatoolforknowingabouttheemployeeandtake
decisionsaboutparticularemployee.forthepurposeofperformanceappraisalofemployeestherearedifferent
methodsunderthecategoryoftraditionalmethodsandmodernmethodswhicharediscussedinfollowing
chapters.

PerformanceAppraisal
PerformanceAppraisal
History&originofPerformanceAppraisal
ObjectivesofPerformanceAppraisal
BenefitsofPerformanceAppraisal
PerformanceAppraisalProcess
PerformanceAppraisalRatingFactors
TraditionalmethodsofPerformance
Appraisal
ModernMethodsofPerformance
Appraisal
360DegreesPerformanceAppraisal
PerformanceAppraisalatPepsiCola
International

WhatisPerformance?
Whatdoesthetermperformanceactuallymean?Employeesareperformingwellwhentheyareproductive.
PotentialAppraisal
Productivityimpliesbothconcernforeffectivenessandefficiency,effectivenessreferstogoalaccomplishment.
PerformanceCounseling
Howeveritdoesnotspeakofthecostsincurredinreachingthegoal.Thatiswhereefficiencycomesin.
Efficiencyevaluatestheratioofinputsconsumedtooutputsachieved.Thegreatertheoutputforagiveninput,
thegreatertheefficiency.Itisnotdesirabletohaveobjectivemeasuresofproductivitysuchasharddataon
effectiveness,numberofunitsproduced,orpercentofcrimessolvedetcandharddataonefficiency(averagecostperunitorratioofsalesvolumetonumberofcalls
madeetc.).
Inadditiontoproductivityasmeasuredintermsofeffectivenessandefficiency,performancealsoincludes
personneldatasuchasmeasuresofaccidents,turnover,absences,andtardiness.Thatisagoodemployeeis
onewhonotonlyperformswellintermsofproductivitybutalsominimizesproblemsfortheorganisationby
beingtoworkontime,bynotmissingdays,andbyminimizingthenumberofworkrelatedaccidents.
WhatisAppraisal?
Appraisalsarejudgmentsofthecharacteristics,traitsandperformanceofothers.Onthebasisofthese
judgmentsweassesstheworthorvalueofothersandidentifywhatisgoodorbad.Inindustryperformance
appraisalisasystematicevaluationofemployeesbysupervisors.Employeesalsowishtoknowtheirposition
intheorganization.Appraisalsareessentialformakingmanyadministrativedecisions:selection,training,
promotion,transfer,wageandsalaryadministrationetc.Besidestheyaidinpersonnelresearch.
PerformanceAppraisalthusisasystematicandobjectivewayofjudgingtherelativeworthofabilityofan
employeeinperforminghistask.Performanceappraisalhelpstoidentifythosewhoareperformingtheir
assignedtaskswellandthosewhoarenotandthereasonsforsuchperformance.
Definitions:
Performanceappraisalhasbeendefinedbydifferentscholarsinvariousways.Someoftheimportantdefinitionsareasfollows:
DaleS.Beach,"Performanceappraisalissystematicevaluationoftheindividualwithrespecttohisorherperformanceonthejobandhisorherpotentialfor
development".
RandallS.Schuler,"Performanceappraisalisaformal,structuredsystemofmeasuringandevaluatinganemployeesjob,relatedbehaviourandoutcomesto
discoverhowandwhytheemployeeispresentlyperfumingonthejobandhowtheemployeecanperformmoreeffectivelyinthefuturesothattheemployee,
organisation,andsocietyallbenefit."
Heyel,"Itistheprocessofevaluatingtheperformanceandqualificationsoftheemployeesintermsoftherequirementsofthejobforwhichheisemployed,for
purposesofadministrationincludingplacement,selectionforpromotions,providingfinancialrewardsandotheractionswhichrequiredifferentialtreatmentamong
themembersofagroupasdistinguishedfromactionsaffectingallmembersequally."
DaleYoder,''Performanceappraisalincludesallformalproceduresusedtoevaluatedpersonalitiesandcontributionsandpotentialsofgroupmembersina
workingorganisation.Itisacontinuousprocesstosecureinformationnecessaryformakingcorrectandobjectivedecisionsonemployees."
Performanceappraisalfromemployeepointofview"Aperformanceappraisalismeanttohelpemployeesrealisetheirstrengthsandshortcomingsandreceivea
compensationaccordingly."
Facts[+]
Arecentsurveyofmorethan2,000fulltimeemployeesbyAdeccoStaffingofNorthAmericafoundthatlessthanhalfofworkerssaymanagerstake
performancereviewsseriously,andevenfewersaytheyreceiveconstructivefeedback.
Howoftenshouldappraisalstakeplace?

Performanceappraisalinanyorganisationwillbedoneataspecificperiod,likeannuallyorhalfyearlyorquarterlyormayberegularly.Italldependsuponthenatureor
sizeoftheorganisation,andsometimesnecessityofthemanagersdecidetheperiodofperformanceappraisaloftheiremployees.Mostoforganisationsareinsisting
employeeappraisalshouldbeacontinuousprocessandshouldnotbelimitedtoaformalreviewonceayear.Thefrequencyofformalappraisalswilldependonthe
natureoftheorganizationandontheobjectivesofthesystem.Forexample,inahightechnologyorganisationobjectivesmaybechangingquicklysothatformal
appraisalsmayneedtobecarriedoutmorethanonceayear.Inanenvironmentwhichislesssubjecttochange,annualappraisalsmaybesufficient.Mostemployees

http://www.whatishumanresource.com/performanceappraisal

1/2

4/21/2016

Performanceappraisalwhatishumanresource?

receiveaformalappraisalannually,althoughmorefrequentappraisalsareoftenneededfornewemployees,forlongerservingstaffwhohavemovedtonewpostsor
forthosewhoarebelowacceptableperformancestandards.
AdobeSystems,U.Sbasedsoftwarecompanyhasabolishedannualperformanceappraisalsystemofitsemployees.Insteadcompanymanagementhasintroduced
regularfeedbackmethodforreviewingregularperformanceofitsemployeesratherthanwaitingtillyearendingforperformancereview.Companymanagersfeel
regularfeedbackwillimprovetheperformanceofemployeesastheycometoknowtheirregularperformance,furthermanagersareconsideringtheseregularfeedback
inthematterofsalaryhikesandpromotions.
Midyearappraisalsgoodforstaffmotivation
Appraisalsmaynolongerexistasonceayearphenomena.Agrowingnumberofcompaniesareoptingformidyearandevenquarterlyreviews.Themain
argumentinfavourofthistrendisthatitmaynotbewiseforacompanytowaitaslongasoneyeartoassessemployeeperformances.
Whetheritistorewardemployeesforsomethingtheydidtwoquartersbackorbringingthembackonthepathofgrowth,incasetheyhavestrayed,companies
haverealizedtheearliertheydoso,thebetter.OrganizationslikeDeutscheBankandAkzoNobelIndiahavebeenfollowingmidtermperformancereviewsfora
fewyearsnow,whilethelistofothercompaniesfollowingthismodelappearstobegrowing.NiveaIndiaisamongthosewhichhaverecentlyadoptedthe
practice.
AccordingtoMakarandKhatavkar,MDandhead,HR(Dt.2012)atDeutscheBank,thebankistryingtomakeitsmidtermreviewsmorerobust.Themoveis
aimedatmakingmanagersandemployeesmoreaccountable.Bankiscurrentlyconductingacommunicationandeducationexercisetotrainandconveytoall
ouremployeesaboutthenewperformancesystem.AtDeutscheBank,performancestandardsarebeingmademoreobjectivesothattheyareeasyto
understandandimplement.
Duringannualappraisals,mostlyrecentaccomplishmentsanddisappointmentsmaygetnoticedasthesearefreshinthememorywhiletheeventswhichdate
backafewquarterscouldgounnoticed.Atglobalpaintsandcoatingsmajor,AkzoNobelIndia,appraisalsareacontinuousprocess."TheHRteamconducts
workshopswithmanagersbeforethemidyearandyearendcyclebasedontheperformanceanddevelopmentdialogueprocess.Themidyearreviewisnot
aboutratingsbutisgearedatreviewingandprovidingguidancetotheemployees.Theyearendprocess,ontheotherhand,focusesmoreonselfassessment
andinvolvesfeedbackbybothprimaryandsecondaryreviewer,"saidSangeetaPandey,director,HR(Dt.2012),AkzoNobelIndia.
HCLTechnologiesislookingatauniqueexperimentthisyearwhetherappraisalscouldbebasedonfeedbackfrompeersandsubordinatesandifthesame
practicecouldbeextendedtorewardsandrecognitionsaswell.Thecompanyislookingatpilotingthisexperimentwithasmallgroup.Thecompany,however,
didn'telaborateondetailsastheprocessisinearlystages.
Facts[+]
ABrazilianfirm,Semco,(bestknownforitsradicalformofindustrialdemocracyandcorporatereengineering.)has3,000employees,aturnoverofover$200
millionandhasbeengrowingat2030%everyyear.Semcodoeshavemanagersbutemployeeshavemorefreedomthanelsewhere.Theycanchoosetheirhours
ofwork,decidetheirsalariesandpicktheirbosses.Managersareanonymouslyevaluatedeverysixmonthsbytheirsubordinates.Semcohaspractisedthis
philosophyfor25yearsnow.

ReportAbuse | PoweredBy GoogleSites

http://www.whatishumanresource.com/performanceappraisal

2/2