Meaning of Performance Appraisal
Each person is different from each other in terms of their abilities and trends. These differences are natural to a extent and they cannot be eliminated by giving the same basic education and training.
Some differences will also be found in the quality and quantity of work done by different employees at the same post. Therefore, it is necessary that the management knows these differences so that employees with good qualifications can be rewarded and wrong appointments of employees can be rectified through transfers.
Individual employees may also be interested in knowing their level of abstinence compared to their fellow employees. Therefore, an appropriate outcome assessment is needed to measure the relative merit (Merti) of each employee.
The fundamental purpose of Performance Appraisal is to streamline the systematic determination of the value of an employee towards the organization to which he is a part.
As such, the value of an employee can be judged only by estimating a number of factors, some of which are broad objective, such as Attendance, while others are very subjective, such as attitude and personality ( Attitude and Personality)
Objective components can be evaluated accurately based on records kept by the Human Resources or Personnel Department, but no standard mechanism exists to measure individual components in stock.
Ignoring all of this, these components must be evaluated to obtain a complete assessment of the qualities of each employee. Performance evaluation is known by many names. Such as Performance Evaluation, Progress Rating, Merit Rating or Merti Evaluation, etc.
Performance appraisal refers to the systematic evaluation of the personality and performance of each employee by an employee's supervisor or someone skilled in the technique of quality assessment.
It employs various evaluation techniques to compare individual employees in a work group as individual qualities or weaknesses and expectations of their respective tasks.
Definitions of Performance Appraisal
Regarding Flippo's word- "Performance Appraisal is a well-planned and timely assessment of a person's abilities to evaluate an individual's current work and anticipate future higher work. This evaluation is planned because the same system is used for the performance evaluation of all the people and the same type of work is done. This assessment is done from time to time, not on the basis of casual or special occasions… its main objective is to find the right measurement of performance. ”
Objectives of Performance Appraisal
Performance evaluation is used to accomplish the following objectives:
(1) Promotions -
This is probably the most important administrative use of performance evaluation. It is in the same interest of both the management and the employees to promote the employees in such positions where the most efficient use of their abilities is possible.
It is a mismanagement that employees should be promoted to positions where they cannot perform effectively. A well developed and administered performance evaluation system can be helpful in determining whether individuals are considered for promotion.
The system should evaluate the employee for his current position and look at his capabilities for a relatively high position. A person doing his job well cannot necessarily be taken to mean that he is perfectly fit for promotion.
(2) Helpful in Mutual Comparison:
As a result of each employee being evaluated on an equal basis, a scientific basis is provided for comparison and the ability of different employees can be compared among themselves. The findings from the aptitude assessment are just and reliable and can be rewarded by skilled employees.
(3) High Morale:
Being a fair and non-discriminatory basis for promotion does not create confusion among employees about promotion, which keeps their morale high.
(4) Advantages to Supervision:
Appropriate assessment increases superintendence of superintendents. A supervisor is well versed in his subordinate staff and their work
needed . This makes him aware of the weaknesses of his subordinate employees, to overcome which he can give appropriate suggestions to high-level management.
(5) Utility for Managerial:
The information received from this helps the managers in the development of the training program and also guides the manager in making decisions related to promotion, transfer and post office.
With such judicial decisions, labor relations are improved and industrial peace is established in the undertaking. With its help, the managing class can differentiate between skilled and unskilled employees.
(6) Transfers:
In an organization, it may be necessary to consider a variety of secular functions such as transfers, layoffs, demotions and discharges.
In some cases, such action becomes necessary due to unsatisfactory executions, while in some cases it becomes necessary due to economic conditions over which the organization has no control due to changes in the productive process. Such proceedings can be justified if they are based on performance evaluation.
(7) Wages and Salary Administration:
In some cases, wage increases are based on performance assessment reports. In some cases, appraisals and seniority are mixed together.
(8) Training and Development:
An appropriate system of performance evaluation can be helpful in identifying tacts or areas of knowledge in which some employees have not reached a level; Thus pointing out common training flaws that should be corrected by additional training, exchange or consultation.
Performance appraisal can also help in finding skilled employees who can be trained and developed to create an inventory of administrative tacts.
It can also arrange such areas where further training can be imparted to the employee / officer and can be arranged in such a way that they can cope well with retirement and enrichment situations.
(9) Personnel Research:
Performance appraisal also assists in research in the field of personnel management. Various theories in human relations are only the result of efforts to find a cause-and-effect relationship between employees and their inattention.
(10) Self-Improvement:
Performance appraisal reveals weaknesses of employees. A thought exchange between the bamboo and the subordinate, fueled by goodwill and a sense of mutual understanding, gives the employee an opportunity to reflect on his or her integrity in the general structure of the organization.
The manner in which such considerations are regulated gives the employee an opportunity to take appropriate steps to improve his / her performance or to overcome his / her deficiencies. Performance appraisal staff questions such as, "How am I doing?" And what position am I in? Is able to answer well
Performance evaluation helps human resource development in another way. A person desirous of a promotion can find out for the target programs of the post which he is interested in and can use the information provided by the performance appraisal to prepare himself for the task and further his candidature.
Role of Performance Appraisal in Management Decisions
Performance appraisal helps managers to make decisions about:
(1) Wages and Salary Administration:
This makes it easier to determine the remuneration rates of various employees.
(2) Promotions and Transfers:
From this it becomes known whether a person is fit to perform any work, so that prudent and rational decisions can be taken in relation to his promotion and transfer.
(3) Training:
This shows the merits and demerits of the employees which helps them in choosing the right method of training.
(4) Personnel Research:
This makes the managers aware of where there is a flaw in their election policy, the supervisor also finds out how much he should supervise the employee with a view to speed up the work and improve the variety.
Methods of Performance Appraisal:
There are several methods of performance evaluation that can be classified into the following two parts:
(1) Traditional methods and
(2) Modern methods.
These methods differ from each other for a number of obvious reasons. Firstly, they differ in the source of the attributes to be assessed. Qualities may vary due to differences in work requirements, statistical imperatives and management considerations.
For example, cooperation may not be considered mandatory by management. Then it will be difficult to reliably evaluate components like cooperation. Second, they may differ in coverage as to who is being evaluated (Who is Being Rate) such as administrators, salespeople, factory workers.
Third, the differences may also be due to the amount of accuracy attempted in the evaluation, and may eventually vary with respect to the methods used to obtain weightage for different properties.
As far as practicable, performance evaluation should be based on objective factors. This should be a continuous process which should be done at regular intervals.
Any good system of merit rating should assess the following personal qualities of employees:
(i) Knowledge of Work
(ii) Ability to do the work,
(iii) Quality and Quantity of Output,
(iv) Personal qualities like (Dependability, Adaptability, Initiative), etc.
(v) Specific qualities like Confidence, Leadership etc.
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