Meaning, features and objectives of Performance appraisal

Meaning of Performance Appraisal:-

Performance appraisal is the process of measuring an employees past and present performance against the background of his work environment as well as about his future potential for an organisation. So personal qualities of an individual in the group is analysed by the superior and experienced person. It is done with the purpose of providing training to the employees on his work.

Definition of Performance Appraisal

According to Heigal, “Performance appraisal is the process of evaluating the performance and qualification of the employees in terms of requirements of the job for which he is employed in the organisation. This is done with the intention to judge the following factors as selection for promotion, providing financial rewards and other actions which require differential treatment among the employees of the organisation.

FEATURES OF PERFORMANCE APPRAISAL

There are following main features of performance appraisal

  • Performance appraisal contains a number of steps which are to be followed for evaluating an employee\’s strengths and weaknesses.
  • It is a systematic and objective type description of an employee\’s strength and weakness in terms of the job.
  • The appraisal is an ongoing and continuous process where the evaluation is arranged periodically as per the predetermined plan.
  • The performance appraisal digs out the essential information for making correct decisions and objectives to the engaged employees in the organisation.
  • Performance of the employees in the organisation may be formal and informal. The formal system is more fine and appropriate along with discipline, and objective since it is carried out throughout a systematic manner using printed appraisal forms.

OBJECTIVES OF PERFORMANCE APPRAISAL

Performance appraisal can be done with various objectives. Which objectives can be classified under the following four levels.

  • Work Related Objectives
  • Career Development Objectives
  • Communication
  • Organisational Objectives
  • To access the work of employees in relation to the job requirements.
  • To improve efficiency
  • To help management in fixing employees payout according to their capacity, interest, aptitude and qualifications on the job.
  • To carry out job evaluation

B). Career Development Objectives

  • To assess the  strong and weak points in the working of the employees and finding remedies for weak points throughout the training.
  • To determined career potential
  • To plan promotions, transfers, lay offs etc. of the employees.
  • To plan career goals

C). Communication

  • To provide feedback to the employees so as to know where they are standing and can improve their job performance
  • Established the goals clearly as what is expected by management from the employees in terms of performance and future work assignments.
  • To provide career planning, coaching, counselling and motivation to employees.
  • To create positive relations among the superior and subordinate so reduce grievances.

D). Organisational Objectives

  • To find out the basis for the purpose of promotion or demotion
  • To serve as a basis for the wages and salary administration and considering pay increments and increases.
  • To provide a basis for the purpose of suitable planning training and development programs.
  • To provide a basis for the transfer or termination in case of reduction in the staff strength.

ESSENTIAL OF AN EFFECTIVE PERFORMANCE APPRAISAL

Performance appraisal process must fulfil the following essential to its successful plan.

  • Mutual Trust and Confidence
  • Training to appraisers
  • Standardisation
  • Specific Objectives
  • Validity
  • Reliability
  • Job relatedness
  • Feedback
  • Individual Difference
  • Post appraisal Interview
  • Review and Appeal

1). Mutual Trust and Confidence:-

An atmosphere of mutual trust and confidence in the organisation is a must for an effective system of performance appraisal. The system of performance appraisal must be so convenient that both supervisor and subordinate should be able to discuss matters frankly and offers can be suggested then. Which might be beneficial for the organisation as well as it will lead to the improvement of the employees.

(2). Training to appraiser:-

The appraiser should be trained properly so that they have no personal biases and pose capability for evaluation of employees. Because a trained appraiser can evaluate his subordinate properly than those appraisers who had not undergone such training.

(3). Standardisation:-

Appraisal process, forms, administration of techniques, ratings must be standardised because appraisal decisions affect all employees of the group. It will be helpful to ensure uniformity and comparison of ratings across the industry products. Thus, appraisal techniques must measure which they are supposed to measure. 

(4). Specific Objectives:-

The appraisal plan must be designed to achieve specific objectives. The objectives should be concerned, timely and open. Thus, collected data must be tailored in order to achieve the objectives of the appraisal. So all essential factors must be considered based on the specific objectives.

(5). Validity:-

Appraisals must satisfy the condition of validity. Because every appraisal must provide essential information for which it is expected by the appraisal. As provided, information must be trusted and reliable. Which can provide valuable information to the management about the employees performance.

(6). Reliability:-

The top management should create such a climate reliable appraisal across the organisation. Open communication, informal relationships and goal orientation are the basic elements of such a climate.

(7). Job Relatedness:-

Every appraisal must focus on the job behaviour and performance of the employees. Performance must be weighted more than personality traits. Suggestion for improvement must be directed towards the objective facts of the job. The individual as like a person must not be criticised.

(8). Feedback:-

Manager and supervisor don\’t hesitate to communicate negative impacts to the existing employees. Whatever negative impact is floating around the employees must be communicated to the employees. Because they may get active to try to improve their performance.

(9). Individual Differences:-

Individual differences among the organisation must be oriented in the organisation. First of all a particular technique must be governed by considering such factors as the size, financial resources, goals and objectives of an organisation.

(10). Post Appraisal Interview:-

An interview must be arranged with the employees after the successful appraisal. It is necessary to supply feedback, to know the difficulties under which employees are working as well as identify their training needs. A problems solved approach must be adopted after the interview with employees. Then counselling must be provided for improving the performance of employees.

(11). Review and Appeal:-

There must be provision of appeals against appraisals to ensure confidence of the existing employees as well as their unions. However, a proper mechanism must be provided for review of ratings. The review may be made by a particular committee in which line executives and personnel experts.

Conclusion:-

Thus performance appraisal should be used primarily to develop the value of employees\’ resources in the organisation. Then management can expect valuable results as per their expectations from the employees. However, there is no particular method which can be used for the employees appraisal. Thus, While the appraisal applies across the organisation then the above discussed essential must be considered.

FAQs

Why is appraisal performance needed?

As we know that every organisation must be oriented with the performance of the employees. Their working conditions and their place of work along with setting up a tool box must be accessed by the management. Because if they don\’t know the essentials of the work then, they are unable to provide any convenient system for working to the employees.

They are also unable to provide proper training to the employees for their efficient work in the organisation. So management must appraise the performance of the employees. In which an appraiser collects information about the individual employees then after a prepared report on the performance of the employees, then essential remedial action would be taken to raise the performance of employees in the organisation. 

Note :- Essential question

You can also read the following essential question. This is concerned with HRM. 

What is the Meaning, objectives and methods of job analysis?

Suggestion

When you\’re tired on the way to study you can read love laden poetry from the given category as per your interest for the purpose of refreshing your mind. 

Performance Appraisal 

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