PERFORMANCE APPRAISAL

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INTRODUCTION
PERFORMANCE MANAGEMENT:

It

values and encourages employee development through a style of

management which provides frequent feedback.

It emphasizes communication and focuses on adding value to the Organization by promoting improved job performance and encouraging

skill development.

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Introduction

Performance appraisal systems began as simple methods of income justification.

The basic idea of the appraisal is to evaluate the performance of the employee, giving him a feed back.

Identify areas where improvement is required so that training can be provided.

Give incentives and bonus to encourage employees etc.

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meaning
Performance appraisal :

It is the assessment of individuals performance The performance is measured against job knowledge, quality and quantity of output, leadership abilities, judgment, initiative etc.

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Definition

It is a systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.

Performance appraisal is a formal , structured system of measuring and evaluating an employees job related behaviors and outcomes to discover how and why the employee is presently performing on job and how the employee can perform more effectively in the future so that the employee, organization, and society all benefit.

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Objectives of performance appraisal

To improve the performance of employees and increase their future potential

To provide a feedback to employees regarding their performance and related status.

It serves as a basis for influencing working habits of the employees. To review and retain the promotional and other training programmes. To determine the effectiveness of HR programmes to determine compensation packages, wage structure, salaries raises, etc. Helps to strengthen the relationship and communication between superior
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subordinates and management employees.

Reasons of using Performance appraisal are:

Making payroll and compensation decisions Training and development needs Identifying the gaps in desired and actual performance and its cause Deciding future goals and course of action Promotions, demotions and transfers Other purposes (including job analysis and providing superior support, assistance and counseling)

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