Performance Appraisal

1st thing is how we can define PA, it may be defined as an assessment of an

individual’s performance in a systematic way,if we wish to brake down this how
we can brake down? there is a word called assessment which means u are
evaluating something and what you are evaluating? u are evaluating individual
performance and who is this individual he is an employee , so basically what we
are doing, we are evaluating performance of an employee in a very systematic
way, systematic means there is a process

So basically the three main things in PA are 1 st we need to evaluate, whom to

evaluate = employees and how to evaluate in a systematic way

Now the next ques is on what factors we will assess

First is obviously

Job knowledge – awareness/understanding abt the job i.e the procedure to carry
out the job, technical info, laws, resources etc

Quality & Quantity of output : if the job is related to manufacturing /sales – so

how much units is he producing keeping in mind the quality or in sales does he
achieves targets in given time

Leadership abilities : we also assess leadership abilities coz we require future

leaders for our org

Supervision required : how much supervision is required ie we need to check the

independence it means that can he/she carry out his/her task independently or is
dependent requires assistance of others

Dependability, Co-operation etc means how much he/she is reliable, trustworthy,

and how much cooperative he/she is

So depending on these above parameters org assess the P of their employees in a

systematic way and that’s called PA
So the definition given by Dale S. Beach states that It is a systematic evaluation of
individual with respect to his/her performance on the job and his/her potential
for development

Why Performance Appraisal

It provides a review of past performance why review inorder to judge the gap
between actual and desired performance

To take administrative decisions based on performance like Promotions etc-

obiviously in an org we need to carry out promotions & transfers, people shift
from 1 level to other in hierarchy so how these thing will be in place without PA.
thus PA is base for such administrative descisions

To confirm the services of employees on probation –mainly the newly joined

employees has to undergo a probation perios of 6 months or an year, based on
the performance of this period org takes decision whether to confirm an
employees of tata bye bye an employess

To assess the training need of the employee = when we carry out PA we

understand n number of things about our employees, particularly the weaknesses
of employees and inorder to overcome the weakness training is a tool used thus
PA helps u in assessing the traing needs of employees

To decide the pay hike of employees

To improve the communications as it provides a platform to subordinate &

supervisor discuss the personal goals and concerns.. entire year everyone is busy
in handling roles & responsibilities PA is the only tool whih gives an opportunity to
supervisor & subordinate to share and discuss about each others expectations,
development etc

Procedure for conducting PA

Setting performance standards PA begins with setting up performance standards
as there should be base on which performance can be judges as Average, Good or
poor

here the organization and its various dept sets the performance std for its
employees for ex in a non voice BPO the DE task is very crucial where in typing
speed and accurary play a major role so such org set their std as 40+wpm as
typing speed with 99 to 100% accuracy is must i.e minimum error is expected
while typing

Communicating Standards these std are thus communicated and explained to all
concerned employees through training instructions, departmental meetings etc
so that they understand what exactly is expected

Measurement of actual performance – This involves selecting right technique of

measurement and identifying internal and external factors influencing
performance, after specific intervals the actual performance is measured and
noted/documented

Comparing Actual with Standards the actual performance is compared with std .
This reveals actual deviation in performance which may be positive /negative

Discussing results the performance The appraisal results are discussed with
employees along with the deviations and the reasons behind it is also discussed
and

Taking corrective actions: Training, Councelling, delegation of authority, advise etc

are examples of corrective actions that help to improve the employees
performance in future

Ranking method oldest and simplest method, appraiser ranks the employee from
best to poor on basis of overall performance

Paired comparision each empl is all other employee in pairs. The num of times the
employee is judged as better than the other determines his rank
Grading method certain categories of performace are defined in advance and
against there grdes like v. good, avg, poor, very poor are given

Forced distribution forces the rater to distribute the ranking of performance of n

empl. Suitable for large org

Checklist: no of questions related to behavior of emplees is asked to the rated

with yes/no as answers

Essay: writing narrative details of strength & weaknesses of the appraisee