PERFORMANCE APPRAISAL
What Is a Performance Appraisal?
A performance appraisal is a regular review of an employee's
job performance and overall contribution to a company. Also known as an "annual review," "performance
review or evaluation," or "employee appraisal". A
performance appraisal evaluates an employee’s skills, achievements and growth,
or lack thereof. Companies use performance appraisals to give employees
big-picture feedback on their work and to justify pay increases and bonuses, as
well as termination decisions.
They can be conducted at any given time but tend to be annual, semi-annual or
quarterly.
Another definition,
Performance
appraisal is the systematic evaluation of the performance of employees and to
understand the abilities of a person for further growth and development.
Systematic
ways of Performance Appraisal-
1-The supervisors measure the pay of employees
and compare it with targets and plans.
2- The supervisors analyses the factors behind
work performance of employees.
3- The employers are in position to guide the employees for a better performance.
Objectives of Performance Appraisal-
1.
To maintain records in order to determine compensation packages,
wage structure, salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right men on right job.
3.
To maintain and assess the potential present in a person
for further growth and development.
4.
To provide a feedback to employees regarding their
performance and related status.
5.
To provide a feedback to employees regarding their
performance and related status.
6.
It serves as a basis for influencing working habits of the
employees.
7. To review and retain the promotional and other training programmes.
Advantages of Performance Appraisal- 
1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case.
2.
Compensation: Performance Appraisal helps in chalking out compensation packages
for employees. Merit rating is possible through performance appraisal.
Performance Appraisal tries to give worth to a performance. Compensation
packages which includes bonus, high salary rates, extra benefits, allowances
and pre-requisites are dependent on performance appraisal. The criteria should
be merit rather than seniority.
3.
Employees Development: The systematic procedure of performance appraisal helps the
supervisors to frame training policies and programmes. It helps to analyse
strengths and weaknesses of employees so that new jobs can be designed for
efficient employees. It also helps in framing future development programmes.
4.
Selection Validation: Performance Appraisal helps the supervisors to understand
the validity and importance of the selection procedure. The supervisors come to
know the validity and thereby the strengths and weaknesses of selection
procedure. Future changes in selection methods can be made in this regard.
5.
Communication: For an organization, effective communication between employees
and employers is very important. Through performance appraisal, communication
can be sought for in the following ways:
a.
Through performance appraisal,
the employers can understand and accept skills of subordinates.
b.
The subordinates can also understand
and create a trust and confidence in superiors.
c.
It also helps in maintaining
cordial and congenial labour management relationship.
d.
It develops the spirit of work
and boosts the morale of employees.
All the above
factors ensure effective communication.
6. Motivation: Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a person’s efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the future.
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