MEANING AND PROCESS OF PERFORMANCE APPRAISAL

DEFINITION: 

A formal definition of performance appraisal is

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

Performance appraisal may be understood as the Assessment of individual’s Performance in a Systematic way, the performance being measured against factors such as job knowledge, quality and quantity output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility, health and the like. Assessment should be confined to past performance alone. Potentials of the employee for future performance must also be assessed. 

IN THE WORDS OF Q4P:- (PAPS)

Performance appraisal is a Method of evaluating the behavior of Employees in the work spot, normally including both the Quantitative and Qualitative aspect of job performance. Performances here refer to the degree of accomplishment of the tasks that make up an individual’s job. It indicates how well an individual is fulfilling the job demands. Often the term is confused with effort, but performance is always measured in terms of result and not efforts.

IN THE WORDS OF Q4P:- (PMEQ2)

FEATURES OF PERFORMANCE APPRAISAL (PTPAPT)

(P).Performance appraisal is the systematic description of an employee’s job relevant strengths and weaknesses.

(T).The basic purpose is to find out how well the employee is performing the job and establish a plan of improvement.

(P).Performance appraisal is not job evaluation. It refers to how well someone is doing the assigned job. Job evaluation determines how much a job is worth to the organization and there for, what range of pay should be assigned to the job.

(A).Appraisals are arranged periodically according to a definite plan.

(P).Performance appraisal is a continuous process in every large scale organization.

(T).Basic for determining wage system and incentive systems.

 IN THE WORDS OF Q4P:- (PT PA PT)

PROCESS OF PERFORMANCE APPRAISAL (EC MC DC)

Performance appraisal is planned, developed and implemented through a series of steps:

 

E) Establish Performance Standards.

Appraisal systems require performance standards, which serve as benchmarks against which performance is measured. In order to be useful, standards should relate to the desired results of each job. Appraisals must have a clear- cut criteria. Performance standards must be both to the appraiser and the appraise. The performance standards of goals must be developed after a thorough analysis of the job. Goals must be written down. They must be measurable within certain time and cost considerations.

C) Communicate the Standards.

Performance appraisal involves attract two parties; the appraiser who does the appraisal and the appraise whose performance is being evaluated. Both are expected to do certain things. The appraiser should prepare job descriptions clearly, help appraise set his goals and targets; analysis results objectively; offer coaching and guidance to appraise whenever required and reward good results. The appraiser should be very clear about what he is doing and why he is doing. For this purpose, the performance standards must be communicated to appraise and their reactions are noted initially. These standards must be revised or modified as and when required.

M) Measure Actual Performance.

After the performance standards are set and accepted, the next step is to measure actual performance. This requires the use of dependable performance measures, the ratings used to evaluate performance. Performance measures in order to be helpful must be easy to use, reliable and report on the critical behaviors that determine performance. Generally, managers regarding how to measure actual performance use four common sources of information: personal observation, statistical reports, oral reports and written reports.

C) Compare Actual Performance with Standards 

Actual performance may be better than expected and sometimes it may even go off then track. The assessment of another person's contribution and ability is not an easy task. It has serious emotional overtones as it affects the self-esteem of the appraise. Any appraisal asked on subjective criteria is likely to be questioned by the appraisers and leave him quite dejected and unhappy when the appraisal turns out to be negative.

D).Discuss the differences

If there have any major difference between actual and standard, that will be discussed in management and discuss with particular employee or group.

C).Corrective Action, if Necessary.

Corrective action is of two types: The one, which puts out the fires immediately and the other one, which strikes at he root of the problems permanently. Immediate action sets things right and get things back or track, whereas the basic corrective action gets to the source of deviations and seems to adjust the difference permanently. Basic corrective step seek to find out how and why performance deviate.

IN THE WORDS OF Q4P:- (EC MC DC)

IMPORTANT POINTS

1. (PAPS)

2. (PMEQ2)

3. (PT PA PT)
4. (EC MC DC)