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Performance
Appraisal
EXECUTIVE SUMMARY
Managing employee performance in an organization is the most important task of the HR manager.
HR manager need to continuously monitor the performance of each and every employee as well as
every branch. On that basis HR manager give rating to individual employee and branch. If HR
manager found good performance of any employee than he need to appreciate employee to
continue the performance or enhance the performance. If HR manager found that work of employee
or branch is not at the level the firm needs than either discouraging them HR manager has to
encourage them by giving motivation. Overall, HR manager need to appraise the performance of
employees.
The department of human resource needs to find various ways of performance appraisal of
employees. HR manager need to plan different ways of performance appraisal like better reward,
better infrastructure facility, better basic facilities like food, water etc. HR manager need to plan
better mechanism for performance appraisal.
To achieve the objective of organization HR manager need to identify goals of organization. They
need to accomplished and communicate individual and organizational goals with the employees. HR
manager need to understand the demand of employees. What they exactly wanted fro the
organization? It may be reward, facility or anything else. So, for success of any organization
performance appraisal is needed.
The HR management focus on various process for performance appraisal
as follows:
 Planning :of work and goal
 Monitoringperformance of employees and branches
 Developing the ability of employees so they become able to perform
 Rating Give rating to employees and branches on the bases of performance
 Rewarding If HR manager found good performance of employee or branch
than he should reward the employee or branch.

BACKGROUND
The duty of HR manager is not only to recruit and select the right candidate for the right job. After the
process of employee selection, HR manager need to focus on performance appraisal of the
employees. I think performance appraisal is the most important task of HR manager. Performance
appraisal can do in many ways. First, give the proper reward for the appraisable work done by
employee or branch. Second, understand the demand of the employees and try to fulfill it. Third, try
to solve the problems of employees and branch as early as possible. Fourth, encourage them by
arranging various motivational seminars or training sessions. There is one basic rule of industry that
is, “if you give good to your employees, you will get good in return.”
The HR manager can also arrange the negotiated appraisal. If there is two way communication in
the organization means top to bottom and vice versa than top level can understand the need of the
operational level employees. While in traditional performance appraisal process there is only one
way communication. So, top manager can not understand the need of operational managers. So,
this is not an effective way for performance appraisal. Is that meaning that we should not use the
traditional approach for performance appraisal? No, experts are experts they know the current
scenario of the organization. So, they know that what to do for improving performance of individual
and organization. If any employee argues about raising of salary than top management can take
wise decision for raising salary. For example they can suggest employee for performance base pay
that what you perform that you will get as reward. So, I can say that using negotiable performance
appraisal approach is not always a good idea. The other disadvantage of the negotiable
performance appraisal approach is that it takes almost 12 months time to respond because top
management take view of every employee so it become very lengthy process. While traditional
approach have not require that much of time.
Why Performance Appraisal?
The one question comes in mind that why we need performance appraisal. Performance appraisal is
a way to validate the organizational processes like selection and training. It provides feedback to
employees for improvement of performance in the organization.
Validating organizational actions
Employee’s recruitment process from interview to training is a very complex process. But above that
performance appraisal is more complicated process than that process of recruitment. When top
management announced any different method for incentive pay than they need to monitor the action
that whether employees are satisfied with the new method or not. They need to evaluate the
performance of employees and branches after implementing new method for pay.

The evaluation of method may give new idea for organization for establishing new practices. For
example HR manger fund that store manager has more conflicts than any other employees after
implementing new method of pay. The other options for appraisal may be paying more attention to
new employees, encouraging communication between employees, giving supervision individually.
The data we found after adopting various performance appraisal techniques are very interesting.
Employees are able to plan for long term, employee encourages to perform more, and employees
behave with more discipline. HR manager need all the data after performance appraisal to know the
current situation of the organization but it is very lengthy process to achieve whole data.
Employee need for feedback
Performance appraisal is not a one way process. After establishing performance appraisal HR
manager need feedback from the employees that what they actually get, whether they really
encourage by the method implementation. HR manager need to take feedback of every employee
after implementing the performance appraisal method. For example if HR manager implement new
time duration for work than HR manager need to find out all the employees in the organization are
happy or not. HR manager has to take feedback of every employee what they fill after
implementation of new time duration.
It is true that HR manager is always wondering for positive feedback from their employees but it can
be not possible all the time. Once HR manager selects any person as an employee in the
organization than that person has to follow all the rules and regulation of the organization. HR
manager can take feedback of new employee also what they fill after working in the organization. On
the bases of the experience of new employee HR manger can change his policy of performance
appraisal. For better performance HR manager need to continuously monitor the performance of
every employee and every branch. For better performance HR manager need to be more flexible
with the employees so employees can share their views and onions with them. HR manager can
know the need of employees and help them for improving the performance.
HR manager receives both type of feed back it may be qualitative or quantitative. We know that
qualitative comment can be more descriptive explaining the entire thing in more detail. while
quantitative comments are more base on numerical performance in terms of growth of organization
or any other numerical information. I think HR manager needs both type of feedback for better
performance in the organization.
RESEARCH AIMS AND OBJECTIVES
Title of the Project:
“A study of performance appraisal for the human resource department toward
encouraging the employee for better performance”
Objectives:
 T o s t u d y w h a t i s
p e r f o r m a n c e a p p r a i s a l a n d
w h y o r g a n i z a t i o n n e e d s i t .
 T o s t u d y t h e d i f f e r e n t w a y s
o f p e r f o r m a n c e a p p r a i s a l .
 T o s t u d y t r a d i t i o n a l a n d
n e g o t i a b l e p e r f o r m a n c e a p p r a i s a l
m e t h o d s .
 T o s t u d y c h a l l e n g e s f o r H R
m a n a g e r f o r p e r f o r m a n c e a p p r a i s a l .
Scope
 S t u d y o f p e r f o r m a n c e
a p p r a i s a l , i t s t e c h n i q u e s
a n d i t s i m p l e m e n t a t i o n .

METHODS OF DATA COLLECTION

Primary methods
Questionnaire
Secondary methods

1. Magazines.

2. Newspapers
3. Websites

4. Books

5. Other projects.
Here, I will use only secondary methods for the analysis of this project because
of limited time duration.

DISCUSSION
“Performance techniques tell employees of organization what they are
doing and standards of those techniques tell them what they can do”
Performance appraisal is a technique for evaluating the performance of employees and encouraging
them to work more efficiently. The word efficient includes both quantitative as well as qualitative
performance.
There are various ways for performance appraisal we will understand each in
detail as follows:
1 - Planning
In any organization work is always planned in advance. It included setting of performance standards
and goals for organization as well as for individual. Involving employees in the planning process help
them to establish the goal of organization. Employees can know what they are doing and what they
can do to accomplish the goal of the organization.
HR manager uses several documents or sources to establish better planning for
employees and organization. These things include following things:
 G o a l s a n d o b j e c t i v e o f t h e
o r g a n i z a t i o n n e e d t o b e
m e n t i o n e d i n t h e
strategic plan
 H R m a n a g e r n e e d t o
e s t a b l i s h e d S p e c i f i c
p e r f o r m a n c e g o a l s f o r a g i v e n
task for a particular employee and also need to mention in the
performance plan

 H R m a n a g e r a l s o n e e d t o

e s t a b l i s h e d p l a n e f o r p a r t i c u l a r

b r a n c h

 H R m a n a g e r a l s o n e e d t o d e f i n e

f u n c t i o n a l o r o r g a n i z a t i o n a l
g o a l s

 H R m a n a g e r n e e d t o

e s t a b l i s h e d a l l t h e p o l i c y

r e l a t e d w i t h t h e
management
 H R m a n a g e r n e e d t o k n o w t h e
a l l t h e l e g a l c o n s i d e r a t i o n
 H R m a n a g e r a l s o n e e d t o t a k e
r e g u l a r f e e d b a c k o f c u s t o m e r s
a n d
stakeholders time by time

 H R m a n a g e r n e e d t o d e s c r i b e
p o s i t i o n o f a l l t h e e m p l o y e e s
2 - Monitoring
HR manager always looking for effective and timely feedback during the period of monitoring. This is
very important task for the HR manager for establishing standards elements of a successful
performance management program. Employees themselves need to know their own performance
means they need to monitor themselves. The need to know how they are performing and what they
can get with their performance. They need to know themselves for area of improvement although HR
manager also monitor them.
HR manager can get feedback from various sources like by observing the employee, by rating the
employees and branches, by measuring the system overall performance (numerical data), by taking
feedback of customers and other stakeholders, by taking direct feedback of employees. Whatever is
the way for feedback but HR manager need to know the performance of employees.
Some issues that are related with the monitoring the employees are as follows:
(For both employees & supervisors)
 G o o d c o m m u n i c a t i o n s k i l l
 T r a i n i n g w h e n e v e r t h e y n e e d s
( O J T o r f o r m a l )
 H R m a n a g e r n e e d t o p r o v i d e
s u f f i c i e n t k n o w l e d g e a b o u t
d i f f e r e n t s k i l l s s o
they can know perform better.
 H R m a n a g e r n e e d t o e x p l a i n t h e
e m p l o y e e s a b o u t w o r k t h e y a r e
d o i n g
that is challenging or satisfactory
 H R m a n a g e r n e e d t o h a n d l e t h e
d e l e g a t i o n o f a s s i g n m e n t s
 H R m a n a g e r n e e d t o b e s u r e
t h a t h e i s G e t t i n g / g i v i n g
r e g u l a r f e e d b a c k

3 –Developing Employees
The process of performance appraisal gives an excellent way to identify the needs of the employees.
During planning and monitoring of performance HR manager faces several problems, but this
problems are helpful in development of employee by providing them better facilities and working
conditions. The effort of performance appraisal help HR manager to established the better and
improve working environment in the organization.
Development of employees means not just giving training to the employees but it is more than that.
Developing employees includes all the things like learning, means employees learn something new
in the organization everyday. When HR manager focuses on not just giving training to the
employees but also focuses on development of the employees so employees can handle any difficult
situation. SO, employees can survive in any circumstances.
While developing any employees HR manager can arrange various techniques
as follows. This can be not possible in any formal training.
 F e e d b a c k : I t i s a v e r y n e u t r a l
p r o c e s s t h a t a n y H R m a n a g e r
c a n g e t
feedback from any employees at any time. The feedback can be in any form by observing the
employees, by taking feedback of customers and stake holders, or by taking direct feedback of
employees
 J o b r o t a t i o n s a n d s p e c i a l
a s s i g n m e n t s : I t i s a l s o o n e o f
t h e g o o d
options for development of employees, if work of employees gets changed
regularly than they can learn new things.
 C o a c h i n g a n d
c o u n s e l i n g : H R
m a n a g e r c a n a r r a n g e
e x p e r t s e m i n a r s
which guide the employees for better performance
 M e n t o r i n g : H R m a n a g e r t a k e
c a r e o f e m p l o y e e s t o c l a r i f y
t h e i r g o a l s ,
understanding the need of the organization and analyzing SWOT analysis
of employees themselves.
 U s i n g t h e m a n a g e r a s a n
i n f o r m a l t e a c h e r : H R m a n a g e r
c a n b e a n
informal teacher of employees who guide the to learn the management
tactics
 L e a r n i n g t e a m s : H R m a n a g e r
c a n d e v e l o p o n e t e a m w h o l e a r n
t h e o t h e r
employees for better performance
 S e l f - d e v e l o p m e n t : H R m a n a g e r
c a n a r r a n g e v a r i o u s t e c h n i q u e s
f o r s e l f
development of the employees like showing encouraging videos etc. at
other organizations.
4 - Rating
After doing so much hard work of development of employees HR manager works doesn’t over. He
needs to now give rating to the various employees and branches on their performance. This rating
should be give on performance of entire 12 moths or he can temporary give rating for quarter period.
If HR manager found good rating of the employee or branch than he may give reward in terms of
money or any other thing. If HR manager found lower rating of any employee or branch either
discouraging them HR manager need to encourage them for better performance next time.
5 - ACTIONS BASED ON PERFORMANCE
After rating individual employee and branch HR manager need to give some reward to the employee
or branch that perform better and have higher grade in rating. The HR manager can reward them
with the money or He can arrange one function for appreciating their performance and can give them
award in the function so other employees can see the thing and encourages getting award next time.
So, it becomes one kind of competition among employees. The employees or branches who fail to
achieve the higher rank for that HR manager need to apply more effort and try to encourage them.

CONCLUSION
I can conclude that performance appraisal is an important task for HR manager for development of
the organization. The main objective of performance appraisal includes validation of employees and
other management practices, helping employees to understand and taking responsibility for their
performance and making decisions about rewards.
The main task of HR manager is to get useful information which can determine the type if data to be
collected as we; as who can be appreciate for his work this all thing is depends upon rating of the
employees or branch which is given by HR manager on overall performance of the employee or
branch for whole year. Typical rating includes how employee works, how employee make decisions
in any situation after looking the entire criteria HR manager decided rating of different employee.
The negotiated performance appraisal techniques are useful in making additional decisions for
employees and owner. This technique includes two way communication so employee can also give
their feedback to the top management. So this technique is very useful in establishing a better
performance management. The only disadvantage of this technique our traditional performance
appraisal technique is that it is more time consuming.
Finally, I can say that performance appraisal is the necessary task for organization. Always
employees want to know that what top management is thinking for their work they are doing. So, this
performance appraisal is a good technique to interact employers and employees

REFRENCES
1. Performance management
<http://www.mbaguys.net/t1825/>
(Accessed on 21st Aug 2009)
2. Performance appraisal
<http://www.mbaguys.net/t1826/>
(Accessed on 21st Aug 2009)
3. Performance Appraisal Handbook
A Guide for Managers/Supervisors and Employees
<http://www.doi.gov/hrm/guidance/370dm430hndbk.pdf&ei=fYGOSunMCIyJkQW
0PW7Cg&sa=X&oi=spellmeleon_result&resnum=1&ct=result&usg=AFQjCNFgQ
ptmtWDPwKQ2AEOsFKOX972wzA>
(Accessed on 21st Aug 2009)
4. Archer North
Introduction to Performance Appraisal
<http://www.performance-appraisal.com/intro.htm>
(Accessed on 21st Aug 2009)
5. Performance appraisal
From Wikipedia, the free encyclopedia
<http://en.wikipedia.org/wiki/Performance_appraisal>
(Accessed on 21st Aug 2009)
6. Performance Appraisal (Negotiated Approach)
University Of California
<http://www.cnr.berkeley.edu/ucce50/ag-labor/7labor/06.htm>
(Accessed on 21st Aug 2009)