Definitions

According to Newstrom, It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance.

Meaning
Performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job. It helps to analyze employee achievements and evaluate his contribution towards the achievements of the overall organizational goals.

WHY TO DO PERFORMANCE APPRAISAL????

Gives employees feedback on performance. Identify the training needs. Deciding factor for promotions. Basis for some decisions like salary hikes, bonuses etc. Facilitate communication between employer & employee.

Use The SMARRT Criteria For Setting Goals:

Specific: so the employee knows exactly what is expected Measurable: so the employee knows when the goal is achieved Achievable: accomplished with effort and/or skill Realistic: doable within reason Results oriented: focus on end-result Time bound: identify deadlines

Objectives of Performance Appraisal

According to:
Employee Organization

Concrete and tangible Measuring the efficiency particulars about their Maintaining work organizational control. Assessment of Aims at: performance
Personal development work satisfaction involvement in the organization. Mutual goals of the employees & the organization. Growth & development Increase harmony & enhance effectiveness

Process
Setting performance standards

Taking corrective standards

Communicating standards

Discussing results Comparing standards

Measuring standards

What is appraised?

Behavior Results Overall Performance Improvement Potential Any other factors

Who appraises?

Immediate Supervisor Subordinates Peers Self-appraisal Customer Appraisal

Clients Subordinates Immediate Supervisor

360 Degree

Raters

Peers

SelfAppraisal Outsiders

Committees

Periodicity of Appraisal

Prepared at specific Intervals Usually annually or semi annually Period may begin with employees date of hire. All employees may be evaluated at same time.

Uses of Performance Appraisal

Human Resource Planning Recruitment & Selection Training & Development Career Planning & Development HR Decisions Assessment of employee potential

Potential Appraisal

It is to identify the potential of the concerned employee to consider him for higher positions in the organizational hierarchy and consequently higher responsibility. Identification of hidden talents and skills of a person, the person might or might not be aware of them. Help the organization chalk out of a suitable succession plan. Upgrade training efforts from time to time Advise employees about what they must do to improve their career prospects

Current Performance & Potential Performance Management

Current Performance : Those competencies which an employee already have to perform all the tasks of his/her current job. Potential Appraisal: potential of the concerned employee to consider him for higher positions (in future) in the organization.

Current Performance & Potential Performance Management

Developed Strength
D B GE C A

Natural Strength
H

Development Need F

Untapped Potential

Key to Table
Cod Competency Name e A B C D E F G Deciding and Initiating Action Working with people Relating and Networking Writing and Reporting Learning and researching Planning & Organizing Adapting and Responding to change Cod Competency e Name

Achieving personal work goals and objectives

Team appraisal Many are yet to accept this method of appraising performance. It does not reflect individual performance level. Every member of the team is given the same reward for every member of the team including those who had made minimum contribution. There is the possibility of the presence of free riders.