Performance appraisal is an integral component of succession plan and career development program in any organization. As a meaningful format it helps recognize gaps between previously set organizational targets and achievements in terms of actual deliverance on the part of the employee. The method helps evaluate expected performance of the employee in terms of his worth and magnitude of services delivered in a definite time span. Besides suitability it also helps recognize his cost to the company. Performance appraisal is instrumental in achieving following purposes
o Helps giving feedback to the employee of his performance
o The review is documented and forms the basis of the measure to assign organizational rewards.
o Personal appraisal of an employee helps in formulating personal decisions like merit based salary increases, promotions or even disciplinary actions against employees whose performance is not up to the mark.
o Helps recognize training needs
o It is an opportunity to diagnose the overall performance of an organization and chalk out ways for its future development strategies.
o Performance appraisal validates human resource policies and ensures statutory compliance of equality of employment called for in any standard organization.
Popular techniques of appraising an employee by most organizations are namely
1. Management by objectives: The term was introduced by the notable management guru Peter Drucker in 1954 in his famous work 'The Practice of Management'. This is a mutually accepted document in which the supervisor and the employee jointly agree upon certain set of expected goals which they lay down to achieve in a predetermined time period. The commitment is written down to avoid any confusion at the time of monitoring the achievements.
o Furthermore it has to be ensured that set targets are not unfeasible. Management by objectives includes in its fold the attributes of SMART. This means that the set goals are specific, measurable, attainable, realistic and time-specific.
o However in recent times this type of appraisal has come under much criticism on account of misappropriation of figures and other features of set targets by employees.
2. 360 degree appraisals: This technique of employee assessment was made on the basis of research studies conducted by Arizona State University. It calls for the appraisal of an employee by his superiors, peers and subordinates in the overall organizational hierarchy. It is found that rater who knows the employee for a period between 1-3 years gives the best results in terms of accuracy and authenticity. It helps get a complete wholesome picture of an individual in terms of not only achieving targets but also helps understand behavioral patterns.
o 360 appraisals helps identify critical attributes in the individual employee. It assists in detecting training needs instrumental in future development in other roles besides make salary decisions.
o The data collected by the 360 degree technique helps in devising a complete individual development program. This improves retention and job satisfaction when under-utilized attributes of the employee are positively engaged by the organization upon its identification.
While undertaking any employee appraisal, care should be taken that it is realistic and a meaningful reflector of the employee skills and other key performance attributes for which it is devised.
o Ensure that the goal of performance appraisal is not lost in mere completion of paper works. It should serve the real purpose for which it is authenticated.
o It pays to remember performance appraisal is a close intercommunication between the employee and his supervisor jointly over mutually agreed upon goals. Customized software pertaining to performance appraisal should be discouraged. Substituting human process by mechanization does not fulfill the overall objectives of employee assessment and review. An intimate partnership between the employee and his immediate supervisor serves the purpose much better rather than the meaningless interventions of other functionaries.
o Helps giving feedback to the employee of his performance
o The review is documented and forms the basis of the measure to assign organizational rewards.
o Personal appraisal of an employee helps in formulating personal decisions like merit based salary increases, promotions or even disciplinary actions against employees whose performance is not up to the mark.
o Helps recognize training needs
o It is an opportunity to diagnose the overall performance of an organization and chalk out ways for its future development strategies.
o Performance appraisal validates human resource policies and ensures statutory compliance of equality of employment called for in any standard organization.
Popular techniques of appraising an employee by most organizations are namely
1. Management by objectives: The term was introduced by the notable management guru Peter Drucker in 1954 in his famous work 'The Practice of Management'. This is a mutually accepted document in which the supervisor and the employee jointly agree upon certain set of expected goals which they lay down to achieve in a predetermined time period. The commitment is written down to avoid any confusion at the time of monitoring the achievements.
o Furthermore it has to be ensured that set targets are not unfeasible. Management by objectives includes in its fold the attributes of SMART. This means that the set goals are specific, measurable, attainable, realistic and time-specific.
o However in recent times this type of appraisal has come under much criticism on account of misappropriation of figures and other features of set targets by employees.
2. 360 degree appraisals: This technique of employee assessment was made on the basis of research studies conducted by Arizona State University. It calls for the appraisal of an employee by his superiors, peers and subordinates in the overall organizational hierarchy. It is found that rater who knows the employee for a period between 1-3 years gives the best results in terms of accuracy and authenticity. It helps get a complete wholesome picture of an individual in terms of not only achieving targets but also helps understand behavioral patterns.
o 360 appraisals helps identify critical attributes in the individual employee. It assists in detecting training needs instrumental in future development in other roles besides make salary decisions.
o The data collected by the 360 degree technique helps in devising a complete individual development program. This improves retention and job satisfaction when under-utilized attributes of the employee are positively engaged by the organization upon its identification.
While undertaking any employee appraisal, care should be taken that it is realistic and a meaningful reflector of the employee skills and other key performance attributes for which it is devised.
o Ensure that the goal of performance appraisal is not lost in mere completion of paper works. It should serve the real purpose for which it is authenticated.
o It pays to remember performance appraisal is a close intercommunication between the employee and his supervisor jointly over mutually agreed upon goals. Customized software pertaining to performance appraisal should be discouraged. Substituting human process by mechanization does not fulfill the overall objectives of employee assessment and review. An intimate partnership between the employee and his immediate supervisor serves the purpose much better rather than the meaningless interventions of other functionaries.
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