performance appraisal project(under progress)

8/7/2019 Performance Appraisal project(under progress)

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ACKNOWLEDGEMENT

Preparing a project of this nature is an ardous task and I was fortunate to get a support

from a large number of people to whom I shall always remain grateful. I would like toexpress my gratitude to L & C Iinfrastructures Pvt Ltd for allowing me to undertake this

project.

I would take this oppurtunity to thank Mr. Guruprasad for providing me with an

oppurtunity to work for L & C Iinfrastructures Pvt Ltd.

I am also desirous of mentioning my profound in debtedness to Mr. Madhu Kumar,

faculty member, PES Institute Of Business Management, for the valuable advice, guidance,

precious time and support he offered.

I would be failing in my duty if I do not acknowledge my gratitude to Mr. Venugopal

Naidu, HOD PESBBM, who motivated me a lot in carrying out this project.

Last but not the least I would also like to thank all the respondants for giving me precious

time, relevant information and advice without which I would not be able to complete this

project.


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CONTENTS

SECTION PAGE NO.

1.Company Profile.2.Importance And Purpose.

3.


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PERFORMANCE APPRAISAL

The history of performance appraisal is quite brief. Its roots in the early 20th century can

be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for

the same may be said about almost everything in the field of modern human resources

management.

As a distinct and formal management procedure used in the evaluation of workperformance, appraisal really dates from the time of the Second World War - not morethan 60 years ago.Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale ofthings historical, it might well lay claim to being the world's second oldest profession!There is, says Dulewicz (1989), "... a basic human tendency to make judgements aboutthose one is working with, as well as about oneself." Appraisal, it seems, is bothinevitable and universal. In the absence of a carefully structured system of appraisal,people will tend to judge the work performance of others, including subordinates,naturally, informally and arbitrarily.

The human inclination to judge can create serious motivational, ethical and legalproblems in the workplace. Without a structured appraisal system, there is little chanceof ensuring that the judgements made will be lawful, fair, defensible and accurate.

Performance appraisal systems began as simple methods of income justification. Thatis, appraisal was used to decide whether or not the salary or wage of an individualemployee was justified.

The process was firmly linked to material outcomes. If an employee's performance wasfound to be less than ideal, a cut in pay would follow. On the other hand, if theirperformance was better than the supervisor expected, a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities of appraisal. Ifwas felt that a cut in pay, or a rise, should provide the only required impetus for anemployee to either improve or continue to perform well.Sometimes this basic system succeeded in getting the results that were intended; but


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more often than not, it failed.For example, early motivational researchers were aware that different people withroughly equal work abilities could be paid the same amount of money and yet havequite different levels of motivation and performance.

These observations were confirmed in empirical studies. Pay rates were important, yes;but they were not the only element that had an impact on employee performance. It wasfound that other issues, such as morale and self-esteem, could also have a majorinfluence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. Inthe 1950s in the United States, the potential usefulness of appraisal as tool formotivation and development was gradually recognized. The general model ofperformance appraisal, as it is known today, began from that time.

Modern Appraisal

Performance appraisal may be defined as a structured formal interaction between asubordinate and supervisor, that usually takes the form of a periodic interview (annualor semi-annual), in which the work performance of the subordinate is examined anddiscussed, with a view to identifying weaknesses and strengths as well as opportunitiesfor improvement and skills development.

In many organizations - but not all - appraisal results are used, either directly orindirectly, to help determine reward outcomes. That is, the appraisal results are used to

identify the better performing employees who should get the majority of available meritpay increases, bonuses, and promotions.By the same token, appraisal results are used to identify the poorer performers whomay require some form of counseling, or in extreme cases, demotion, dismissal ordecreases in pay. (Organizations need to be aware of laws in their country that mightrestrict their capacity to dismiss employees or decrease pay.)Whether this is an appropriate use of performance appraisal - the assignment andjustification of rewards and penalties - is a very uncertain and contentious matter.


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IMPORTANCE OF



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Performance appraisals provide employees and managers with opportunities to discuss

areas in which employees excel and those in which employees need improvement.

Performance appraisals should be conducted on a regular basis, and they need not be

directly attached to promotion opportunities.

Personal Attention

During a performance appraisal review, a supervisor and an employee discuss the

employee's strengths and weaknesses. This gives the employee individual face time

with the supervisor and a chance to address personal concerns.

Feedback

Employees need to know when theirjob duties are being fulfilled and when there are

issues with their work performance. Managers should schedule this communication on a

regular basis.

Career PathPerformance appraisals allow employees and supervisors to discuss goals that must be

met to advance within the company. This can include identifying skills that must be

acquired, areas in which one must improve, and educational courses that must be

completed.

Employee Accountability

When employees know there will be regularly scheduled evaluations, they realize that

they are accountable for their job performance.

Communicate Divisional and Company GoalsBesides communicating employees' individual goals, employee appraisals provide the

opportunity for managers to explain organizational goals and the ways in which

employees can participate in the achievement of those goals.


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PURPOSE OF PERFORMANCE

APPRAISAL.


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y Provide information to assist in the HR decisions like promotions,transfers etc.

y Provide clarity ofthe expectationsand responsibilities ofthe functionsto be performed

bythe employees.y To judge the effectiveness ofthe otherhuman resource functions ofthe organization such

asrecruitment,selection,training and development.

y To reduce the grievances ofthe employees.y Helpsto strengthen the relationship and communication between superiorsubordinates

and management employees.

According to arecentsurvey,the percentage of organisations (out ofthe total organisationssurveyed i.e. 50) using performance appraisal forthe various purposesare asshown in the

diagram below:


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The mostsignificantreasons of using Performance appraisalare:

y Making payroll and compensation decisions 80%.

y Training and development needs 71%.

y Identifying the gaps in desired and actual performance and its cause 76%.y

D

eciding future goalsand course ofaction 42%.y Promotions, demotionsand transfers 49%.y Otherpurposes 6% (including job analysisand providing superiorsupport,assistance

and counseling).

Self Appraisal. Performance Appraisal Feedback.

Performance Review Preparation. Performance Consulting:Moving Beyond

Trainning.

Performance Review The Meeting. Writing Performance Appraisal.

HowTo Complete A Performance AppraisalForm.

Performance Appraisal Trainning.

Analysis ForImproving Performance. HowTo Measure Employee Performance.

Active Performance Appraisal Conversation. FAQ AboutPerformance Appraisal.

Self Appraisal :

Selfappraisal isan important part ofthePerformance appraisal processwhere the employee

himself givesthe feedback orhis viewsand pointsregarding his performance. Usuallythis is

done withthe help ofaselfappraisal formwhere the employee rateshimself on various

parameters,tellsabouthistraining needs, ifany,talksabouthisaccomplishments,strengths,


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weaknesses, problems faced etc.

TIPS FOR SELF APPRAISAL

y Be honest

Always be truthful and honestwhile telling youraccomplishments orfailures. Dontexaggerate yourstrengthsand donthide yourweaknesses. Dontmake personal

judgments foranybody.

y Do the preparation

Itsalways betterto prepare yourself before the meeting. Getall the lists in place,

prepare all the evidencesand references.y Be objective

Objectivity is important in self appraisal. Dont exaggerate ordownplayyour

achievements orfailures. Be specific and concise in yourstatementsand if possible

supportthemwith examples orreferences orevidenceswith dates. Forexample: "I

responded to all querieswithin 48 hours" is betterthan justsaying "My customer

service was good."

y Positive attitude

Have a positive attitude towardsthe whole appraisal process. Be co-operative. Dont

hesitate fromtaking the responsibility ofyourfailuresaswell asthe achievements.

Demonstrate enthusiasmto improve in future and take all hissuggestions calmly. Dont

complain ordemonstrate a negative attitude.

y Cover all the aspects

Apart fromyourstrengths,weaknesses,accomplishmentsand failures, expressthe

opportunitiesyou would like have foryourdevelopmentand improvement. Suggest

waysto overcome the problems faced. Assessyourcapabilities, behavioursand skills

and competence.

y Seek future responsibilities

According to the assessment ofthe KSAsaccording to yourjob description, plan the

shorttermand long term forthe nextyear.T

ryto look fortasks beyond yourcurrent jobresponsibilities. Thiswill help in personal developmentaswell as contributing to the

organizational productivity.

Selfappraisal should ideally include the accomplishments,the goalsachieved,the

failures,and the personal growth (i.e. newskillsacquired, preparation forthe future

etc.),the obstacles faced during the period,the efforts forremoving them,the


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suggestions,and the areas oftraining and development felt bythe employee.

.

Performance Review Preparation:

The performance reviewmeeting should not be strictly formal norshould it be completely

informal in nature. Ideally,the review meeting should be structured,semi formal meeting

which needs priorpreparation bythe appraiseraswell asthe employee foritto be effective.

Following are some pointsthat need to be prepared before the reviewmeeting ofPerformance

appraisal:

y Informthe concerned employeesthe date,time and place forthe reviewmeeting well inadvance.

y Reviewand be prepared with eachand every employees .

o Job description.

o Performance standards.o Planned performance goals.

o Performance measures collected throughoutthe time period.o The critical incidents details.o Pastappraisals ofthe employees.

y Be readywithall the important dates.

y Give the employee a copy ofthe appraisal form.

y The appraiserneedsto completely understand the standards forthe employeesatsamelevel to maintain the consistency in the process.

y Prepare whatto sayand howto say it calmly.y The feedbackshould be prepared in quantifiable measureswhere everpossible.

y The appraisershould be familiarwiththe performance review formand the details.y The employee and the appraiserbothshould be prepared to discussand figure outthe

future goalsand training needs.y Theyshould be mentally prepared forconstructive feedback.

y Collectasmany evidencesto supportyourpointas possible like the monthly, quarterlyprogressreports.


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Performance Review Meeting:

Today,performance review meetingsare regarded as conversation witha purpose. Theyare

considered extremely important forthe developmentand health ofthe organization.The purposeofthe performance reviewmeetings isto reachmutuallyagreed conclusionsaboutthe

development ofthe individual and his performance and ifapplicable,anyareas forimprovement,

including howsuch improvementsare to be achieved.

The purpose ofperformance and developmentreviews isto enable the employeesto engage ina dialogue and getthe support ofthe manageraboutthe individuals performance and

development. Theyshould be more like free- flowing, open meetings in which viewsareexchanged so thatagreed conclusions can be reached.

The three key elements of performance reviewmeetingsare:

1.Feedback -Providing information on howa person has been doing.2.Measurement assessing resultsagainstagreed targetsand standards.3.Exchange of views - Ensuring thatthe discussion involvesa full, free and frank

exchange of viewsaboutwhathas been achieved,what needsto be done to achieve moreand what employeesthinkabouttheirworkthe waytheyare managed and their

aspirations.

Performance appraisalreview isthe meeting when the employee can be motivated to perform

betterin future orreinforce his desirable behaviour. Review discussion meetings ideallyshould

include the following:

y Review of progress on tasksand activities in relation to the employees performance

plan,y The developmental initiativestaken bythe employee himselfand those planned bythe

management forthe employee.y Identification of variances in terms of delays,requisite qualityand shortfall in help

planned forthe employee, ifanyy Analyzing the causes ofthe delay,the problems faced and the solutionsadopted.

y Preparation ofaction steps forsolving identified problemsand contingency plans foranticipated problems.

Periodic review meetings become meaningful onlywhen theyhelp pause,reflect,take stockand strategize in an otherwise active relationship.

How To Complete A Performance Appraisal Form:

Performance appraisal form providesthe basis forthe performance review, providing the


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feedbackto the employeesand the final rating ofthe employee. Italso facilitates various otherHR decisionsand careerdevelopment plansand decisions ofthe employees.

Therefore,performance appraisal fromshould be filled with utmost care and objectivity.

The Performance appraisal formshould be filled bythe immediate supervisorormanagerofthe

employee in orderto ensure thatthe appraiserif fullyacquainted withthe performance,responsibilities,targetsand standards ofthe employee. All the instructionsand guidelines on theappraisal formshould be read and followed carefully.

y Be prepared withall the details ofthe performance,the standards, job description and the

pastappraisals ofthe employee.y Clearand unambiguous description ofthe employee performanceshould be given in

terms ofaverage,above average, good and excellent performance.y The focusshould be on the employees behaviourthroughoutthe yearand not justhis

recent performance.y Quantifythe ratings,whereverpossible,to ensure easy comparability.

y

Substantiate and supportyourrating,and attachall the necessary documents (ifrequired).y Apart fromthe defined performance objectivesand results, discussthe related issuesas

well covering all the aspects ofthe performance.y When filling the appraisal form, be honestand objective.

Analysis for improving performance:

Any performance review process is incomplete withoutthe feedbackto the employees. The

feedback could be given in the review discussion. Review discussionsare semi formal,

scheduled, periodic interactions usually bimonthly orquarterly between amanagerand hisemployee. The basic purpose ofthe review discussion isto analyze the performance of theemployee in the pastto improve the performance ofthe employee in future.

A review discussion isan opportunityto coach,mentor, learn and understand. The manager

encourageshis/heremployeesto criticallyreflect overprogressmade on the Performanceappraisal plan and to develop creative,yet feasible alternatives forproblemareas.

y Reviewthe performance ofthe each employee individually.

y Discussthe problems faced bythe employees during the course ofaction.y The solutionstried,and the degree ofsuccessachieved in solving the problems faced.

y

Revisitwiththe employee,his/herannual plan forthe remaining time period and developrevised action plans, if necessary.

Review discussionsreassure the employeesthat each one ofthemhasstructured opportunitiesforone to one interaction withthe manageronce everytwo orthree months during the year.

These opportunitiesare importantasthey provide an important chance forperformancemonitoring ordevelopmentmentoring. The aim ofthe performance review discussions isto

share perceptions,solve the problem faced during the course ofthe action, decide on the new


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goals jointlyand provide afeedbackto the employee forthe past performance i.e. to lookathisstrengthsand weaknessesand also help to chart outa careerplan forthe employee.

The focus ofthese performance review discussionsshould not bet o judge the employees past

performance; ratheritshould be to motivate the employee to improve his future performance and

reinforce his good behaviour.

Active Performance Appraisal Conversation:

Active conversation playsan important part in the performance reviewmeeting. The appraisershould ensure thatthe meeting hasatwo way conversation and thatthe employee should geta

fairchance to speak. The "manner" of giving the feedbackofthe performance ofthe employee isvery important. The conversation should have an optimistic and motivating tone.

Some important pointsthatshould be taken care of in the active performance appraisalconversationare:

1.Make it a two-way conversation. An effective Performance appraisalreviewrequiresaninteractive discussion withan open agenda. Tryto formulate questionsthatseekthe

employees ideasand input. Thiswill help the employee feel you value his orheropinions. Give the employee a fairchance to put forward his ideas; lethimspeak.

2.Be a good listener. Rememberto be an active listenerand to pick up on youremployeesverbal and nonverbal cues. Listen to his ideasand problems.

3.Address whats important to the employee. Since job satisfaction isthe most importantfactoraffecting an employees attitude (and therefore his orherlevel of performance

and value to yourcompany),an effective reviewshould delve into areasthat includeissuesmost importantto that employee.

4.Lead with the positive.Its importantto reaffirmthe employees strengthsatthebeginning ofthe review. Since job security isthe numberone concern ofmost people,the

performance review isa good time to tell an employee howmuchyou value theircontributionsto yourbusiness.

5.Dont be confrontational.Its important notto criticize the employee in general terms.The goal isto evaluate job performanceand notthe person. A performance reviewthat

turns into a gripe session missesthe opportunityto raise employee morale.6.Positive reinforcement emphasizing whathas been done well so that itwill be done

even betterin the future and making only constructive criticisms (i.e. those that pointthewayto improvement).

7.Exchange of views - Ensuring thatthe discussion involvesa full, free and frankexchange of viewsaboutwhathas been achieved,what needsto be done to achieve more

and whatthe appraiserthinkabouttheirworkthe waytheyare managed and theiraspirations.

8.Agreement - jointly coming to an understanding aboutwhathasto be done by bothpartiesto improve performance, knowledge and skillsand overcome anywork problems


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raised during the discussion.

Performance appraisal feedback:

Performance appraisal process is incomplete withoutthe feedback given to the employee about

hisappraisal and his performance. Butthe way of giving aswell asreceiving the feedback differsfrom person to person and theirway ofhandling and theiroutlooktowardsthe issue.

According to a popularsaying:

"A SUCCESSFUL MAN IS ONE WHO CAN LAY A FIRM FOUNDATION WITH THE

BRICKS OTHERS HAVE THROWN AT HIM."

Therefore,On the part ofthe person receiving the feedback,the following pointsare importantto

be taken care of:

o The employee should have a positive attitude towardsthe feedback process

o He should listen to the suggestions ofthe appraisercalmlyand tryto incorporate them in

his plans.o He should nothesitate to ask forthe help ofhissuperiors.

o Should have a co-operative attitude during the feedbackmeeting.oDont judge the appraiserasa person.

o Should take the feedback objectively.o Should not judge the appraiserasa person on the basis ofthe feedback.

On the part ofthe appraiserorthe manager/ person giving the feedback,the following pointsareto be taken care of:

o The appraisershould make the receiverfeel comfortable during the feedbackmeeting.

o The appraisershould make itatwo way conversation i.e. letthe employee speak.o Listen to the employee and note his points,suggestions, problems etc.

o The appraisershould notadopta confrontational approachtowardsthe meeting. The goalis notto criticize the employee.

o Provide aconstructive feedbackto the employee i.e. in awaywhichwill motivate himto perform better.

o Have a positive attitude towardsthe processo

Tryto understand the reasons ofhis failure.

o Be fairand objectiveo Prepare yourself forwhatto sayand howto say.

oMake the appraisal feedbackmeeting useful and productive forthe organization and theemployee.


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PERFORMANCE CONSULTING : MOVING BEYONG TRAINNING.

Organisationsare growing in size, becoming complex and the importance oftrained and

developed workforce isalso increasing. One ofthe majorobjectivesand benefits ofthe

performance appraisal isthat ithelps in identifying the training needs ofthe employee and

reducing the gap between the actual and the desired performance ofthe employees. ButPerformance appraisalalso facilitatesthe otherdecisions like:

y Compensation and rewards

y Performance Feedback

y Manpowerplanning

y Performance improvement

y Promotionsand transfers

y HRDocumentation

To meetthe increasing competition and the challenging organizational goal,the human resourcedepartments ofthe organisationsthroughoutthe world are moving away fromthe traditional andthe theoretical training methods. The organisationsare focusing on "Performance Consulting"

i.e. the practical aspects ofthe employee training and whatthe employeesshould do to achievethe organizational goals.

Therefore,to improve the effectivenessand the performance,the conventional role ofthe trainers

have changed to "performance or HR consultants".

Performance consulting refersto the actual transferofthe newskills, competenciesacquiredthroughthe training to the job, focusing on the employees performance needs i.e. the needsto

improve the performance.

The responsibilitiesand roles of performance consultantare:

y To attain a balance between the needs ofthe organisation and the employees.

y Create synergyand teamwork.y Identifying and solving the problems faced bythe employees.

y Assessing and measuring the actual performance ofthe employees.y Identifying and improving the internal and external factorsaffecting the performance of

the employees.y Motivate and supportthe employees.

y Reviewand feedback ofthe performance, facilitating performance improvement

Fromthe above functionsand the role ofthe performance consultants,theyhave becomevalued partnersto the top level management ofthe organisations in successfullyachieving the

organizational goals.


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Writings Performance Appraisal:

Writing performance appraisal involves creating a documentwhichhasthe summary ofthe

every employees performance overa period oftime and asnapshot oftheirobserved strengths

and weaknesses,and the raters feedbackthat can be used forotherpurposes.

Writing Performance appraisal depend significantly on the writers variousabilitiesand a

combination of otherfactors. A rateroramanagerneeds:

y An objective rating method to assessan employees performance, behavior,and skills

and knowledge.

y All the relevant datarelated to the employees performance,the standards,his job

description.

y To observe and accuratelyrecall the employees behaviorthroughoutthe time period of

the appraisal.yUsing meaningful, unambiguousand clearlanguage forthe description in the

document.The written performance appraisal documentshould ideally contain 3 basic sections:

Performance elementsA performance element isa general description ofan employees overallresponsibility in a particulararea ofwork. Performance elementsare basicallythe

job description ofthe employee clearly describing the rolesand responsibilitiesexpected from him.

Performance standardsPerformance standardsare the expected orthe desired level ofthe tasksto beaccomplished by the employee.

Actual performanceThissection recordsthe data ofthe actual performance ofthe employee,hisaccomplishments,successesand failures,his on-the-job performance,hisstrengths

and weaknesses.

Plans for employee development

The developmental requirements (the training needs) felt orfound bythe appraiserfor the employee.

An overall rating

An overall rating forthe employees overall performance like satisfactoryperformance, unsatisfactory performance, requires improvement etc.


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The common errorsthat creep in the writing the appraisalsand should be avoidedare:

Halo effect:Halo effect isthe tendency ofthe raterto allow one aspect ofamans characterto

influence his overall rating of the employee.

Central tendencyCentral tendency isthe tendency ofthe raterto give average ratingsto the employeewithout actually appraising or condemning them.

Recent behaviour (the pitchfork effect)As perthe human nature, it isa common tendencyto rate the people on the basis oftheirmoatrecent behaviourand forgetting the eventsand theirperformance in the

starting of the period.

Stereotyping an employee on the basis ofthe performance ofhis/herteam isanothercommon error.

Therefore,with properpreparation,training and effort,writing appraisals can be

converted fromatime consuming activity into ameaningful activity fortheemployee and the organization.

Performance Appraisal Trainning :

Every organisation conducts performance forassessing the performance oftheemployeesand the organisation. But if not conducted properly,they can give a false

impression abouttheperformance of the employeesand affectthe overallperformance ofthe organisation; therefore,there isa need to train the appraisersto

ensure the maximum effectiveness of the process.

Studieshave revealed thatappraisalsare often conducted bythe managersand thesupervisorwho sometimes,are themselves notaware ofthe proceduresto be

followed. Theyshould be explained the importance and the implications ofthe Performance appraisalto the organisations,the methodsto be followed,the

principlesand the processes ofthe appraisal.

All managersand supervisorswho consultperformance appraisalsshould be giventraining forthe following:

y Methods,techniquesand guidelines forsetting goalsand objectives

y Howto evaluate the performance and rate the employeesy Standards forperformance documentation

y Howto complete a performance appraisal formy Howto maintain objectivity in the appraisal


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y Questioning techniques forappraisalsy Responding to employee reactions

y Improvesrapportand communicationy Building morale and motivating employees

y Observing and measuring performancey

Tracking results

y Structuring the interviewwiththe focus on improving performancey Feedback techniques (providing constructive feedback)

y Howto deal with non-performersand people who refuse to co-operatey Postreviewactions

The training can be given by conducting special workshops by professional HR

consultants orqualified and experienced HR professionals ofhuman resourcemanagement. The venue forthe purpose can be asuitable seminarhall,training

room, conference hall, boardroom, oratsome place away fromthe workplace likesome hotel etc.

HOW TOMEASURE EMPLOYEE PERFORMANCE

The most difficult part ofthe performance appraisal process isto accurately andobjectivelymeasure the employee performance. Measuring the performance coversthe

evaluation ofthe main tasks completed and the accomplishments ofthe employee in a giventime period in comparison withthe goalssetatthe beginning ofthe period. Measuring also

encompassesthe quality ofthe accomplishments,the compliance withthe desired standards,the costs involved and the time taken in achieving the results.

Measuring employee performance isthe basis ofthe Performance appraisal processesand

performance management. Accurate and efficient performance measurement not only formsthe basis ofan accurate performance review butalso giveswayto judging and measuring

employee potential.

Forthe purpose ofmeasuring employee performance, different input forms can be used for

taking the feedbackfromthe varioussources like the superior, peers, customers, vendorsand

the employee himself. All the perspectivesthusreceived should be combined in the

appropriate mannerand to getan overall, complete view ofthe employees performance.

Observation can also be exercised bythe superiorto obtain information. Some suggestions

and tips formeasuring employee performance are:

y Clearly define and develop the employee plans ofaction (performance) withtheirrole, dutiesand responsibilities.

y Organizational outcomes orthe achievement of organizational goalsshould also bekept in mind.

y Focus on accomplishmentsand resultsratherthan on activities.y Also take note ofthe skills, knowledge and competenciesand behaviors ofthe

employeesthathelp the organisation to achieve its goals.


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y If possible, collectthe feedbackaboutthe performance ofthe employeesthroughmulti-point feedbackand self-assessments.

y Financial measures like the return on investment,the marketshare,the profitgenerated bythe performance ofthe teamshould also be considered.

Foran organisation to be an effective organisation and to achieve its goals, it is veryimportantto monitorormeasure its and its employee performance on aregularbasis.Effective monitoring and measuring also includes providing timely feedbackand reviewsto

employees fortheirworkand performance according to the pre-determined goalsandstandardsand solving the problems faced. Timelyrecognition ofthe accomplishmentsalso

motivatesthe employeesand help to improve the performance.

Measuring the performance ofthe employees based only on one orsome factors canprovide with inaccurate resultsand leave a bad impression on the employeesaswell asthe

organisation. Forexample: Bymeasuring onlythe activities in employees performance,anorganization mightrate most of its employeesas outstanding, even when the organisation as

awhole mighthave failed to meet its goalsand objectives.Therefore,a balanced set ofmeasures (commonly known as balanced scorecard) should be used formeasuring the

performance ofthe employee.

FAQs About Performance Appraisal Program

Q. What is the purpose of performance appraisals?

A.Performance appraisalshelp to strategicallyreviewthe performance ofthe employees,

theirstrengths,weaknessesand accomplishments during the year. Performance

appraisalallows deciding the goals, objectivesand the desired performance standards forthe employee forthe upcoming year.

Q. How should the self appraisal be used?

A.Selfappraisal orself evaluation isthe review ofthe performance bythe employee

himself. Theself evaluationshould be discussed withthe employee and ifappropriate,should be incorporated in the final rating.

Q. Is there any comprehensive formula to calculate the overall rating?

A. No,there is no comprehensive formula fordoing so. The overall rating should be based

on a numberof factors like the extent of goalsachieved,the overall performance ofthe

employee,his competencies etc.

Q. How should the ratings be given if there has been a change of supervisor or manager

during the period of the appraisal?


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A.To complete the Performance appraisalsubjectivelyand fairly, it isadvised to consultthe

previoussupervisorormanager. Ifthis is not possible, consultthe supervisorssuperiorto

gethis viewsand inputs.

Q. How can input/feedback be collected for the appraisal process?

A. different input forms can be used fortaking the feedbackfromthe varioussources like the

superior, peers, customers, vendorsand the employee himself. All the perspectivesthus

received should be combined in the appropriate mannerand to getan overall, complete view

ofthe employees performance. Observation can also be exercised bythe superiorto obtain

information.

Q. What if the employee refuses to agree or/and accept the review?

A. First ofall, ensure thatthe employee has gota chance to reviewhis completed appraisalform. Ifthe employee refusesto accepthisappraisal,tryto sort outthe problem by

discussing hisreasons of dissatisfaction withhim calmly. Ifthe employee refusesto co-

operate,then passthe documentsto the HR departmentwitha note on itthatthe employee

hasrefused to acceptand letthemtake the necessaryaction.

Q. How do you deal with an average or a non-performer?

y Provide constructive feedbackand tryto motivate the employee.y Keep the focus on the performance, notthe personality ofthe employee.

y

Provide training and development opportunitiesto the employeey Discussand take the employees inputs on howto solve the problem.

y Plan the course ofaction and standards in agreementwiththe employee.y If no improvementtakes place, informthe human resources oryoursuperiorabout

the problem.

Q. Should the review be confidential?

A.The Individual performance reviewsshould be kept confidential and should not beaccessible to otheremployees. Theyshould also be stored atasafe place with limited access.

Outdated reviewsshould be destroyed. The appraisal can also be keptasa part ofthe HR

records ofthe employee.


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CHALLENGES OF



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An organization comesacross various problemsand challenges Of PerformanceAppraisal in orderto make a performance appraisal system effective and successful. The

main Performance Appraisal challenges involved in theperformance appraisal processare:

yDetermining the evaluation criteriaIdentification ofthe appraisal criteria is one ofthe biggest problems faced bythe topmanagement. The performance datato be considered forevaluation should be

carefullyselected. Forthe purpose of evaluation,the criteriaselected should bein quantifiable or measurable terms

yCreate a rating instrument The purpose ofthe Performance appraisalprocess isto judge the performance ofthe

employeesratherthan the employee. The focus ofthe systemshould be on the

development ofthe employees ofthe organization.

y Lack of competence Top managementshould choose the raters orthe evaluators carefully. Theyshould

have the required expertise and the knowledge to decide the criteriaaccurately. Theyshould have the experience and the necessarytraining to carry outthe appraisal

process objectively.

y Errors in rating and evaluation Many errors based on the personal bias like stereotyping,halo effect (i.e. one trait

influencing the evaluatorsrating forall othertraits) etc. may creep in the appraisalprocess. Therefore the ratershould exercise objectivityand fairness in evaluating

and rating the performance of the employees.

yResistanceThe appraisal processmay face resistance fromthe employeesand the trade unionsforthe fearof negative ratings. Therefore,the employeesshould be communicated

and clearly explained the purpose aswell the process of appraisal. The standardsshould be clearly communicated and every employee should be made aware thatwhat

exactly is expected fromhim/her.


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Pre-requisites for Effective &

Successful Performance Appraisal


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The essentials of an effective performance system are as follows:

y Documentation means continuous noting and documenting the performance. It also helps the

evaluators to give a proof and the basis of their ratings.

y Standards / Goals the standards set should be clear, easy to understand, achievable, motivating, time

bound and measurable.

y Practical and simple format - The appraisal format should be simple, clear, fair and objective. Long and

complicated formats are time consuming, difficult to understand, and do not elicit much useful information.

y Evaluation technique An appropriate evaluation technique should be selected; the appraisal

system should be performance based and uniform. The criteria for evaluation should be based on

observable and measurable characteristics of the behavior of the employee.

y Communication Communication is an indispensable part of the Performance appraisalprocess. The

desired behavior or the expected results should be communicated to the employees as well as the

evaluators. Communication also plays an important role in the review or feedback meeting. Open

communication system motivates the employees to actively participate in the appraisal process.

y Feedback The purpose of the feedback should be developmental rather than judgmental. To

maintain its utility, timely feedback should be provided to the employees and the manner of giving

feedback should be such that it should have a motivating effect on the employees future performance.

y Personal Bias Interpersonal relationships can influence the evaluation and the decisions in the

performance appraisal process. Therefore, the evaluators should be trained to carry out the processes

of appraisals without personal bias and effectively.


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PERFORMANCE APPRAISAL STRUCTURE

IN THE ORGANISATION.


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Summary of the Performance Analysis System

Setting performance standards, observing and providing feedback, and conducting

appraisals enables the Team Leaderto achieve the best results through managing employee

performance

To beginthe process, the Team Leaderand the employee collaborates on the

development of performance standards. The Team Leaderthen develops a performance

plan that directs the employee's efforts toward achieving specific results, to support

organizational growthas well asthe employee's professional growth. Discussion of goals

and objectives throughout the yearprovides a frameworkto ensure that employees

achieve resultsthroughOne on One and mutual feedback. Atthe end ofthe rating period,

the Team Leaderappraises the employee's performance against existing standards, and

establishes new goalstogetherforthe nextrating period.

As the immediate supervisor, the Team Leader plays an important role; his closest

interaction with the employee occurs at this level.

There are four key elements in the appraisal system:

1. Set objectives - Decide what the Team Leader wants from the employees and

agree these objectives with them.

2. Manage performance - Give employees the tools, resources and training they

need to perform well.

3. Carry out the appraisal - monitor and assess the employees' performance,

discuss those assessments with them and agree on future objectives.

4. Provide rewards/remedies - Consider pay awards and/or promotion based on the

appraisal and decide how to tackle poor performance.

performance appraisal project(under progress)

Documents