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PERFORMANCE MANAGEMENT SYSTEMS

At this stage of human resource management (HRM), we now have employees in our

organization who can do the work, we’ve given them at least some initial training, and they

are now doing their individual jobs. What’s next? The next issue that we need to figure out

is how to manage their performance over time to ensure that they remain productive, and

hopefully become even more capable, as they progress in their careers.

Performance management systems

Performance management is a systematic approach that involves a range of activities undertaken to

get the best performance from people to achieve agency a

However, the performance appraisal process is not the only thing that’s done in performance

management. Performance management

developing the performance of t

figure out how well employees perform and then to ultimately improve that performance level.

When used correctly, performance management is a systematic analysis and measurement of

worker performance (including

improve performance over time.

Performance appraisal, on the other hand, is

performance. Performance appraisals are reviews

appraisal is just one piece of performance management.

• Objectives

Performance management systems address the following key areas:

PERFORMANCE MANAGEMENT SYSTEMS

At this stage of human resource management (HRM), we now have employees in our

can do the work, we’ve given them at least some initial training, and they

are now doing their individual jobs. What’s next? The next issue that we need to figure out

is how to manage their performance over time to ensure that they remain productive, and

hopefully become even more capable, as they progress in their careers.

Performance management systems

Performance management is a systematic approach that involves a range of activities undertaken to

get the best performance from people to achieve agency and team objectives and individual goals.

However, the performance appraisal process is not the only thing that’s done in performance

Performance management is the process of identifying, measuring, managing, and

mance of the human resources in an organization. Basically we are trying to

figure out how well employees perform and then to ultimately improve that performance level.

When used correctly, performance management is a systematic analysis and measurement of

including communication of that assessment to the individual) that we use to

improve performance over time.

, on the other hand, is the ongoing process of evaluating employee

. Performance appraisals are reviews of employee performance over time

appraisal is just one piece of performance management.

Performance management systems address the following key areas:

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At this stage of human resource management (HRM), we now have employees in our

can do the work, we’ve given them at least some initial training, and they

are now doing their individual jobs. What’s next? The next issue that we need to figure out

is how to manage their performance over time to ensure that they remain productive, and

hopefully become even more capable, as they progress in their careers.

Performance management is a systematic approach that involves a range of activities undertaken to

nd team objectives and individual goals.

However, the performance appraisal process is not the only thing that’s done in performance

the process of identifying, measuring, managing, and

. Basically we are trying to

figure out how well employees perform and then to ultimately improve that performance level.

When used correctly, performance management is a systematic analysis and measurement of

communication of that assessment to the individual) that we use to

the ongoing process of evaluating employee

of employee performance over time3, so

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Performance appraisal:

Performance appraisal is a method of evaluating the behavior of employees in the work place

normally including both the quantitative and qualitative aspects of job performance. Performance

refers to the degree of accomplishment of the tasks that make up an individual’s job. It indicates

how ell an individual is fulfilling the job demands.

A performance appraisal is a systematic and periodic process that assesses an individual

employee’s job performance and productivity in relation to certain pre-established criteria and

organizational objectives, Other aspects of individual employees are considered as well, such

as organizational citizenship behavior, accomplishments, potential for future improvement,

strengths and weaknesses, etc

Performance management systems are employed “to manage and align" all of an organization's

resources in order to achieve highest possible performance.[1] “How performance is managed in an

organization determines to a large extent the success or failure of the organization. Therefore,

improving PA for everyone should be among the highest priorities of contemporary” organizations.

Definition:

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’’.

• Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the company which can be justified by

following advantages:

1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion

programmes for efficient employees. In this regards, inefficient workers can be dismissed or

demoted in case.

2. Compensation: Performance Appraisal helps in chalking out compensation packages for

employees. Merit rating is possible through performance appraisal. Performance Appraisal

tries to give worth to a performance. Compensation packages which includes bonus, high

salary rates, extra benefits, allowances and pre-requisites are dependent on performance

appraisal. The criteria should be merit rather than seniority.

3. Employees Development: The systematic procedure of performance appraisal helps the

supervisors to frame training policies and programmes. It helps to analyse strengths and

weaknesses of employees so that new jobs can be designed for efficient employees. It also

helps in framing future development programmes.

4. Selection Validation: Performance Appraisal helps the supervisors to understand the

validity and importance of the selection procedure. The supervisors come to know the

validity and thereby the strengths and weaknesses of selection procedure. Future changes

in selection methods can be made in this regard.

5. Communication: For an organization, effective communication between employees and

employers is very important. Through performance appraisal, communication can be

sought for in the following ways:

a. Through performance appraisal, the employers can understand and accept skills of

subordinates.

b. The subordinates can also understand and create a trust and confidence in

superiors.

c. It also helps in maintaining c

d. It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication.

6. Motivation: Performance appraisal serves as a motivation tool. Through evaluating

performance of employees, a person’s efficiency can be determined if the targets are

achieved. This very well motivates a person for better job and helps him to improve his

performance in the future.

• Objectives of Performance Appraisal System

Performance appraisal aims at att

• To create and maintain a satisfactory level of performance.

• To contribute to the employee growth and development through training, self and

management development programmes.

through performance appraisal.

• To help the superiors to have a proper understanding about their subordinates.

• To guide the job changes with the help to continuous ranking.

• To facilitate fair and equitable compensation ba

• To facilitate for testing and validating selection tests, interview techniques through

comparing their scores with performance appraisal ranks.

• To provide information for making decisions regarding lay

• Process of Performance Appraisal:

It also helps in maintaining cordial and congenial labour management relationship.

It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication.

Performance appraisal serves as a motivation tool. Through evaluating

performance of employees, a person’s efficiency can be determined if the targets are

achieved. This very well motivates a person for better job and helps him to improve his

performance in the future.

Objectives of Performance Appraisal System :-

Performance appraisal aims at attaining the different purposes. They are :

To create and maintain a satisfactory level of performance.

To contribute to the employee growth and development through training, self and

management development programmes. Tata Power aims at employee development

through performance appraisal.

To help the superiors to have a proper understanding about their subordinates.

To guide the job changes with the help to continuous ranking.

To facilitate fair and equitable compensation based on performance.

To facilitate for testing and validating selection tests, interview techniques through

comparing their scores with performance appraisal ranks.

To provide information for making decisions regarding lay-off, retrenchment etc.

of Performance Appraisal:

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ordial and congenial labour management relationship.

It develops the spirit of work and boosts the morale of employees.

Performance appraisal serves as a motivation tool. Through evaluating

performance of employees, a person’s efficiency can be determined if the targets are

achieved. This very well motivates a person for better job and helps him to improve his

They are :

To contribute to the employee growth and development through training, self and

Power aims at employee development

To help the superiors to have a proper understanding about their subordinates.

To facilitate for testing and validating selection tests, interview techniques through

off, retrenchment etc.