Benefits of emporment:1.

Greater employee satisfation :- proponents of

empowerment insist that employees want to
make a difference and to feel respected.
People want to have a since of control so that
they can take personal pride of
accomplishment in the result of their hard
work.
2.Grater customer satisfaction:- employees who
identify which their companys goals are more
likely to provided affective person able service.
If employees have the authority to respond
quickly to a customer special needs, they can
higher customer satisfaction .
3.Good ideas improvement:- frontline service
workless knows from experience which policies
and procedures work and which dont work.
They also may have good ideas on how to do
things better.
4.Cost saving and productivity improvements:the attraction of empowerment for many
companies is the potential financial benefits.
Dedicated employees work harder than those
who dont care about their work.

Types of empowerment

Decision making empowerment :- most small

business as a chain of command employees are expected to
follow when it becomes to different levels of decision
making.

Ex: employees may be empowered to make decision about

simple workplace issues such as what type office supplied to
order, but be required to consult a manager for larger
decision.
Financial empowerment: even in a small
operation, different position are likely to be allocated their
own budgets giving employees financial empowerment
allows them to decide the best uses of the budget for
supporting their position and achieving company goals.
Time management empowerment :- some
employers feel the need to see employees seated at their
desks to fell they are getting a full dogs worth of work from
them. Small business owners who empower employees with
managing their own time focus more on outcomes than on
houses worked.

Shared information empowerment :employees who are empowered with an honest and for thing
look at what are going on behind the sciences at work are
less likely to feed the corporate rumour mill. When
employees are left in the about lay business decision or lake
an understanding of why a particular business approach is
implemented, they may fell suit out .

1. ESSAY APPRAISAL METHOD

This traditional form of appraisal, also known as Free Form
method involves a description of the performance of an
employee by his superior. The description is an evaluation of
the performance of any individual based on the facts and
often includes examples and evidences to support the
information. A major drawback of the method is the
inseparability of the bias of the evaluator.

2. Straight Ranking Method:- This is one of the oldest

and simplest techniques of performance appraisal. In this
method, the appraiser ranks the employees from the best to
the poorest on the basis of their overall performance. It is
quite useful for a comparative evaluation.

3. Paired Comparison:-A better technique of comparison than the

straight ranking method, this method compares each employee with all
others in the group, one at a time. After all the comparisons on the basis of
the overall comparisons, the employees are given the final rankings.
4. Critical Incidents Methods:-In this method of Performance appraisal, the
evaluator rates the employee on the basis of critical events and how the
employee behaved during those incidents. It includes both negative and
positive points. The drawback of this method is that the supervisor has to
note down the critical incidents and the employee behaviour as and when
they occur.
5. Field Review:- In this method, a senior member of the HR department or
a training officer discusses and interviews the supervisors to evaluate and
rate their respective subordinates. A major drawback of this method is that it
is a very time consuming method. But this method helps to reduce the
superiors personal bias.
6. Checklist Method :- The rater is given a checklist of the descriptions of
the behaviour of the employees on job. The checklist contains a list of
statements on the basis of which the rater describes the on the job performance
of the employees.
7. Graphic Rating Scale:- In this method, an employees quality and
quantity of work is assessed in a graphic scale indicating different degrees
of a particular trait. The factors taken into consideration include both the
personal characteristics and characteristics related to the on the job
performance of the employees. For example a trait like Job Knowledge may
be judged on the range of average, above average, outstanding or
unsatisfactory.

8. Forced Distribution:- To eliminate the element of bias from the raters

ratings, the evaluator is asked to distribute the employees in some fixed
categories of ratings like on a normal distribution curve. The rater chooses
the appropriate fit for the categories on his own discretion.

Modern methods
Management by Objectives (MBO): Most of the traditional methods of
performance appraisal are subject to the antagonistic judgments of the raters. It was to overcome
this problem; Peter F. Drucker propounded a new concept, namely, management by objectives
(MBO) way back in 1954 in his book. The Practice of management. The concept of MBO as was
conceived by Drucker, can be described as a process whereby the superior and subordinate
managers of an organization jointly identify its common goals, define each individuals major
areas of responsibility in terms of results expected of him and use these measures as guides for
operating the unit and assessing the contribution of each its members.

360 Degree Appraisal:

Yet another method used to appraise the

employees performance is 360 degree appraisal. This method was first developed
and formally used by General Electric Company of USA in 1992. Then, it travelled to
other countries including India. In India, companies like Reliance Industries, Wipro
Corporation, Infosys Technologies, Thermax, Thomas Cook etc., have been using
this method for appraising the performance of their employees. This feedback
based method is generally used for ascertaining training and development
requirements, rather than for pay increases.

Assessment Centres:

The introduction of the concept of assessment

centres as a method of performance method is traced back in 1930s in the Germany
used to appraise its army officers. The concept gradually spread to the US and the
UK in 1940s and to the Britain in 1960s.The concept, then, traversed from the army
to business arena during 1960s. The concept of assessment centre is, of course, of
a recent origin in India. In India, Crompton Greaves, Eicher, Hindustan Lever and
Modi Xerox have adopted this technique of performance evaluation.

Behaviourally Anchored Rating Scales (BARS):

The problem of
judgmental performance evaluation inherent in the traditional methods of
performance evaluation led to some organisations to go for objective evaluation by
developing a technique known as Behaviourally Anchored Rating Scales (BARS)
around 1960s. BARS are descriptions of various degrees of behaviour with regard to
a specific performance dimension.

Human resource accounting

This method evaluates an employees performance from the monetary benefits the
employee yields to his/her organization. This is ascertained by establishing a
relationship between the costs involved in retaining the employee, and the benefits
an organisation derives from Him/her.