MAIN SUBJECT:

Appraising the performance of the individuals, groups, and org is a common

practice of all societies. While in some instances these appraisal processes are
structured and formally sanctioned, in other instances they are informal and
integral part of daily activities. Thus teachers evaluated the performance of
students, bankers evaluate the performance of creditors, and all of us, evaluate
our own activities from time to time.
HISTORY OF PERFORMANCE APPRAISAL:
During the after world war 1, the systematic performance appraisal was quite
prominent. Credit goes to Walter Dill Scott for systematic performance appraisal
technique of "man-to-man" rating system. It was used for evaluating military
officers
Industrial concerns also used this system during 1920 and 1940s for evaluating
hourly paid workers. However with the increase in training and management
development programmes from 1950s, management started adopting
performance appraisal for evaluating technical, skilled, and professional and
personnel as a part of personnel as a part training and executive development
programmes. With this evolutionary process, and term merit-rating has been
charged into employee appraisal or performance appraisal.

MEANING:
Performance appraisal means evaluating the performance of every employee in
terms of the requirements of a job for which is employed.In simple term
performance appraisal system enables the people who work in an org to plan and
control their work better, to learn from their mistake and profit from their success
and to co-ordinate that work with the work of others with whom they interact

Appraisal is a matter of importance and concern to every employee. This is mainly

because most of personal decisions that are of tremendous significance to the
personal decisions that are of tremendous significance to the personal and
profession life of employees are made on the basis of appraisal reports
How Appraisals can be made successful?
The rather must be thoroughly well-versed in the philosophy and nature of the
rating system. Factors and factor scales must be thoroughly defined, analysed and
discussed.
The success of an appraisal program depends upon:
- The existence of an atmosphere of confidence and trust so that both supervisor
and employee may discuss matters frankly and offer suggestions which may be
beneficial for the org and for an improvement of the employee.
The supervisor must very thoroughly evaluate the employee's performance so
that he is capable of meeting challenges about this rating of his subordinates.
The supervisor should try to analyse the strength and weaknesses of an
employee and advise him on correcting the weakness

MODERN METHODS OF APPRAISAL:

Modern and traditional methods emphasis on the task or the workers personality while making
an appraisal. In order to bring about a balance between these two modern methods have been
developed. Of such methods the most imp are:

Appraisal by results or management by objectives:

These methods has been evolved by Peter Drucker. MBO is potentially a power full
philosophy of managing and an effective way for operationalizing the evaluation
process It seeks to minimize external controls and maximize internal motivation
through joint goal setting between the manager and the subordinate and increasing the
subordinate's own control of his work. It strongly reinforces the importance of allowing
the subordinate to participate actively in the decisions that affect him directly

MBO can be desired as a "process whereby the supervisor and the subordinate
managers of an org identify its common goals, define each individual's major areas of
responsibility in terms of results expected to him and use these measures as guides for
operating the units and accessing the contribution of each of its members.

Objectives of MBO:
Its objective is to change behaviour and attitudes towards getting the job done. It is
results oriented. It is management system and philosophy that streets goals rather than11

methods. It provides responsibility and accountability and recognizes that employees

have needs for achievement and self-fulfilment

The assessment centre was initially applied to military situations by Simoniet German
Army in the 1930s and the war office selection board of the British army in using a
number of assessors and a variety of procedures. The most imp feature of the
assessment centre is job-related simulations. These simulations involve characteristics
that managers feel are imp to the job success. The evaluators observe and evaluate
participates as they perform activities commonly found in these higher level jobs

360 degree performance appraisal:

The appraisal may be any person who has thorough knowledge about the job done by
contents to be appraised, standards of contents and who observes the employee while
performing a job. The appraiser should be capable of determining without bias. The
appraiser and supervisors, peers, subordinates employees themselves users of service
and consultants. Performance appraisal by all these arteries is called "360" degree
appraisal
Human asset accounting method:
The human assets accounting method refers to activity devoting to attaching money
estimates to the value of a firm's internal human org and its external customer goodwill
If able, well-trained personnel leave a firm, the human org is worthless, if they join it, its
human assets are increased. If distrust and conflict prevail, the human enterprise is
devalued. If teamwork and high morale prevail, the human org Is a valuable asset.

The current value of a firm's human org can be appraised by developed procedures, by
undertaking periodic measurements of "key casual" and "intervening enterprise
variables. They key casual variables include the structure of an org management
policies, decisions, business leadership, strategies skills and behaviour. The intervening
variables reflect the internal state and health of an org. They include loyalties, attitudes,
motivations and collective capacity for effective interaction, communication and
decision making. These two types of variable measurement must be made over several
years to provide the needed data for the computation of the human asset counting. The
method is not yet very popular

Behaviourally anchored rating scales(BARS):

This is a new appraisal technique which has been developed. Its superior claim that it
provides better, more equitable appraisal as compared to other techniques. The12

procedure of BARS is usually five stepped

1. generate critical incidents: Persons with knowledge of the job to be appraised

are asked to describe specific illustrations of effective performance behaviour.
2. develop performance dimensions: These people then cluster the incidents into
a smaller set of performance dimensions. Each cluster is then defined.
3. Reallocate incidents: Any group of people who also no the job then reallocates

the original critical incidents. They are given the clusters definitions, and critical
incidents, and asked to redesign each incident to the dimensions it best
describes. Typically a critical Incident as the previous group did

4. Scale of incidents: This second group is generally asked to rate the behaviour

describes in the incident as to how effectively or ineffectively it represents

performance on the appropriate dimension.
5. Develop final instrument: A subset of incidents are used as "behaviour anchors
for the performance dimensions

TOPIC RELATED CONCEPT:

Appraisal problems:
The need to perform the multiple functions is the appraisal interview is
difficulty and even threatening process for many managers. In addition
there are several behavioural problems inherent in the process. It can be
confrontational, because each party is trying to convince the other that one
view is more accurate. It is judgemental, because the manager must
evaluate the employee's behaviour and results, place the employee in a
clearly subordinate position. Further performance appraisal is complex
tasks for managers requiring job understanding, careful observation of
performance, and sensitivity to the needs of employees. Managers are also
called up on to handle the issues that spontaneously arise. A few may see
appraisals as a meaningless game and even intentionally distort the rating
and feedback given. All these factors can place powerful limits in the
usefulness of the appraisal interview unless it is conducted properly
Approaches to performance appraisal:
The three approaches used in making performance appraisal consists of

A casual, unsystematic and often haphazard appraisal: this method

was commonly used in the past but now it has given plays to a moreformal method, the main
basis being seniority or quantity measures
of quantity and quality output for the rank and file personnel.
The traditional and highly systematic measurement of employees!
characteristics and employee contribution or both. It evaluates all
the performance in the same manner, utilizing the same approach,
so that the rating obtained of separate personnel is comparable.
The behavioural approach, emphasizing mutual goal setting: it has
been laid upon providing mutual goal setting and appraisal of
progress by both the appraisal and the appraise. This approach is
based on the behavioural value of fundamental trust in the
goodness, capability and responsibility of human beings

Functions of HRM:
Functions are classified into two

Management functions

Planning:It is pre-determined course of action. It

involves planning of HR requirements, recruitment,
selection, training etc. it also involves forecasting of
personal needs, changing values, attitudes and
behaviour of employees and their impact on org
Organising: An org is a means to end. It is a structure
and a process. Org establishes relationship among the
employees so that they can collectively contribute to
the attainment of org goals.
Directing: The willing and effective co-operating of
employees for the attainment of org goals is possible
through proper direction. It is an important function
which helps in building sound human relations besides
securing employee contributions
Controlling: After the above steps various activities of
HR should be controlled. Controlling also involves
checking verifying and comparing the actuals with theplans and standards through control
auditing training
programs.

Operative function

Employment: Employment is securing and employing

the people possessing require kind and level of HR
necessary to achieve the org objectives. It covers the
functions such as job analyses, HR planning,
recruitment, selection, placement, induction, and
internal mobility
Development: It is a process of improving, modelling
changing and developing the skills, knowledge, creative
ability aptitude etc based on present and future job and
org requirement. It includes performance appraisal,
training, career planning, developments, org
development etc
Compensation: It is the process of providing equitable
and fair remuneration to the employees. It includes job
evaluation, wage and salary administration, incentive
bonus, security measures etc.
Human relations: It is the process of interaction among
human beings. Human relations are an area of
management. Practice in integrating people into work
situation in a way that motivates them to work together
productively, cooperatively and with economic
psychological and social satisfaction