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THEORITICAL ASPECT OF PERFORMANCE APPRAISAL Appraisal of performance is widely used in the society.

Since then tremendous ch ange have taken place in the concept, techniques and philosophy of the employees appraisal. Performance evaluation or performance appraisal is the process of as sessing the performance and progress of an employee or a group of employees on a given job and his potentials for future developments. It consists of all the fo rmal procedures used in the working organizations to evaluate personalities, con tributions and potentials of employees. But strictly speaking the aspects of per formance appraisal is wider in terms than merit rating. In merit rating the focu s is on judging the caliber of an employee so as to decide salary increment. It is designed primarily to cover rank and file personnel. On the other hand perfor mance appraisal focuses on performances and overall development of the employee. Its aim is not simply to decide salary increments but to develop a rational bas is for personal decisions. The several decisions of performance appraisal follow ers the set pattern and it consists of establishing standards, communicating tho se standards, measuring the performances, comparing the actual performance with the standard performance, discussing the appraisal with the employees , taking c orrective action Performance Appraisal. Appraisal of perforniance is widely used in society. Parents evaiuate their chii dren, teachers evaiuate their students and employers evaiuate their employees Th is early appraisal system was called merit rating. In the early fifties, perform ancc appraisal techniques began to be used for technicai, professional and manag erial personnel.Performance appraisal is the process of assessing the peribrman ce anj progress of an. employee or of a group of employees on a given job an d his potential for future development. It is the systematic, periodic and an im partial reting of an employee's excellence in matters pertaining to his present job and his potential for a betler job. Objectives To provide feedback to ernpioyees. To provide a valid database for personnei decissions concerning Placements. Pay, Promotion, Transfer, Punishment etc. To diagrase thc strengths and weaknesses of individuals for further training nee ds. To provide Coaching, Counselling, Carrier pianning and motivation to subordin ates. To develop positive superior- subordinate relations. Uses Performance Appraisal provides valuable information for personnel decissions suc h as pay increases, promotions, demotions, transfers and terminations. It helps to judge the effectiveness of recruitment, selection, placement and ori entation systems of the organisation. It is useful in analysing training and development needs. It promotes a positive work environment which contributes to productivity. Appraisal records protect management from charges of discrimination levelled by trade uniorn leaders. Employee grievances can be reduced.

Process Establishing performance standards. Communicating the standards. Measuring performance. Comparing the actual with the standards.

Discussing the appraisai. Taking corrective actions.