PERFORMANCE

Performance means what is expected to be delivered by an individual by an individual or a group of individuals within a time frame.

APPRAISAL
Appraisal means the evaluation of worth or estimation of quality or merit.

Performance Appraisal

Performance appraisal is a method of evaluating the behaviour of employees in the workspot, normally including both the quantitative and qualitative aspects of job performance.

Performance appraisal Process

PERFORMANCE=Ability x Motivation x Organisational Support (+) or () Chance Factors

Organisations can be classified into three categories based on the appraisal practices:

Organisations that have ANNUAL CONFIDENTIAL REPORTS which take into consideration only certain traits to be shown by the employee, for example sincerity, hard work, punctuality, appearance, leadership, drive and loyalty and ignore fully the job-related accomplishments of the employee. Most of the government departments in India fall into this category. E.g the department of health and family welfare, education, energy and so on.

Categories

Organisations that have SEMI-CONFIDENTIAL FORMATS require the employee who is being evaluated to state their accomplishments. They also take into account such statements of the employee for final assessment by the boss which is on work-related issues as well as behaviours of the employee.For e.g-Bharath Heavy Electricals Ltd ( BHEL ), Hindustan Machine Tools (HMT), Bharath Earth Movers Limited (BEML), Steel Authority of India (SAIL) and so on fall under this category.

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Performance appraisal systems of some organisations aim simultaneously at different objectives, such as generating data to take personal decisions like rewards, job-rotation, promotions, transfers and creation of a new organisational culture of openness, mutuality, trust and generation of enabling capabilities and employee development that use different components.

Advantages :

Organisations can use appraisal as vehicles to publish and promote collective values about work and performance. Emphasis on improved communication at work allows discussion on how the organisation is operated and the impact of management or leadership in its work. Communication between departments can be improved. Accountability for standards and results is more evidently identified.

Advantages:

Employees get to know how they are being perceived and where they stand. Employees are better informed about what they are expected to do. Training and development is more likely to be emphasised.

Results of training are transferred and monitored easily.

More open and receptive working environment can be created.

Opportunities for counselling employees on problems related to work are created.

Disadvantages:

Using more time on performance appraisal than performance planning or ongoing performance communication. Comparing employees with each other. Overlooking that appraisal is about improvement, not blaming. Thinking a rating form is an objective, impartial tool. Stopping performance appraisal when a persons salary is no longer related to appraisals

Performance Appraisal Methods

There are two types of methods:-

Traditional Methods

Modern Methods

Essay appraisal method Straight Ranking Method Paired Comparision Critical Incidents Methods Field Review Checklist Method Graphic Ratings Scale Forced Distribution

Management By Objectives 360 Degree appraisal Assessment Centres Behaviorally Anchored Rating Scales Human Resources Accounting

360 Degree Method:-

HUMAN RESOURCE ACCOUNTING METHOD

Human Resource Accounting (HRA) counts the companys management and employees as source that provides future profits. The human resource accounting method strives to find the relative worth of the assets to the organisation in terms of money. The performance of the employees is judged in terms of cost and contribution of the employees in this method. The difference between the cost and the contribution is calculated and employees are ranked on the basis of their worth in terms of money. The contribution of the employees should be greater than the cost incurred on

them