PERFORMANCE APPRAISAL

DEFINITION: According to Flippo: Performance Appraisal is a systematic , periodic and so far as humanly possible , impartial rating of employees excellence in matters pertaining to his present job and to his potentials for a better job. A good Appraisal system should primarily focus on employees development and at the same time , provide a significant input for salary and reward management. OBJECTIVES: Help the employee to overcome his weakness and improve over his strengths. Generate adequate feedback and guidance from the reporting officers to the employee. Contribute to the growth and development of the employee through helping him in realistic goal setting Provides inputs to system of rewards and salary administration. Helps in creating a desirable culture and traditions in the organisations. Helps in identifying employees for the purpose of motivating , training and developing them ASSUMPTIONS: Employees , irrespective of their age , position , experience , nature of the job , can continuously grow and develop behaviourally , professionally and technically. Development of people and multiplication of human resources is in the interest of the organisation as well as of the employees. Performance Appraisal , feedback and review , counselling , training , job enrichment , job rotation are some of the useful ways to promote employee development and organisational effectiveness. Every manager has the responsibility of creating conditions for development of his subordinates , just as every employee has the responsibility to grow and develop himself. An effective Appraisal system should be based on : Clarity of goals & responsibilities , periodic goal setting & its assessment , analysis of achievement of these goals , periodic review of behaviour , identification of developmental needs and implementation & review. STEPS IN PA: 1. Identification of Key Performance areas ( KPA s ). 2. Setting of Goals or Objectives ( under each KPA ) every year for the next year.

3. Identification of Behavioural Dimensions that are critical for Managerial Effectiveness. 4. Periodic review of performance on objectives and behavioural dimensions on a rating scale. 5. Analysis of performance by identifying facilitating and inhibiting factors in performance. 6. A format performance review and discussions at a convenient and facilitative period between the employee and his reporting officer. 7. Identification of development needs and development of action plan for future with definite commitments by the employees and his Reporting Officer. PA LINKED WITH . TRAINING PROMOTIONS SALARY AND REWARD ADMINISTRATION AND RESEARCH AND OD

NEED OF SHIFT APPRAISAL MANAGEMENT: At higher levels leadership , strategic thinking , employee motivation and development and team management competencies are critical. At higher levels it becomes very difficult to quantify and measure the performance of individual senior managers. The measuring instruments fail as the performance indicators are qualitative and cannot be reduced to numbers. There is something like team chemistry and leadership , which matters in creating the team chemistry and making it work. Synergy and outcomes are likely to be better if the focus is on team besides the individual. Measures are easily available for team performance and are more objective rather than for individuals at higher levels. In focusing on team performance simultaneously many dimensions can be tackled as compared to individual performance. THE FUTURE.. In future it is recommended that most organisations should focus equally on team or group appraisals and integrate into the multi rater assessment. For building inhouse competencies of employees it is important that they get feedback from multiple sources at individual level as well as group level. The multi-rater assessment should focus not only on individuals but also on teams. Following matrix is indicative of the inputs to be taken into account for future management of performance.

1. Individual Indicators of Performance: KPAs and target achievement. Competencies exhibited Roles performed Styles Methods of Management Individual performance system 360 degree feedback

2. Dyadic ( two person performance ) Indicators of Performance: How well they have worked as a dyad. The extent to which they have synergies in their effort and benefitted the organisation and the team Methods of Management New tools to be developed to measure dyadic performance and incorporated as an index. 3. Team Indicators of performance: Goals , targets Team functioning & chemistry Internal customer service and external customer service Methods of Performance: Self assessment by team Internal customer satisfaction surveys 4. Organisation Indicators of Performance Financial parameters Customer parameters Technology & system parameters Human Process parameters Methods of Management Annual P&L accounts Market share Employee satisfaction surveys