Performance Appraisal

•Definition :
•Performance Appraisal is defined as “it is the process of
determining and communicating to an employee how He /
She is performing on the job and ideally, establishing a plan of
improvement”. Performance Appraisal is method of
evaluating the behavior of employees in the work spot,
normally including both the quantitative and qualitative
aspect of job performance. Performance here refers to the
degree of the accomplishment of the tasks that make up an
individual job. It indicates how well an individual is fulfilling
the job demands often the term is confused with effort, but
performance is always measured in terms of results and not
efforts. Under performance appraisal we evaluate not only
performance of an employee but also his potential for
development.
 Objectives of Performance Appraisal
a) To assess the worth of employees in relation to job
requirement.
b) To provide valid data base for personnel decisions
concerning placements, pay, promotions, transfers and
punishments.
c) To assess the good and bad points in working of
employees and then making suggestions for
improvements.
d) To test the effectiveness of recruitment, selection,
placement and induction programmes.
e) To know the problems faced by the employees in doing
various jobs.
f) To provide a basis for comparison to segregate efficient
and inefficient employees.
g) To help management in fixing employees according to
their capacity, interests and qualification.
h) To help supervisor to know their subordinates more
closely.
 Scope of Performance Appraisal
• Provide employees with a better understanding about
their role and responsibilities.
• Increase confidence through recognizing strengths
while identifying training needs to improve
weaknesses.
• Improve working relationships and communication
between supervisors and subordinates.
• Increase commitment to organizational goals; develop
employees into future supervisors.
• Assist in personnel decisions such as promotions or
allocating rewards
 Process of Performance Appraisal
• Performance can be undertaken either on informal basis
or formal basis. A systematic performance appraisal
process follows a set of patterns and follow following
steps.
• ESTABLISHING PERFORMANCE STANDARDS
•
The appraisal process begins with the setting up of criteria to be used for
appraising the performance of employees. The criterion is specified with the help
of job analysis, which reveals the contents of a job. This criteria should be clear,
objective and in writing. It should be discussed with the supervisors to ensure that
all the relevant factors have been included. Where the output can be measured the
criteria is clear. If work performance cannot be measured, the personal
characteristic which contributes to employee performance must be determined.
These standards should be included on the appraisal form. Appraisal forms should
be carefully designed and printed. Performance standards will depend upon the
objective of the appraisal.
• COMMUNICATING THE STANDARDS

The standards set for performance should be communicated to all the employees.
The standards must be explained to the employees, so that they come to know
what expected from them. In absence of any knowledge of standards, the
employees will keep on guessing only. When the standards are made known to the
above employees, they will try to make their
performance equal or above them.
•
MEASURING ACTUAL PERFORMANCE

Once the performance standards are specified and accepted the next stage is
the measurement of actual performance. This requires choosing the right
technique of measurement, identifying the internal and external factors
influencing performance and collecting information on results achieved. Personal
observation, written reports and face to face contacts are the means of collecting
date on performance. What is measured is more important than how it is
measured.
• COMPARING THE ACTUAL PERFORMANCE
•
Actual performance is compared with the predetermined performance
standards. Such comparison will reveal the deviations. Deviations may
be positive or negative. Positive deviations occur when the actual
performance exceeds the standards. Negative deviations exceeds when
the actual performance is less than the standards.
•
DISCUSSING THE APPRAISAL
•
The results of the appraisal are communicated to the employees. Such
discussions enable the employee to know his weakness and strengths.
Therefore, he will be motivated to improve himself. The impression the
subordinate received about his performance has an impact on his
subsequent performance.
•
TAKING CORRECTIVE ACTIONS
•
Appraisal process will be useful only when corrective actions are taken
on the basis of reports. Corrective action may be in the form of advice,
counsel or warning. It may also be in the form of additional training,
refresher courses, delegation of more authority, special assignments
and coaching etc. these actions will be useful in helping employees to
improve their performance in future, if the actual performance is very
poor and beyond the scope of improvement, it may be necessary to
take steps for demotion or retrenchment or any other suitable
methods.
•
Establishing performance standards, communication standards,
measuring actual performance, comparing it with standards and
corrective action are the six steps in performance appraisal.
 Methods of Performance Appraisal
• With the evaluation and development of appraisal
system, a number of methods have been devised to
measure the quantity and quality of employee’s job
performance. These methods are classified into two
broad categories
•
• 360 DEGREE APPRAISAL SYSTEM
•
360 degree appraisal is a recent method which can be used
to appraise the performance of an employee. This method
was first developed and used in a formal way by general
electric company of U.S.A in 1992. This method has attracted
the Reliance Industries, Wipro Corporation, Infosys
Technologies, Thermal, Thomas cook, etc., are using this
method effectively. However, this method could not gather
momentum because of several technical problems.
•
TECHNIQUES
•
When appraisal is made by superiors, peer, subordinates,
clients, it is called the 360 degree appraisal system of
appraisal. In 360 – degree method, besides assessing
performance, other attributes of the assessee, such as talent,
behavior, value, ethical standards, temper and loyalty are also
appraised. Thus, 360 degree system involves
• evaluation of a manager by everyone above, alongside and
below him. The 360 degree appraisal has form integral
components.
•
• Self appraisal
• Superior’s appraisal
• Peer appraisal
• Subordinate’s appraisal
• Grading Method:
• In this method, certain categories of worth are established in
advance and carefully defined. There can be three categories
established for employees: outstanding, satisfactory and
unsatisfactory. There can be more than three grades. Employee
performance is compared with grade definitions. The employee is,
then, allocated to the grade that best describes his or her perfor-
mance.
• Such type of grading is done is Semester pattern of examinations
and in the selection of a candidate in the public service sector. One
of the major drawbacks of this method is that the rater may rate
most of the employees on the higher side of their performance.
• Forced Distribution Method:
• This method was evolved by Tiffen to eliminate the central
tendency of rating most of the employees at a higher end of the
scale. The method assumes that employees’ performance level
confirms to a normal statistical distribution i.e., 10,20,40,20 and 10
per cent. This is useful for rating a large number of employees’ job
performance and promo ability. It tends to eliminate or reduce
bias.
• It is also highly simple to understand and easy to apply in
appraising the performance of employees in organisations. It suffer
from the drawback that improve similarly, no single grade would
rise in a ratings.
• Forced-Choice Method:
• The forced-choice method is developed by J. P. Guilford. It contains
a series of groups of statements, and rater rates how effectively a
statement describes each individual being evaluated. Common
method of forced-choice method contains two statements, both
positive and negative.
• Check-List Method:
• The basic purpose of utilizing check-list method is to ease the
evaluation burden upon the rater. In this method, a series of
statements, i.e., questions with their answers in ‘yes’ or ‘no’ are
prepared by the HR department (see Figure 28-2). The check-list
is, then, presented to the rater to tick appropriate answers
relevant to the appraisee. Each question carries a weight-age in
relationship to their importance.
• When the check-list is completed, it is sent to the HR department
to prepare the final scores for all appraises based on all
questions. While preparing questions an attempt is made to
determine the degree of consistency of the rater by asking the
same question twice but in a different manner .
• ERRORS OF PERFORMANCE APPRAISAL
• No Baseline:
• It's impossible to fairly assess an employee's performance without a
baseline of what can reasonably be expected. Make use of the
employee's job description and stated goals during the review. Be
careful not to compare the employee to other workers with different
job roles. Assess the employee in light of the job, not the work of
others in different positions.
• Overemphasis on Attitude:
• Agreeable, friendly employees who get along well with others are an
asset to any business. Still, many good workers are less winsome and
enthusiastic. If an employee's attitude or lack of social skills is
creating tension in the workplace, address it, but don't risk losing a
competent worker just because the employee isn't a cheerleader or
everybody's friend.
• Influence of Halo Effect Bias:
• Halo effect is a particular bias that can skew your assessments to be
more positive than they ought to be. With the halo effect, the
employee has a particular characteristic or area of performance that
you find particularly appealing, which affects the way you perceive
every aspect of the worker's performance.
• For example, if you have an employee who is an excellent researcher
who develops reports that contain accurate and timely information,
you may be inclined to look more favorably on the employee's
performance in other areas, even though the facts show that the
skill sets in these other areas are not as strong.
• Single Deficiency Focus:
• Over focusing on a deficiency is the opposite of the halo effect.
Some employees may struggle in one particular area, even
though their performance of other tasks is good or even
excellent. Don't overlook behaviors or skills that need
improvement but don't let your frustration cause you to ignore
or minimize everything that the employee does correctly.
• Ignoring the Entire Timeline:
• Performance reviews typically focus on a specific period,
usually the past year. Unfortunately, some managers tend to
focus on the most recent weeks and months, ignoring
performance throughout the year. Another mistake is to over
focus on a single situation or project rather than to examine
the employee's entire performance record.
• Unawareness of Negative Biases:
• Everyone has biases, and many of these can be unconscious.
Employers and managers need to keep biases in check when
completing performance reviews. Typically, biases develop
based on race, gender, sexual orientation, religion, or aspects
of the employee's appearance.
• Before offering a review that can have a serious impact on an
employee's career trajectory, the person providing a review
should engage in self-reflection to examine any possible
biases. Would the same report be given to an employee who
has different personal characteristics than the employee under
consideration?
 ORGANIZATIONAL STRUCTURE

•Each major port has a Board of Trustee’s representing

various interest connected with the port operations & the
shipping industry. The Chairman of each Major Port Trust is
appointed by Central Government besides; Chairman of Port
Trust Board comprises Deputy Chairman, Representatives of
Customers, Railways, Defence, State Government, Ship
owners, Shippers, labor etc. All members other than the
Chairman & Deputy Chairman are part time members.
• There are 10 departments in Visakhapatnam Port Trust and
those departments are categorized under 2 heads:
• OPERATIONAL DEPARTMENTS:
• Marine departments
• Traffic departments
• Mechanical & Electrical departments
• Civil Engineering Department
• NON – OPERATIONAL DEPARTMENTS:
• General Administration department
• Finance Department
• Medical Department
• Vigilance Department
• FUNCTIONS OF DIFFERENT DEPARTMENTS:
• GENERAL ADMINISTRATION DEPARTMENT:
• It is headed by secretary and is concerned with policy matter,
board matters, legal matters, vigilance matters & co –
ordination and the manager is concerned with personal
including industrial relations welfare, guest house
administration, training and development.
• ACCOUNTS DEPARTMENTS:
• It is headed by finance advisor and chief accounts officer (FA
&CAO) and is considered with financial management and
compilation of presentation of presentations of an accounts,
budgets and other related books.
• CIVIL ENGINEERING DEPERTMENT
• It is headed by the chief engineer. It is concerned with plan,
execution & maintenance of civil engineering works &
management of port estate.
• MECHANICAL & ELECTRICAL ENGINEERING DEPARTMENT
• It is headed by the chief mechanical engineer and is concerned
with plan, maintenance and repairs of mechanical, marine,
electrical equipment and maintenance and operations.
• MARINE DEPARTMENT
• It is under the control of deputy conservator. It is responsible
for safe navigation of vessels and berthing, pilot age,
maintenance of dredging the port, fire service and other
functions of this department.
• TRAFFIC DEPARTMENT
• It is headed by the traffic manager and is concerned with
shipping cargo and real traffic operations, commercial matters,
labor &Development and trade promotions.
• MEDICAL DEPARTMENT
• Chief medical officer is the in charge of medical department. It
provides health, sanitary & medical facilities to the employees
of all departments of Port Trust.