- What is performance appraisal?
- Purpose of performance appraisal
- Why performance appraisal?
- Limitations of performance appraisal
- Difference between performance appraisal and job evaluation
- Methods of appraisal
- Traditional methods
- Criticism of traditional methods
- Modern methods
- Designing an appraisal program
- Determining the objective of performance appraisal
- Establishing standards of performance
- Who is to do the appraisal?
- Requirements of a sound performance appraisal program
- Case study
- Quality policy
- Introduction to the study
- Objectives of study
- Scope of study
- Research methodology
- Data analysis
Since organizations exist to achieve goals, the degree of success that individual employees have in reaching their individual goals is important in determining organizational effectiveness. The assessment of how successful employees have been at meeting their individual goals, therefore, becomes a critical part of HRM. This leads us to the topic of performance appraisal.
People differ in their abilities and aptitudes. These differences are natural to a great extent and cannot be eliminated even by giving the same basic education and training to them. There will be some differences in the quality and quantity of work done by different employees even on the same job. Therefore, it is necessary for management to know these differences so that the employees having better abilities may be rewarded and the wrong placements of employees may be rectified through transfers. The individual employee may also like to know the level of his performance in comparison to his fellow employees so that he may improve on it. Thus, there is a great need to have suitable performance appraisal system to measure the relative merit of each employee.
The basic purpose of performance appraisal is to facilitate orderly determination of an employee’s worth to the organization of which he is a part. However, a fair determination of the worth of an employee can take place only by appraising numerous factors some of which are highly subjective, as for instant, attendance, while others are highly subjective, as for instant, attitude and personality. The objective factor can be assessed accurately on the basis of records maintained by the Human resource or personnel Department, but there is no device to measure the subjective factor precisely. Notwithstanding this, appraisal of these factors must be done to achieve the full appreciation of every employee merit.
[...] This approach has also got a built in device of self appraisal by the subordinates because they know their goals and the standards by which their performance will be measured. The Goal setting approach suffers from the following limitations: The subordinates can apply this approach only when the goal setting is possible. It is doubtful if such a procedure can be applied for the blue color workers. This approach is not easy to administer. It involves considerable time, thought and the superior and the subordinate. [...]
[...] Criticism of Traditional Methods: The general criticism of traditional performance appraisal systems is that they are two subjective in nature because all of them are on personal judgment of the rater. The personal judgment is always subjected to personal bias or prejudice as well as pressure from certain other areas. The appraiser may not be able to judge the competence of the employees because of lack of training. Because of the judgment role of the supervisors under the traditional system, performance ratings are frequently subject to a number of errors and weaknesses, which are discussed below: Halo Error: This type of error occurs when the rater allows one aspect of a man’s character or performance to influence his entire evaluation. [...]
[...] In this way, bias removed from the appraisal process. The main advantage of establishing this system of performance appraisal is that it has greater objectivity than most other methods. Forced choice method is also not free from drawbacks. They are as follows: Firstly, it is very expensive to install this system. Secondly, this procedure involved is very lengthy and hence more time consuming. Thirdly, it is difficult for a supervisor to discuss rating switch subordinates because the personnel department scores the items. [...]