Performance appraisal or merit rating is the process of evaluating the performance and the qualifications of the employees in terms of the recruitments of the job, for which he is employed, for purposes of the administration, placement, selection for promotion, providing financial rewards and other actions which required differential treatment among the members of a group as distinguished from actions affecting all members equally. So it is the process of measuring quantitatively and qualitatively an employee past and present performance against the background of his expected role performance, the background of his work environment and about his future potential for an organization. Performance appraisal facilitates and organizational climate of mutuality, openness and collaboration towards achievement of individual as well as organizational goals. It is a continuous activity to measure the performance of employees. Since organization exists to achieve goals, the degree of success of any organization depends on the performance of its employees. If employees performance become well then organization will progress and will run smoothly. For this reason evaluation of employees performance is most important. Therefore performance appraisal must be needed in every organization to achieve its desired goal.
Concept of Performance Appraisal
Performance appraisal is the systematic evaluation of the individual with respect to his performance on the job and his potential for development. Actually it is defined as a periodic process of evaluating an employee’s performance of a job in terms of its requirements. In a broad sense performance appraisal is a review and discussion of an employee's performance of assigned duties and responsibilities and it is evaluated based on results obtained by the employee in his/her job, not on the employee's personality characteristics and appraisal measures skills and accomplishments with reasonable accuracy and uniformity. It ensures democratic environment in Management because managers ensure treatment with their subordinates based on their performance. To understand Performance appraisal deeply we have to consider related terms with Performance appraisal and these are given follow: What is to be Appraised?
Every organization has to decide what to appraise before the program is approved. Generally, the content to be appraised is determined on the basis of job analysis. The content to be appraised may be: * Behaviors which measures observable physical actions, movements * Objectives which measures job related results like amount of deposits, mobilized and * Traits which are measured in terms of personal characteristics observable in employees job activities (Khan & Taher, 2011) Who will Appraise?
The appraiser may be any person who has the skill to appraise and also through knowledge about the job contents to be appraised. The appraiser should be capable of determining what is more important and what is relatively less important. He should prepare reports and judgments without bias. Generally appraisers are: supervisors, peers, self-appraisal and consultants (Khan & Taher, 2011).
When to Appraise?
Informal appraisals may be conducted whenever the supervisors or the HR managers feel it is necessary. However, systemic appraisals are conducted on a regular basis, for example, annually or half-yearly. However, appraisals are most often conducted once a year. (Khan & Taher, 2011) Scholars view of Performance Appraisal
“Performance appraisal is a systematic, periodic and so far as humanly possible, an impartial rating of an employee’s excellence in matters pertaining to his present job and to his potentialities for a better job”. -E. B. Flippo
“Performance appraisal includes all formal procedures used to evaluate personalities and contributions and potentialities of group members in a working organization. It is a continuous process to secure information...