Performance Appraisal : A Managerial Viewpoint
Nidhi Arora1 Poonam Arora2
Man is a social animal by nature and to earn his livelihood he has to work. In past, earning was required only to satisfy the daily appetite but his needs have increased e xponentially with the passage of time. Now he does not work to earn money; he works so that he can afford luxury. According to Maslow the growth need drives personal growth. Human beings are motivated by unsatisfied needs, and that certain lower needs need to be satisfied before higher needs can be addressed. By and by he becomes hungry to satisfy all his needs. When the basic needs of man are fulfilled, he seeks to fulfill his higher level needs one of which is self actualization and this comes from mo tivation.. From the perspective of employers, performance appraisal provides strong means of motivating their employees. The main goal of performance appraisal is to maintain organizational productivity which results into the overall individual’s performance. Various organizations practice the same by several methods which may either be to increase individual’s performance or may be goal oriented. As far as appraisal is concerned, both organization and employees have their own viewpoint. From the employee viewpoint, he comes to know the organization’s expectations, his past performance, ways to improve the current performance and even gets reward or recognition of his good work. Looking from the organization's side, one of the most important reasons for having a system of performance appraisal is to establish and uphold the principle of accountability. 1. What is Performance Appraisal?
Performance appraisal is defined as a structured formal interaction between a subordinate and supervisor, that usually take s the form of a periodic interview which can be annual or semiannual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills deve lopment by his supervisor.
According to ‘Flippo’, a prominent personality in the field of Human resources, ‘Performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job’. Also, Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future.
L ecturer ,Chimanbhai Patel Post Graduate Institute of Computer Applications, Ahmedabad L ecturer,Institute of Business Management and Research, Ahmedabad
indiastat.com September - October, 2010
socio - economic voices
2. Purpose of Performance Appraisal
Effective performance appraisal systems as shown in Fig.1 contain two basic operating systems in conjunction: an evaluation system and a feedback system.
The aim of the evaluation system is to identify the performance gap. This gap is the shortfall that occurs when performance does not meet the standard set by the organization as acceptable.
The aim of the feedback system is to inform the employee about the quality of his or her performance. However, the information flow is not exclusively one way. The appraisers also receive feedback from the employee about job problems, etc.
3. Steps of Conducting Employee Performance Appraisals
1. Designing a legally valid performance review process
Performance appraisals should be: job-related and valid; based on a thorough analysis of the job; standardized for all employees; not biased against any race, color, sex, religion, or nationality; and performed by people who have adequate knowledge of the person or job. 2. Designing a standard form for performance appraisals
The fo rm should be standardized and it should include the name of the employee, dates specifying the time interval over which the employee is being evaluated,...
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