Performance Appraisal

Topics: Performance appraisal, Management, Feedback Pages: 56 (13138 words) Published: July 25, 2013

“An effective performance appraisal system aligns individual performance with the organization’s mission, vision and objective.”
American Compensation Association

Performance Appraisal system is the systematic process by which an agency involves its employees, an individual and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals. The primary focus of performance appraisal system is on continual discussion of work performance to identify ways to improve it. Continual discussion of performance focuses not only on the individual, but also on work processes, resources, and any other issues that can be addressed to improve performance. The discussion of performance occurs in the context of the measurable objective that individuals are trying to achieve in their work. The role of performance appraisal in this orientation is primarily to record the results of performance for use as input to decision about adjustments to compensation, personal development planning, staffing, promotion, and other work force activities. The process of performance appraisal is initiated by collaboratively defining measurable objectives for unit performance that are based on the unit’s committed work. These unit objectives establish the framework in which individual performance objective can be defined. Measurable performances objectives are defined for each on individual based on their committed work and are revised as needed. Performance objectives at the unit and individual levels are periodically reviewed to determine their continued relevance, and if needed, they are revised

Those responsible for performance feedback have ongoing discussion about the performance of committed work with those they are assigned to review. Continuous discussion for the performance of committed work involves mutual investigation of ways to enhance performance. Those responsible for providing performance feedback maintain an awareness of the performance of individuals and work groups against their committed work. Accomplishment against performance objectives are periodically documented and discussed. When they arise, performance problems are discussed and documented. If performance continues to be unsatisfactory, a performance improvement plan is developed and tracked. Employment actions may be taken based on results accomplished against the improvement plan. Outstanding performance is recognized or rewarded. Reward included special recognition outside of the compensation system for accomplishment of significant value to the organization. A recognition and reward strategy is developed and communicated to the workforce. As rewards are made, public recognition is provided to reinforce those skills or behaviors that are organization value.

To study the performance appraisal system for executives followed at Bharat Heavy Electricals Limited, Bhopal.

1. To study the performance appraisal system at BHEL, Bhopal. 2. To study the employee’s perception about the revised Performance Appraisal System.

The purpose of performance appraisal is to establish objectives related to work against which individual performance can be measured, to measure performance against these objectives, and to continually enhance performance. By the performance appraisal system unit and individual performance objective are related to committed work are documented and discussed regularly to identify the actions that can improve it. Even through this the performance problems are managed and outstanding performances are recognized or rewarded. The performance appraisal practices are institutionalized to ensure they are performed as managed processes.


For the project the ‘conclusive research design’ is followed,...

References: 1. Aswathappa.K (2008), Human Resource Management (5 edition), Tata McGraw-Hill, New Delhi.
2. Gupta. C. B (2006), Human Resource Management (7 edition), Sultan Chand & Sons, New Delhi.
3. Prasad. L. M. (2005), Human Resource Management (2 edition), Sultan Chand & Sons, New Delhi.
6. Hartle F. (1995). ‘Transforming the Performance Management Process’ Personnel Today, Kogan.
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