Performance Appraisal

Topics: Human resource management Pages: 7 (1862 words) Published: December 16, 2010
Performance Appraisal

Nearly all organizations seek to monitor the job performance of their members through an evaluation system. Employees who perform their jobs well are usually rewarded and those who do not are penalized. Although all organizations have adopted methods for personnel appraisal, their effectiveness is still a matter of dispute.

Performance appraisal may be measured by quantitative and qualitative aspects of the job performance, against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, health, and various other aspects of jobs. Thus performance appraisals is the assessment of employee performance in past, to improve his future performance.
Performance appraisal may be defined as:

(1)According to “ Dale S. Beach”-
‘The systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development’

(2)According to “Flippo”-
‘A systematic, periodic and so far an impartial rating of an employee’s excellence in matters pertaining to his present job and to his potential for a better job’.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management’s interest in the progress of the employees.

Banking services is one sector where a great degree of attention is being paid to Performance Appraisal Systems. Several of the public sector banks (PSBs) have changed their PAS or are in the process of changing them. State Bank of India has recently adopted an open system of appraisal. Its associate banks are likely to follow the same after detailed Appraisal Process. Several banks also have self-appraisal as a part of performance appraisal, although mostly such self-appraisal is more of a communication of achievements. Allahabad Bank has introduced a system that aims in helping officers to identify their strengths and weaknesses and encourage improvement of performance on the job. Indian Overseas Bank has a system in which a branch manager gives a self-appraisal on business growth, customer service, internal administration and training requirements in great detail. Union Bank of India has an appraisal system in which the reporting officer is required to assess each of his appraisee officers on technical skills, human skills and conceptual skills. All these are defined for different categories of roles and the assessment has to be made on a five-point scale. Corporation Bank, UCO Bank, Central Bank of India, Dena Bank and Bank of Baroda has introduced similar self-appraisal formats. Punjab National Bank has, primarily, a development-oriented appraisal form. There are ten different formats available for ten different categories of employees. The bank started the system with a self-appraisal by the appraisee.

Process/procedure of conducting performance appraisal

The process of conducting performance appraisal is as follows:

(1)Establishing performance standards:
The performance appraisal process begins with the setting up of criteria or standards, to be used for appraising the performance of employees. There should be some base on which one may say that the performance of a person is good, average, bad etc. The standards may be in quantity and quality of production incase of workers, personality traits like leadership, initiative, imagination incase of executives, files cleared incase of office staff etc. these standards should be mentioned in the appraisal form. These standards will help in setting...
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