Project on Performence Appraisal

Topics: Steel, Iron, Steelmaking Pages: 62 (15021 words) Published: September 8, 2013
1.1 INTRODUCTION

Any organization interested in its growth has to be dynamic. Dynamic organizations are continuously on alert looking for growth opportunities, creating challenges for themselves and making and impact on their environment. Such an organization has to have certain amount of flexibility in its own internal organizational structure, roles and role relationships. Thus dynamic organizations are continuously in the process of change. These changes have an impact on the roles particularly the managerial roles in any organization.

The history of performance appraisal is quite brief. Its roots in the 20th century can be traced to Taylor's pioneering time and motion studies. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of IInd world war- not more than 60 years ago.

There is, says Duelist (1989) "a basic human tendency to make judgements about those one is working with, as well as about oneself Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appraisal, people will tend to judge the work performance of others, including subordinates, naturally, informally and arbitrarily.

Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide wither or not the salary of wage of an individual employee was justified.

During and after the 1st world war, systematic performance appraisal was quite prominent. Industrial concerns also used this system for evaluation of hourly paid workers. However, with the increase in training and development programmes, managements started adopting performance appraisal for evaluating technical skilled professional and managerial personnel as a part of training and executive development programmes.

MEANING
Performance appraisal, also known as employee appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time). Performance appraisal is a part of career development.

Performance appraisals are a regular review of employee performance within organizations. Performance appraisal is a method of evaluation of the behavior of employee in the work spot, normally including both the quantitative and qualitative aspects of job performance. Performance here refers to the degree of accomplishment of the tasks that make up an individual's job. It indicates how well an individual is fulfilling the job demands. Often the term is confused with effort, which means performance is always measured in terms of results.

Under performance appraisal, we evaluate not only the performance of a worker but also his potential for development. Performance appraisal is the systematic description of an employee's job relevant strength and weakness. The basic purpose is to find out how well the employee if performing the job and establish a plan of improvement. Appraisals are arranged periodically according to a definite plan.

Performance appraisal is not job evaluation. Performance appraisal refers to how well some one doing the assigned job. Job evaluation determines how much a job is worth to the organization and therefore, what range of pay should be assigned to the job.

Historically, performance appraisal has generally been employed for administrative purpose, such as promotions and salary increases, as well as for individual development and motivation.

DEFINITION

Performance appraisal is the systematic evaluation of the individual with respect to his or her performance on the job and his/her potential for development. "Performance appraisal is a formal, structured system of measuring and evaluating an employee's job related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee,...
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