Perspective of Personnel Management, Organization for Personnel Management, Manpower Planning, Job Analysis and Job Evaluation, Personnel Compensation, Manpower Recruitment and Selection, Career Planning, Appraising Personnel Performance, Manpower Development, Handling Personnel Grievances, Disciplinary Actions.
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Define Performance
Appraisal with its objectives
Performance
Appraisal is the systematic evaluation of the performance of employees and to
understand the abilities of a person for further growth and development.
Performance appraisal is generally done in systematic ways which are as
follows:
1. The
supervisors measure the pay of employees and compare it with targets and plans.
2. The
supervisor analyses the factors behind work performances of employees.
The
employers are in position to guide the employees for a better performance.
Objectives of
Performance Appraisal
Performance
Appraisal can be done with following objectives in mind:
1. To
maintain records in order to determine compensation packages, wage structure,
salaries raises, etc.
2. To
identify the strengths and weaknesses of employees to place right men on right
job.
3. To
maintain and assess the potential present in a person for further growth and
development.
4. To
provide a feedback to employees regarding their performance and related status.
5. To
provide a feedback to employees regarding their performance and related status.
6. It
serves as a basis for influencing working habits of the employees.
7. To
review and retain the promotional and other training programs.
Advantages of Performance Appraisal
It
is said that performance appraisal is an investment for the company which can
be warranted by following advantages:
1.
Promotion:
Performance
Appraisal aids the supervisors to chalk out the promotion programs for proficient
employees. In this regards, inefficient workers can be dismissed or demoted in
case.
2.
Compensation:
Performance
Appraisal helps in chalking out compensation packages for employees. Merit
rating is possible through performance appraisal. Performance Appraisal tries
to give worth to a performance. A compensation package which includes bonus,
high salary rates, extra benefits, allowances and pre-requisites are dependent
on performance appraisal. The criteria should be merit rather than seniority.
3.
Employees Development:
The
systematic procedure of performance appraisal helps the supervisors to frame
training policies and programs. It helps to analyze strengths and weaknesses of
employees so that new jobs can be designed for efficient employees. It also
helps in framing future development programs.
4.
Selection Validation:
Performance
Appraisal helps the supervisors to understand the validity and importance of
the selection procedure. The supervisors come to know the validity and thereby
the strengths and weaknesses of selection procedure. Future changes in
selection methods can be made in this regard.
5.
Communication:
For
an organization, effective communication between employees and employers is
very important. Through performance appraisal, communication can be sought for
in the following ways:
i. Through
performance appraisal, the employers can understand and accept skills of
subordinates.
ii.The
subordinates can also understand and create a trust and confidence in
superiors.
iii. It
also helps in maintaining cordial and congenial labour management relationship.
iv.
It
develops the spirit of work and boosts the morale of employees.
All
the above factors ensure effective communication.
6.
Motivation:
Performance
appraisal serves as a motivation tool. Through evaluating performance of
employees, a person’s efficiency can be determined if the targets are achieved.
This very well motivates a person for better job and helps him to improve his
performance in the future.