PROJECT REPORT

TOPIC NAME

: Performance Appraisal.

Submitted By

NAME

: Rahul Mohanan.

ROLL NO

: 2024

CLASS

: S.Y.B.COM[F/M] ( 3rd Semester)

ACADEMIC YEAR : 2011-2012

Submitted To

NAME

: Mrs. Jennie Prajith.

SIGN

MAHATMA EDUCATION SOCIETY

PILLAIS COLLEGE OF ARTS, SCINECE AND COMMERCE. Dr. Vasudevan Pillais Campus. 10, Sector 16, New Panvel.

ACKNOWLEDGEMENT

I have taken efforts in this project; however it would not have been possible without the support and help of many individuals and organization. We would like to extend my sincere thanks to all of them.

I have been highly indebted to all teachers for their guidance and constant supervision as well as for providing necessary information regarding the project and also for their support in completing the project.

I would like to express our gratitude towards our professor for their kind, Co-operation and encouragement which helped us in the successful completion of this project.

Our thanks and appreciations also go to people who have willingly helped us out with their abilities and resources.

I would like to specially thank Mrs. Jennie Prajith for her constant encouragement and supportive ideas. The project report is a combined effort of all these people.

THANK YOU.

DECLARATION

I hereby declare that the project work entitled Performance Appraisal submitted to Pillais College Of Arts, Commerce and Science, is a record of an original work done by me under the guidance of Mrs. Jennie Prajith, Faculty Member and Coordinator for Financial Markets stream, and this project work has not performed the basis for reward of any Degree or Diploma/ Associate ship/ Fellowship and similar project if any.

RAHUL MOHANAN 2024 S.Y.B.Com[F/M] (3rd Semester).

CERTIFICATE

This is to certify that Mr. Rahul Mohanan Roll No.2024 a student of S.Y.B.Com[F/M] from Pillais College of Arts, Commerce and Science has done his full-semester project in the academic year from 2011-2012. The project report work entitled Performance Appraisal embodies the original work done by Mr. Rahul Mohanan during his full semester project training period.

1. INTRODUCTION TO PERFORMANCE APPRAISAL The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War - not more than 60 years ago.

Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it might well lay claim to being the world's second oldest profession! There is, says Dulewicz (1989), "... a basic human tendency to make judgments 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. The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgements made will be lawful, fair, defensible and accurate. Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed. For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence. As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time 1.1 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 programmes.

Provide Feedback The feedback received by the employee can be helpful in many ways. It gives insight to how superiors value your performance, highlights the gap between actual and desired performance and diagnoses strengths and weaknesses as wells as shows areas for improvement. Improve Communication The method of performance appraisals helps superiors strengthen relationships and improve communication with employees. Training Needed These appraisals also identify the necessary training and development the employee needs to close the gap between current performance and desired performance. Clarify Expectations Performance appraisals should clarify roles, responsibilities and expectations of all employees. Allocate Rewards Performance appraisals reduce employee grievances by clearly documenting the criteria used to make organizational decisions such as promotions, raises or disciplinary actions.

1.2 Research methodology In order to identify how to improve the process it was necessary to critically analyze current procedures. The research was therefore evaluative in nature collecting data on the type of process in use and analyzing the information in order to identify appropriate recommendations. The first stage was to examine contemporary thinking on the reasons for utilizing a performance appraisal system through an extensive literature review. The second considered the requirements of personnel to be reviewed, their organizational role, what knowledge skills and attitudes they should possess to reinforce desired organizational directions. The final stage was to identify and consider what options were available to implement such a scheme.

2. CONCEPTUAL FRAMEWORK I. Background : 1. The concept of Performance Appraisal dates back to the First World War and was then called Merit Rating Programme. Over a period of time, this concept has been through an ocean of change. The areas of evaluation have also changed. 2. According to Carl Heyel, author/editor on management, philosopher and teacher, performance appraisal is the process of evaluating the performance and qualifications of the employees in terms of job requirements, for administrative purposes such as placement, selection and promotion, to provide financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally.

II. Change: 1. A few decades ago, the employee used to be appraised by his department head. The department head used to communicate his feedback and comments only to the immediate superior of the employee. Thus the feedback was kept confidential in nature. As time passed by, the immediate superior started appraising his subordinates performance

and sending his confidential report to the department head. These were the periods when the employee was not included in his appraisal process. The decisions used to be taken by his superiors relating to his pay hike, promotion etc. Thus the system was non-transparent. 2. The current process of performance appraisal is much more open and gives some scope for self-appraisal by the employee. The self-appraisal is followed by a joint discussion with superior and then a decision is taken by the department head on his promotion, pay hike etc. The feedback relating to his performance is directly given to the employee. Thus performance appraisal process has gone through the phase of non-transparency to transparency.

PURPOSE OF PERFORMANCE APPRAISAL The objectives of performance appraisal fall in two categories: 1. Administrative 2. Self-improvement 1. Administrative Objectives (i) Promotions: This is the most important use of performance appraisal. It is to the common interests of both the management and employees to promote employees into positions where they can most effectively utilize their abilities. (ii) Transfers: In an organization, it may be necessary to consider various types of personnel actions such as transfers, layoffs, demotions and discharges. Such actions can be justified if they are based on performance appraisal.

(iii)Training & Development: An appropriate system of performance appraisal can be helpful in identifying the areas of skills or knowledge in which certain employees are not up to par, thus pointing out general training deficiencies, which presumable should be corrected by additional training, discussions or counseling. (iv)Wage and Salary Administration: In some cases, the wage increases are based on the performance appraisal reports. In some cases appraisals and seniority are used in combination. 1. Self Improvement Objectives The system allows the employee to evaluate his performance, identify the areas which he finds need improvement and based on his personal assessment, take the steps he feels are necessary to improve his

performance. WHEN AND WHO SHOULD CONDUCT APPRAISALS? Appraisals typically are conducted once or twice a year, most often annually. For new employees, common timing is to conduct an appraisal 90 days after employment, again at six months, and annually thereafter. Probationary or new employees, or those who are new and in a trial period, should be evaluated frequently perhaps weekly for the first month and monthly thereafter until the end of the introductory period for new employees. Performance appraisals can be done by anyone familiar with the performance of individual employees. o Supervisors who rate their employees o Employees who rate their supervisors o Team members who rate each other o Employees self-appraisal

WHAT SHOULD BE EVALUATED? The criteria for assessing performance can be: Quality & Quantity Timeliness Cost Effectiveness Need for supervision Interpersonal impact Innovation & Creativity Problem Analysis Customer orientation Market Orientation Entrepreneurial Drive This is not an exhaustive list, but several other parameters too can be added depending on job requirements and organizational needs.

ELEMENTS OF AN EFFECTIVE APPRAISAL SYSTEM Use of an appraisal system that is job-related and understandable. Clear instructions and training for performance raters. Performance-rater familiarity with the nature and importance of job duties on which employee is being rated. Clear identification of standards by which performance will be measured Scheduled, periodic reviews.

 Objective measurement (excellent/good/fair /unacceptable) if the employee is meeting performance standards. Future action plan. Precautions against improper bias by raters. PERFORMANCE APPRAISAL SYSTEM IN CORPORATES BHARTI AIRTEL (Primary data) KROLL INC (Primary data) CRIS (Secondary data) BHARTI AIRTEL Bharti Airtel is India's largest cellular service provider with more than 79 million subscribers as of November 2008.It offers its TELECOM services under the Airtel brand and is headed by Sunil Mittal. The company provides fixed line services, broadband services, telephone services and Internet access. The company complements its mobile, broadband & telephone services with national and international long distance services. Timing of the Performance Appraisal System As per the company policy, Appraisals are conducted on annual basis where either monetary appraisal or position appraisal pr both is done. All the employees are informed through mails and are asked to fill a KRA SHEET (Knowledge Resource Allocation) If in case there are any unusual circumstances, appraisal can be done in once in 6 months also. Appraisal Method - The method used is work standard approach. The steps involve1. Self Appraisal- first the employee given the form to fill and rate himself on the performance and work objectives fulfilled. 2. Then the immediate appraisal is done by the Reporting manager. The manager conducts a meeting with every employee, verifies the data filled by him and calculates the scores for the performance. 3. Regional HR- The form is submitted with regional HR head of the company who furthers add information about the employee (no of leaves taken etc) and gives his remarks and recommendations for the appraisal. 4. The final form is sent for appraisal to Corporate Office.

Who conducts the Appraisal? The immediate appraisal is done by the floor manager. The manager is given the form to fill and rate the employee. This followed by the 360 degree approach wherein the colleagues, subordinates and superiors are given the form to fill and rate a particular employee. In the end an overall rating is taken and appraisal is done on the basis of that rating.

Methods Used Kroll Inc. follows Category ratings method. The appraisal is done in the following two ways: 1. Graphic rating method: In this method the employees were rated on certain parameters which marked an employees performance on a continuum. This is basically done for performance appraisal. 2. Checklist method: In this method employees are checked on the basis of their characteristics, where each of them has a weightage based on which an overall score is calculated. This is done basically as means of potential appraisal.

Advantages 1. Performance based conversations Managers get busy with day-to-day responsibilities and often neglect the necessary interactions with staff that provide the opportunity to coach and offer performance feedback. A performance management process forces managers to discuss performance issues. It is this consistent coaching that affects changed behaviors. 2. Targeted Staff Development If done well, a good performance management system can be a positive way to identify developmental opportunities and can be an important part of a succession planning process.

3. Encouragement to staff Performance Appraisals should be a celebration of all the wonderful things an employee does over the course of a year and should be an encouragement to staff. There should be no surprises if issues are addressed as they arise and not held until the annual review. 4. Rewards staff for a job well done If pay increases and/or bonuses are tied to the PA, process staff can see a direct correlation between performance and financial rewards. 5. Underperformers identified and eliminated As hard as we try, it is inevitable that some employees just wont cut the mustard as they say. An effective PA process can help identify and document underperformers, allowing for a smooth transition if the relationship needs to be terminated. 6. Documented history of employee performance It is very important that all organizations keep a performance record on all employees. This is a document that should be kept in the employees HR file. 7. Allows for employee growth Motivated employees value structure, development and a plan for growth. An effective performance management system can help an employee reach their full potential and this is positive for both the employee and manager. A good manager takes pride in watching an employee grow and develop professionally. Organizations should take a global look at their performance management system and have very objective goals that are tied to strategic initiatives and the performance management process. Successful organizations have learned the secret to this and while not always perfect, a constant striving to improve the process can help organizations reach their Vision.

They provide a record of performance over a period of time. They provide an opportunity for a manager to meet and discuss performance with an employee. Provide the employee with feedback about their performance and how they completed their goals. Provide an opportunity for an employee to discuss issues and to clarify expectations with their manager. Offer an opportunity to think about the upcoming year and develop employee goals. Can be motivational with the support of a good reward and compensation system.

Disadvantages 1. Time Consuming It is recommended that a manager spend about an hour per employee writing performance appraisals and depending on the number of people being evaluated, it can take hours to write the departments PA but also hours meeting with staff to review the PA. Ive know managers who had 100 plus people to write PAs on. 2. Discouragement If the process is not a pleasant experience, it has the potential to discourage staff. The process needs to be one of encouragement, positive reinforcement and a celebration of a years worth of accomplishments. It is critical that managers document not only issues that need to be corrected, but also the positive things an employee does throughout the course of a year, and both should be discussed during a PA. 3. Inconsistent Message If a manager does not keep notes and accurate records of employee behavior, they may not be successful in sending a consistent message to the employee. We all struggle with memory with as busy as we all are so it is critical to document issues (both positive and negative) when it is fresh in our minds. 4. Biases It is difficult to keep biases out of the PA process and it takes a very structured, objective process and a mature manager to remain unbiased through the process. If not done appropriately, can be a negative experience. Are very time consuming, especially for a manager with many employees. Are based on human assessment and are subject to rater errors and biases. If not done right can be a complete waste of time. Can be stressful for all involved.

PROCEDURE

1. Identify performance criteria: The number of appraisal criteria for each position is from 3 10 criteria. The standards set should be clear, easily understandable and in measurable terms The appraisal criteria can be changed but must be the authority for approval and must be implemented for the relevant level before applying. HR department and managers/ supervisor will set up weight of each criteria and must be approved directors.

2. Communicating performance criteria: HR department should inform this procedure to all level of management andemployees. The employees should be informed and the standards should be clearly explained in order to help them understanding their roles and to know what exactly is expected from them. Performance criteria should also be communicated to the appraisers or the evaluators and if required. 3. Measuring performance Prepare. HR dept should prepare all materials, notes agreed tasks and records of performance, achievements, incidents, reports etc anything pertaining to performance and achievement. Inform the appraisee: To ensure the appraisee is informed of a suitable time and place and clarify purpose and type of appraisal. Give the appraisee the chance to assemble data and relevant performance and achievement records and materials.

Review and measure HR dept and managers / supervisors review the activities, tasks, objectives and achievements one by one, keeping to distinct separate items one by one. Agree an action plan An overall plan should be agreed with the appraisee, which should take account of the job responsibilities and review strengths and weaknesses. The plan can be staged if necessary with short, medium and long term aspects, but importantly it must be agreed and realistic. 4. Comparing with desired criteria The actual performance is compared with the desired or performance criteria. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance.

5. Discussing results The result of the appraisal should be communicated and discussed with theemployees. The feedback should be given with a positive attitude as this can

have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate theemployees to perform better. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus.

METHODS OF PERFORMANCE APPRAISAL

1. Critical incident method This format of performance appraisal is a method which is involved identifying and describing specific incidents where employees did something really well or that needs improving during their performance period. 2. Weighted checklist method In this style, performance appraisal is made under a method where the jobs being evaluated based on descriptive statements about effective and ineffective behavior on jobs. 3. Paired comparison analysis This form of performance appraisal is a good way to make full use of the methods of options. There will be a list of relevant options. Each option is in comparison with the others in the list. The results will be calculated and then such option with highest score will be mostly chosen. 4. Graphic rating scales This format is considered the oldest and most popular method to assess the employees performance. In this style of performance appraisal, the management just simply does checks on the performance levels of their staff. 5. Essay Evaluation method In this style of performance appraisal, managers/ supervisors are required to figure out the strong and weak points of staffs behaviors. Essay evaluation method is a non-quantitative technique. It is often mixed with the method the graphic rating scale. 6. Behaviorally anchored rating scales This formatted performance appraisal is based on making rates on behaviors or sets of indicators to determine the effectiveness or

ineffectiveness of working performance. The form is a mix of the rating scale and critical incident techniques to assess performance of the staff. 7. Performance ranking method The performance appraisal of ranking is used to assess the working performance of employees from the highest to lowest levels. Managers will make comparisons of an employee with the others, instead of making comparison of each employee with some certain standards. 8. Management By Objectives (MBO) method MBO is a method of performance appraisal in which managers or employers set a list of objectives and make assessments on their performance on a regular basis, and finally make rewards based on the results achieved. This method mostly cares about the results achieved (goals) but not to the way how employees can fulfill them. 9. 360 degree performance appraisal The style of 360 degree performance appraisal is a method that employees will give confidential and anonymous assessments on their colleagues. This post also information that can be used as references for such methods of performance assessments of 720, 540, 180 10.Forced ranking (forced distribution) In this style of performance appraisal, employees are ranked in terms of forced allocations. For instance, it is vital that the proportions be shared in the way that 10 or 20 % will be the highest levels of performances, while 70 or 80% will be in the middle level and the rest will be in the lowest one. 11. Behavioral Observation Scales The method based on the scales of observation on behaviors is the one in which important tasks that workers have performed during their working time will be assessed on a regular basis.

PROCESS OF PERFORMANCE APPRAISAL ESTABLISHING PERFORMANCE STANDARDS The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the

performance of the employee cannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization.

The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.

MEASURING THE ACTUAL PERFORMANCE The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a

negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance. DISCUSSING RESULTS The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better. DECISION MAKING The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

Guidelines to Conduct Employee Performance Appraisals Yearly performance reviews are critical. Organization's are hard pressed to find good reasons why they can't dedicate an hour-long meeting once a year to ensure the mutual needs of the employee and organization are being met. Performance reviews help supervisors feel more honest in their relationships with their subordinates and feel better about themselves in their supervisorial roles. Subordinates are assured clear understanding of what's expected from them, their own personal strengths and areas for development and a solid sense of their relationship with their supervisor. Avoiding performance issues ultimately decreases morale, decreases credibility of management, decreases the organization's overall effectiveness and wastes more of management's time to do what isn't being done properly. Conduct the following activities. 1. Design a legally valid performance review process

Patricia King, in her book, Performance Planning and Appraisal, states that the law requires that performance appraisals 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. Be sure to build in the process, a route for recourse if an employee feels he or she has been dealt with unfairly in an appraisal process, e.g., that the employee can go to his or her supervisor's supervisor. The process should be clearly described in a personnel policy. 2. Design a standard form for performance appraisals Include the name of the employee, date the performance form was completed, dates specifying the time interval over which the employee is being evaluated, performance dimensions (include responsibilities from the job description, any assigned goals from the strategic plan, along with needed skills, such as communications, administration, etc.), a rating system (e.g., poor, average, good, excellent), space for commentary for each dimension, a final section for overall commentary, a final section for action plans to address improvements, and lines for signatures of the supervisor and employee. Signatures may either specify that the employee accepts the appraisal or has seen it, depending on wording on the form. 3. Schedule the first performance review for six months after the employee starts employment Schedule another six months later, and then every year on the employee's anniversary date. 4. Initiate the performance review process and upcoming meeting Tell the employee that you're initiating a scheduled performance review. Remind them of what's involved in the process. Schedule a meeting about two weeks out. 5. Have the employee suggest any updates to the job description and provide written input to the appraisal Have them record their input concurrent to the your recording theirs. Have them record their input on their own sheets (their feedback will be combined on the official form later on in the process). You and the employee can exchange each of your written feedback in the upcoming review meeting. (Note that by now, employees should have received the job descriptions and goals well in advance of the review, i.e., a year before. The employee should also be familiar with the performance appraisal procedure and form.) 6. Document your input -- reference the job description and performance goals Be sure you are familiar with the job requirements and have sufficient contact with the employee to be making valid judgments. Don't comment on the employee's race, sex, religion, nationality, or a handicap or veteran status. Record major accomplishments, exhibited strengths and weaknesses according to the dimensions on the appraisal form, and

suggest actions and training or development to improve performance. Use examples of behaviors wherever you can in the appraisal to help avoid counting on hearsay. Always address behaviors, not characteristics of personalities. The best way to follow this guideline is to consider what you saw with your eyes. Be sure to address only the behaviors of that employee, rather than behaviors of other employees. 7. Hold the performance appraisal meeting State the meeting's goals of exchanging feedback and coming to action plans, where necessary. In the meeting, let the employee speak first and give their input. Respond with your own input. Then discuss areas where you disagree. Attempt to avoid defensiveness; admitting how you feel at the present time, helps a great deal. Discuss behaviors, not personalities. Avoid final terms such as "always," "never," etc. Encourage participation and be supportive. Come to terms on actions, where possible. Try to end the meeting on a positive note. 8. Update and finalize the performance appraisal form Add agreed-to commentary on to the form. Note that if the employee wants to add attach written input to the final form, he or she should be able to do so. The supervisor signs the form and asks the employee to sign it. The form and its action plans are reviewed every few months, usually during one-on-one meetings with the employee. 9. Nothing should be surprising to the employee during the appraisal meeting Any performance issues should have been addressed as soon as those issues occurred. So nothing should be a surprise to the employee later on in the actual performance appraisal meeting. Surprises will appear to the employee as if the supervisor has not been doing his/her job and/or that the supervisor is not being fair. It is OK to mention the issues in the meeting, but the employee should have heard about them before. Why We Hate the Performance Review? Most employees in companies today are all too familiar with the concept of the performance review. Just the mention of this often dreaded occurrence of discussion with ones supervisor where they get to critique every move youve made during the year while you sit ideally by is sure to send negative feelings throughout the minds of employees everywhere. The performance review generally has a similar effect on managers and supervisors as well. So why is this performance review so dreaded and loathed by many? A few of the reasons are listed below. Employees - Why They Hate the Performance Review Process They have no control in the situation. Managers get to provide ratings and comments on multiple areas of performance that are most often subjective in nature. If an employee disagrees, they might get a small employee comments area to provide their rebuttal all the while knowing that if they push too much the person controlling their future

still has control. Reviews sheets are completed before the actual discussion occurs. Therefore bringing up comments has little effect on the actual rating which is most often tied to their annual increase which is usually only a few cents different from the person with the next highest or lowest rating. Employees are often forced to write a self evaluation prior to the meeting as well. Unfortunately, these usually only serve as annoyance to employees because the majority of the time it is ignored by the supervisor any way. Managers - Why They Hate the Performance Review Process Managers often dread the discussion of the employee performance review assuming the discussion will turn into a battle with the manager left to convince the employee that their ratings are accurate. Managers usually assume employees think they perform better than they actually do. Managers are busy with tasks and goals of their own . Taking the time to thoroughly review a whole years worth of performance is time consuming. They often rush through the forms because the HR department has a deadline they are struggling to meet? The forms are too complicated, long, short or dont cover what is really important to success in this department. So, Whats the Answer to Overcoming Negativity Around the Performance Appraisal? Heres a few tips to get you started: 1. Set clear expectations. Provide them on the first day of employment. 2. Provide feedback all year. Create a culture where performance discussions are a regular part of the work day and review meetings are held at frequent intervals such as monthly. 3. Ask first, tell later. Begin a performance discussion by asking the employee to rate their performance. Have them provide examples of where they have met and exceeded the expectations. 4. Do not complete the form until you have the discussions. Do monitor performance all year and have examples ready to discuss. 5. Guarantee no surprises at the annual meeting. If you are waiting for annual meeting to discuss performance, you lost your chance to be effective. Numerous Resources About Conducting Employee Performance Reviews Additional Perspectives on Conducting Employee Performance Appraisals Conducting Effective Performance Appraisals: Tips for Supervisors 5 Prerequisites for Conducting Performance Reviews Managing Performance: How to Conduct a Performance Review Right Selecting from Among Publicly Available Assessments How to Evaluate and Appraise employee performance (also with free template) Rare and Inimitable: Creating Human Capital Advantage (includes

evaluating employees) The Performance Appraisal Solution Preparing for performance appraisal discussions - Part I Conducting performance appraisal discussions - Part II Concluding performance appraisal discussions - Part III Performance Appraisals: A Quick Guide For Managers Some Contrary Perspectives on Employee Performance Reviews Performance Appraisal Lessons from 13 Years in the Trenches Evaluation Program Sample Reports A Cost-Benefit Case for Scrapping Performance Appraisals Once You Scrap Performance Appraisals Cost/Benefit of Performance Appraisal Why Annual Performance Reviews Are A Waste Of Time Performance Appraisal Ratings Performance appraisals: Must try harder Why We Hate the Performance Review Performance Appraisal - Free HR Employment Policy and training pack for download

Perspectives on Conducting Employee 360 Degree Performance Reviews 360 Degree Feedback Survey Software Deployment Tips & Resources: How to Guide Bouncing Back from a Negative 360-Degree Review Center for Employee Development 360-DegreeFeedback.com - Your Guide to 360 Information and Resources Center for Employee Development 360-DegreeFeedback.com - Your Guide to 360 Information and Resources.

CONCLUSION

Performance appraisal is the process of reviewing employee performance vis--vis the set expectations in a realistic manner, documenting the review, and delivering the review verbally in a face to face meeting, to raise performance standards year over year through honest and constructive feedback. In the process management expects to reinforce the employees strengths, identify improvement areas so that one can work on them and also set stretched goals for the coming year.

Effective performance management requires a good deal of face to face supervisoremployee interaction. By knowing the subordinates, a supervisor can steer them onto a path of greater productivity and optimized output. It is one of the most significant and indispensable tool for an organization as it helps in getting to know the people who work for them, provides information, which helps in taking important decisions for the development of an individual and the organization.

A well-designed performance appraisal system supports an integrated human resource strategy which enables the attainment of organizational and business goals.