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PERFORMANCE APPRAISAL SYSTEM IN INDIAN ORGANIZATIONS

Performance Appraisal System

In the context of employee performance one FQA is whether the current performance measurement models are adequate for the Indian Organizations

If not, what changes are required?


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Performance Appraisal System

This presentation is limited to the situations prevailing in Indian Organizations only

Performance Appraisal System

Although Indian Organizations has come off age in recent times, human resource management continues to remain a neglected one. The role of Human Resource Managers remain limited to fire fighting.
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Performance Appraisal System Areas like capability assessment, including capability gaps and training needs, placement of right people in the right places, career plan, employee motivation etc. are areas receiving no attention.

Performance Appraisal System Most HR Managers go through the performance appraisal in a rather mechanical way and treat them as they treat the plethora of statements that are prepared by organizations for submission to various authorities.

Performance Appraisal System

Presently HR Manager are clearly not in the know-how of what all uses a performance appraisal, if done in a scientific way, can be put to.

Performance Appraisal System Presently in most organizations, employees are required to submit their performance appraisal only when a promotion process is undertaken.

Performance Appraisal System Only a few organizations have put in place mechanisms to identify key responsibility areas for the purpose of designing their performance appraisal forms.

Target setting is virtually non-existent.


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Performance Appraisal System The aims and objectives of the organisation, the contribution of individuals/the departments towards these objectives are certain key elements missing in the present day performance appraisal systems.

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Performance Appraisal System The process takes a bottom-up approach with virtually no interaction between the appraisee and the appraiser. A critical assessment of the appraisee and review of the performance over a reporting period are virtually nonexistent.
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Performance Appraisal System As a result the employees development suffers and valuable human resources wasted.

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Performance Appraisal System

Nowadays various tools are available for evaluating employee performance. Some organisations have even taken to 360 degree evaluation techniques.

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Performance Appraisal System Till such time managing human resources gives way to Human Resource Management in organizations, performance management systems including 360 degree evaluation techniques shall remain a distant dream.
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Performance Appraisal System If only organizations are to make use of the performance appraisal systems they have to make it a more meaningful one thereby contributing to the development of the individual and the organisation as a whole, they will be taking a giant step forward.
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Performance Appraisal System It is in this context that one should look at revamping the performance appraisal systems in Indian organizations. As a first step of course, one should be clear as to what purposes it should serve.
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Performance Appraisal System In general a performance appraisal system should serve as a tool for workperformance judgmental and provide a basis for reward allocation, promotions, transfers, lay-offs etc.

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Performance Appraisal System It should help the organisations to identify high potential employees developmental, fostering work improvement, identifying training and development opportunities and develop ways to overcome obstacles and barriers.
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Performance Appraisal System It should serve as a medium for translating organisational goals into individual job objectives, communicating expectations regarding employee performance.

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Performance Appraisal System It should provide for a two-way communication between the employee and the supervisor and help diagnose strengths and weaknesses thereby enabling a development plan for improving job performance.

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Performance Appraisal System It should define and analyse the behavioral aspects of performance. It should also serve as a medium for employee introspection.

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Performance Appraisal System.)


A well designed performance appraisal should give employees answers to questions such as What am I expected to do How well am I doing What are my strengths and weaknesses How can I do a better job and How can I contribute more towards the organisational goal.
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Performance Appraisal System

A performance appraisal system often fails because Managers often resist either passively or aggressively have limited contact with subordinates and are poor at giving feedback subordinates are poor at receiving feedback
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Performance Appraisal System viewed as a wasted paper work especially if nothing comes out of their effort. Managers fear the emotion that can be unleashed. Managers fear not being able to defend the rating.
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Performance Appraisal System


Keys for designing an effective performance appraisal system Provide for rater and ratee participation in the designing process. Aim for simplicity, fairness, objectivity, openness, usefulness. Aim to be inclusive of all behavior and results that should be performed.
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Performance Appraisal System

While designing, address questions such as


What is the purpose? What is the supervisors attitude towards performance appraisal? What are the appropriate job criteria? Who should conduct the appraisal? When they should occur; and How often should they occur?
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Performance Appraisal System

The performance appraisal forms need to be job related as simple as possible easy to administer valid and reliable enable individuals to influence measures
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Performance Appraisal System


What Performance Appraisal should deliver

Evaluate goals Provide feedback to the appraisee Develop valid data for pay and promotion decisions Provide means of putting subordinates on notice about unsatisfactory performance.
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Performance Appraisal System


Enable coaching and developmental goals. Develop contacts through discussions with subordinates. Motivate subordinates through recognition and support. Strengthen supervisor-subordinate relation. Diagnose individual and organisational problems.
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Some Facts About Performance Management


Performance management can be regarded as a continuous process managing the performances of people for getting desired results. Performance management is beneficial to all the major stakeholders of an organization by clearly describing what is supposed to be done for attaining certain desired goals. Performance management is the heart of any HR processes in an organization as it influences the rest other HR functions or processes. Focus on performance management may be fruitless without the existence of proper organizational design 30 and management systems.

Some of the essential pre requisites without which performance management system will not function effectively in an organization are: Should attract very high levels of participation from all the members concerned in an organization. It should be a participative process. Top management support and commitment is very essential for building a sound performance culture in an organization. Organizational vision, mission and goals should be clearly defined and understood by all levels so that the efforts are directed towards the realization of the organizational ambitions.
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Clear definition of the roles for performing a given job within the organizational framework which emanates from the departmental and the organizational objectives. The system should also be able to explain the linkages of a role with other roles. Open and transparent communication should prevail which will motivate the employees for participating freely and delivering high performance. Communication is an essential pre requisite for a performance management process as it clarifies the expectations and enables the parties in understanding the desired behaviors or expected results.
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Identification of major performance parameters and definition of key performance indicators. Consistency and fairness in application.

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A commitment towards recognition of high performance. Rewards and recognitions should be built within the framework of performance management framework. Proper organizational training should be provided to the staff members based on the identification of training needs from periodic evaluation and review of performance. This will motivate the employees for a superior performance.
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