PERFORMANCE APPRAISAL

Sunaina Sangwan, ITM University

Concept

performance appraisal is the systematic, periodic and an impartial rating of

an employees excellence in the matters pertaining to his present job and

his potential for a better job. - Edwin B. Flippo

Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.

Features

Systematic Process Not limited to calling the fouls Future-oriented activity

Objectives

Compensation Decisions Promotion Decisions Training and Development Programmes Feedback Personal Development

Who will Appraise

Supervisors Peers Subordinates Self-appraisal Users of Services Consultants

Process
Establish Performance Standards

Communicate the standards

Measure Actual Performance

Compare Actual Performance with Standards and discuss the appraisal

Taking corrective action, if necessary

Methods of Performance Appraisal

Individual Evaluation Methods Confidential Report Essay Evaluation Critical incidents Checklists Graphic Rating Scale BARS Forced Choice method MBO Multiple-person Evaluation Methods Ranking Paired Comparison Forced Distribution Other Methods Group Appraisal HRA Assessment Centre Field Review 360-Degree Feedback System

Problems with PA

Judgement Errors
Halo

Effect Horn Effect Leniency / Strict Recency Effect Central Tendency

Poor Appraisal Forms Lack of rater preparedness Ineffective organizational Policies and Practices

Potential Appraisal

A process of determining an employees strengths and weaknesses with a view to use this as a predictor of his future Very often people perform in roles that are given to them, but they may not be best suited for that role
For example:- a software engineer may be used only for technical issues, but if the person has an ability to speak well, he could be used in sales or customer service, and at the same time he could leverage his technical knowledge. This would ensure faster growth for the employee, and better utilization of company's human resources. Most 'techies' lose out because they are not considered HR enabled, and may lose out on those profiles. Potential Appraisal identifies even unused/undeveloped potential in a win-win manner

Difference between Performance Appraisal & Potential Appraisal

In Performance Appraisal, we compare how one has performed as compared to what was expected from the role/post. However, In Potential Appraisal, the objective is to identify where the employee has strengths/skills that can be utilized/exploited by the company. Unlike Performance Review, it doesnt happen at a particular period in every organization Performance Appraisal looks at what already happened and for evaluation. However, Potential Appraisal is about something yet to happen and is subject to evaluation and observation before appraisal.