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:
- The supervisors measure the pay of employees and compare it with targets and plans.
- The supervisor analyses the factors behind work performances of employees.
- The employers are in position to guide the employees for a better performance.
Performance Appraisals are done with a few key objectives in mind:
1. To maintain records for compensation packages, wage structure, salaries, pay raises, or restructuring.
2. To identify the strengths and weaknesses of employees.
3. To assess and maintain the potential each person has for further growth and development.
4. To provide feedback to employees regarding their performance.
5. To serve as a basis for improving working habits of employees.
6. To review and retain promotional and other training programmes.
performance appraisal are an investment for both the company and the employees. After evaluate the performance appraisal of employees, company understand about their work performance towards company and they know other quality of the employee like learn other skills, behaviour with employees and others and their responsibilities are fulfil by his / her. And if employees work not well in organisation they ask him about the problem and motivate them for better performance. It is every year in organisation on that basis they decide which employees are promoted or demoted.
There are many advantages of performance appraisal in an organisation as follows:
Promotion: after performance appraisal help the supervisors to recommend promotion programmes for efficient employees but it is demoted or dismissed from the work to inefficient employees.
compensation: Performance appraisals help to evaluate compensation packages for employees. Packages, which include bonuses, higher salary rates, extra benefits and allowances, are dependent on how an employee is performing.
Employees Development : It help supervisors to develop training policies and programmes based on the strengths and weakness of employees so that new role can be designed gor efficient employees.
Communication: For any organisation , effective communication between employee and employer are very important . Through performance appraisal, employers can understand and accept skill of workers, A company can maintain a position labour – management relationship, and employee can also understand, learn to trust and have confidence on supervisors.
Motivation: Performance appraisal serves as a motivational tool. After evaluate which employee achieved their goal or target , a person’s efficiency can be determined. This motivates a person to work toward perhaps a better job, and helps him or her to improve performance in the future.
There are some methods from which performance appraisal are evaluated in the organisation:
# Ranking method
# Forced choice method
Process of performance appraisal:
1: Establishing performance standards
2: Communication standards and expectations
3:Measuring the actual performance
4: comparing with standard
5: Discussing result (providing feedback)
6: Decision making or taking corrective action
360 degree appraisal:
There are three general reasons as to why as organisation would go in for a 360° degree appraisal :
1- To get a better view of performance and prospective of future leaders.
2- To have a board insight of developmental needs of manpower
3- To collect more feedback so as to ensure justice to the job performed by employee.
In 360° appraisal system, the feedback is collected from the managers, peers,subordinates, customers, team member etc. A survey is conducted to get close understanding of- on the job performance of employee.
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