performance Appraisal

Performance Appraisal is a systematic way of judging the relative importance of an employee in performing his/ her task. It is undertaken for variety of purpose such as employee salary increases, promotion and help us to identify who need training. In order to conduct systematic & effective performance Appraisal, the following steps should be followed: Establish Performance Standards:- The appraisal process begins with the establishment of performance standards. The managers must determine what output, accomplishments and skills will be evaluated. These performance standards should be clear & objectives to be understood & measured. Communicate Performance Expectation to Employees:- Once the performance standards are established, they need to be communicated to the respective employees so that they come to know what is expected from them. Measuring Performance Expectation to Employees:- In this stage, the actual performance of the employee is measured on the basis of information available from various sources. Compare Actual Performance with Standards:- In this the actual performance is compared with the pre-determined standard. This comparison may reveal the difference between actual performance and standard performance. Discuss the Appraisal with the Employee:- This the last task and the most challenging task for the Managers. In this the Appraisal process is to be communicated and to be discussed with the employee. This discussion on appraisal enables employees to know their Strengths & Weakness. J. P. Morgan Chase & Co is one of the oldest largest & best financial institution in the world. Its an American based company. It started in the year 1799, today they have 2 lakhs branches in almost 100 countries. There are several method and techniques of performance appraisal. The most common methods are: Rating Scale Method:- This is a Traditional method, under this method employees are rated with Scale from 1-10. In this 1 indicates negative feedback and 10 indicates positive feedback. Companies like Dell & Airtel use this method. Confidential Report:- Its another traditional method this method is mostly used in Government Organisations. Subordinate is observed by his superiors regarding his performance in his job. Superior writes confidential report on his performance. Confidential report will be kept confidential and will not be revealed to anyone.

Management by Objectives:- Its a Modern method of appraisal in this method Managers & Employees sit together & develop Objectives. This Objectives should be SMART. Specific:- There should be specific objectives about what needs to achieved. Measurable:- At the end of the time period, it should be clear if the goals were met or not. Attainable:- The objectives must be Challenging but not impossible. Result oriented:- Once the objectives are made it should make a difference in the organisation. Time Limited:- The objectives should be achieved in the given time period. 360 Degree Appraisal:- It is also know as "multi-rater" feed back is the most comprehensive appraisal where the feedback about the employees performance comes from all sources that come in contact with the employee on his job. Companies like Infosys, Wipro & Reliance Industries use this method. Bell Curve or Forced Distribution:- It is a traditional method. In this method employees are forced to fit into a particular ranking. It help us categorizes people based on their performance that is [ excellent, good, poor ] In bell curve limited number of employee can be evaluated as top employee and other employee fall in the next level. The least performer will not get any salary incentives or promotion. the bottom level employee are put on performance improvement plan where they are forced to show improvement. This method is used in many org for there lower level employees such as J. P Morgan. All over worldwide J. P Morgan follow Bell curve method for there lower level employees.
Even though J.P Morgan is a MNC and recruites people from 100 countries. The performance techniques are the same every where. However cultural diversity of the work force requires different ways of assessing performance and so this is necessary in J. P.Morgan even though there is cultural diversity that need to maintained standardise.