Title: Study Of Performance Appraisal System With Special Emphasis On 360 Degree Appraisals in conte t of !

ompton "rea#es $td%

&'T(OD)!T&O'
Performance management can be defined as a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the human capital and by developing the capabilities of teams and individuals within that organization (Armstrong and Baron, 2000) !he process of performance management therefore focuses not only with "#$A!% is produced but, also "$&#% it is produced 't see(s to ensure that what has been produced is in line with the organization%s needs and these products have been produced in line with the organization%s way of doing things Performance management can be achieved through many different ways !hese include performance appraisal system and coaching Performance appraisal system can be described as a fairly old system of measuring employees% performance that has been in use in many organizations $owever, Performance appraisal has not brought in the amount of positive results that was e)pected of it Armstrong and *ulis (+,,-./0) 1uoted one manager describing performance appraisal as 2a dishonest annual ritual3 !he 1uestion that arises then is. 2'f *anagers (the custodians of the system) do not have confidence in their own system, what more employees (who happen to be victims of the system)43 !he meaning of the word 2appraisal3 is 2to fi) a price or value for something3 !his is used in finance in terms such as pro5ect appraisal or financial appraisal where a value is attached to a pro5ect 6imilarly performance appraisal is a process in which one values the employee contribution and worth to the organization Performance appraisal can be defined as a system of measuring employee%s performance relative to the assigned or agreed ob5ectives !he process starts with the supervisor and or with the subordinate agreeing on specific ob5ectives that need to be met on an agreed time period !he ob5ectives that are used in the Performance appraisal stem
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from the main organizational ob5ectives that are reduced to 7epartmental goals and now to individual goals !he performance appraisal system has to be transparent and the employee should be ta(en into full confidence 'n many cases employees themselves are given a chance to conduct a self8 appraisal Performance appraisal is a case of 5oint problem solving by the organization and the employee $owever the organization must also ta(e care of future potential and not get bogged down by current performance 9ormally the immediate supervisor does the appraisal 6ome organizations also have a peer group performance appraisal where colleagues rate the performance !he $: person must also ensure that line managers are properly trained for carrying out the appraisal including interviewing techni1ues and on how to give feedbac( !he managers must also be trained to loo( at the cases ob5ectively outside of their personal opinion of the candidate

Scope of *or+
!o effect promotion based on competence and performance !o assess the training ; development needs of the employees !o bridge the gap between the e)isting performance ; desired performance !o help each employee to understand his own strengths ;wea(ness !hey can be mechanism of increasing communication between the employee ;his 6upervising officer so that each employee gets to (now the difficulties of his subordinates and attempt to solve them 't provides legally defensible reasons for ma(ing promotion, transfer, and reward and discharge decisions !hey can be instruments to provide an opportunity for employees for self reflection And goal setting so that individually planned and monitored development ta(es place !hey can assist in a variety of personnel decisions by generating data about each employee periodically 7evelop inter personal relationship
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!o help in salary increment !o prevent grievance ; in8disciplinary activities Provide information about the performance ran(s

$&TE(AT)(E (E,&EW
According to Ed*ard -lippo 2Performance Appraisal is the systematic, periodic and an impartial rating of an employee%s e)cellence in matters pertaining to his present 5ob and his potential for a better 5ob 3

According to Dale S% .each 2Performance Appraisal is a systematic evaluation of the individual with respect to his or her performance on 5ob and his or her potential for development 3

According to Dale /oder 0Performance Appraisal includes all formal procedures used to evaluate personalities and contributions and potentials of group members in a wor(ing organization 't is a continuous process to secure information necessary for ma(ing correct and ob5ective decisions on employees 3 O12ecti#es of Performance Appraisal: Performance appraisal serves the following management ob5ectives. <nhancing employees% effectiveness. $elping employee identify his strengths and wea(ness and informing him as to what performance is e)pected from him, would go a long way in ma(ing him understand his role well, and he is li(ely to be more effective on the 5ob Aiding in designing training and development programs. 'dentifying s(ills re1uired to be developed would help in tailor8ma(ing training and development programs

'dentifying employees training and development needs. 'dentifying training and development needs of employees is necessary to prepare them for meeting challenges in their current and future employment

Performance management can be defined as a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the human capital and by developing the capabilities of teams and individuals within that organization 3Armstrong and .aron4 50006% !he process of performance management therefore focuses not only with "#$A!% is produced but, also "$&#% it is produced 't see(s to ensure that what has been produced is in line with the organization%s needs and these products have been produced in line with the organization%s way of doing things Performance management can be achieved through many different ways !hese include performance appraisal system and coaching Performance appraisal system can be described as a fairly old system of measuring employees% performance that has been in use in many organizations $owever, Performance appraisal has not brought in the amount of positive results that was e)pected of it Armstrong and 7ulis 3899::;6) 1uoted one manager describing performance appraisal as 2a dishonest annual ritual3 !he 1uestion that arises then is. 2'f *anagers (the custodians of the system) do not have confidence in their own system, what more employees (who happen to be victims of the system)43