PERFORMANCE APPRAISAL

Performance Appraisal is an important task in every Organization, Company, Firm,

Educational Institution, Corporate Management, Government Departments, for effective
and systematic functioning of the Institution. Generally, Performance appraisal means,
the systematic and concrete evaluation or examination or identification of the work done
by an employee. The top level or the selected Management Leaders will perform or
conduct this item of work to enable to assess the workability of an employee in relating to
the said organizational goal or objectives. The relative worth and stamina or skill of the
employee will be reflected in the reports of the Performance appraisal. As a matter of
fact, it is really a tool for invention, discovery, identification, examination and analyzing
the relative differences amongst the workers, employees with reference to the standards
of the job chart, functions, specifications allotted by the Organization. Various systems of
appraisal reflect the comparison of an employee with others for ranking or rating.

According to Edwin B.Flippo:-

Performance appraisal is a systematic, periodic, and so far as humanly possible,

an impartial rating of an employees excellence in matters pertaining to his
present job and to his potentialities for a better job

The personal qualities of an employee, his capability, his industriousness, his tact and
temper, his attitude towards the taking up the responsibilities will be appraised through
the Performance appraisal. An employees knowledge of the work, department, ability to
do the work efficiently, spirit of co-ordination, dependability, accuracy, Interpersonal
skills, punctuality, enthusiasm, intelligence, initiative, zeal, self-confidence, leadership,
fulfillment of the goals or objectives to reach the target, are the measurable factors in the
system of Performance Appraisal.

PURPOSE OF PERFORMANCE APPRAISAL

The Management of a firm/Company/Institution will be in a position to work out

the strategies in relation to the Human Resource Management.
It is a tool for the Management to measure the qualities and performance of the
employees from time to time so that right man can be put in right place at the
appropriate time.
A unified appraisal procedure can be adopted by the Managerial level to rate the
employees on the same qualities by the same method of measurement.
It is useful to the Management to incorporate systematic selection procedures,
recruitment, and training of new employees to suit to the needs of the
organization.
Performance Appraisal paves the way to identify new methods in the process of
Training and Development in major organizations.
It is really a Feed Back to decide wage policy
 It will be helpful to the Management to redress the grievances of the employees
and to promote worthiness of employees
It will be useful to assess the capability of the workmen..
It is basis for deciding the Promotions to the employees to higher categories.
Performance Appraisal makes job satisfaction to the employees, and develop
morale among the employees.
It reflects better relations between employer and employee.

IMPORTANCE OF PERFORMANCE APPRAISAL

It is a significant tool for an organization/Institution in identifying/making

decisions on various personnel aspects such as promotion and merit ranking.
It measures link information for decision making process.
It is a basis for judging the effectiveness and suitability of employees for
recruitment, promotions and Training.
It is necessary to the Managerial cadre to decide the training requirements for its
employees and determination of counseling wherever necessary in the
Organization.
It helps the Managements to maintain consistent and standard promotion and
compensation policies throughout the total system.

STEPS IN PERFORMANCE APPRAISAL

Establishment and Identification of desired standards for Performance

Communication of Performance Appraisal expectations to employees to enable
them to understand the way in which the employees are expected to perform their
job.
Measurement of the actual performance by means of Performance Appraisal
Reports, Periodical/Annual Confidential Reports, Statistical Reports, Written or
Oral Reports. These documents are actually basic record to appraise the
performance of the employees.
Comparison of Actual Performance with the Standards designed and identified by
the Organization. This will become a judgment of the potential of the growth of
the employee and his periodical advancement.
Communication of the appraisal reports to the employees to correct themselves of
the deficiencies if any pointed out and to generate effective performance in future.
This will help the employees to improve their performance in future in a better
way. Moreover, the weak points, difficulties with them will be known to them in a
better understanding way.
Initiating action to remove barriers wherever necessary. It provides an opportunity
to employees to make themselves to generate more effectively in their day to day
work job by means of various measures that are adopted by the Management to
improve their skills by in-service trainings, On-Job training methods etc.