PERFORMANCE APPRAISAL

The basic objective of human resource development is to develop people in the organization and to ensure that an atmosphere is created and maintained in which the employees contribute their best. It is, therefore, logical that their performance on the job is measured so that what they have contributed is known and made known. If there are any areas of improvement, they have to be afforded an opportunity to do so. 
Performance appraisal is a process of evaluating the performance and qualifications of the employees in terms of requirements of the job for which they are employed. For the purposes of administration including placement, selection for promotions, providing financial rewards and other actions require differential treatment among the members of a group as distinguished from actions affecting all members equally. Various appraisal systems have evolved over a period of time. These systems vary from simple to complex and from confidential to open. 

An organization has the option to choose its own system or with certain modifications devise one. What systems company should choose will depend on whether it fulfills the objectives the organization wants the system to serve. Indeed, the system’s success depends on the time it takes to carry out the appraisal exercise and how easily people adopt the system. An informal appraisal system is possible in a very small organization where the employee’s contribution is readily visible. However, this is not a scientific way. The organization may grow over a period of time and it may be necessary to have a record of one’s achievements or failures. This emphasizes the need for having systematic appraisal systems.

Performance appraisal is a tool to evaluate objectively the performance of the employees on the given job. While doing so, it also throws light on the characteristics and traits of the employees. Data on these aspects of the employee’s personality can be useful for certain personnel decisions. Viewed from this angle, the wide range uses of the system are:.

• It rates all the employees in a unified manner by using the same rating scale and thus making them comparable on common footing. 
• It provides information which could be critical while deciding on promotion, pay increase, transfer, training etc. 
• It provides information about the area of weaknesses of the employees to enable initiation of corrective steps. 
•  It improves the quality of supervision as the supervisor becomes a keen observer. 
• The system, if implemented with openness and trust, ensures better interpersonal relations between the employee and his supervisor.

To achieve the objectives and to be in a position to use the system to the fullest extent, the organization has to choose an appropriate method from the alternative methods. Depending on its requirements and objectives, the chosen method can be modified suitably. The evaluation process begins with the organization setting the “performance standards”. These standards should be clear, realistic and measurable. It is advisable to involve the line managers in the exercise as they understand the nuances and nitty-gritty of the job. The performance standards then are required to be communicated to the employee. The next stage is to measure the performance. It can be done through the data available with the department, personnel observations and feedback from the appraised. Performance level of the employee is then compared with the benchmark or standard already established. Deviations are noted. The outcome is discussed with the employee, emphasizing the strong points and counseling him on the weak points to initiate corrective measures and act on the positive performance by deciding on various incentives like increments and promotions etc.