ABOUT THE TOPIC

Performance Appraisal - Definition

The overall objective of performance appraisal is to improve the efficiency of an
enterprise by attempting to mobilize the best possible efforts from individuals employed in it.
Such appraisals achieve four objectives including the salary reviews, the development and
training of individuals, planning job rotation and assistance promotions.
- CUMMINGS
Performance Appraisal is the systematic, periodic and an impartial rating of an employees
excellence in matters pertaining to his present job and his potential for a better job
-FLIPPO

Characteristics of Performance Appraisal

The main characteristics of performance appraisal are as follows.

Performance appraisal is a process consisting of a series of steps.

It is the systematic examination of an employees strengths and weaknesses in terms

of the job.

Performance appraisal is a scientific or objective study.

It is an ongoing or continuous process wherein the evaluations are arranged

periodically according to a definite plan.

The main purpose of performance appraisal is to secure information necessary for

making objective and decisions on employees.

Advantages of Performance Appraisal

1. It provides information for making and enforcing decisions about promotions, pay
increases, lay off transfers.
2. It serves to guide employee development.
3. It puts a psychological pressure on people to improve performance on the job.
4. It serves to maintain fair relationships in groups.
5. It makes executives more observant of their subordinates.
6. It serves as a means for evaluating the effectiveness of devices used for the selection and
classification of workers.
7. Wage increase may be justified.
8. Deficiencies and shortcoming may be removed.
9. Employee may also introspect himself in the light of performance.
Factors Affecting Performance Appraisal Systems
Performance appraisal programs are affected by some factors. Therefore for
implementing good appraisal systems the following are necessary.
1. It should be easily understandable. The forms, which are more difficult to read and
understand, are not effective performance appraisal systems.
2. The appraisal programs must have support of all line people who administer it. If line
people think it is too theoretical, too ambitious, and too unrealistic or that it has been
foisted on them by ivory tower staff consultants who have no comprehension of the
demands on the time of the line operator.

3. The appraisal system should fit the organizational operations and structure the form
constructed and the factors framed should be suitable for the organizational culture and
structure.
4. The appraisal system should be valid and reliable.
5. The performance appraisal programs should have built in incentives.
6. The appraisal form should be periodically evaluated to ensure that it meets its purpose

Steps of Performance Appraisal

Establishing standards of performance

Communicating performance appraisal

Measuring actual performance

Comparing actual performance with

standard laid
Discussion of appraisal with employees

Corrective actions

The Way Forward Process

Performance appraisal

Competencies
Rewarding
Performance

Career development
& Successions
Planning

Training and
Development
It is essential that every employee enjoy the benefit of looking at his performance appraisal at
least once in a year. A manager should analyze the performance of the employees objectively
against the set standards. It is desirable for the manager to meet and discuss with the employees
about the appraisal process before writing as it fosters mutual understanding of the process and
to that extent it enhances the employees acceptance of the outcome.