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Performance appraisal goes by various names such as performance evaluation,progress rating ,merit rating, merit evaluation etc Performance appraisal means systematic evaluation of the personality and performance of each employee by his supervisor or some other person trend in technique of merit rating. It employs various rating techniques qualities and deficiencies and the requirements of their respective jobs. Performance appraisal includes all formal procedures used to evaluate personalities and contributions and potentials of group member in a working organization. It is a continuous process to secure information necessary for making correct and objective decision on employees. A performance appraisal, employee appraisal, performance review, or (career) development discussion is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor. A performance appraisal is a part of guiding and managing career development. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization. Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgment of an employee's performance in a job universal abased on considerations other than productivity alone. Performance appraisal measures the qualitative and quantitative aspects of job performance. An appraisal evaluates not only the employee's performance but also his potential for development. The primary objectives of an appraisal are to assess past performance, to identify training needs, to set and agree on future objectives and standards, and to facilitate the achievement of these goals. Performance appraisal or merit rating is one of the oldest and most practices of management. It refers to all the formal procedures used in working organization to the personality and contributions of group members. Modern management makes
somewhat less use of the term merit rating than was common in earlier periods. In the past emphasis used to be on the evaluation of merits of the individuals- his worth as a person. The approach resulted in an appraisal system in which the employees merit like initiative, dependability, personality etc were compared with others and ranked and rated.
more often than not, it failed. For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence. As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.
Modern Appraisal
Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. In many organizations - but not all - appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions. By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.) Whether this is an appropriate use of performance appraisal - the assignment and justification of rewards and penalties - is a very uncertain and contentious matter.
According the flipper, "Performance Appraisal is a systematic, periodic and so far as humanly possible and impartial rating of employee's excellence of matters pertaining to his potentialities for a better job". According to Dale Yoder, it is a more comprehensive process, which combines formal ratings with supplementary observations records and evaluation
Provides data in term of needs aspiration of indivisuals to review company policies and structure
Performance appraisal
Traditional methods 1. Unstructured appraisal 2. Employee Ranking 3. Forced distribution 4. Graphics-Rating scale 5. Check lists 6. Critical incidents 7. Field review
Mordern Methods 1. Management by Objective 2.Behaviourally Anchored rating Scale 3. 360 Degree Appraisal 4. Assessment Center
TRADITIONAL METHOD
Traditional methods are very old technique of performance appraisal. They are based on trait oriented appraisal. Evaluation of employees is Done on the basis of standard of personal traits or qualities suchas attitudes, judgment, versatility, initiative, dependability, leadership, loyalty, punctuality, knowledge of job etc.
UNSTRUCTURED APPRAISAL
Under this, the appraiser is required to write down his impression about the person being appraised in an unstructured way. However, in some organization, comment are required to be grouped under specific headings such as quality of job performance, reasons for specific job behaviours, personality traits, and development needs, This system is highly subjective and has got its merit in its simplicity and is still in use especially in the small firms.
RANKING METHOD
The oldest and simplest methods of performance appraisal is to compare one man will all other men and place him in a simple rank order. In this way ordering is done from the best to worst of all individuals comprising the group. The methods is both simple and natural but it disadvantage are: It is highly subjective Comparison of the various component of a persons is not done. People are compared as whole The magnitude of difference in ability between ranks is not equal at different position. For instance, the difference in ability between the fifth and sixth individuals may be much greater than the difference between the sixth and
seventh. In terms of ranks, however, the differencebetween these indivisuals is the same Its use is difficulty in large groups when the rater cannot compare several people simultaneously. As an answer to this problem the paired comparison method of ranking has been evolved. In this method the rater compares each man in his group with every other man, with the final ranking of each worker determined by the number of times he has judged better than the others. The number of comparisons involved in this methods is thus very large and can becdetermined by the following formula: Number Of Comparison: N(N-1)/2 Where N stands for the number of men to be rated For a 50 man group for example there would be i225 seprate comparisons which is obviously for too great to permit expedient use of the method Following is a work sheet which shows how paired comparisions can be made in a 6 man work group. Each employee has been compared with other employees and when ever he has been found more productive a checkmark has been placed. Thus A on comparision B C D E and F has been found more productive than B,D, and E and less productive then C and F. Therefore As total number of checks is 3. In our example C stand first followed by F,A,B,D and E.
3 2 5 1 o 4
RATING-SCALE METHODS
The rating scale method offers a high degree of structure for appraisals. Each employee trait or characteristic is rated on a bipolar scale that usually has several points ranging from "poor" to "excellent" (or some similar arrangement). The traits assessed on these scales include employee attributes such as cooperation, communications ability, initiative, punctuality and technical (work skills) competence. The nature and scope of the traits selected for inclusion is limited only by the imagination of the scale's designer, or by the organization's need to know. The one major provision in selecting traits is that they should be in some way relevant to the appraisee's job. The traits selected by some organizations have been unwise and have resulted in legal action on the grounds of discrimination.
has few opportunities to use and display that particular trait. The relevance of rating scales is therefore said to be context-sensitive. Job and workplace circumstances must be taken into account.
Systemic Disadvantage
Rating scales, and the traits they purport to measure, generally attempt to encapsulate all the relevant indicators of employee performance. There is an assumption that all the true and best indicators of performance are included, and all false and irrelevant indicators are excluded. This is an assumption very difficult to prove in practice. It is possible that an employee's performance may depend on factors that have not been included in the selected traits. Such employees may end up with ratings that do not truly or fairly reflect their effort or value to the organization. Employees in this class are systemically disadvantaged by the rating scale method.
Perceptual Errors
This includes various well-known problems of selective perception (such as the horns and halos effect) as well as problems of perceived meaning. Selective perception is the human tendency to make private and highly subjective assessments of what a person is "really like", and then seek evidence to support that view (while ignoring or downplaying evidence that might contradict it). This is a common and normal psychological phenomenon. All human beings are affected by it. In other words, we see in others what we want to see in them. An example is the supervisor who believes that an employee is inherently good (halo effect) and so ignores evidence that might suggest otherwise. Instead of correcting the slackening employee, the supervisor covers for them and may even offer excuses for their declining performance. On the other hand, a supervisor may have formed the impression that an employee is bad (horns effect). The supervisor becomes unreasonably harsh in their assessment of the employee, and always ready to criticize and undermine them. The horns and halo effect is rarely seen in its extreme and obvious forms. But in its more subtle manifestations, it can be a significant threat to the effectiveness and credibility of performance appraisal.
Perceived Meaning
Problems of perceived meaning occur when appraisers do not share the same opinion about the meaning of the selected traits and the language used on the rating scales.
For example, to one appraiser, an employee may demonstrate the trait of initiative by reporting work problems to a supervisor. To another appraiser, this might suggest an excessive dependence on supervisory assistance - and thus a lack of initiative. As well, the language and terms used to construct a scale - such as "Performance exceeds expectations" or "Below average skill" - may mean different things to different appraisers.
Rating Errors
The problem here is not so much errors in perception as errors in appraiser judgement and motive. Unlike perceptual errors, these errors may be (at times) deliberate. The most common rating error is central tendency. Busy appraisers, or those wary of confrontations and repercussions, may be tempted to dole out too many passive, middle-of-the-road ratings (e.g., "satisfactory" or "adequate"), regardless of the actual performance of a subordinate. Thus the spread of ratings tends to clump excessively around the middle of the scale. This problem is worsened in organizations where the appraisal process does not enjoy strong management support, or where the appraisers do not feel confident with the task of appraisal.
GROUP 2 1. Cannot assume responsibility 2. Knows how and when to delegate 3. Offers suggestions. 4.Too easily changes his ideas
which are then used to solve practical problems and develop broad psychological principles. A critical incident can be described as one that makes a significant contributioneither positively or negativelyto an activity or phenomenon. Critical incidents can be gathered in various ways, but typically respondents are asked to tell a story about an experience they have had. CIT is a flexible method that usually relies on five major areas. The first is determining and reviewing the incident, then fact-finding, which involves collecting the details of the incident from the participants. When all of the facts are collected, the next step is to identify the issues. Afterwards a decision can be made on how to resolve the issues based on various possible solutions. The final and most important aspect is the evaluation, which will determine if the solution that was selected will solve the root cause of the situation and will cause no further problems
FIELD REVIEW
The Critical Incident Technique (or CIT) is a set of procedures used for collecting direct observations of human behavior that have critical significance and meet methodically defined criteria. These observations are then kept track of as incidents, which are then used to solve practical problems and develop broad psychological principles. A critical incident can be described as one that makes a significant contributioneither positively or negativelyto an activity or phenomenon. Critical incidents can be gathered in various ways, but typically respondents are asked to tell a story about an experience they have had. CIT is a flexible method that usually relies on five major areas. The first is determining and reviewing the incident, then fact-finding, which involves collecting the details of the incident from the participants. When all of the facts are collected, the next step is to identify the issues. Afterwards a decision can be made on how to resolve the issues based on various possible solutions. The final and most important aspect is the evaluation, which will determine if the solution that was selected will solve the root cause of the situation and will cause no further problems
The term "management by objectives" was first popularized by Peter Drucker in his 1954 book 'The Practice of Management'. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employees actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities. Management By Objective can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employees actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them, they are likely to fulfill their responsibilities.
Generation of critical incidents (examples of effective and ineffective behavior). Refinement of the critical incidents and the creation of performance dimensions (the overall qualities defined by specific critical incidents). Verification check of the relationship of critical incidents to performance dimensions. Rating of the effectiveness of each incident as evidence of ones performance on the dimension. Assembling the final BARS form, often a 10-point scale constructed for each of the performance dimensions and placement of critical incidents in the scales. Some of the purposes of using BARS include:
Use as a decision aid Helping to manage changes to identify individuals for promotion & to facilitate lateral transfers To reward good performance: merit-based salary and benefits, promotions
Addressing poor performance: firing decisions To evaluate the effectiveness of other organizational programs
measured on a rating scale and also ask raters to provide written comments. The person receiving feedback also fills out a self-rating survey that includes the same survey questions that others receive in their forms. Managers and leaders within organizations use 360 feedback surveys to get a better understanding of their strengths and weaknesses. The 360 feedback system automatically tabulates the results and presents them in a format that helps the feedback recipient create a development plan. Individual responses are always combined with responses from other people in the same rater category (e.g. peer, direct report) in order to preserve anonymity and to give the employee a clear picture of his/her greatest overall strengths and weaknesses. 360 Feedback can also be a useful development tool for people who are not in a management role. Strictly speaking, a "non-manager" 360 assessment is not measuring feedback from 360 degrees since there are no direct reports, but the same principles still apply. 360 Feedback for non-managers is useful to help people be more effective in their current roles, and also to help them understand what areas they should focus on if they want to move into a management role.
360 feedback measures behaviors and competencies 360 assessments provide feedback on how others perceive an employee 360 feedback addresses skills such as listening, planning, and goal-setting A 360 evaluation focuses on subjective areas such as teamwork, character, and leadership effectiveness
360 feedback is not a way to measure employee performance objectives (MBOs) 360 feedback is not a way to determine whether an employee is meeting basic job requirements 360 feedback is not focused on basic technical or job-specific skills 360 feedback should not be used to measure strictly objective things such as attendance, sales quotas, etc.
360-degree feedback
Is a multi source assessment, which includes * Self, * Supervisor * Internal Customers/peers/Staffs * External Customers
Prerequisites
* Top Management Support * Confidence of employees on the appraisal methodology * Objectives need to be measurable with performance requirements clearly stated. * A detailed plan of implementation * Collaboration between superior and subordinates * Some prior experimentation and positive experiences Clear organisational philosophy and policy objectives
Performance Appraisal
Recognition of performance. Providing feedback on individual performance. Providing a basis for self-evaluation.
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360-degree feedback provides a better understanding of individuals performance at work 360-degree feedback provides a multifaceted view about the employees from different sources 360-degree feedback provides a better understanding of employed developmental needs 360-degree feedback provides increased the understanding about one's role expectations. 360-degree feedback provides increased the understanding of competence and competency in various roles 360-degree feedback extends better morale to those who perform and contribute well to the organisation 360-degree feedback reduces training costs by identifying common development needs. 360-degree feedback increases the team's ability to contribute to the organizations goals 360-degree feedback helps everyone to work for a common standard and institutionalize performance management. 360-degree feedback ensure better interpersonal relationship and group cohesiveness It promotes self-directed learning and provides a road map for employee's development planning. It promotes better Communication within departments. 360-degree feedback Increases the team's ability to contribute to the organizations goals develop better bottom line through boosting the capability of the organization to meet its objectives.
Steps may be taken to gauge the readiness of an organization for 360degree feedback:
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Identification of the problem. Analysis of the organizational context for finding a solution to the problem. Allocation of resources for the purpose in terms of time and finances. A detailed plan of implementation. Follow up
A detailed plan of action, which ensure the transparent and clear implementation of appraisal with employee accountability. Effective follow-up is the prime requirement of 360-degree feedback. Failure in follow-up may cause more harm than good. The 360-degree feedback is time consuming and cost consuming assessment process. Without having adequate resource to implement the process, it will end up nowhere and develop financial burden to organisation.
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The trust and confidence on the employees who undergo this feedback assessment process is a determinant factor in its outcome. Many consider this appraisal as tool for downsizing. The process involves a lot of paper work. There are high chances of subjectivity from the management and employee part in the feed back assessment. Many times the confidentiality of the appraisal cannot ensure from the HR department. Since the assessment is based on qualitative data many times it cannot ensure unambiguous, clear, specific, and observable and quantifiable formats.
HISTORY
One of the biggest preludes to the study of job satisfaction was the Hawthorne studies. These studies (19241933), primarily credited to Elton Mayo of the Harvard Business
School, sought to find the effects of various conditions (most notably illumination) on workers productivity. These studies ultimately showed that novel changes in work conditions temporarily increase productivity (called theHawthorne Effect). It was later found that this increase resulted, not from the new conditions, but from the knowledge of being observed. This finding provided strong evidence that people work for purposes other than pay, which paved the way for researchers to investigate other factors in job satisfaction. Scientific management (aka Taylorism) also had a significant impact on the study of job satisfaction. Frederick Winslow Taylors 1911 book, Principles of Scientific Management, argued that there was a single best way to perform any given work task. This book contributed to a change in industrial production philosophies, causing a shift from skilled labor and piecework towards the more modern ofassembly lines and hourly wages. The initial use of scientific management by industries greatly increased productivity because workers were forced to work at a faster pace. However, workers became exhausted and dissatisfied, thus leaving researchers with new questions to answer regarding job satisfaction. It should also be noted that the work of W.L. Bryan, Walter Dill Scott, and Hugo Munsterberg set the tone for Taylors work. Some argue that Maslows hierarchy of needs theory, a motivation theory, laid the foundation for job satisfaction theory. This theory explains that people seek to satisfy five specific needs in life physiological needs, safety needs, social needs, self-esteem needs, and self-actualization. This model served as a good basis from which early researchers could develop job satisfaction theories. Job satisfaction can also be seen within the broader context of the range of issues which affect an individual's experience of work, or their quality of working life. Job satisfaction can be understood in terms of its relationships with other key factors, such as general well-being, stress at work, control at work, home-work interface, and working conditions.
DEFINITION
The term job satisfaction is commonly used by the academicians and the ex-ecutives. In the word of Feldman and Arnold, job satisfaction is the amount of overall positive effect or feeling that indivisuals have towards their jobs.
job satisfaction is the amount of pleasure or contentment associated with a job. If you like your job intensely, you will experience high job satisfaction. If you dislike your job intensely, you will experience job satisfaction. Job satisfaction is an individuals emotional reaction to the job itself. It is his attitude towards his job.
CO-WORKERS
Various studies had traced this factor as a factor of intermediate importance. Ones associates with others had frequently been motivated as a factor in job satisfaction. Certainly, this seems reasonable because people like to be near their friends. The workers derive satisfaction when the co-workers are helpful, friendly and co-operative.
PAY Studies also show that most of the workers felt satisfied when they are paid more adequately to the work performed by them. The relative important of pay would probably changing factor in job satisfaction or dissatisfaction. AGE Age has also been found to have a direct relationship to level job of satisfaction of employees. In some groups job satisfaction is higher with increasing age, in other groups job satisfaction is lower and in other there is no difference at all.
MARITAL STATUS
Marital status has an important role in deciding the job satisfaction. Most of the studies have revealed that the married person finds dissatisfaction in his job
than his unmarried counterpart. The reasons stated to be are that wages were insufficient due to increased cost of living, educations to children etc .
EDUCATION
Studies conducted among various workers revealed that most of workers who had not completed their school education showed higher satisfaction level. However, educated workers felt less satisfied in their job.
WORKING CONDITION
The result of various studies shows that working condition is an important factor. Good working atmosphere and pleasant surroundings help increasing the production of industry. Working conditions are more important to women workers than men workers.
Dispositional Theory
Another well-known job satisfaction theory is the Dispositional Theory Template:Jackson April 2007. It is a very general theory that suggests that people have innate dispositions that cause them to have tendencies toward a certain level of satisfaction, regardless of ones job. This approach became a notable explanation of job satisfaction in light of evidence that job satisfaction tends to be stable over time and across careers and jobs. Research also indicates that identical twins have similar levels of job satisfaction. A significant model that narrowed the scope of the Dispositional Theory was the Core Self-evaluations Model, proposed by Timothy A. Judge in 1998. Judge argued that there are four Core Self-evaluations that determine ones disposition towards job satisfaction: self-esteem, general self-efficacy, locus of control, and neuroticism. This model states that higher levels of self-esteem (the value one places on his/her self) and general self-efficacy (the belief in ones own competence) lead to higher work satisfaction. Having an internal locus of control (believing one has control over her\his
own life, as opposed to outside forces having control) leads to higher job satisfaction. Finally, lower levels of neuroticism lead to higher job satisfaction.
analysis of studies that assess the framework of the model provides some support for the validity of the JCM.
SATISFACTION
2) Nature of supervision: The employee-centred supervisiory style enhances job satisfaction as the leader looks after subordinates carefully, displays friendship, respect and warmth etc; towards them. On the other hand, production-oriented leader may cause low job satisfaction to the employees and may effects the turnover and absenteeism adversely. Of course, it all depends on the situation.
3) Working condition: job satisfaction id related to working condition also. The work will be more attractive if working conditions are congenial to the task a worker proposes to accomplish. Good working condition involve such facilities as adequate light, comfortable temperature, attractive surrounding, etc.
4) Rewards: Economic rewards play a significant role in influencing job satisfaction. Thos is because of two reasons. First, money is an important instrument in fulfilling ones need; and secondly, employees often see pay as a reflection of
managements concern for them. Employees want a wage pay system which is simple fair and in line with their expectations. When pay is seen as fair, based on job demands, indivisuals skill levels, and community pay standards, satisfaction is likely to result. What needs emphasis is that it is not the absolute amount paid that matters, rather it is ones perception of fairness.
5) Opportunities of promotion: Promotional opportunities affects job satisfaction considerably. The desire for promotion is generally strong among higher level employees as it involves change in job content, pay, responsibility, autonomy, status and the like. It is no surprise that the employee takes promotion as the ultimate achievement in his career and when it is realized, he feels extremely satisfied.
6) Nature of work group: It is the work-group that fulfills the need for social interaction of the members. If the worker has good relation with the fellow employees and the supervisor, he will feel satisfied. If the work-group enjoys a higher status his job satisfaction will increase further .
7) Employee morale: If the employee morale in an organization is higher, satisfaction with job is likely to be higher and vice versa. The workers will be loyal to the organization if their morale is higher, the rates of absenteeism and labor turnover will also be low because psychological satisfaction from the job.