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International Journal of Scientific and Research Publications, Volume 3, Issue 11, November 2013 1

ISSN 2250-3153

Performance Appraisal System to Improve Construction

Productivity paper submitted to International Journal of
Scientific and Research Publications
Sheetal Marawar

Department of Construction Management, D.Y.Patil College of Engineering, Akurdi, Pune (M.S.)

Abstract- Performance Appraisal is the method of evaluating the To identify the strengths and weaknesses of
behavior of the employees in the workplace, normally including employees to place right men on right job.
both quantitative and qualitative aspect of the job. To maintain and assess the potential present in a
How the employee is performing, how the employee can person for further growth and development.
develop, what the superior can do to make it happen and how the To provide a feedback to employees regarding their
job is going. performance and related status.
To provide a feedback to employees regarding their
Performance Appraisal is conducted for the following: performance and related status.
Provide information about the performance It serves as a basis for influencing working habits
ranks. Decision regarding salary revision, of the employees.
confirmation, promotion and demotions. To review and retain the promotional and other
Provide feedback about level of achievement training programs.
and behavior of the subordinate.
Provide information which helps to counsel the
Provide information to diagnose the deficiency
of the employees. Identify construction companies which are using
Performance Appraisal system for their employees
Provide training and development needs of the
employees. Study and gather information for existing
Performance Appraisal system
Identify the flaws, drawbacks of existing PA
I. INTRODUCTION system. Also, interview 4-5 employees and take
their feedback about the performance appraisal

P erformance Appraisal is the systematic evaluation of the

performance of employees and to understand the abilities of
a person for further growth and development. Performance

Propose a customized Performance Appraisal
System which suits to the organizations existing PA
appraisal is generally done in systematic ways which are as system. Encourage construction companies of the
follows: importance of proper Performance Appraisal and
The supervisors measure the pay of employees and explain them the benefits of the new proposed
compare it with targets and plans. system
The supervisor analyses the factors behind work Comparison between proposed PA system and
performances of employees. existing system.
The employers are in position to guide the
employees for a better performance.
Objectives of Performance Appraisal
Performance Appraisal can be done with following Some Purposes of Performance Appraisal
objectives in mind:
To maintain records in order to determine
compensation packages, wage structure, salaries
raises, etc.
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Has completely mastered job, strives to

Characteristics of Performance Appraisal learn more/improve job skills
Virtually all performance appraisal programs have the 2. Quantity of Work (amount of work done
following characteristics: during workday)
1. Outside Judgment- Using the performance standards, Minimum requirements not met, volume
each employees individual actual work performance, behaviors, of work generally unsatisfactory
production, or traits are compared with the performance Volume of work is generally below what
standards by someone other than the employee. is expected, does just enough to get by
2. Specified Time Period- Employee ratings, judgments, Volume of work meets job requirements;
and assessments relate to a specific time period rather than a when situation requires, production
particular work product or project (typically quarterly and/or increases
annually). Volume of work frequently above that
3. Standardization- The process is systematically applied to expected
all employees or class of employees. Produces consistently high volume of
4. Mandatory- The process is typically mandatory although work, extremely productive and fast
certain upper-level executives may be excluded. 3. Initiative (origination and development of
5. Documented- The results of the ratings, judgments, or vital job procedures)
assessments are recorded and preserved by someone in the Develops new ideas and methods to
organization other than the rated employee. improve quality of results
Seeks additional knowledge pertaining to
Factors Considered for Performance Appraisal job
The following factors are considered for Performance Appraisal Follows formal instructions as necessary
Performance Factor Shows little interest in current practices
Behavioral Factor relating to job
Grading System Unwilling to demonstrate interest in
Personal Effectiveness gaining new knowledge

Performance Factor- Below are the performance related factors Behavioral Factor- Below are the behavioral related
considered for Performance Appraisal factors considered for Performance Appraisal
1. Job Knowledge (knowledge of duties and 1. Responsibility and Dependability
responsibilities of position) (willingness to take on assignments and be
Unable to complete job duties, poor held accountable)
understanding of job Requires minimum of supervision; seeks
Lacks knowledge of some phases of work additional responsibility; is very reliable
Has adequate grasp of job requirements, Reliable, requires little supervision, carries
able to learn new aspects of job through effectively
Understands all phases of work, most job Usually takes care of necessary tasks and
duties mastered completes them with reasonable
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Frequently requires prompting, often fails Requires minimum of supervision,

to meet deadlines consistently thorough and accurate
Unreliable, requires close supervision, Requires little supervision, is exact and
does not accept responsibility precise most of the time, seldom makes
2. Attendance and Punctuality (conformity to errors
work hours; timely attendance at meetings) Usually accurate, makes minimum number
Absent often, frequently late, chronic of mistakes
offender Makes above average number of errors,
Lax in attendance or reporting time, allows final product often needs revision or
personal factors to interfere correction
Usually present and on time, generally Makes frequent and recurrent errors
reliable 2. Interpersonal Relations (communication
Very prompt, shows responsibility toward and cooperation with fellow employees)
regular attendance Goes out of way to promote good
Superior attendance and promptness, interpersonal relations, very cooperative
always dependable Effectively handles difficult interpersonal
Grading System - Below are the Grading System related Adapts self to others and to most
factors considered for Performance Appraisal situations, seeks guidance when needed,
1. Effective use of time (ability to organize, user friendly
prioritize and schedule) Sometimes rigid and defensive, does not
Ineffective in routine tasks, cannot plan or foster good working environment
schedule Fails to consider others, not courteous,
Difficulty in determining priority and lacks understanding
schedule of duties 3. Internal Control (performance as related to
Completes assignments within time individual's internal control responsibilities)
expected, meets schedules Has a minimum understanding of internal
Plans skillfully, handles unusual situations control procedures
Extremely capable in coordinating tasks in Internal control practices are somewhat
changing situations below normal expectations
Has an adequate knowledge of internal
Personal Effectiveness - Below are the Personal control practices and procedures
Effectiveness related factors considered for Performance Internal control practices and procedures
Appraisal are frequently above those expected
1. Quality (correctness, completeness, and Has completely mastered internal control
accuracy of work duties performed) policies and procedures for department
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Model of Individual / Organizational Performance

Steps of a Performance Appraisal

Finalization of results
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Overall Performance Planning Cycle

Methods of Performance Appraisal

Figure3: Performance Appraisal Methods

Graphic Rating Scales Although graphic scales seem simplistic in

A graphic scale 'assesses a person on the quality construction, they have application in a wide
of his or her work (average; above average; variety of job responsibilities and are more
outstanding; or unsatisfactory).' consistent and reliable in comparison with essay
Assessment could also be trait centered and cover appraisal.
observable traits, such as reliability, adaptability,
communication skills, etc.
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The utility of this technique can be enhanced by Typical Graphic Rating Scale
using it in conjunction with the essay appraisal Employee Name................... Job title .................
technique. Department ......................... Rate ...............
Data ..................................

Criteria Unsatisfactory Fair Satisfactory Good Outstanding

(1) (2) (5)
(3) (4)
Quantity of work: Volume of work
under normal working conditions
Quality of work: Neatness,
thoroughness and accuracy of work
Knowledge of job
A clear understanding of the factors
connected with the job
Attitude: Exhibits enthusiasm and
cooperativeness on the job
Table1: Typical Graphic Rating Scale

Checklist Method Critical Incidence Method

Another simple type of individual evaluation Under this method, the manager prepares lists of statements
method is the checklist. of very effective and ineffective behavior of an employee. These
Example: critical incidents or events represent the outstanding or poor
Is the employee really interested in the task assigned? Yes/No behavior of employees on the job
Is he respected by his colleagues (co-workers)
Yes/No Essay appraisal method
Does he give respect to his superiors? The assessor writes a brief essay providing an
Yes/No assessment of the strengths, weaknesses and
Does he follow instructions properly? potential of the subject.
Yes/No In order to do so objectively, it is necessary that
Does he make mistakes frequently? Yes/No the assessor knows the subject well and should
have interacted with them.
Ranking Method Since the length and contents of the essay vary
This is one of the oldest and simplest techniques of between assessors, essay ratings are difficult to
performance appraisal. In this method, the appraiser ranks the compare.
employees from the best to the poorest on the basis of their
overall performance. It is quite useful for a comparative Field review method
evaluation Since individual assessors differ in their
standards, they inadvertently introduce bias in
Forced Distribution their ratings.
Unlike the field review method, the forced-choice To overcome this assessor-related bias, essay and
rating method does not involve discussion with graphic rating techniques can be combined in a
supervisors. systematic review process. In the field review
Although this technique has several variations, method, 'a member of the HRM staff meets a
the most common method is to force the assessor small group of assessors from the supervisory
to choose the best and worst fit statements from a units to discuss each rating, systematically
group of statements. identifying areas of inter-assessor disagreement.'
These statements are weighted or scored in It can then be a mechanism to help each assessor
advance to assess the employee. The scores or to perceive the standards uniformly and thus
weights assigned to the individual statements are match the other assessors.
not revealed to the assessor so that she or he Although field review assessment is considered
cannot favor any individual. valid and reliable, it is very time consuming.
In this way, the assessor bias is largely
eliminated and comparable standards of Behaviorally anchored rating scales (BARS)
performance evolved for an objective. This is a relatively new technique.
However, this technique is of little value It consists of sets of behavioral statements
wherever performance appraisal interviews are describing good or bad performance with respect
conducted. to important qualities.
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These qualities may refer to inter-personal including his boss, direct reports, colleagues, internal customers
relationships, planning and organizing abilities, and external customers
adaptability and reliability.
These statements are developed from critical
incidents collected both from the assessor and the

Management by Objectives
The employees are asked to set or help set their
own performance goals.
This avoids the feeling among employees that
they are being judged by unfairly high standards.
This method is currently widely used, but not
always in its true spirit.
Even though the employees are consulted, in
many cases management ends up by imposing its
standards and objectives.
In some cases employees may not like 'self-
direction or authority.' To avoid such problems,
the work standard approach is used.

360-Degree Feedback
360 Degree Feedback is a multi - rater feedback system Figure1: 360 Degree Feedback
where an individual is assessed by a number of assessors

Figure2: 360 Degree Feedback

Case Study on Performance Appraisal System in Identify construction companies in Pune area
Construction Industry where the Performance Appraisal system is
In this I will be doing the following activities for 5 being implemented.
construction companies: Gather information for the existing PA system
in those companies
Analysis of their existing PA system
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After thorough evaluation, assess their Propose to implement this new Performance
Performance Appraisal system by sending the Appraisal System
appropriate questionnaire to selected
Propose a new Performance Appraisal system AUTHORS
which removes the drawbacks of current First Author Sheetal Marawar, Department of Construction
system Management, D.Y.Patil College of Engineering, Akurdi, Pune
Comparison between proposed PA system and (M.S.)
existing system .Identify advantages of the
proposed PA system over the existing system