Performance Appraisal Introduction:The process of HRD helps the employees to acquire & develop technical, managerial & behavioral

knowledge, skills & abilities & moulds the values, beliefs & attitudes necessary to perform present & future role. The process of performance appraisal helps the employee & the management to know the level of employers performance compared to the standard/predetermined level. Meaning Need & Purpose:Performance appraisal is method of evaluating the behavior of employees in the work sport, normally including both the quantitative & qualitative aspects of job performance. Performance here refers to the degree of accomplishment of the tasks that make up an individuals job. It indicates how well an individual is fulfilling the job demands. Performance appraisal is the systematic description of an employees job relevant strengths & weaknesses. The basic purpose is to find out how well the employee is performing the job & establish a plan of improvement. Appraisal is arranged periodically according to definite plan. Performance appraisal is not job evaluation. It refers to how well someo0ne is doing the assigned job. Job evaluation determines how much a job is worth to the organization & therefore, what range of pay should be assigned to the job. Performance appraisal is a continuous process in every large scale organization.

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Need for performance appraisal:Performance appraisal is needed in order to: Provide information about the performance ranks. Decisions regarding salary fixation, conformation, promotion, transfer & demotion are taken based on performance in Indian Rayon. Provide feedback information about the level of achievement & behavior of the subordinate. The information helps to revive the performance of the subordinates, rectifying performance deficiencies & to set new standards of work, if necessary, as practiced in Raymonds. Provides information subordinates. which helps to council the

Provides information to diagnose deficiency in the employee regarding skill knowledge, determine training & developmental needs & to prescribe the means for employee growth provides information for correcting placement. TO provide grievances & in-disciplinary activities as in the case of Glaxo. Purpose /objectives:Performance appraisal aims at attaining the different purpose. They are: To create & maintain the satisfactory level of performance. To contribute the employee growth& development through training, self & management development programmes. Tata power aims at employee development through performance appraisal. To help the superiors to have a proper understanding about their subordinates.
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 To guide the job changes with the help to continuous ranking. To facilitate fair & equitable compensation based on performance. To facilitate for testing & validating selection tests, interview techniques through comparing their scores with performance ranks. To provide information for making decision regarding lay-off, retr Data relating to performance assessment of employees are recorded, stored, and used for several purpose . 1 to effect promotions based on competence and performance. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. To assess the employees. To decide upon a pay raise where regular pay scales have not been fixed. To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development. Finally, performance appraisal can be used to determine whether HR programs such as selection, training, and transfers have been effective or not. Broadly, performance appraisal serves four objective development uses, administrative uses/ decisions training and development needs of

organizational maintenance/ objectives and

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 documentation purposes. Performance appraisal and competitive advantage What needs emphasis is that performance evaluation contribute to firms competitive potential, strength. reward Besides encouraging equitably high and levels of performance, the evaluation system helps idea employees with performance determine employees need for training. Improving performance An effective appraisal appraisal system can contribute to competitive advantage by improving employee job performance in two ways- by directing employee behavior towards organizational goals, as was done by the second beekeeper and by monitoring that behavior to ensure that the goals are met. Making correct decisions Appraisal is a critical input in making decisions on such issues as pay raise, promotion, transfer, training, discharges and completion of probationary periods. Right decision on each of these can contribute to competitive strength of organizations. If promotion, for example, is made on performance, the promoter feels motivated to enhance his performance Ensuring legal compliance Promotions made on factors other than performance might land up a firm in legal battle, thus diverting its focus on non-productive areas, as it happened to
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Williamson

magar.

Organizations

can

minimize

costly

performance- related litigation by using appraisal system that gives fair and accurate ratings

Minimizing job dissatification and turnover Employees tend to become and

frustrated if they perceive that the ratings they get are unfair and inaccurate. Such employees find that the efforts they had put became futile and obviously get demovited. Dissatisfaction in the job sets in and one of the outcomes of job dissatisfaction is increased turnover. Fair and accurate in high motivation and increased job satisfaction. Consistency between organizational strategy and behavior An organization needs a strategy consistent with the behavior of its employees if its employees if it were to realize its goals. As employees want to rewarded, they tend to occupy themselves more with those activities on which the organization emphasizes. For e.g.-if the focus is on service delivery. If the focus is on rewarding productivity, employees will strive for productivity. The performance appraisal becomes not only a means of knowing if the employees behavior is consistent with the overall strategic focus, but also a way

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bringing to the fore any negative consequence of the strategybehavior fit. Organizational strategy and performance appraisal The performance appraisal system serves useful many in organizational objectives with and goals. Besides encouraging high level of performance, the evaluation system is identifying employees potential, rewarding performance equitably, and determing employees needs for development. These are all the activities that should support the organizations strategies orientation. from the strategic management point of view, organizations can be grouped into three categories- defenders, prospectors and analyzers Typically, defenders have a narrow and relatively stable product-market domain. Because of this narrow focus, these organizations seldom need to make major adjustments in their technology, structure or methods of operations. Becuase of the emphasis on building skills within the organizations, successful defenders use performance appraisal for identifying training needs. Organizations with an analyzer strategy operate in two types of product-market domains. One domain is stable while the other is changing. In their more innovative areas, managers watch their competitors closely and rapidly adopt the ideas that appear promising. in general, analyzers use cost-effective technologies for stable products and project or matrix technologies for new product. Thus, these organizations attempt to identify both
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training as well as staffing needs. The appraisal systems are considered at the individual, group and divisional levels. finally, successful analyzers have a tendency to examine current performance with past performance within the organization. Cross-sectional comparisons may also occur. Whatever the category, a performance appraisal system has strategic importance to a firm in three ways:

feedback mechanism consistency between organizational strategy and behavior, and

Consistency between organizational values and job behavior enchantments etc, as in the case of Hyundai Engineering.

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