HRM

Abhijit Talukdar G.Jyothi Prakash Karun Bichauli Mohit Shukla Rakesh Bhunatar Sumeet Choudhary Yarrapalem Vamsee Group PGP27134 PGP27144 PGP27154 PGP27165 PGP27175 PGP27185 PGP27195 C10

[PERFORMANCE APPRAISAL]
Prof. Himanshu Rai

Contents
The evolution of the performance appraisal process ...................................................................... 3 Performance Appraisal Reappraised: It s not all positive ................................................................ 4 PERFORMANCE APPRAISAL: The Importance of Rater Training....................................................... 5 Designing effective performance appraisal systems ....................................................................... 6 Assessing quality, outcome and performance management ........................................................... 6 A New Framework for Selection of the Best Performance-Appraisal Method ................................. 8 Discretion and bias in performance evaluation .............................................................................. 9 Performance Appraisal System using Multi factorial Evaluation Model ........................................ 10 A Decision Support System for Performance Appraisal ................................................................. 11 Information: A Critical Factor in the Process of Performance Appraisal ........................................ 12 An implementation case for the performance appraisal and promotion ranking .......................... 13 Performance Appraisal with heterogeneous information ............................................................. 14 The Relationship between Performance Appraisal and Organizational Citizenship Behaviour: the Mediating Role of Organizational Commitment ........................................................................... 15 The Differences between Appraisal Schemes: Variation and Acceptability ................................... 16 The Study of DEA Method in Performance Evaluation of Project Human Resource Management 17 Conclusion: .................................................................................................................................. 18

The evolution of the performance appraisal process

Danielle S. Wiese and M. Ronald Buckley. Summary:

In this article the author tried to give a historical development of various appraisal processes and tools. Though for centuries together organizations did well without formal performance appraisal processes, as organizations evolve toward large organizations with professional management, a more formal performance appraisal system serves as an asset in administrative decision making. Researchers have focused on reducing the errors in the tools and methods. But they were not particularly concerned with the traits they measure, how and when to measure. This is one of the biggest mistakes and many researchers tried fine tuning the methods. Historically speaking the performance appraisal finds its roots from the days of Bible, Hans Dynasty (220BC). In US first tools used were global ratings and global essays. In global ratings, the rater provides an overall estimate of performance without distinctions among any performance dimensions. The next tool widely used was the manto-man ranking procedure, developed for the US Army in 1914 The Army used five scales to rank its officers: physical qualities; intelligence; leadership; personal qualities; and the general value to the service. While ranking employees does force distinction between rates, these methods are qualitative, making it difficult to judge how much better the performance of one employee is over another and nearly impossible to compare ratings across divisions. The first tool to gain popularity in those days was graphic- or trait rating scales and they continue to be widely used tools even today. With this tool, the rater indicates on a numerical scale the degree to which the ratee possesses certain personality traits. The performance dimensions are usually ill-defined. Coming to the methods which are used to reduce rater error and increase value, forced-choice method, [Where a number of sets of statements, phrases or words describing job performance is presented to the rater] was used. This was used to reduce raters bias to some factors and create accurate ratings. This method also made the raters job easier, by focusing on observed behaviours rather than personality traits or overall evaluations. Some of the other tools that were used are the critical incident method, where some of the critical factors for success or failure of a project are identified and rated. Some of the tools that focus on behaviourally-based ratings are Behaviourally Anchored Rating Scales (BARS) [Which is a very lengthy but

has many clearly defined factors and hence is a better indicator of observable features], Mixed Standard Scales (MSS), designed by Blanz and Ghiselli (1972).In this each scale is designed to measure two performance dimensions, instead of one (as in BARS). Apart from these major performance appraisal methods, several methods were also designed for Management by objectives, legal issues. In the end the author concluded that it should be realized that a single tool cannot be used over a diverse series of jobs. Also the research focus should shift to matching the appropriate tools with the desired outcomes.

Performance Appraisal Reappraised: It s not all positive

Todd Grubb (Troy University) Summary: Performance appraisal is a counterproductive exercise that is hated by the majority but still is widely used. It lies at the core of the supervisor-employee relationship, but it does not produce the results intended and expected. Performance appraisal and performance management are different. Extrinsic motivation generated through performance pay can decrease the intrinsic motivation from within, and interest in doing the job itself. Performance appraisal is a management tool. Essentially it treats people as things, productive resources. Employees are organized to fit into the production machine. People are viewed as appendages to the organizational structure and machinery of producing goods and services. When people are working in a group then there are a lot of constraints on individual freedom and hence it is very difficult to rate individual performance judiciously. Performance appraisal promotes the art of sycophancy. It is not as objective or accurate as it is made to appear. It doesnt reflect the actual capability of an individual because the so called Poor performers are often some of the most competent people, but in the wrong jobs or organizational setting. Aside from occasional deliberate distortions, many measurement difficulties intrude unconsciously despite best intentions to avoid them. At best, performance appraisal does not measure the whole person or his/her total work contribution; rather, it merely sums the results of the individual indicators used in the instrument. Performance appraisal may give rise to conflict within the organization. It encourages mediocrity through rewarding those who set safe standards; there is no interest in

improving the system. Ideally employee performance ratings should fall along a bell curve; with a very few outstanding and a very few unsatisfactory and all others distributed in between. Performance appraisal concept should be abolished and instead Management by objectives (MBO) along with frequent meetings should be implemented in practice. When the objectives are collectively decided by the employee & supervisor, the drive to achieve it will be far more intense.

PERFORMANCE APPRAISAL: The Importance of Rater Training

DSP Dev Kumar Summary: Performance appraisal, two rather simple words, which often give rise to a raft of strong reactions, emotions, and opinions, when brought together in the organisational context of a formal appraisal procedure. Performance appraisal is a vital component of a broader set of human resource practices; it is the mechanism for evaluating the extent to which each employees day-to-day performance is linked to the goals established by the organisation. A generation ago, appraisal systems tended to emphasise employee traits, deficiencies and abilities, but modern appraisal philosophy focuses on present performance and future goals. Performance appraisal should be informative and motivational, but most of the

time it doesnt serve the purpose. Modern philosophy also stresses employee participation in mutually goal setting with the supervisor. A number of studies suggest that managers regularly find the formal appraisal process to be frustrating, political and less than a meaningful experience, which does not bode well for management development. Personal preference & preconceived notions can affect performance appraisal significantly. Knowing how to conduct appraisal interviews needs a lot of personal training. Through training by experts for performance appraisal it is possible to groom the supervisor so that there is parity across all evaluation procedure, and this will help to minimise the occurrence of rating errors and improve reliability and validity.

Designing effective performance appraisal systems

Deborah F. Boice and Brian H. Kleiner Summary: Performance appraisals are most commonly undertaken to let an employee know how his/her performance compares with the supervisors expectations and to identify areas that require training or development. Performance appraisals design and administration must be tailor-made to match employee and organizational characteristics and qualities. There has to be sufficient interaction between employee and supervisor for that, but before anything else, organizations objectives, departmental and then individual position objectives should be clearly defined so that the employee gets to know what is expected from him and how he/she will be rated. Coaching and counselling, conflict resolution, setting performance standards, providing employee feedback should follow subsequently. By conducting reviews frequently, two situations like selective memory by the supervisor or the employee, and surprises at an annual review can be eliminated. This also allows for clarification and revision of objectives. Multiple sources of rating eliminate the problems associated with halo effect or sycophancy. This in turn lifts the burden of policing from the supervisor and allows him/her to focus on coaching and developing the employee. There is also a legal aspect to this where failure to conduct appraisal properly (failing to maintain adequate records, for example) may result in employees (or their trades unions) taking legal action.

Assessing quality, outcome and performance management

Dr Javier Martinez Summary: Performance management is a practical process closely aligned with other aspects of general management. Separation between quality-a service outcome and performance-a human resource outcome does not make sense as both rely on the human resource interventions and both pursue to deliver better services. The meaning of performance management is evolving with the times; Initially in 60s and 70s it is a form of merit-rating, then 80s and 90s it is linked to management paradigms like Management by objectives, performance appraisal, behaviourally anchored rating scales and performance related pays. While the earliest forms focussed on the performance management tools the latest approaches emphasized the need to

combine tools in order to achieve an integrated and coherent management performance system. The principle of good performance should be rewarded & bad performance should not be tolerated came into existence taking efficiency & high productivity as a performance dimension. Performance evaluation in public sector were based on assessment of value for money and were conducted usually by external auditors, gradually measures and indicators of resource usage emerged by setting standards in it. Achievement against set criteria

became a common framework to measure performance and reward. This framework had slowly moved into health and education sectors in the UK and the US. Performance management systems moved from usage of tools to system and to process over the time. The focus became linking of individuals with the organisational targets and monitoring performances at each level. Staff appraisal is the most commonly used performance appraisal approach in public sector, but for many years it is dependent on the interaction between the supervisor and the employee appraised and it is kept confidential also. Nowadays it has become an open discussion among teams wherein line and staff managers also participate to discuss about the targets set. Modern system put more emphasis on the team work. The performance management has changed from appraisal against outputs to appraisal against inputsprocesses-outputs which ensures to meet the skillset that the individuals need. Organisational prerequisites are necessary to account for a better performance management system. Adequate pay, equipment, tools & skills of the staff, incentives to motivate staff is necessary for god performance management system. Local decision making power is necessary to avoid unnecessary bureaucracy in dealing with performance appraisal. This decision making power can be attained by having close relationship between management and staff. Proper planning of objectives and targets, clear and effective communications within the organisation plays a very vital role in the performance management. Many external pressures that had significant impact on performance system which includes political pressure, decentralisation, financial pressures, client pressure and purchaser/provider split and service agreements.

A New Framework for Selection of the Best Performance-Appraisal Method

Mostafa Jafari, Atieh Bourouni and Roozbeh Hesam Amiri Summary: One of the basic needs of an organisation is to evaluate employees performance continuously to know the employees improvement and position in an organisation. Many methods of performance appraisal methods are suitable for different situations and different characteristics but they tend not to incorporate goals, strategic needs of business & personal aspirations of employees. This paper presents a new framework of performance appraisal and how it can be used. The purpose of comparison can be classified into two objects namely academic purpose and practical purpose. According to Decenzo and Robbins, there are three approaches of measuring performance appraisal. They are Absolute standards, Relative standards and Objectives. Absolute standards means the employees are compared to a standard and evaluation is independent of other employees. Essay appraisal, critical incident appraisal, checklist, graphic rating scale, forced choice, behaviourally anchored rating scales are the methods under absolute standards. In relative standards appraisal methods, individuals are compared against other individuals. Methods are group order ranking, individual ranking and paired comparison. Objectives approach uses a specific set of objectives to measure individual performances. The approach is referred as Management by objectives (MBO).It is a four step process and steps include goal setting, action planning, self-control & periodic reviews. Other than the above mentioned approaches, a latest approach of evaluating performance is 360 degree feedback appraisal. This approach gathers information from multiple sources like colleagues, superiors, customers, suppliers and many more. A performance appraisal objective is to evaluating and nurturing. The most important criteria in an effective appraisal method are Training needs evaluation, Coincidence with institutes, Excite staff to be better, Ability to compare, Cost of method and error-free. SAW analysis is done on all the performance appraisal methods discussed above with respect to the given criteria. MBO is ranked the most effective appraisal method which is followed by 360 degree feedback and BARS. Human Resource management is also responsible to improve corporate performance. Communication problems in performance appraisal feedback among employees, managers and supervisors can be addressed by developing clear, realistic performance standards.

Discretion and bias in performance evaluation

Canice Prendergast and Robert Topel Summary: This paper deals with the consequences of subjective performance evaluation for compensation policies and for the efficiency of employment relations not the usual quantifiable performance measures like output or sales. Objectives are: First, Importance of subjectivity of evaluations to understand organisational practices. Second, Study of subjective performance evaluation and its consistency with what organisations actually do. As the relationships are multi-layered in most of the organisations, supervisors use subjective information to evaluate subordinates performance and to reward them, because supervisors are not the residual claimants of their subordinates output. The chance of supervisors preferences & biasedness to affect rewards is high. Workers face simple compensation schemes which are not proportional to their performance, reasons may be difficulty in job monitoring so this should be determined by implicit contracting. Reneging occurs when contracted performance is not rewarded. When the performance is not verifiable then there is a chance of the firm not rewarding the employee in order to save on wages. This dishonest behaviour of firms will act upon their reputation as well. This will result in higher costs for their recruitment in future. Subjective performance evaluation increases issues of bias in organisations. The major reasons as attributed for the biasness are favouritism, own race. This bias will cause the other employees feel discriminated and they may quit. The major purpose of performance appraisal is to compensate employees and determine true talents. Most of the times the biasness comes into picture when it is related to the financial consequences of employees. Organisations existence depends on this biasness also. So in many blue collar jobs, supervisors will not be provided with the right to pay or promote but to terminate an employee from the job. This type of bureaucratic response also has costs like the wrong workers may be promoted. A solution to overcome the biasness is the job rotation which again has a trade off with the cost of rotation. Supervisors reluctance to give poor rating will also affect the appraisal system. Another issue is the fairness of the supervisor in rating the employee and the employee in doing his work honestly.

Subjectivity is vital for performance appraisal in most organizations. Important features of organizations and compensation methods are meant to deal with subjectivity and its associated incentives. Fair treatment to all the employees is very important for an organisations growth and reputation.

Performance Appraisal System using Multi factorial Evaluation Model

C. C. Yee and Y.Y.Chen Summary: Performance appraisal is a formal management system that provides for the evaluation of the quality of an individuals performance in an organization. Performance appraisal of candidates in relation to a particular position is a key task towards managing the human resources of an organization. Supervisors are concerned with performance appraisal judgments and evaluations that they have to make on their subordinates. On the other hand, subordinates are increasingly realizing the importance of performance appraisal, since it would very much affect their rewards and future career path. Various techniques are being used to evaluate the performance of an employee like; critical incident; narrative; and criteria-based, management-by-objectives (MBO), work planning and review, 360 degree appraisal and peer review. With all the available techniques, it is essential to understand that different organization might use different technique in assessing staff performance. As these methods have their own advantages and disadvantages, most organizations use mix of different techniques performance appraisal system that can fulfil their organizational needs. Authors had taken four aspects into consideration when evaluating staff performance and each aspect was indexed into its sub criteria. Working output (Aspect 1): This aspect evaluates the quantity, quality and effectiveness of the staffs working output as well as staffs punctuality. Knowledge and skills (Aspect 2): This aspect evaluates the staffs knowledge and skills in the working field as well as their effectiveness in communication and realization of rules. Personal quality (Aspect 3): This aspect evaluates the personal quality appreciated by the organization such as discipline, proactive, innovative, cooperativeness and independence. Informal Event(s) and Contribution(s) (Aspect 4): Staffs contribution to the organization, community, state, country and international. This model follows a systematic step in determining a staffs performance, and therefore, it creates a system of appraisal which is able to consistently produce reliable and valid

results for the appraisal process. The method can be adapted by the organizations by defining the aspects to be evaluated and the weight age for each of these aspects before implementation.

A Decision Support System for Performance Appraisal

D.D.Dominic, Abdul Aziz and K.N.Gosh Summary: In todays era of extreme competition in which the combined pressures of global competition, technology, interconnectivity and economic liberalization make life for organizations tougher than ever before, it is the task of every manager to realize the goals of the organization by achieving outstanding performance in the area they are responsible for, they are under great strain to deal effectively with these pressures. The performance appraisal is also important as a management tool to assess employees efficiency in the workplace. Consequently, employees are considered as a strategic asset for the organization, and could determine the organizations survival. There are three key problems to establish performance appraisal for employees: i. ii. iii. What to measure; How to measure; And how to compare between departments.

The first obstacle is on what to measure. A number of challenges arise when determining what to measure for employees. First of all, what is the job description for workers are essentially a series of statements and a set of responsibilities? However, the more complex the task and the more flexible structure that an employee has, the less concrete job description statements that will fit what the employee does. The second problem is how to measure. There are a couple of items to be considered when deciding how to obtain performance results from workforce. The subjects of measuring objectivity and frequency are important. The third problem is how to compare between departments. It is observed that all approaches and techniques to performance appraisal measurement are difficult to compare on a standard platform. For example, the research and development department workers concentrate more on innovating product features and development of a new product by spending lot of investments on the projects, the success or failure of the product cannot be predicted.

It is difficult to compare the performance of this department with other departments. The authors believe that model based decision support system will enable the organizations or users to produce results in terms of finding the best department and individual for promotion, transfer, bonus, and incentive for employees.

Information: A Critical Factor in the Process of Performance Appraisal

Jin Cheng, Haiqing Bai, Ziping Li Summary: Performance appraisal is one of the most important responsibilities for the organizations. It is an important source of information for executives to make decisions such as: granting pay, improving employee's work performance, selecting or assigning or terminating employees, indentifying employees with potential for advancement, and planning for future human resources needs. On the other hand, it contributes to gain the competitive advantages of the organization. Citing the example, "How does Wal-Mart do it? They always ask. The answer is always the somepeople, not only the right kind, but interested, dedicated, enthusiastic and loyal people. That's what makes Wal Mart exceptional and what enables them to continually achieve the seemingly impossible. The performance appraisal is dealing with people: judging people, motivating people and cultivating people, as is the basis of core competency of the organization. It can distinguish the top performers from the mediocrities and help to achieve the motivational effect by rewarding the former reasonably. It helps employee to master the job skills expected from him or her. The authors have taken up a case study with Beijing Subway Operation Limited Company, owned by the Government. Its responsibilities are to guarantee the safety of the Beijing subway operation and burden the city transportation. The company is in a fiercely competitive environment. With the extreme addition of the public demand, many competitors occur and have put great pressure to the company in recent years. To improve the competition advantages, the company has introduced the 360-degree feedback. In the 360-degree feedback, there were five parties to appraise one department: the leader of the department, the leaders of related departments (those departments have some business connections with the department, but not the internal customers), the leaders of parallel department, the upper leader in charge of the department and the appraisal committee.

Basis their study, the authors believe that information is a critical factor in the process of performance appraisal. Comprehensive information enables accurate appraisal and the one who has information should be included and valued in the appraisal process. Customers, both internal and external, due to their enough information and powerful motivation, can enjoy a great consideration in the performance appraisal process.

An implementation case for the performance appraisal and promotion ranking

Chiung Moon, Joosung Lee, ChanseokJeong, Jin Lee, Sungcheol Park and Siyeong Lim Summary: While appraising, the difficulty is to combine objectively the quantitative and qualitative attributes of applicants to determine the overall acceptability of employees to the organization. In military organizations, transparent and fair appraisal of personnel is essential for decisions of promotions and operations. In a process of decision making, human intuition would favour a fuzzy number with a higher mean value and at the same time with a lower spread. The system uses a fuzzy set theory and electronic nominal group technology for fair ranking decision through the multi-criteria performance appraisal process. In order to collect and analyze the relative importance of various

performance evaluation criteria at different electronic technology technology particular organizational nominal is can adopted. prevent levels, group This any self-

organizations

interests from dominating the selection and weighting of the performance evaluation criteria. A new ranking procedure considering the metric distance and fuzzy mean value is also proposed, which makes it possible to rank order the performance of the candidates by aggregating the scores from each evaluator. The system also has a monitoring function

which uses all performance evaluation data without any removal. This function is to prevent abnormal evaluation data which could occur when there is an overly influential member in the evaluators group, or when a particular evaluator gives an incorrect evaluation result.

Performance Appraisal with heterogeneous information

R. de AndresCalle, J.L. Garc a-Lapresta, Jun Liu and L. Mart nez Summary: During 360 degree appraisal, feedback indicators from different reviewers involve uncertainty and might have different nature (qualitative or quantitative).These different appraisers can have different expertise and degree of knowledge about the indicators used and evaluated employee. It then seems suitable to offer a flexible framework in which different expression domains can be used by appraisers to express their assessments. Then this initial information is unified in a common domain. The proposed method will conduct all assessments provided by reviewers as fuzzy sets in the common domain to compute such global evaluation that will allow to the management team to make the final decision. A Fuzzy Model of Performance Appraisal is defined with the following phases: Heterogeneous Evaluation Framework: The model will deal with information assessed by means of numerical, interval-valued or linguistic assessments. Aggregation Process: To obtain a global value of each employee, all information provided by the appraisers must be aggregated. Due to the fact that the framework is heterogeneous this process is carried out in two phases Unification Information Phase - To operate with non-homogeneous information assessed in different domains (numerical, interval-valued and linguistic) first of all we have to conduct the inhomogeneous information provided by the different collectives into an unique expression domain. Aggregation Phase - The aim of this phase is to obtain a value that assess the performance of the evaluated worker according to the different reviewers collective and the different criterion.

Rating Phase: The aim of this phase is ranking evaluated employees. The employees will be then sorted and ranked according to the corresponding 2-tuples over the BLTS obtained in each stage of the aggregation phase. The outputs that could be sort and rank from the aggregation process are: i. ii. iii. Appraisers collective criteria values, for collectives Global criteria values Final value

This contribution has introduced a performance appraisal method that is able to offer a evaluation framework dealing with different types of information in order to facilitate the expression of the information to the different appraisers involve in such a process.

The Relationship b/w Performance Appraisal and Organizational Citizenship Behaviour: the Mediating Role of Organizational Commitment
Li Hai and Zhang Mian Summary: Organizational commitment and organizational citizenship behaviour are two important constructs in organization behaviour (OB) field. Mowday (1998) argued that organizational commitment maybe a key mediating construct linking human resource management practices with performance constructs. The authors in this paper

developed and tested a structural model in which organizational between and self-

commitment performance reported

mediates appraisal

organizational

citizenship

behaviour. The model was tested on the basis of 777 valid responses from people belonging to various groups. The main findings are as follows:

a) Performance appraisal including system and process facets had significant effect on organizational commitment. b) Organizational commitment leads to organizational citizenship behaviour. c) Organizational commitment plays fully mediating role between performance appraisal system and organizational citizenship behaviour. Organizational commitment plays partially mediating role between performance appraisal process and organizational citizenship behaviour.

The Differences Acceptability

C.M. Fisher Summary:

between

Appraisal

Schemes:

Variation

and

In this article the author tried to focus on Hidden agendas and objectives of Appraisal Schemes, Classifying the Variations between Appraisal Schemes,Types and Purposes of Appraisal Schemes, Design Features of Appraisal Schemes, Classifying and Describing Appraisal Schemes. Talking about the hidden agendas author concentrated on the cultural and political aspects of the appraisal schemes. It was observed by the author that in some of the institutions, staff saw appraisal as an attempt by management to replace collegial relations between staff with a hierarchical, managerial, line relationship. The nature of an appraisal scheme will reflect the different discourses engaged in by different organizations. It will also, of course, reflect any competing discourses within any one organization. Explaining about the variations of appraisal scheme author suggested that a structure is needed to analyze the diversity of appraisal schemes in the organizations. He suggested that once has to take care whether the appraisal is to be focused on accountability or development. Also whether the appraisal is to be carried out by someone hierarchically superior to the appraise or by a peer. In addition to choosing the type or types of appraisal to be delivered there are other features that are to be taken care like Links between Appraisal and Performance-related Pay, Focus of control, Structure of Interpretation or Judgment, appraisal frequency, method of implementation etc. On the whole this article focused on taxonomy of the differences between appraisal schemes.

The Study of DEA Method in Performance Evaluation of Project Human Resource Management CHENG Yan-jiang and FAN Xiao-ming
Summary:

This paper is mainly focused on the human resources and evaluation methods in Construction Projects. For the purpose of general guidelines the author has assumed that Performance is the result of behaviour, "performance evaluation" is evaluating the result of behaviour. He also assumed that Performance evaluation is a widely used concept, it is generally considered comparable performance is objective and it is possible to be considered fair or impartial rely on performance evaluation. He took two different indexes of Work Attitude Work Ability and Team Spirit to evaluate the construction workers performance. Then the author took the DEA model [The two basic models of DEA are C2RS2 and C2R] in order to come to the final conclusions as indicated below [In Authors words] This paper base on previous studies, it absorbs the results of previous studies and do some positive work. (1) It deeply analysis the content of human resources performance evaluation in construction projects, analysis the characteristics of human resources performance evaluation in construction projects and expound the important role to the success of construction projects. (2) It build a more comprehensive human resource performance evaluation index system from the dimensions of work performance, work ability, work attitude and team spirit (3) It construct the DEA performance evaluation model by combining C2GS2 model with AHP method, and confirm that the improved DEA model is effective and scientific by a case.

Conclusion:
Performance appraisal is one of the most important processes in human resource management, because it has a great effect on both the financial and program components of any organization. Usage of performance appraisal dates back to 220 B.C. and the first two tools used in U.S. for performance appraisal were global ratings and global essays. Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. We look at a number of tools which have been used in history and realize that there isnt one solution to fit all needs. Therefore, human resource managers should select an appraisal method which is most efficient in their organizations. MBO is ranked the most effective appraisal method which is followed by 360 degree feedback and BARS. We can use the discussed framework for the implementation of performance appraisal and in particular the need for appropriate training for supervisors, raters and employees, a system for the frequent review of performance, accurate record keeping, a clearly defined measurement system, and a multiple rater group to perform the appraisal. Performance appraisals design and administration must be tailor-made to match employee and organizational characteristics and qualities. Coaching and counselling, conflict resolution, setting performance standards, providing employee feedback should follow subsequently. Looking at how important the performance appraisal is one can see how important it is to train the appraisers. Without these critical competencies, the organizational appraisal process cannot achieve its desired objectives. Subjectivity is central to performance appraisal in most organizations. Two related issues have been emphasized: a tendency towards uniformity of treatment and the potential for bias in performance appraisals. We also saw the proposed performance appraisal system using multifactorial evaluation model in dealing with appraisal grades which are often express vaguely in linguistic terms. Information has been identified as a determinant of accurate performance appraisal. Comprehensive information enables accurate appraisal and the one who has information should be included and valued in the appraisal process. To deal with this performance appraisal business process, Decision Support System (DSS) which consists of a mathematical model is used to evaluate the performance appraisal for individual and for departments in an organization. Also to keep the process fair objective and transparent we have a framework which allows determination of the most qualified

candidate by considering both quantitative scores and qualitative characteristics of his or her performance. It ensures fairness, objectivity and transparency since evaluators first determine the metrics of performance evaluation as well as the weighting among the metrics before aggregating the appraisal scores to determine the ranking of each candidate. In 360 degree evaluation process the reviewers evaluate some indicators related to the employee performance appraisal. The sets of reviewers involved in the evaluation process might have different degree of knowledge about the evaluated employee. It then seems suitable to offer a flexible framework in which different reviewers can express their assessments in different domains according to their knowledge, i.e., a heterogeneous evaluation framework. The final aim is to design a performance appraisal model in such a framework that computes a final evaluation for each employee. The key findings regarding the relationship between performance appraisal and organizational citizenship are- firstly, performance appraisal including system and process facets had significant effect on organizational commitment. Secondly, organizational commitment leads to organizational citizenship behaviour. Thirdly, organizational commitment plays fully mediating role between performance appraisal system and organizational citizenship behaviour, and plays partially mediating role between performance appraisal process and organizational citizenship behaviour. One study also suggests that performance appraisal is a widespread, very expensive, counterproductive exercise. It says that the linkage to reward outcomes reduces or eliminates the developmental value of appraisals. Rather than an opportunity for constructive review and encouragement, the reward-linked process is perceived as judgmental, punitive and harrowing.