1. This company proves that a major amount of work towards developing an effective and efficient performance appraisal system has not been accomplished to the fullest.
2. It seems that the organization is genuinely interested in improving the efficiency and utility of performance appraisal system to succeed in today’s dynamic environment; t
Outward Orientation Performance Appraisal System
The appraisal system should be more sensitive and responsive to current competitive environment. This is possible through making the organization.
• Quality conscious in products and services to match international standards. • Customer oriented (internally as well as externally)
• Cost effective • Technology oriented
• Focused towards collaboration and teamwork • People oriented
• Focused towards performance standards
• Focused towards values and culture that would help unbottle hidden talent. In achieving the above, the PA system have a catalytic role to play.
PERIODIC PERFORMANCE REVIEW AND PLANNING:
There should be some aspect in the PA forms, which deals with the effect of Internal Influences, organizational influences and external influences on performance of employee to make the PA system more sensitive to changes.
Increase awareness of company goals in order to integrate company and individual expectations.
Conducting training workshops for appraisers to remove biases and errors in appraisal.
Increasing transparency and open communication and minimizing confidentiality in performance review discussions.
The work done towards modifying and developing performance appraisal systems, time to time should be continued.
Integrating TQM into Performance Appraisal
• Individual rewards should be delinked with the PA system. The focus should shift to team rewards. To recognize individual excellence, the team rewards. To recognize individual excellence, the team should recommend rewards to tone up motivation levels in the entire team.
• Continuous feedback and transparency in every system • Focus on customer delight, both internal and external
Linkage with Rewards
Good performers should be recognized and rewarded, whereas weak performers need to be encouraged to become better performers. PA systems when liked with individual rewards and promotions create more problems than they help in motivating people. They encourage fewer employees and discourage more. They do not develop the team spirit but rather enhance interpersonal comparisons and power politics. The focus should be shifted from rewarding the performance of few to development of performance of many.
However there is also a need for recognition and rewarding good work. Alternative systems of rewarding with multiple reward/recognition mechanism are needed. But these systems should be separated from other systems (like career planning).
Role of HRD
• HRD should develop relevant competencies and work through empowering the line managers.
• Development of subordinates and teams should be key function of line managers.
• HRD should facilitate the development of behavioral, managerial and technical (multi functional) competencies in line managers.
• “Role analysis” should find a place in Jindal Brothers “role directories should be published with key functions for each role.
• System effectiveness should be ensured through periodic review and survey of organizational climate, ethos, organizational effectiveness and employee satisfaction (concerning PA systems).
IMPLICATION OF THE PROJECT
In a simple way performance appraisal is meant to be an exercise to value a estimate what a person has done and how has he done. The nature of Performance appraisal and its effectiveness depends a great deal on how human resources in the organization are viewed and treated. People are to be treated as resources of the organization. Unlike the other resources, the human resources have the capability of expanding to unlimited extents with proper investment in human capabilities.
Therefore, an organization interested in developing the capabilities of its employees, should understand the nature and capabilities required to perform different functions as well as the dynamics underlying the development of these capabilities in an organizational content.
(i) Technical capabilities (ii) Managerial capabilities
(iii) Behavioral (human) capabilities iv) Conceptual capabilities
The extents to which the various capabilities are required for the performance of the job differ from level to level in the organizational hierarchy.
New Objective of Performance Appraisal
Performance appraisal system can serve the following purposes if designed properly (a) Help each employee to understand more and more about his role and become clear
about his functions.
(b) Helps each employee to understand his own strengths and weaknesses with respect to his role and functions of the company.
(c) Helps identifying the developmental needs of employees. (d) Helps increase mutuality between employee and his superiors.
(e) Provides an opportunity to the employees for self reflection and individual goal setting
(f) Helps in preparing employees for performing at high levels by continuously enforcing the required qualities.
RECOMMENDATIONS
1. The company should try to avoid employee resistance, which is associated with change worlds true change follows instance. This for all kinds of systems be it Performance Appraisal.
2. The HR Dept should attempt to obtain the maximum agreement of Managers in respect of needs and objectives and purpose of the systems.
Being in the field of it improve the frequency of the trading modules and workshops. 3. More stress relieving packages should be offered to the mentally stressed staff. 4. Overtime should be taken care of at time of performance appraisal, which
would motivate the employees to perform better for longer hours. 5. Performance appraisal should after at proper span of time . 6. Performance appraisal should be done by expert person.