PERFORMANCE APPRAISAL PROCESS

Performance appraisal can be undertaken either on informal basis or on formal basis.In

comparatively smaller organizations, appraisal either based on traits or a combination of both is done informally through the observation of concerned employees. In larger organizations, appraisal has to be more systematic and formal as it reveals various type of information which can be used for variety of purpose.

Defining objective of appraisal

The first basic step in effective and systematic appraisal system is to define the objective of the appraisal itself. Appraisal is used for different purposes ranging from motivating the appraisees to controlling their behavior.

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Ex:- Rewarding providing appraisal such as salary revision or promotion differs from appraisal for training and development.

Defining Appraisal Noms

When we evaluate anything in terms of good or bad , always have some norms in our mind against which we say whether the things is good or bad. In the same way, appraisal is done in the context of certain norms and standards.

Ex:-Lemon tree Hotels evaluates performance norms for its various managers quarterly in a year to make these more meaningful.

Designing Appraisal Programme

In designing performance appraisal programme ,there are several issues which require attention, the types of personnel to be appraised types of personnel to be act as appraisers ,types appraiser methodology and timing of appraisal. The methodology is to be used in appraisal – whether through structured forms and questionnaires or personal interview of appraisee or a combination of both. The last issues in designing of appraisal program are the determination of time period and timing of appraisal.

Implementing Appraisal programme

In implementing appraisal programme, the appraisal is conducted by the appraisers and they may be also conduct interview if it is provided in the appraisal system. The result of appraisal is

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communicated to HR department for follow up action which should be oriented towards the objectives of the appraisal.

Appraisal feedback

Perhaps appraisal feedback is the most crucial stage in appraisal process, especially when the superiors rating is not as per the expectations of the appraise, even though such appraisal may be based on false premise. Many managers feel that employee often experience a profound face saving issues –they hear that their actual performance is not a good as they had perceived it to be. Upon hearing this, some become stoic and quite. Others cry and a few become overtly angry, hostile, and verbally abusive.

Post Appraisal action

Performance appraisal is not an end in itself, but it is a means for improving long-term

performance of personnel by taking appropriate action based on the information as revealed by appraisal. These action may be in the form of suitable rewards to outperformers, counseling and guiding underperformers and providing training to them for better performance and identifying and removing those organizational factors which hinder effective performance.

Objective of Performance Appraisal 1. Salary Increase

2. Promotion

3. Training and Development 4. Feedback

5. Pressure on Employee

Benefits of Performance Appraisal

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For the Appraisee For the Management For the Organization

For the Appraisee:--

 Better understanding of role

 Understanding of own strengths

 Opportunity to discuss and overcome problems

 Discuss aspirations

 Improved working relations with superiors

For Management:--

 Identify performers, develop non- performers

 Succession planning

 Improved Hotels

 Identify training needs

 Generation of ideas for improvement

 Identify potential and plan careers

For Organization:--

 Improved overall performance

 Creation of culture of continuous improvement

 Conveying message that people are valued

2) NEED OF PERFORMANCE APPRAISAL

Employees would like to know from a performance appraisal system:

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 Concrete and tangible particulars about their work; and

 Assessment of their performance

This would include how they did; could do better in future; could obtain a larger share of rewards; and could achieve their life goals through their position. Therefore an employee would desire that the appraisal system should aim at:

 Their personal development;

 Their work satisfaction; and

 Their involvement in the organization.

From the point of view of the organization, performance appraisal serves the purpose of:

 Providing information about human resources and their development.

 Mesuring the efficiency with which human resources are being used and improved.

 Providing compensation packages to employees.

 To review the performance of the employees over a given period of time.

 To judge the gap between the actual and the desired performance.

 To help the management in exercising organizational control.

 To diagnose the training and development needs of the future.

 Provide information to assist in the HR decisions like promotions, transfers etc.

 Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.

 To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.

 To reduce the grievances of the employees.

 Helps to strengthen the relationship and Hotels between superior subordinates and management employees

 Maintaining organizational control.

 Performance appraisal should also aim at the mutual goals of the employees and the organization. This is essential because employees can develop only when the organization‘s

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interests are fulfilled. The organization‘s main resources are its employees, and their interest cannot be neglected. Mutual goals simultaneously provide for growth and development of the organization as well as of the human resources. They increase harmony and enhance effectiveness of human resources in the organization

3) CHALLENGES OF PERFORMANCE APPRAISAL

An organization comes across various problems and challenges Of Performance Appraisal in order to make a performance appraisal system effective and successful.

The main Performance Appraisal challenges involved in the performance appraisal process are:

a) Determining the evaluation criteria-

 Identification of the appraisal criteria is one of the biggest problems faced by the top management. The performance data to be considered for evaluation should be carefully selected. For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms

b) Create a rating instrument

 The purpose of the Performance appraisal process is to judge the performance of the employees rather than the employee. The focus

Of the system should be on the development of the employees of the organization.

c) Lack of Competence

 Top management should choose the raters or the evaluators carefully. They should have the required expertise and the knowledge to decide the criteria accurately. They should have the experience and the necessary training to carry out the appraisal process objectively.

d) Errors in rating and evaluation

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 Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the evaluator‘s rating for all other traits) etc. may creep in the appraisal process.

Therefore the rater should exercise objectivity and fairness in evaluating and rating the performance of the employees.

e) Resistance

The appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. Therefore, the employees should be communicated and clearly explained the purpose as well the process of appraisal. The standards should be clearly communicated and every employee should be made aware that what exactly is expected from him/her.

In order to make a performance appraisal system effective and successful, an organization comes across various challenges and problems. The main challenges involved in the performance appraisal process are:

Determining the evaluation criteria

 Identification of the appraisal criteria is one of the biggest problems faced by the top management. The performance data to be considered for evaluation should be carefully selected.

For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms.

4) CHALLENGES IN DIFFERENT METHODOLOGY OF PERFORMANCE APPRAISAL

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