finance n management

Topics: Bank, Economic development, Credit union Pages: 15 (5516 words) Published: October 23, 2013
PERFORMANCE APPRAISAL

Performance Appraisal Methods
“It is a systematic evaluation of an individual with respect to performance on the job and individual’s potential for development.” Definition 2: Formal System, Reasons and Measures of future performance “It is formal, structured system of measuring, evaluating job related behaviors and outcomes to discover reasons of performance and how to perform effectively in future so that employee, organization and society all benefits.” Meaning of Performance Appraisals

Performance Appraisals is the assessment of individual’s performance in a systematic way. It is a developmental tool used for all round development of the employee and the organization. The performance is measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility and health. Assessment should be confined to past as well as potential performance also. The second definition is more focused on behaviors as a part of assessment because behaviors do affect job results. Performance Appraisals and Job Analysis Relationship

Job Analysis à
Performance Standards à
Performance Appraisals
Describe the work and personnel requirement of a particular job. Translate job requirements into levels of acceptable or unacceptable performance Describe the job relevant strengths and weaknesses of each individual. Objectives of Performance Appraisals

Use of Performance Appraisals
1.    Promotions
2.    Confirmations
3.    Training and Development
4.    Compensation reviews
5.    Competency building
6.    Improve communication
7.    Evaluation of HR Programs
8.    Feedback & Grievances
4 Goals of Performance Appraisals
General Goals
Specific Goals
Developmental Use
Individual needs
Performance feedback
Transfers and Placements
Strengths and Development needs
Administrative Decisions / Uses
Salary
Promotion
Retention / Termination
Recognition
Lay offs
Poor Performers identification
Organizational Maintenance
HR Planning
Training Needs
Organizational Goal achievements
Goal Identification
HR Systems Evaluation
Reinforcement of organizational needs
Documentation
Validation Research
For HR Decisions
Legal Requirements
Performance Appraisal Process
1.    Objectives definition of appraisal
2.    Job expectations establishment
3.    Design an appraisal program
4.    Appraise the performance
5.    Performance Interviews
6.    Use data for appropriate purposes
7.    Identify opportunities variables
8.    Using social processes, physical processes, human and computer assistance Difference between Traditional and Modern (Systems) approach to Appraisals Categories
Traditional Appraisals
Modern, Systems Appraisals
Guiding Values
Individualistic, Control oriented, Documentary
Systematic, Developmental, Problem solving
Leadership Styles
Directional, Evaluative
Facilitative, Coaching
Frequency
Occasional
Frequent
Formalities
High
Low
Rewards
Individualistic
Grouped, Organizational
TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS
Numerous methods have been devised to measure the quantity and quality of performance appraisals. Each of the methods is effective for some purposes for some organizations only. None should be dismissed or accepted as appropriate except as they relate to the particular needs of the organization or an employee. Broadly all methods of appraisals can be divided into two different categories. Past Oriented Methods

Future Oriented Methods
Past Oriented Methods
1.    Rating Scales: Rating scales consists of several numerical scales representing job related performance criterions such as dependability, initiative, output, attendance, attitude etc. Each scales ranges from excellent to poor. The total numerical scores are computed and final conclusions are derived. Advantages – Adaptability, easy to use, low cost, every type of job can be evaluated,...
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