PERFORMANCE APPRAISAL SYSTEM
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mechanical wiki
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08-09-2009, 03:06 PM


In the so highly competitive and rapidly changing environment to survive the companies need well trained and skilled worker. India is a very rich country in the term of resources, weather natural or technical and scientific .But it is very sad to state that India, till now, has not perfectly learnt how to develop its man power and tap its human resources for the betterment of its citizenry and business goal.

CHAPTER 1

1.1 Introduction
1.2 Objectives of the study
1.3 Research Methodology
1.4 Scope of the study
1.5 Limitations of the study
1.6 Operational definition of the concept
1.7 Learningâ„¢s in the Executive training
1.8 Awards/ Rewards received during the E.T

CHAPTER 2

2.1 Company Profile
2.2 Human Resource Development(Performance Appraisal)
2.3 Bell Shaped Curve

CHAPTER 3

3.1 Data Analysis
3.2 Interpretations and findings
3.3 Suggestions

CHAPTER 4

4.1 Recommendations
4.2 Conclusion
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Use Search at http://topicideas.net/search.php wisely To Get Information About Project Topic and Seminar ideas with report/source code along pdf and ppt presenaion
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projectsofme
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27-11-2010, 10:04 AM


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Performance Appraisal



OBJECTIVES OF STUDY

A) Primary Objectives

1) To study the performance appraisal system in different organization.
2) To study the transformation of performance appraisal form traditional to modern.
3) To get an insight into the relative importance of performance appraisal in organization.
4) To study the effectiveness of performance appraisal system in different organization.
5) To study the practical application of performance appraisal.
6) To compare appraisal system of different organization and find out the most common parameters for appraisal.
7) How can companies use performance appraisal as an effective tool to achieve organisational effectiveness and efficiency.

B) Secondary Objectives.

1) To observe the work environment in organization.
2) To get experience and expertise in making project and implimentations.
3) To enhance my communication skills.
4) To increase my confidence.



LIMITATIONS OF STUDY

1) To get contacts of HR Mangers for interviews was difficult.
2) Getting the views and opinion of the interviewee (HR Manager) was a difficult task.

OVERVIEW

Performance appraisals are a systematic way of evaluating the standard of an employee’s performance.
Steps for developing a systematic performance appraisal

.1. Identify key performance criteria
Development of key performance criteria should be based on a comprehensive job description and undertaken in consultation with employees.

2. Develop appraisal measures
In order to obtain accurate and valid performance appraisals, appraisal measures should be tailored to the specific job or “job family” (i.e., groups of similar jobs). An evaluation of factors in the work environment which help or hinder performance is also recommended. This ensures that realistic expectations are set for employee’s performance, and is also likely to increase the perceived fairness and acceptability of performance appraisals.

3. Collect performance information from different sources
Traditionally, it has been the sole responsibility of managers / supervisors to assess performance. However, other organisational members (e.g., clients, coworkers, subordinates) can be a valuable source of information as they are likely to have exposure to different aspects of an employee’s performance. Collecting information from multiple sources can increase the accuracy of performance evaluation (i.e., reduce bias), and increase employee’s perceptions of fairness.

4. Conduct an appraisal interview
The two central purposes of the appraisal interview are to:
1. Reflect on past performances to identify major achievements, areas for further improvement, and barriers / facilitators to effective performance
2. Identify goals and strategies for future work practice.


The appraisal interview should be a constructive, two-way exchange between the supervisor and employee, with preparation for the interview done by both parties beforehand.

5. Evaluate the appraisal process
The performance appraisal process should undergo regular review and improvement. For example, focus groups or surveys could be conducted to gauge employee’s perceptions of the appraisal process. A successful performance appraisal process should demonstrate a change in both the ratings of employee’s performance and aspects of the work environment that impact upon work performance.

Best practice in performance appraisal
In essence, best practice in performance appraisals involves:
• Integrating performance appraisal into a formal goal setting system
• Basing appraisals on accurate and current job descriptions
• Offering adequate support and assistance to employees to improve their performance
(e.g., professional development opportunities)
• Ensuring that appraisers have adequate knowledge and direct experience of the employee’s performance
• Conducting appraisals on a regular basis.

Findings on Performance Appraisal of the following companies are analysed
1) 4004 Incorporated
2) HPCL
3) Titan
4) Godrej
5) UTI Mutual Funds
6) Reliance BPO
7) Nicholas Piramal

MEANING AND DEFINITION OF PERFORMANCE APPRAISAL
P
erformance appraisal is a formal system that evaluates the quality of a employee’s performance. An appraisal should not be viewed as an end in itself, but rather as an important process within a broader performance management system that links:
• Organisational objectives
• Day-to-day performance
• Professional development
• Rewards and incentives

In simple terms, appraisal may be understood as the assessment of an individual’s performance in a systematic way, the performance being measured against such factors as job knowledge, quality, and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility, health, and the like. Assessment should not be confined to past performance alone. Potentials of the employee for future performance must also be assessed.

A formal definition of performance appraisal is:
“It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.”

A more comprehensive definition is:
“Performance appraisal is a formal, structured system of measuring and evaluating an employee’s job related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization, and society all benefit.”

TRADITIONAL PERFORMANCE APPRAISAL
T

he history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management.
During the First World War, appraisals concept was adopted by US army which was in the form of merit rating. It was man-to-man rating system for evaluation of military personnel. From the army this concept entered the business field and was restricted to hourly-paid workers. During 1920s, relational wage structures for hourly- paid workers were adopted in industrial units and each worker was used to be rated in comparison to other for determining wages rates. This system was called merit rating.
The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order.
Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed.
For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance.
These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence.
As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.

MODERN APPRAISAL
P

erformance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development.
In many organizations - but not all - appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions.
By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.)
Whether this is an appropriate use of performance appraisal - the assignment and justification of rewards and penalties - is a very uncertain and contentious matter.

OBJECTIVES OF PERFORMANCE APPRAISAL

Salary Increase
Performance appraisal plays a role in making decision about salary increase. Normally salary increase of an employee depends upon on how he is performing his job. There is continuous evaluation of his performance either formally or informally. This may disclose how well an employee is performing and how much he should be compensated by way of salary increase.

Promotion
Performance appraisal plays significant role where promotion is based on merit and seniority. Performance appraisal discloses how an employee is working in his present job and what are his strong and weak points. In the light of these, it can be decided whether he can be promoted to the next higher position.

Training and Development
Performance appraisal tries to identify the strengths and weakness of an employee on his present job. This information can be used for devising training and development programmes appropriate for overcoming weaknesses of employees.

Feedback
Performance appraisal provides feedback to employees about their performance. A person works better when he knows how he is working. This works in two ways, firstly, the person gets feedback about his performance. Secondly, when the person gets feedback about his performance, he can relate his work to the orgaisational objectives.

Pressure on Employees
Performance appraisal puts a sort of pressure on employees for better performance. If the employees are conscious that they are being appraised in respect of certain factors and their future largely depends on such appraisal.

Others
a) Identifying systemic factors that are barriers to, or facilitators of, effective performance.
b) To confirm the services of probationary employees upon their completing the
probationary period satisfactorily.
c) To improve communication. Performance appraisal provides a format for
dialogue between the superior and the subordinate, and improves
understanding of personal goals and concerns. This can also have the effect of increasing the trust between the rater and the ratee.
d) To determine whether HR programmes such as selection, training, and transfer
have been effective or not.



HOW TO CONDUCT A PERFORMANCE APPRAISAL PROCESS
T

he following five-step approach to conducting a systematic performance appraisal is recommended:
1) Identify key performance criteria
2) Develop appraisal measures
3) Collect performance information from different sources
4) Conduct an appraisal interview
5) Evaluate the appraisal process.

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seminar class
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17-02-2011, 10:05 AM


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PERFORMANCEAPPRAISALSYSTEM
MEASURING PERFORMANCE V/S ACTION
Come appraisal time and one of the most debated aspects of completing the fair-and-square appraisal revolves around what is 'measured' and what is 'achieved'. And the fable of the Bees and the Bee Keepers is a very popular paradigm that often gets quoted at such times. It goes thus:
The Story: Once upon a time there were two beekeepers that each had a beehive.
The beekeepers worked for a company called Bees, Inc. The company's customers loved its honey and demand for the product was increasing. So Bees, Inc. assigned each beekeeper a goal for increased honey production. The beekeepers had different ideas about how to meet their goal and designed different approaches to improve the performance of their hives.
The first beekeeper established a bee performance management approach that measured the number of flowers each bee visited. At considerable cost to the beekeeper, an extensive measurement system was created to count the flowers each bee visited. He also provided feedback to each bee at mid-season on his individual performance. He also created special awards for the bees who visited the most number of flowers. However, the bees were never told about the hive's goal to produce more honey so that the company could increase honey sales. The second beekeeper also established a bee performance management approach but this approach communicated to each bee the goal of the hive for increased honey production. The beekeeper and his bees measured two aspects of their performance the amount of nectar each bee brought back to the hive and the amount of honey the hive produced. The performance of each bee and the hive's overall performance were charted and posted on the hive's bulletin board for all the bees to see. The beekeeper created a few awards for the bees that gathered the most nectar. But he also established a hive incentive program that rewarded each bee in the hive based on the hive's overall honey production the more honey produced, the more recognition each bee would receive.
At the end of the season, the beekeepers evaluated their approaches. The first beekeeper found that his hive had indeed increased the number of flowers visited ,but the amount of honey produced by the hive had dropped. The Queen Bee reported that because the bees were so busy trying to visit as many flowers as possible, they limited the amount of nectar they would carry so they could fly faster. Also, since only the top performers would be recognized, the bees felt they were competing against each other for awards. As a result, they would not share valuable information with each other that could have helped improve the performance of all the bees (like the location of the flower filled fields they'd spotted on the way back to the hive). As the beekeeper handed out the awards to individual bees, unhappy buzzing was heard in the background. After all was said and done, one of the high performing bees told the beekeeper that if he had known that the real goal was to make more honey, he would have worked totally differently. The second beekeeper, however, had very different results. Because each bee in his hive was focused on the hive's goal of producing more honey. This Bess had concentrated their efforts on gathering more nectar in order to produce more honey than ever before. The bees worked together to determine the highest nectar yielding flowers and to create quicker processes for depositing the nectar they had gathered. They also worked together to help increase the amount of nectar gathered by the poorer performers. Tile Queen Bee of this hive reported that the poor performers either improved their performance or transferred to hive No.1, because the hive had reached its goal. The beekeeper rewarded each bee his portion of the hive incentive. The keeper was also surprised to hear a loud, happy buzz and a jubilant flapping of wings as he rewarded the individual high-performing bees with special recognition.
Should you measure performance or mere activities of employees? is the one who does silent work but does not show of himself/herself or the one who puts up a show but hardly performs to be recognized and rewarded? This and other related questions are answered in this chapter.
PERFORMANCE APPRAISAL
An organization's goals can be achieved only when people put in their best efforts. How to ascertain whether an employee has shown his or her best performance on a given job? The answer is performance appraisal. Employee assessment is one of the fundamental jobs of HRM. But not an easy one though. This chapter is devoted to a detailed discussion of the nature and process of conducting performance appraisal.
Meaning and Definition
In simple terms, performance appraisal may be understood as the assessment of an individual's performance in a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgement, versatility, health, and the like. Assessment should not be confined to past performance alone. Potentials of the employee for future performance must also be assessed. A formal definition of performance appraisal is:
It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.
A more comprehensive definition is:
Performance' appraisal is a formal structured system of measuring and evaluating an employee's job related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the fUture so that the employee organization and society all benefit.
The second definition includes employees' behaviour as part of the assessment. Behaviour can be active or passive--do something or do nothing. Either way behaviour affects job results. The other terms used for performance appraisal arc: performance rating, employee assessment. Employees performance review, personnel appraisal,
performance evaluation employee evaluation and (perhaps the oldest of the terms used) merit rating. In a formal sense, employee assessment is as old as, the concept of management and in an informal sense; it is probably as old as mankind. Nor performance appraisal is done in isolation
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10-08-2011, 02:05 PM


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INTRODUCTION
The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War - not more than 60 years ago.
The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgements made will be lawful, fair, defensible and accurate.
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.
The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order.
Little consideration, if any, was given to the developmental possibilities of appraisal. It was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed.
For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance.
These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence.
As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.
Modern Appraisal
Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development.
In many organizations - but not all - appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions.
By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay).
Whether this is an appropriate use of performance appraisal - the assignment and justification of rewards and penalties - is a very uncertain and contentious matter.
Performance Appraisal
Performance appraisal (PA) is one of the important components in the rational and systemic process of human resource management. The information obtained through performance appraisal provides foundations for recruiting and selecting new hires, training and development of existing staff, and motivating and maintaining a quality work force by adequately and properly rewarding their performance. Without a reliable performance appraisal system, a human resource management system falls apart, resulting in the total waste of the valuable human assets a company has.
There are two primary purposes of performance appraisal: evaluative and developmental. The evaluative purpose is intended to inform people of their performance standing. The collected performance data are frequently used to reward high performance and to punish poor performance. The developmental purpose is intended to identify problems in employees performing the assigned task. The collected performance data are used to provide necessary skill training or professional development.
The purpose of performance appraisal must be clearly communicated both to raters and ratees, because their reactions to the appraisal process are significantly different depending on the intended purpose. Failure to inform about the purpose or misleading information about the purpose may result in inaccurate and biased appraisal reports.
Critical Criteria of Developing a PA system
In order for performance appraisal information to be useful, the PA system must be able to consistently produce reliable and valid results. Measurement items in the performance appraisal system must be designed in such a way that the results of rating are consistent regardless of the raters and the timing of the assessment.
Another critical criterion in developing a PA system is the validity of the measurements. It is important to make sure that the appraisal items are really measuring the intended performance or target behavior. If they are not, the PA system encourages the wrong kind of work behaviors and produces unintended, frequently negative, organizational outcomes. For instance, if the number of traffic violation tickets issued is an item in performance appraisal of police officers, it encourages them to sit on a corner of a street and pull over as many
violators as possible during heavy traffic hours. The true purpose of a police force, which is public safety, may become secondary to issuing a large number of tickets for many officers.
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hillyjay
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18-05-2012, 11:08 AM

I like this idea. This is something I have to look at. This will be really good when implemented.
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