Meaning: Employee performance refers to the contribution which employees make towards achievement of organization goals. Performance appraisal measures how well employees have carried out their responsibility. This is therefore the process of evaluating employees’ performance against standards / objectives / job requirements
There are 2 main categories of PA
1) Informal appraisal – This is the continuous assessment of individual performance the manager / supervisor in the normal course of his work. It’s the byproduct of the day to day relationship between the managers and subordinates.
2) Formal appraisal – This is a more rational and orderly assessment of individual performance. The appraisal is carried out in a more systematic and planned manner using well designed appraisal forms and interviews.
Objectives of performance appraisal
1) To evaluate subordinates performance i.e. understand the weaknesses and strengths of employees
2) To identify progress and possible opportunities related to the job
3) To provide feedback on job performance to the employees. 4) To provide a rational basis for reviewing salary and rewarding employees in relation to the contributions towards the organization’s goals.
5) To identify potential performance and possibility for promotions or transfers
6) To identify training and development needs required to improve job performance
7) To motivate employees 8) To provide information on succession planning
9) To enable coaching and counseling of employees
Performance appraisal process
A systematic Performance appraisal involves the following steps
1) Completion of appraisal forms
2) Conducting appraisal interview.
3) Action agreement e.g. training and development to improve job performance job enrichment for job enlargement plan.
The purpose of rating is to sum up the job holders performance level A – Outstanding performance in all respects
B – Superior performance i.e. performance significantly above the job requirements
C – Average – performance fully meets expectations of job requirements D – Below average – performance not fully up to expectations
E – Poor – performance below expectations in most respects
ISSUES COVERED IN PERFORMANCE APPRAISAL
1. Quantity of work
2. Cost effectiveness/efficiency
3. Quality of work
6. Need for supervision
8. Application of training knowledge
1. Overall assessment/ narrative essay
In this technique the appraiser writes in a narrative form from his judgment about the appraisee under headings. This is a very subjective technique.
2. Guided assessment
This is where the appraisal form is designed in such a way that guiding questions are structured and the appraiser is only supposed to indicate: Yes, No or Not applicable.
This is where the required characteristics are converted into a scale A Excellent
4. Behavioural incidence/Critical incidence
A list of most effective behaviours is prepared and the individual’s behaviour is measured against this behaviour.
5. Self appraisal
This is where the appraisee evaluates himself i.e. he carries out his own assessment.
6. 3600 appraisal
This is done obtaining feedback from all the persons the worker interacts with i.e. His seniors, subordinates, colleagues, customers, suppliers e.t.c
7. Results oriented techniques
This technique involves measuring the performance of the worker against specific targets agreed between the managers and the workers.
8. Upward appraisal
The subordinates evaluates the managers