Performance Appraisal...

Performance Appraisal Performance appraisal (PA), also known as employee appraisal, is the systematic evaluation of the performance and productivity of an employee on the job in relation to certain pre-established criteria and organizational objectives. It is carried out to understand the potential of the employee for further growth and development. It is a formal, structured system of measuring, evaluating job related behaviours and outcomes to discover reasons of performance and how to perform effectively in future so that both the employee and the organization get benefitted. Performance appraisal is a management tool which is used for effective utilization of the employees as well as for planning their career development and consists of regular review of employee performance within organizations. An effective PA system will have the following. It correlates with the organizational mission, objectives and value system. It covers the assessment of performance as well as potential for development. It takes care of organizational as well as individual needs. It helps in creating a clean environment by linking rewards with achievements, generating information for the growth of the employee as well as of the organization, and suggesting appropriate employee task matching and career plans. Feedback is an important component of performance appraisal. While positive feedback is easily accepted, negative feedback often meets with resistance unless it is objective, based on a credible source and given in a skillful manner. Main component of a PA system is shown in Fig.1. Fig 1 Main component of a PA system Objectives of performance appraisal Performance appraisal system in an organization has the following objectives. To maintain records in order to determine compensation package, wage structure, and salary increments etc. To identify the strengths and weaknesses of employees to place right person on the right job. To maintain...