Performance Management is the managerial process that deals with the various dimensions of the performance of the employees which include the identification of the resources to be provided to the employees, evaluation of the employees at regular intervals of time and delivering feedback to them, planning the rewards and incentives, etc.
- Performance Appraisal deals with the evaluation part of performance management.
- It involves the systematic evaluation of an employee with regard to their contribution to the organization. Performance appraisal takes the behaviour, attitude, skillset and knowledge improvement, learning potential and other factors into consideration.
- Performance appraisal is the process of assessment of the job performance of the employees by taking specific metrics into consideration by the supervisors or any other assigned team members.
- It involves the comparison of the performance of an employee with their own performance and with the performance of the other employees over a specific period of time.
Objectives of Performance appraisal
- Helping the organization over promotions, salary increments, incentives, internal job transfers, terminations, improving training modules, etc.
- Providing evaluation feedback to employees, to state what is required from them and what are the areas they need to improve.
- Creating a friendly environment by assessing the difficulties faced by the employees and motivating them.
- To monitor the performance of the employees.
Methods of Performance appraisal
appraiser for every question. The appraiser has to tick the yes box when the given characteristic is found and no box when it is not.
- All the responses are counted, and a final rating is obtained.
- It is a time taking process and not accurate.
8. Essay method: In this method, the appraiser writes about the characteristics of the employee in his own words in the form of an essay.
- With this, the strong and weak points can be easily known.
- But the essay depends on the writing skills of the appraiser. Sometimes, there may be a chance of weak areas getting more highlighted than the strong areas of an employee. This may demotivate the employee.
9. Critical incidents method: In this method, the performance of the employees during critical incidents is taken into consideration.
- All the critical tasks performed by each employee are written and are compared with each other by the appraisal team.
- The rating is done based on the severity of the critical incident.
10. Field review method: In this method, the appraiser takes the help of subordinates and supervisors to rate an employee.
- This method is mostly used during the promotions and increments.
- It is a time-consuming process.
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