What is a systematic evaluation of individual with respect to their performance on?

What is a systematic evaluation of individual with respect to their performance on?

Concept of Performance Appraisal

Performance appraisal is the systematic evaluation of employees with respect to their performance on their job and their potential for development. A performance appraisal is an evaluation done on an employee’s job performance over a specific period of time. The works performed by the different employees differ in many aspects due to the difference in their backgrounds, experiences, knowledge, skills, abilities, and aptitudes. Such differences determine the need for training and development activities. It is the equivalent of a report card on an employee and how their manager assessed their performance over the prior year. So, it is necessary for management to identify such differences so that employees having better job performance ability, skills and knowledge can be rewarded in one hand, and the wrong placements of the employees may be checked through transfer or punishments on other hands. In this regard, performance appraisal provides a measure in order to know the level of performance so that the employee may improve his/her performance.

Objectives of Performance appraisal:

  • To review the performance of the employees over a given period of time.
  • To judge the gap between the actual and the desired performance.
  • To help the management in exercising organizational control.
  • Helps to strengthen the relationship and communication between superior – subordinates and management – employees.
  • To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future.
  • To provide feedback to the employees regarding their past performance.
  • Provide information to assist in the other personnel decisions in the organization.
  • Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.
  • To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training, and development.
  • To reduce the grievances of the employees.

Performance appraisal is a process of identifying, measuring, and managing employee’s performance in order to enhance organizational efficiency and effectiveness. Anyone who has worked in more than one department or at more than one organization can attest to the fact that not all performance appraisal processes are the same. It is a merit rating that denotes the appraisal of the performance of the employees in an organization. Performance appraisal systematically evaluates the personality and performance of each employee so that the productivity can be measured in terms of efficiency and effectiveness. The varying systems and processes are all over the map. Unfortunately, some are done so poorly that they are not only designed to fail, but also to create a negative experience for both the manager as well as the employee. The primary purpose of performance appraisal is to facilitate the orderly determination of an employee’s worth in comparison to his/her fellow employees and expected level of performance. It provides information relating to various aspects of an individual upon which promotion, transfer and salary decisions can be made. It also provides an opportunity to review employee’s work-related behavior.

More precisely, performance appraisal can be defined as a systematic evaluation of an employee’s current, or past performance as well as future potentials by supervisors or those familiar with his/her performance. It defines an employee’s job-related behaviors and outcomes which help reward, motivate and empower employees at work. It also helps to identify future potentialities of an individual.

However, performance appraisal is a more comprehensive term for such activities because its use extends beyond ascertaining eligibility for promotion. Such activities may be training and development, salary increase, transfer, discharge etc. besides promotion

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What Is a Performance Appraisal?

The term “performance appraisal” refers to the regular review of an employee’s job performance and overall contribution to a company. Also known as an annual review, performance review or evaluation, or employee appraisal, a performance appraisal evaluates an employee’s skills, achievements, and growth, or lack thereof.

Companies use performance appraisals to give employees big-picture feedback on their work and to justify pay increases and bonuses, as well as termination decisions. They can be conducted at any given time but tend to be annual, semiannual, or quarterly.

Key Takeaways

  • A performance appraisal is a regular review of an employee’s job performance and contribution to a company.
  • Performance appraisals are also called annual reviews, performance reviews or evaluations, or employee appraisals.
  • Companies use performance appraisals to determine which employees have contributed the most to the company’s growth, review progress, and reward high-achieving workers.
  • Although there are many different kinds of performance reviews, the most common is a top-down review in which a manager reviews their direct report.
  • Employees who believe that the evaluation’s construction isn’t reflective of their company’s culture may feel dissatisfied with the appraisal process.

How Performance Appraisals Work

Performance appraisals are usually designed by human resources (HR) departments as a way for employees to develop in their careers. They provide individuals with feedback on their job performance, ensuringthat employees are managing and meeting the goals expected of them and giving them guidance on how to reach those goals if they fall short.

Because companies have a limited pool of funds from which to award incentives, such as raises and bonuses, performance appraisals help determine how to allocate those funds. They provide a way for companies to determine which employees have contributed the most to the company’s growth so that companies can reward their top-performing employees accordingly.

Performance appraisals also help employees and their managers create a plan for employee development through additional training and increased responsibilities, as well as to identify ways that the employee can improve and move forward in their career.

Ideally, the performance appraisal is not the only time during the year that managers and employees communicate about the employee’s contributions. More frequent conversations help keep everyone on the same page, develop stronger relationships between employees and managers, and make annual reviews less stressful.

Types of Performance Appraisals

Most performance appraisals are top-down, meaning that supervisors evaluate their staff with no input from the subject. But there are other types:

  • Self-assessment: Individuals rate their job performance and behavior.
  • Peer assessment: An individual’s work group or co-workers rate their performance.
  • 360-degree feedback assessment: Includes input from an individual, supervisor, and peers.
  • Negotiated appraisal: This newer trend utilizes a mediator and attempts to moderate the adversarial nature of performance evaluations by allowing the subject to present first. It also focuses on what the individual is doing right before any criticism is given. This structure tends to be useful during conflicts between subordinates and supervisors.

There are many performance appraisal apps that have been developed to help companies automate the evaluation process.

Criticism of Performance Appraisals

Performance appraisals are designed to motivate employees to reach and/or exceed their goals. But they do come with a lot of criticism.

An issue with performance appraisals is that differentiating individual and organizational performance can be difficult. If the evaluation’s construction doesn’t reflect the culture of a company or organization, it can be detrimental. Employees report general dissatisfaction with their performance appraisal processes. Other potential issues include:

  • Distrust of the appraisal can lead to issues between subordinates and supervisors or a situation in which employees merely tailor their input to please their employer.
  • Performance appraisals can lead to the adoption of unreasonable goals that demoralize workers or incentivize them to engage in unethical practices.
  • Some labor experts believe that the use of performance appraisals has led to lower use of merit- and performance-based compensation.
  • Performance appraisals may lead to unfair evaluations in which employees are judged not by their accomplishments but by their likability. They can also lead to managers giving underperforming staff a good evaluation to avoid souring their relationship.
  • Unreliable raters can introduce a number of biases that skew appraisal results toward preferred characteristics or ones that reflect the rater’s preferences.
  • Performance appraisals that work well in one culture or job function may not be useful in another.

What are performance appraisals used for?

Performance appraisals are used to review the job performance of an employee over some period of time. These reviews are used to highlight both strengths and weaknesses to improve future performance.

What are the benefits of a performance appraisal?

When executed correctly, performance appraisals can pay off big. Among other things, they are capable of boosting employee morale and engagement, clarifying expectations, helping to get the best out of staff, and incentivizing hard work and dedication.

It’s not just companies that benefit, either. Open lines of communication make it easier for employees to raise concerns, express themselves, find their right path, feel appreciated, and be rewarded when they do a good job.

When should a performance appraisal take place?

Performance management is an ongoing process. Throughout the year, managers are encouraged to engage with employees to establish goals, note progress, and provide feedback. Formal reviews or appraisals often take place on a yearly or quarterly basis.

What is a 360-degree appraisal?

Standard performance reviews include an employee and their manager or supervisor. The 360-degree version also solicits input from the employee’s colleagues or co-workers.

The Bottom Line

Communication between employees and their manager or supervisor can be very rewarding. Performance appraisals are capable of boosting morale and output, benefiting all parties.

That’s assuming they go well, though. Sadly, many performance appraisals aren’t executed in the most effective way. In many cases, they may be rushed or simply follow a set framework that perhaps doesn’t always benefit every type of industry or person. Poorly handled appraisals can be counterproductive. Without a bespoke approach and careful consideration of how to structure meetings and set reasonable targets, the performance appraisal process can potentially cause all types of problems.

What is a systematic evaluation of individual with respect to their performance on job?

Personnel appraisal is the systematic process of measuring and evaluating employees with respect to their performance on the jobs and their potential for development. Performance appraisal deals with the record of performance of the personnel working in an organization.

What is systematic performance evaluation?

A performance evaluation system is a systematic way to examine how well an employee is performing in his or her job. If you notice, the word systematic implies the performance evaluation process should be a planned system that allows feedback to be given in a formal—as opposed to informal—sense.

What is the systematic evaluation of performance and effectiveness of management?

Performance evaluation is a systematic process of evaluating how well employees are performing their jobs. The appraisal is based on results obtained by the employee in his/her job, not on the employee's personality characteristics.

What are the 4 types of performance evaluation?

Performance appraisals can be broken down into four distinct significant types:.
The 360-Degree Appraisal. The manager gathers information on the employee's performance, typically by questionnaire, from supervisors, co-workers, group members, and self-assessment..
Negotiated Appraisal. ... .
Peer Assessment. ... .
Self-Assessment..