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A PROJECT REPORT ON PERFORMANCE APPRAISAL AND
TRAINING IN LEARLITA ENGINEERING PRIVATE
LIMITED.
SUBMITTED BY
SHWETA .A. PANWALKAR
TYBMS (SEM V)
2011-2012
PROJECT GUIDE
MRS.SINDHU PRABHU
VIDYA PRASARAK MANDAL’S
K.G.JOSHI COLLEGE OF ARTS & N. G. BEDEKAR COLLEGE
OF COMMERCE
CHENDANI BUNDER ROAD THANE 400601
(BACHELOR OF MANAGEMENT STUDIES)
UNIVERSITY OF MUMBAI
2011-2012
A PROJECT ON PERFORMANCE APPRAISAL IN LEARLITA
ENGINEERING PRIVATE LIMITED.
SUBMITED TO
UNIVERSITY OF MUMBAI
(2011-2012)
SUBMITTED BY
SHWETA .A. PANWALKAR
ROLL NO. 113
TYBMS (V SEM)
VIDYA PRASARAK MANDAL’S K. G. JOSHI BEDEKAR COLLEGE
OF ARTS & N. G. BEDEKAR COLLEGE OF COMMERCE
CHENDANI BUNDER ROAD THANE 400601
(BACHELOR OF MANAGEMENT STUDIES)
UNIVERSITY OF MUMBAI
2011-2012
VIDYA PRASARAK MANDAL’S K.G. JOSHI COLLEGE OF
ARTS &
N. G. BEDEKAR COLLEGE OF COMMERCE CHENDANI
BUNDER ROAD,
THANE 400601
DECLARATION
I SHWETA .A.PANWALKAR STUDYING IN THIRD YEAR
BACHELOR OF MANAGEMENT STUDIES (TYBMS) HERE
BY DECLARED THAT ALL THE GIVEN INFORMATION IN
THE PROJECT IS ORIGINAL TRUE & TO THE BEST OF MY
KNOWLEDGE.
(SHWETA. A. PANWALKAR)
ACKNOWLEDGEMENT
IT GIVES ME GREAT PLE ASURE TO PREPARE THIS
PROJECT ON PERFORMANCE APPRAISAL & TRAINING IN
LEARLITA ENGINEERING PVT LTD. AND PRESENT IT TO
THE UNIVERSITY OF MUMBAI, UNDER THE GUIDANCE
OF MRS. SINDHU PRABHU (PROF OF HUMAN RESOURCE
MANAGEMENT). I WOULD LIKE TO THANK HER FOR HER
CONSTANT SUPPORT.
I TAKE THIS OPPORTUNITY TO THANK THE
MANAGEMENT OF LEARLITA ENGINEERING PVT LTD
FOR ALLOWING ME TO UNDERTAKE THE PROJECT IN
THIS COMPANY. THIS PROJECT WOULD NOT HAVE COME
TO REALITY WITHOUT THE VALUABLE GUIDANCE OF
ANTONY SEQUEIRA HR EXECUTIVE OF LEARITA
ENGINEERING PVT LTD.I WOULD ALSO LIKE TO THANK
ALL THOSE WHO HAVE CO-OPERATED BY GIVING THEIR
PRECIOUS TIME DURING THE SURVEY.
THANK YOU,
(SHWETA.A.PANWALKAR)
EXECUTIVE SUMMARY
ONCE THE EMPLYOEES HAVE BEEN SELECTED, TRAINED
AND MOTIVATED THEY ARE THEN APPRAISED FOR
THEIR PERFORMANCE. PERFORMANCE APPRAISAL HAS
BEEN CONSIDERED AS A MOST SIGNIFICANT AND
INSEPARABLE TOOL FOR AN ORGANISATION.THIS IS
ALL BECAUSE THE ORGANISATION CONSISTS OF
HUMAN BEING AND ANALYSIS OF THEIR PERFORMANCE
IS VERY ESSENTAIL BECAUSE THEY ARE THE LIFE
BLOOD OF ANY ORGANISATION. IT IS THEIR
PERFORMANCE, WHICH HELPS IN THE DEVELOPMENT
AND PROSPERITY OF THE ORGANISATION
PERFORMANCE APPRAISAL IS USED TO:-
UNDERSTAND THE DIFFICULTIES OF THEIR EMPLOYEES
AND TRY TO REMOVE THESE DIFFICULTIES.
KNOW THE STRENGTHS AND WEAKNESSES OF THEIR
EMPLOYEES AND HELP REALIZE THESE.
HELP THE EMPLOYEES TO ACQUIRE NEW CAPABILITIES.
PLAN EFFECTIVE REALIZATION OF TALENTS OF
MANAGER.
GENERALLY HR MANAGER SCHEDULES INDIVIDUAL
MEETINGS WITH EACH EMPLYOEES TO DISCUSS THE
EMPLOYEES PERFORMANCE, COMMUNICATE THE
PERFORMANCE AREAS THAT NEED ATTENTION AND
JOINTLY ESTABLISHED AREAS TO BE WORKED ON OR
GOALS TO ACHIEVED BY THE NEXT SCHEDULED
DISCUSSION.SUCH PERFORMANCE APPRAISAL
INTERVIEWS MAY BE SCHEDULED EVERY THREE
MONTHS OR ONCE OR TWICE A YEAR.GOALS AND
OBJECTIVES THAT ARE AGREED UPON IN EACH
MEETING. THE VARIOUS METHODS USED TO RANK THE
EMPLOYEES ARE BROADLY CLASSIFIED AS
TRADITIONAL AND MODERN METHODS.THESE
METHODS HAVE THEIR OWN IMPORTANCE AS PER THE
APPRAISAL METHODS FOR APPRAISAL ARE SELECTED
ACCORDING TO THE JOB OF THE EMPLOYEES. THERE
ARE CERTAIN EXPECTATIONS FROM APPRAISERS WHILE
CONDUCTING THE APPRAISAL.THE APPRAISALS THUS
CONDUCTED SHOULD BE ETHICAL, FAIR ENOUGH &
SHOULD SUIT THE ORGANISATION CULTURE.THESE ARE
VARIOUS TECHNIQUES TO BE USED WHILE
CONDUCTING THE APPRAISAL.
THE PRACTICAL EXAMPLE OF CONDUCTING
PERFORMANCE APPRAISAL STUDIED IN THIS PROJECT IS
THE APPRAISAL CONDUCTED IN LEARITA LTD. A BRIEF
STUDY OF THE STRATEGIES USED BY THE COMPANY
FOR APPRAISING THEIR EMPLOYEES IS GIVEN IN THIS
PROJECT. THE COMPANY DIVIDES THE EMPLOYEES INTO
THREE GROUPS ACCORDINGLY VARIOUS METHODS ARE
IMPLEMENTED TO EVALUATE THEIR
PERFORMANCE.THE ANALYSES ARE DONE IN
DIFFERENT WAYS FOR DIFFERENT LEVELS OF
EMPLOYEES.
WHILE CONDUCTING THE APPRAISALS THERE ARE
MANY DIFFICULTIES & MISTAKES COMITTED ON THE
PART OF THE APPRAISALS AS WELL AS THE APPRAISEES
REASONS FOR THE DIFFICULTIES COULD BE DUE TO THE
FLAWS IN THE METHODS, THE APPRAISERS MISTAKES
ETC. SOLUTIONS CAN BE ARRIVED AT BY DOING A DEEP
STUDY INTO THIS SUBJECT A FEW SOLUTIONS ARE
SUGGESTED BUT THEY NEED TO BE ACTUALLY
IMPLEMENTED IN ORDER TO MAKE THIS ACTIVITY A
PERFECT TOOL FOR EVALUATING THE JOBS OF THE
EMPLOYEES.
INDEX
Sr.no. CHAPTER NAME PG.NO.
1] HUMAN RESOURCE MANAGEMENT
1.1 5 M’S OF BUSINESS WORLD
1.2 HUMAN RESOURCE MANAGEMENT
1.3 HUMAN RESOURCE DEVELOPMENT
1.4 OBJECTIVES & FUNCTIONS OF HUMAN RESOUCES DEPARTMENT
2] TRAINING AND DEVELOPMENT
2.1 NEED FOR TRAINING2.2 STEPS IN TRAINING
PROGRAMME2.3 METHODS/TECHNIQUES
OF TRAINING
3] PERFORMANCE APPRAISAL
3.1 OBJECTIVES OF PERFORMANCE APPRAISAL
3.2 PROCESS OF PERFORMANCE APPRAISAL
3.3 ISSUES IN APPRAISAL SYSTEMS
3.4 ESSENTIALS OF AN EFFECTIVE PERFORMANCE SYSTEMS
3.5 METHODS/APPROCHES OF PERFORMANCE APPRAISAL
3.6 PROBLEMS OF APPRAISAL
3.7 WHY APPRAISAL TECHNIQUES PROVE FAILURE
3.8 HOW APPRAISAL MAY BE MADE SUCCESSFUL
3.9 ETHICS OF APPRAISAL
4] LEARLITA PRIVATE ENGINEERING LIMITED
4.1 COMPANY INFORMATION
4.2 PERFORMANCE APPRAISAL IN LEARLITA LTD
4.3 METHODS USED 4.4 PERSON INTERVIEWED
5] CONCLUSION 5.1 COMMON MISTAKES &
SOLUTIONS5.2 CONCLUSION
CHAPTER – 1
1. HUMAN RESOURCES
Human resources is a term used to describe the individuals who
make up the workforce of an organization, although it is also
applied in labour economics to, for example, business sectors or
even whole nations. Human resources is also the name of the
function within an organization charged with the overall
responsibility for implementing strategies and policies relating to
the management of individuals (i.e. the human resources). This
function title is often abbreviated to the initials "HR".
1.1 5 M’S OF BUSINESS WORLD
Managing business organizations has always been a challenge to
man since it became scientific. The earliest known accounts of
business management in man's existence tended to be crude,
brutish and short. Anything, and anyone, found to be an
impediment to any growth in entrepreneurship was either pilloried
or guillotined off for 'progress' to be made. Then came the
industrial revolution. Welcome to machines and goodbye to
servitude. Slavery became abolished as people had causes to be
more 'humane' in business. Man's overuse had become juxtaposed
with gears and belts of machines. Welcome to mass production.
Things became manufactured at the touch of a button. Materials
were optimally utilised. Time became shorter and physical exertion
of force required to create utility became a thing of the past.
Since man became victorious in the industrial revolution, every
business has been using these five M's: man, materials, machines,
minutes and money; to operate with, or without, success. To create
any venture without any one of these M's is simply embarking on a
journey to Erehwon. It is sheer entrepreneurial harakiri to even
attempt to cut corners. No one should even
Contemplate doing that. Failure awaits such business. It will also
be disastrous for organizations not to properly and effectively
organise the M's for business success. That, in itself is a different
kettle of fish. None of the M's is useless no matter the perspective it
is viewed from. A meta-analysis of organizations that have
survived over time showed that careless regard to any of the five
resulted in economic fiascos, with some even affecting global
business. When man took time off work to fight two major wars,
there was economic downturn as precious time was expended to
right perceived wrongs.
MAN
Man, the first of the five M's is the most important. The right
personnel for the right position is a sure bet for organizational
effectiveness and efficiency. No two ways about that. Thus,
lateness and absenteeism, unsafe acts, alcoholism, poor training,
incompetence are just some of the attributes of man at work that
could upturn the apple cart of business ventures. Human resources
determine the workings of the other four basic business resources.
People make sure materials, machines, minutes and money are
utilised in a productive manner to achieve goals or aims and
objectives of organizations and enterprises. Poor employment
practices are inimical to the sustenance of such ventures. With the
right man in the right job, a large portion of effective business
management will have been achieved. No doubts about that.
MATERIALS
Without materials, human resource is made redundant. Thus every
right thinking and right planning organization knows that materials
needed for any business or service mist be in place before 'man' can
be of use in any business activity. A supply chain department grew
out of this thinking and has been a very useful and effective aspect
of business management. A group of cement factory
workers waiting for supply of limestone may have nothing much to
do for as long as the supply does not arrive. Even if it arrives, but
in poor quality, the production is certainly doomed for a loss.
Quality compromised is business pauperized. Poor quality of
materials potentially ruins entrepreneurship. This is an indisputable
fact.
MACHINES
The metal contraptions called machines have made man fulfil
almost effortlessly various dreams of creating things that make a
existence more worthwhile. Machines have replaced man in tilling,
planting, and harvesting. Man has been replaced with looms in
cotton and fabric processing. Countless other ventures
requiring physical exertions of force has been taken over by things
fixed with gears, bolts and nuts and conveyor belts. Recently,
computers joined in the fray of increasing production and reduction
in time spent by man for manufacturing and general production of
goods and services. However, without man and
materials, machines will be useless. They need to be operated by
man and fed with materials. That again is a doubtless fact.
MINUTES
Time management is one contemporary aspect of business that has
been employed in use by effective and successful business ventures
to optimize delivery. As earlier noted, lateness and absenteeism of
man at work is a large chunk of time off production. Poor time
management is as ineffectual as a broken down machine, an
indisposed employee or lack of adequate materials for production
of goods or services. Various schemes have been used by
successful enterprises to ensure proper anfd efficient use of time by
man and machine, including timely delivery of materials, to ensure
business sustainability. Compromising time is tantamount to a
business venture shooting itself in the foot. There are umpteen
instances to ascertain this truism.
MONEY
Without money, no venture or enterprise can motivate workers, get
quality and sufficient materials, get the right machines and
maintain them or even ensure that time is properly managed.
Money management, when not properly organized has been the
most known factor involved in collapse of enterprises in history.
The quantity and quality of money expended in ventures have a
direct bearing on the fruitfulness of same over time.
Accounts department have been revolutionarized over the years,
by man, to ensure maximum operations of surviving business
organizations. Where there is not enough money, no good workers,
materials, or machines can be employed or purchased or
acquired. In other words, such a venture will be wasting its time
existing in the first place.
1.2 HRM
The term human resource spells the total sum of all the components
(like skill, creative abilities) possessed by all employees and other
persons (like self employed, employees, owners etc.) who
contribute their services to attain the organisational objectives and
goals. Human resources includes human values, ethos.
DEFINITION OF HUMAN RESOURCE
MANAGEMENT
Human Resource Management is concerned with the people who
work in the organisation to achieve the objectives of the
organisation. It concerns with acquisitions of appropriate human
resources, developing their skills and competencies, motivating
them for the best performance and ensuring their continued
commitment to the organisation to achieve organisational
objectives.
1.3 HUMAN RESOURCES DEVELOPEMENT
It is the process of improving, moulding, and changing the skills,
knowledge, creative ability, aptitude, attitude, values, commitment
etc based on present and future job and organizational
requirements.
1.4 OBJECTIVES & FUNCTIONS OF HUMAN
RESOURCES DEPARTMENT
HRM OBJECTIVES FUNCTIONS TO BE
PERFORMED
(1) social (towards
society)
(1)Legal compliance
(2)Benefits
(3)Union Management
relations
(2)Organisational
objectives
(1)Human resources
planning
(2)Selections Training and
Development
(3)Employee Relations
(4)Employee Evaluation
Assessment, Appraisal
(3)Functional objectives (1)Appraisal
(2)Placement
(4)Personal
Objectives(towards
employees)
(1)Training &
Development
(2)Appraisal
(3)Assessment /Placement
(4)Compensation
The following figure below briefly enunciates the functions of
HRM
Mission & objectives of organisation
Strategies , objectives,Policies of HRM
Managerial functions of HRM
Planning
Oraganisin
g
Operative Funct
ionEmployement
Human
Resource Develpomen
Compensation
Rewards
Employee Relation
Directing
Controlling
OPERATIVE FUNCTIONS OF HRM
Employme
nt
Human
resource
Development
Compensation
Rewards
Employee
relations
Organisatio
nal design
Training &
Development
Remuneration Communica
tion
Job Design Performance
Appraisal
Job Evaluation Motivation
Job
Analysis
Performance
Improvement
Salary &
Benefits
Morale
Human
Resource
Planning
Career
Planning
Administration Job
satisfaction
Recruitmen
t
Management
Development
Incentives Grievances
Redrassal
Selection Organisation
Development
Rewards Discipline
Maintenanc
e
Induction Organisation
Change
Quality of
work life
placement Participatio
n Quality
Circles.
CHAPTER – 2
2. TRAINING AND DEVELOPMENT
INTRODUCTION
Every organisation needs to have well trained and experienced
people to perform the activities that have to be done. If the current
or potential job occupant can meet this requirement, training is not
important. But when this is not the case, it is necessary to raise the
skill levels and increase the versatility and adaptability of
employees. Inadequate job performance or a decline in productivity
or changes resulting out of job redesigning or a technological
breakthrough requires some type of training and development
efforts. As the jobs become more complex, the importance of
employee development also increases. In a rapidly changing
society, employee training and development are not only an activity
that is desirable but also an activity that an organisation must
commit resources to if it is maintain a viable and knowledgeable
work force.
DEFINITION
According to Edwin Flippo, training is “the act of increasing the
knowledge and skills of an employee for doing a particular job.”
THREE TERMS: TRAINING, DEVELOPMENT AND
EDUCATION
Training is a process of learning a sequence of programmed
behaviour. It is application of knowledge. It gives people an
awareness of the rules and procedures to guide their behaviour. It
attempts to improve their performance on the current job or prepare
them for an intended job. Development is a related process. It
covers not only those activities which improve job performance but
also those which bring about growth of the personality; help
individuals in the progress towards maturity and actualisation of
their potential capacities so that they become not only good
employees but better men and women. In organisational terms, it is
intended to equip persons to earn promotion and hold greater
responsibility. Training a person for a bigger and higher job is
development. And this may well include not only imparting
specific skills and knowledge but also inculcating certain
personality and mental attitudes. In this sense, development is not
much different from education. Education is the understanding and
intervention of knowledge. It does not provide definitive answers,
but rather it develops a logical and rational mind that can determine
relationships among pertinent variables and thereby character, and
understanding of basic principles and develop the capacities of
analysis, synthesis and objectivity. Usually, Education is outside
the scope of an organisation’s functions. It involves a range of
skills and expertise which can be provided only by educational
institutions. An organisation can and does make use of such
institutions in order to support and supplement its internal training
and development efforts.
2.1 NEED FOR TRAINING
(i) To improve productivity:-“purposeful instruction can help
employee’s increases their level of performance on their present
assignment. Increased human performance often directly leads to
increased operational productivity and increased company profit.
Again, “increased performance and productivity, because of
training, are most evident on the part of new employees who are
not yet fully aware of the most efficient and effective ways of
performing their jobs.”
(ii) To improve Quality:-“Better informed workers are less likely
to make operational mistakes. Quality increases may be in
relationship to a company product or service, or in reference to the
intangible organisational employment atmosphere.”
(iii) To Help a company fulfil personnel needs:-“organisations
that have a good internal education programme will have to make
less drastic manpower changes and adjustments in the event of
sudden personnel alternations. when the need arises, organisational
vacancies can more easily be staffed from internal sources if a
company initiates and maintains an adequate instructional
programme for both its non- supervisory and managerial
employees.”
(iv) To improve Organisational climate:-“An endless chain of
positive reactions results from a well- planned training programme.
Production and product quality may improve; financial incentives
may then be increased, internal promotions become stressed less
supervisory pressure ensure and base pay rate increases results.
Increased morale may be due to many factors, but one of the most
important of these is the current state of an organisation’s
educational endeavour.
(v) To improve health and safety:-“Proper training can help
prevent industrial accidents. A safer work environment leads to
more stable mental attitudes on the part of employees. Managerial
mental state would also improve if supervisors know that they can
better themselves through company –designed development
programmes.”
(vi) Obsolescence prevention:-“Training and development
programmes foster the initiative and creativity of employees and
help to prevent manpower obsolescence, which may be due to age,
temperament or motivation, or the inability of a person to adapt
himself to technological changes.”
(vii) Personal Growth:-“Employees on a personal basis gain
individually from their exposure to educational
experiences.”Again, “Management development programmes seem
to give participants a wider awareness, an enlarged skill, and
enlightened altruistic philosophy, and make enhanced personal
growth possible.”
2.2 STEPS IN TRAINING AN EMPLOYEE
Training is a systematic process for an organisation and it is most
effectively done by HR people. A training program can be analyzed
when it is conducted properly. The training process can be
explained as follows:-
1. Organizational analysis:-This involves the study of the entire
organisation in terms of its objectives, its resources the allocation
and utilization of this resource for achievement of objectives. The
training philosophy for the entire organization can be developed
through this process. In this case identification of organizational
objectives needs growth, potential and resources are analyzed.
2. Role analysis:-in stage we analyse what type of knowledge and
attitude is required for achieving the goal. If this involves a careful
study of the job within an organisation it requires an orderly and
systematic collection of data about the job. How they are to be
performed, what behaviour technique the job holder must have to
perform and hold i.e. specific task.
3. Manpower analysis:-The focus is on the individual in a given
job rather than on job itself. Three basic issues are involved for
training purposes:-
a. Appropriate observation and evaluation.
b. Whether current employees are capable of being trained.
c. Attitude of employees, are they willing to be improved and then
training programs are organized.
4. Training needs:-when Training programs are organized, the
focus is on the fact that it should always be beneficial for the
employees and the organization and the results can be measured.
5. Developing training plans and procedures:-The next step
is what type of training program can be organized for specification
situation, planning is more difficult than conducting training.HR
manager mostly organizes a training program, selects a resource
person to make a course plan and then training starts.
6. Conducting training program:-In this individual training,
group training, on the job training is organized. There may be
different methods of training. They may be indoor or outdoor, on
the job or off the job, conferences, lectures, seminars or workshops.
The planning is done by HR department but it should be beneficial
for trainees.
7. Follow up:-After conducting program, evaluation is carried so
that effectiveness of training program can be measured.
8. Feed back of results:-Feed back is taken from trainees, are they
benefited, do they need something more important. Suggestion for
further training program are analyzed.
9. Revise if necessary:-If necessary the training program can be
re-conducted for those who require it.
2.3 METHODS OF TRAINING
In the field of Training, a number of programmes are available.
Some of these are new methods, while others are improvements
over the traditional methods. The training programmes commonly
used to train operative and supervisory personnel are discussed
below. These programmes are classified into on-the-job training.
A. On the job training:-
It is the most common method used by industry to train individual
is on the job training. Every employee from clerk to general
manager gets some on the job training. Under this method the
employee is given training at his work place by its immediate
superior. The management should keep a close watch on training
program. There are 3 methods of on the job training:-
1. Coaching:-
The trainee is placed under a particular supervisor who functions as
a coach in training the individual. The supervisor provides
feedback to the trainee on his performance and offers him some
suggestions for improvement often the trainee shares some of the
duties and responsibilities of the coach and relieves him of his
burden. A limitation of this method of training is that the trainee
may not have the freedom or opportunity to express his own ideas.
2. JOB ROTATION:-
This type of training involves the movement of the trainee from
one job to another the trainee receives job knowledge and gains
experience from his supervisor or trainer in each of the different
job assignments. though this method of training is common in
training managers for general management positions, trainees can
also be rotated from job to job in workshop jobs. This method gives
an opportunity to the trainee to understand the problems of
employees on other jobs and respect them
3. SPECIAL ASSIGNMENTS:-
Under the committee assignment, a group of trainees are given and
asked to solve an actual organizational problem. The trainees solve
the problem jointly. It develops teamwork.
B. OFF THE JOB TRAINING:-
1. LECTURE:-
This is the most commonly and widely used technique. It is suitable
when information is to be shared to a large audience. There are at
least 2 valuations in this method talk and discussion. Talk involves
trainee to raise questions thus maintaining the interest in the topic.
In discussion knowledge, ideas and Opinion are freely exchanged
among the trainees.
2. CONFERENCES:-
This method is used to help employees to develop problem solving
skills. Group discussion and meetings are 2 common techniques
often made use in organization. Trainer leads the discussion and the
trainee attempts to solve the problem and give reasons. Leader
should be able to lead the discussion without losing sight of the
topic. It participate employees and helps to upgrade their
knowledge which brings a change in behaviour.
3. CASE STUDY AND ROLE PLAY:-
Case study method is developed by Christopher Langdeln in 1980
at Howard Law School to help students to learn for themselves by
management thinking. It is a common form of training to the
employees. In this method a case is given to the employees where
they need to solve it by using modern techniques. As each
employee answer will be differing form each other this will be help
them from different angles.
Role play was develop by MORENO. In this method an artificial
situation experiencing the problem. This makes them solve quickly
and find appropriate solution. It consists of employee employer
relation, hiring or firing, etc. It helps the employees to develop
insight.
4. IN-BASKET TRAINING:-
It is a method of training and a type of management games. In
basket many times situation are given a chit an employees have to
write their own reaction on situation and in this way they release
their tension.
Thus training and development is important for any organization to
develop or achieve goals. The HR department should be careful
while planning for training. There are many methods of training
depending upon organization to organization. But, the above
mention some of the methods of training and development.
CHAPTER-3
3. PERFORMANCE APPRAISAL
INTRODUCTION
Performance appraisal is the process of obtaining, analyzing and
recording information about the relative worth of an employee.
The focus of the performance appraisal is measuring and
improving the actual performance of the employee and also the
future potential of the employee. Its aim is to measure what an
employee does.
According to Flippo, a prominent personality in the field of
Human resources, "performance appraisal is the systematic,
periodic and an impartial rating of an employee’s excellence in
the matters pertaining to his present job and his potential for a
better job." Performance appraisal is a systematic way
of reviewing and assessing the performance of an employee
during a given period of time and planning for his future.
It is a powerful tool to calibrate, refine and reward the
performance of the employee. It helps to analyze his
achievements and evaluate his contribution towards the
achievements of the overall organizational goals.
By focusing the attention on performance, performance appraisal goes
to the heart of personnel management and reflects the management's
interest in the progress of the employees.
3.1 OBJECTIVES OF PERFORMANCE
APPRAISAL
Following are the objectives of performance appraisal:
1. Review the performance of the employees over a given period of
time.
2. Judge the gap between the actual and the desired performance.
3. Help the management in exercising organizational control.
4. Diagnose the training and development needs of the future.
5. Provide information to assist in the HR decisions like
promotions, transfers etc.
6. Provide clarity of the expectations and responsibilities of the
functions to be performed by the employees.
7. Judge the effectiveness of the other human resource functions of
the organization such as recruitment, selection, training and
development.
8. Reduce the grievances of the employees.
9. Helps to strengthen the relationship and communication between
superior – subordinates and management – employees
3.2 THE PROCESS OF PERFORMANCE
APPRAISAL
1. ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the
setting up of the standards which will be used to as the base to
compare the actual performance of the employees. This step
requires setting the criteria to judge the performance of the
employees as successful or unsuccessful and the degrees of their
contribution to the organizational goals and objectives. The
standards set should be clear, easily understandable and in
measurable terms. In case the performance of the employee
cannot be measured, great care should be taken to describe the
standards.
2. COMMUNICATING THE STANDARDS
Once set, it is the responsibility of the management to
communicate the standards to all the employees of the
organization. The employees should be informed and the
standards should be clearly explained to the employees. This
will help them to understand their roles and to know what
exactly is expected from them. The standards should also be
communicated to the appraisers or the evaluators and if required,
the standards can also be modified at this stage itself according
to the relevant feedback from the employees or the evaluators.
3. MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the Performance appraisal process is
measuring the actual performance of the employees that is the
work done by the employees during the specified period of time.
It is a continuous process which involves monitoring the
performance throughout the year. This stage requires the careful
selection of the appropriate techniques of measurement, taking
care that personal bias does not affect the outcome of the process
and providing assistance rather than interfering in an employees
work.
1. ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the
setting up of the standards which will be used to as the base to
compare the actual performance of the employees. This step
requires setting the criteria to judge the performance of the
employees as successful or unsuccessful and the degrees of their
contribution to the organizational goals and objectives. The
standards set should be clear, easily understandable and in
measurable terms. In case the performance of the employee
cannot be measured, great care should be taken to describe the
standards.
2. COMMUNICATING THE STANDARDS
Once set, it is the responsibility of the management to
communicate the standards to all the employees of the
organization. The employees should be informed and the
standards should be clearly explained to the employees. This
will help them to understand their roles and to know what
exactly is expected from them. The standards should also be
communicated to the appraisers or the evaluators and if required,
the standards can also be modified at this stage itself according
to the relevant feedback from the employees or the evaluators.
3. MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the Performance appraisal process is
measuring the actual performance of the employees that is the
work done by the employees during the specified period of time.
It is a continuous process which involves monitoring the
performance throughout the year. This stage requires the careful
selection of the appropriate techniques of measurement, taking
care that personal bias does not affect the outcome of the process
and providing assistance rather than interfering in an employees
work.
1. ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the
setting up of the standards which will be used to as the base to
compare the actual performance of the employees. This step
requires setting the criteria to judge the performance of the
employees as successful or unsuccessful and the degrees of their
contribution to the organizational goals and objectives. The
standards set should be clear, easily understandable and in
measurable terms. In case the performance of the employee
cannot be measured, great care should be taken to describe the
standards.
2. COMMUNICATING THE STANDARDS
Once set, it is the responsibility of the management to
communicate the standards to all the employees of the
organization. The employees should be informed and the
standards should be clearly explained to the employees. This
will help them to understand their roles and to know what
exactly is expected from them. The standards should also be
communicated to the appraisers or the evaluators and if required,
the standards can also be modified at this stage itself according
to the relevant feedback from the employees or the evaluators.
3. MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the Performance appraisal process is
measuring the actual performance of the employees that is the
work done by the employees during the specified period of time.
It is a continuous process which involves monitoring the
performance throughout the year. This stage requires the careful
selection of the appropriate techniques of measurement, taking
care that personal bias does not affect the outcome of the process
and providing assistance rather than interfering in an employees
work.
1. ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the
setting up of the standards which will be used to as the base to
compare the actual performance of the employees. This step
requires setting the criteria to judge the performance of the
employees as successful or unsuccessful and the degrees of their
contribution to the organizational goals and objectives. The
standards set should be clear, easily understandable and in
measurable terms. In case the performance of the employee
cannot be measured, great care should be taken to describe the
standards.
2. COMMUNICATING THE STANDARDS
Once set, it is the responsibility of the management to
communicate the standards to all the employees of the
organization. The employees should be informed and the
standards should be clearly explained to the employees. This
will help them to understand their roles and to know what
exactly is expected from them. The standards should also be
communicated to the appraisers or the evaluators and if required,
the standards can also be modified at this stage itself according
to the relevant feedback from the employees or the evaluators.
3. MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the Performance appraisal process is
measuring the actual performance of the employees that is the
work done by the employees during the specified period of time.
It is a continuous process which involves monitoring the
performance throughout the year. This stage requires the careful
selection of the appropriate techniques of measurement, taking
care that personal bias does not affect the outcome of the process
and providing assistance rather than interfering in an employees
work.
1. ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the
setting up of the standards which will be used to as the base to
compare the actual performance of the employees. This step
requires setting the criteria to judge the performance of the
employees as successful or unsuccessful and the degrees of their
contribution to the organizational goals and objectives. The
standards set should be clear, easily understandable and in
measurable terms. In case the performance of the employee
cannot be measured, great care should be taken to describe the
standards.
2. COMMUNICATING THE STANDARDS
Once set, it is the responsibility of the management to
communicate the standards to all the employees of the
organization. The employees should be informed and the
standards should be clearly explained to the employees. This
will help them to understand their roles and to know what
exactly is expected from them. The standards should also be
communicated to the appraisers or the evaluators and if required,
the standards can also be modified at this stage itself according
to the relevant feedback from the employees or the evaluators.
3. MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the Performance appraisal process is
measuring the actual performance of the employees that is the
work done by the employees during the specified period of time.
It is a continuous process which involves monitoring the
performance throughout the year. This stage requires the careful
selection of the appropriate techniques of measurement, taking
care that personal bias does not affect the outcome of the process
and providing assistance rather than interfering in an employees
work.
1. ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the
setting up of the standards which will be used to as the base to
compare the actual performance of the employees. This step
requires setting the criteria to judge the performance of the
employees as successful or unsuccessful and the degrees of their
contribution to the organizational goals and objectives. The
standards set should be clear, easily understandable and in
measurable terms. In case the performance of the employee
cannot be measured, great care should be taken to describe the
standards.
2. COMMUNICATING THE STANDARDS
Once set, it is the responsibility of the management to
communicate the standards to all the employees of the
organization. The employees should be informed and the
standards should be clearly explained to the employees. This
will help them to understand their roles and to know what
exactly is expected from them. The standards should also be
communicated to the appraisers or the evaluators and if required,
the standards can also be modified at this stage itself according
to the relevant feedback from the employees or the evaluators.
3. MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the Performance appraisal process is
measuring the actual performance of the employees that is the
work done by the employees during the specified period of time.
It is a continuous process which involves monitoring the
performance throughout the year. This stage requires the careful
selection of the appropriate techniques of measurement, taking
care that personal bias does not affect the outcome of the process
and providing assistance rather than interfering in an employees
work.