After I learned the basics of ABAP programming codes and executed many practice programs , I was given my project entitled "Employee Appraisal System". I searched on net for various factors required to begin with the project. It is very important to understand the concept properly before starting to work on it. A brief detail of what does it actually mean , its objectives, why is it important for any organisation to evaluate the performance of employees' , kinds of appraisal system that can be used is given below .
PERFORMANCE
APPRAISAL
An organization’s goals can be achieved only when people put in their
best efforts. How to ascertain whether an employee has shown his or her best
performance on a given job? The answer is performance appraisal. Employee
assessment is one of the fundamental jobs of HRM. But not an easy one though.
In simple terms, performance appraisal may
be understood as the assessment of an individual's performance in a systematic
way, the performance being measured against such factors as job knowledge,
quality and quantity of output, initiative, leadership abilities, supervision,
dependability, co-operation, judgement, versatility, health, and the like.
Assessment should not be confined to past performance alone. Potentials of the
employee for future performance must also be assessed.
A formal definition of performance appraisal is:
It is the systematic evaluation of the individual
with respect to his or her performance on the job and his or her potential for
development.
The second definition
includes employees’ behavior as part of the assessment. Behavior can be
active or passive--do something or do nothing. Either way behavior affects job
results.
The objectives of performance appraisal are:
Data relating to performance assessment of employees arc recorded, stored. and used for seven purposes. The main purposes of employee assessment are:
1. To effect promotions based on competence and performance.
2. To confirm the services of probationary employees upon their completing the probationary period satisfactorily.
3. To assess the training and development needs of employees.
4. To decide upon a pay raise where (as in the unorganized sector) regular pay scales have not been fixed.
5. To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development.
6. To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns.
7. Finally, performance appraisal can be used to determine whether HR programmes such a selection, training, and transfers have been effective or not.
Broadly, performance appraisal serves four objectives-
(i) developmental uses,
(ii) administrative uses/decisions,
(iii) organizational maintenance/objectives, and
(iv) documentation purposes
Performance management is the process of creating a work environment or
setting in which people are enabled to perform to the best of their abilities.
Performance management is a whole work system that begins when a job is defined
as needed. It ends when an employee leaves the organization.
Employees
across the entire organisation are appraised of their performance. This could
be done annually, twice a year, periodically depending the need of the
organisation
The various kinds of performance
appraisal systems are:
1.Personality
based performance appraisal system:
Here the
appraiser is supposed to rate the personality traits of the person being
appraised.
2.Competence
based performance appraisal system:
Here the job
analysis is used and the employee is appraised for the skills he exhibits. For
e.g. if his job entails dealing with the clients then he is judged for his
effectiveness in dealing with them. This enables both the organisation and the
employee as to what deficiencies are to be overcome and can be useful in
providing training to the employee to better his performance.
3.Result based performance appraisal
system:
This system
concentrates on the final results achieved by the employee irrespective of his
personality or deficiencies. This is totally related to the job and
concentrates on the end results that are more important to the organisation.
The performance
appraisal system has to be transparent and the employee should be taken into
full confidence. In many cases employees themselves are given a chance to
conduct a self-appraisal.
Normally the immediate
supervisor does the appraisal. Some organisations also have a peer group
performance appraisal where colleagues rate the performance .
What elements make up a successful and productive
employee appraisal includes:
- Conducting the performance appraisal in a timely fashion,
- Offering a balanced evaluation of both the employee's strengths and of their weakness
- Including a review of key performance areas or projects where an employee has performed well.
- A bit of praise is a way of lifting an employee's morale and feelings of success on the job
- Making any criticisms of the employee's work in a productive way.
- Focus on ways the employee can improve or do a better job.
- Set goals for the next appraisal period that are quantifiable and achievable.
When Appraisals should Take Place
Most large
organizations hold formal appraisal discussions annually, while some fast
moving organizations prefer to have them twice a year. When employees are
working on projects, there may be an appraisal after each assignment has been
completed.
Performance
appraisals are an integral part of every organization and if they are properly
developed and implemented, they can help the organization achieve its goals by
developing productive employees.
