PART-1

INTRODUCTION
NATURE OF PERFORMANCE APPRAISAL
Performance appraisal may be under standard as the assessment of
an individuals performance in a systematic way of performance being
measured against such factor as job knowledge quality output initiative
leadership abilities supervision dependability co-operation judgement
versatility health and the like assignment should not be confined to past
performance alone potentials of the employees for future performance
must also be assessed.
The other terms used for performance appraisal are performance
rating employee assessment employee evolution employee evolution
and(perhaps the oldest of the terms used)merit rating .In a formal sense
employee assessment is a old as the concept of management and in an
informal senses it is probably as old as mankind nor performance
appraised is done in isolation . It is linked to job analysis.
Job analysis sets out requirement which are translated in to
performance standars, which in term from the base for performance
appraisal. Thus performance appraisal acts as an employee development
tool both employee and employer. In the process the management
become a developer of human resources it provides a strong feed back to
employee on their performance a feedback to employee on their
performance analysis their strength and weakness.



Performance Appraisal-Definition
The overall objective of performance appraisal is to improve the
efficiency of an enterprise by attempting to mobilize the best possible
efforts from individuals employed in it. Such appraisals achieve four
objectives including the salary reviews, the development and training of
individuals, planning job rotation and assistance promotions.

-CUMMINGS
Performance Appraisal is the systematic, periodic and an impartial
rating of an employees excellence in matters pertaining to his present
job and his potential for a better job
-FLIOPPO
Characteristics of performance appraisal:
The main characteristics of performance appraisal are as follow.
* Performance appraisal is a process consisting of a series of steps.
* It is the systematic examination of an employees strengths and
weaknesses in terms of the job.
* Performance appraisal is a scientific or objectives study.
* It is an ongoing or continuous process where in the evaluations are
arranged periodically according to a definite plan.




Advantages of Performance Appraisal
1. It provides information for making and enforcing decisions about
promotions, pay increases lay off transfers.
2. It serves to guide employee development.
3. It puts a psychological pressure on people to improve performance on
the job.
4. It serves to maintain fair relationships in groups.
5. It makes executives more observant of their subordinates.
6. It serves as a means for evaluating the effectiveness of devices used
for the selection and classification of workers.
7. Wage increase may be justified.
8. Deficiencies and shortcoming may be removed.
9. Employee may also introspect himself in the light of performance.











Factors Affecting Performance Appraisal Systems
Performance appraisal programs are affected by some factors.
Therefore for implementing good appraisal systems the following are
necessary.
1. It should be easily understandable. The forms, which are more
difficult to read and understand, are not effective performance appraisal
systems.
2. The appraisal programs must have support of all line people who
administer it. If line people think it is too theoretical, too ambitious, and
too unrealistic or that it has been foisted on them by ivory-tower staff
consultants who have no comprehension of the demands on the time of
the line operator.
3. The appraisal system should fit the organizational operations and
structure the form constructed and the factors framed should be suitable
for the organizational culture and structure.
4. The appraisal system should be valid and reliable.
5. The performance appraisal programs should have built in incentives.
The appraisal form should be periodically evaluated to ensure that it
meets its purpose.

Purpose of Performance Appraisal
1. To identify employees for salary increases, promotion, transfer and
lay-off or termination of services.
2. To determine training and development needs of the employees.
3. To motivate employees by providing feedback on their performance
levels.
4. To establish a basis for research and reference for personnel decisions
Objectives of Performance Appraisal:
* Performance appraisal provide information about the performance
ranks basing which decision regarding salary, fixation, confirmation,
promotion, transfer and demotion are taken.
* Performance appraisal prevent grievances and in disciplinary
activities.
To plan career development, human resource planning based on
potentialities.
* Provide feedback information about the level of achievement and
behaviors of subordinate. This information help to review the
performance of the subordinate rectifying performance deficiencies and
to set new standards of work.
* To maintain individual and group development by informing the
employee of his performance standard.
* To develop better employee employer relationship through mutual
confidence which comes as a result of frank discussion between
supervisor and his mention.