Performance Appraisal & Reward System

Prof.B.G.Varma

Performance Appraisal & Reward System

Performance means the process of carrying out a work, demonstrating capabilities, to a specific standard, with perfection. Appraisal means an assessment of individual -measurable conspicuous contributions, both qualitatively & quantitatively, in fulfilling, a particular task. PA helps to appreciate employees strength and to find out the Areas Needs Improvement that can be supported to facilitate them to improve their performance continuously. The effective Appraisal System is extremely important for a growing, expanding and diversifying Organization.
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It envisages in a formal way the Team Leader and Team Members Relationship. This Relationship itself symbolizes how the individuals experiences the working life and how he contributes to the Organizational Goals. Every individual in the Organization has certain basic needs in relation to his work. These may be stated as: Agree with me, What is expected of me Give me an opportunity to perform Develop me to do my job perfectly Reward me according to my contributions

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It envisages in a formal way the Team Leader and Team Members Relationship. This Relationship itself symbolizes how the individuals experiences the working life and how he contributes to the Organizational Goals. Every individual in the Organization has certain basic needs in relation to his work. These may be stated as: Agree with me, What is expected of me Give me an opportunity to perform Develop me to do my job perfectly Reward me according to my contributions

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Based on several experiences in various Organizations, this Appraisal System has been evolved it attempts to focus on work and on reducing subjectivity as far as possible. It incorporates the stating of clearly defined objectives between the Team Leader and Team Members. It is based on actual Performance and actual behavior on the job. It focuses on individual potential and its development.

While appraising it is necessary to look at Business Objectives During the the Appraisal Period
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PERFORMANCE RATING

ORDINARY PERFORMANCE Inadequate Performance Partially achieved objectives with no effective utilization of resources. Needs to be pushed.
SATISFACTORY PERFORMANCE Adequate Performance of allotted responsibilities and achievement of expected standards Exhibits a fair amount of self-reliance Can be depended on results with minimum supervision.

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GOOD PERFORMANCE Performance which is over and above allotted responsibilities and expected standards. Something extra in the form a higher output or effort, better quality, insight and improvement in System Dependable without Supervision. OUTSTANDING PERFORMANCE Has exhibited through performance. Complete mastery of the present job. Is a resource to the Organization beyond his present assignments particularly in the building of people and systems. A high level contributor to the Organizational results and displaying unique leadership qualities.

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New approach to PA
The Appraisal Process has undergone a change in terms of being very Formality Driven to very People Driven. Companies are increasingly realizing that an effective Appraisal System should contain two basic tenets. - Transparent Evaluation - Feed Back Consideration

The most popular tool that has recently gained currency is The 360 Degree Performance Appraisal - The exercise in which total Feed Back is taken from Superiors, Peers, Subordinates, Customers internal & external etc. The Transparency of the system allows employees a better understanding of an organization and people in all levels and what performance they are expecting from each employee.

360 Degree Exercise also includes Personal Development Plan. The PDP system discusses the strengths and areas of improvement and tries to find out whether the employee has adjusted to his role in the Organization Culture. Employees are encouraged to identify their own Performance Problems. The team leader explores to identify the individual inherent talents with the help of total feed back.

Business plans of companies are divided into units/depts./individual goals. Each Dept Head divides on goals for each employee which are known as KPI ( Key Performance Indicators). Each employee has target that represents the qualitative and quantitative parameters of his job. The parameters on which ratings are done have also undergone a transformation. Employees are rated on qualities of idea, ability to work, copability with people, environment and leadership capabilities.

Mission, Vision and Values of an Organization and their people should be clear in all aspects with transparency and its periodical review is essential. Such reviews help to keep the employees morale high to achieve Performance Perfection.

Online Appraisal The new buzzword that is being heard in some corporate is The Online Appraisal. In this system the individual on assignment basis appraise himself, then first it goes to his immediate superior, then up the hierarchy. This ensures that appraiser too, carefully scrutinize their own perceptions, motives and assignments entrusted to the appraisee.

Performance Appraisal Model Format

EMPLOYEE PERFORMANCE APPRAISAL PERIOD_________________

UNIT : NAME : QFLN : PRE-EXP : MARITAL STATUS: DEPT : AGE : DESIG : D.O.J : LAST PROMOTION DATE:

GENERAL APPRAISAL

FACTORS WORK KNOWLEDGE (Skills & Competency)

RATING

REMARKS

APTITUDE (Interest in Work) ATTITUDE (Proactive Approach) INITIATIVE (Voluntary Action) ALERTNESS (Quick to Grasp)

(RATING Outstanding OS/Good G/Satisfactory S/Ordinary O)

GENERAL APPRAISAL

FACTORS DEPENDABILITY (Reliability) QUALITY OF WORK (Right First Time) COMMUNICATIONS (Ability to express with clarity) BEHAVIOUR (Acceptable conduct to get along with others)

RATING

REMARKS

REGULARITY (Attending duty with punctuality)

(RATING Outstanding OS/Good G/Satisfactory S/Ordinary O)

Specific Soft Skills

(Convincing Communication, Cooperation & Coordination, Win-Win Negotiation, Trust worthiness, Moral integrity, Initiative, Courage, Self-confidence and Decisiveness; Originality, Resourcefulness) .

STRENGTHS AREAS OF IMPROVEMENT

Assessment Year Performance

Sl. No 1 2 3 4 5 6 JOB RESPONSIBILITIES (Key Resulted Areas) ACHIEVEMENTS FAILURE/SHORTFALLS

SPECIAL ACHIEVEMENTS
a)Systems & Procedures

b)Creation_____________________________________
__________________________________________ a)Value Addition ___________________________________________________ b)Cost Reduction __________________________________________________ c)Any Other _____________________________________________________

DEVELOPMENT a).Training Programmes attended and how they have contributed on the job effectiveness. _________________________________________________________ _________________________________________________________ b).Further Training Needs. _________________________________________________________

_________________________________________________________
VI) Technical Skills STRENGTHS

AREAS OF IMPROVEMENT

VII

NEXT YEAR KEY PERFORMANCE AREAS

1._________________________________________________________
2._________________________________________________________ 3__________________________________________________________

4._________________________________________________________
5._________________________________________________________

APRAISER SIGN

APRAISEE SIGN

(To be filled in by UNIT HEAD) VIII) EXPLAIN IN DETAIL THE APRAISEE POTENTIAL TO TAKE UP HIGHER RESPONSIBILITIES ____________________________________________________________________ ____________________________________________________________________ _________________________________________________________ IX) LAST YEAR INCREMENT : _______________________ ________________________

PRESENT RECOMMENDATION: XI OVER ALL RATING : HEAD HRD

OUTSTANDING/GOOD/SATISFACTORY/ORDINARY V.P. M.D

UNIT HEAD