PERFORMANCE APPRAISAL:
Performance Appraisal is the entire exercise of assessment of an employee's performance on the job.
OBJECTIVES OF PERFORMANCE APPRAISAL:
Performance Appraisal can be done with following objectives in mind:
- To maintain records in order to determine compensation packages, wage structure, salaries raises, etc.
- To identify the strengths and weaknesses of employees to place right men on right job.
- To maintain and assess the potential present in a person for further growth and development.
- To provide a feedback to employees regarding their performance and related status.
- To provide a feedback to employees regarding their performance and related status.
- It serves as a basis for influencing working habits of the employees.
- To review and retain the promotional and other training programmes.
ADVANTAGES OF PERFORMANCE APPRAISAL:
It is said that performance appraisal is an investment for the company which can be justified by following advantages:
- Promotion: Performance Appraisal helps the supervisors
to chalk out the promotion programmes for efficient employees. In this
regards, inefficient workers can be dismissed or demoted in case.
- Compensation: Performance Appraisal helps in
chalking out compensation packages for employees. Merit rating is
possible through performance appraisal. Performance Appraisal tries to
give worth to a performance. Compensation packages which includes bonus,
high salary rates, extra benefits, allowances and pre-requisites are
dependent on performance appraisal. The criteria should be merit rather
than seniority.
- Employees Development: The systematic procedure
of performance appraisal helps the supervisors to frame training
policies and programmes. It helps to analyse strengths and weaknesses of
employees so that new jobs can be designed for efficient employees. It
also helps in framing future development programmes.
- Selection Validation: Performance Appraisal helps
the supervisors to understand the validity and importance of the
selection procedure. The supervisors come to know the validity and
thereby the strengths and weaknesses of selection procedure. Future
changes in selection methods can be made in this regard.
- Communication: For an organization, effective
communication between employees and employers is very important. Through
performance appraisal, communication can be sought for in the following
ways:
- Through performance appraisal, the employers can understand and accept skills of subordinates.
- The subordinates can also understand and create a trust and confidence in superiors.
- It also helps in maintaining cordial and congenial labour management relationship.
- It develops the spirit of work and boosts the morale of employees.
All the above factors ensure effective communication.
- Motivation: Performance appraisal serves as a
motivation tool. Through evaluating performance of employees, a person’s
efficiency can be determined if the targets are achieved. This very
well motivates a person for better job and helps him to improve his
performance in the future.
TECHNIQUES AND METHODS OF PERFORMANCE APPRAISAL:
Numerous methods have been devised to measure the quantity and
quality of performance appraisals. Each of the methods is effective for
some purposes for some organizations only. None should be dismissed or
accepted as appropriate except as they relate to the particular needs of
the organization or an employee.
Broadly all methods of appraisals can be divided into two different categories.
Past Oriented Methods
1. Rating Scales: Rating scales consists of
several numerical scales representing job related performance criterions
such as dependability, initiative, output, attendance, attitude etc.
Each scales ranges from excellent to poor. The total numerical scores
are computed and final conclusions are derived. Advantages –
Adaptability, easy to use, low cost, every type of job can be evaluated,
large number of employees covered, no formal training required.
Disadvantages – Rater’s biases
2. Checklist: Under this method, checklist of
statements of traits of employee in the form of Yes or No based
questions is prepared. Here the rater only does the reporting or
checking and HR department does the actual evaluation. Advantages –
economy, ease of administration, limited training required,
standardization. Disadvantages – Raters biases, use of improper weighs
by HR, does not allow rater to give relative ratings
3. Forced Choice Method: The series of statements
arranged in the blocks of two or more are given and the rater indicates
which statement is true or false. The rater is forced to make a choice.
HR department does actual assessment. Advantages – Absence of personal
biases because of forced choice. Disadvantages – Statements may be
wrongly framed.
4. Forced Distribution Method: here employees are
clustered around a high point on a rating scale. Rater is compelled to
distribute the employees on all points on the scale. It is assumed that
the performance is conformed to normal distribution. Advantages –
Eliminates Disadvantages – Assumption of normal distribution,
unrealistic, errors of central tendency.
5. Critical Incidents Method: The approach is
focused on certain critical behaviors of employee that makes all the
difference in the performance. Supervisors as and when they occur record
such incidents. Advantages – Evaluations are based on actual job
behaviors, ratings are supported by descriptions, feedback is easy,
reduces recency biases, chances of subordinate improvement are high.
Disadvantages – Negative incidents can be prioritized, forgetting
incidents, overly close supervision; feedback may be too much and may
appear to be punishment.
6. Behaviorally Anchored Rating Scales:
statements of effective and ineffective behaviors determine the points.
They are said to be behaviorally anchored. The rater is supposed to say,
which behavior describes the employee performance. Advantages – helps
overcome rating errors. Disadvantages – Suffers from distortions
inherent in most rating techniques.
7. Field Review Method: This is an appraisal done
by someone outside employees’ own department usually from corporate or
HR department. Advantages – Useful for managerial level promotions, when
comparable information is needed, Disadvantages – Outsider is generally
not familiar with employees work environment, Observation of actual
behaviors not possible.
8. Performance Tests & Observations: This is
based on the test of knowledge or skills. The tests may be written or an
actual presentation of skills. Tests must be reliable and validated to
be useful. Advantage – Tests may be apt to measure potential more than
actual performance. Disadvantages – Tests may suffer if costs of test
development or administration are high.
9. Confidential Records: Mostly used by
government departments, however its application in industry is not ruled
out. Here the report is given in the form of Annual Confidentiality
Report (ACR) and may record ratings with respect to following items;
attendance, self expression, team work, leadership, initiative,
technical ability, reasoning ability, originality and resourcefulness
etc. The system is highly secretive and confidential. Feedback to the
assessee is given only in case of an adverse entry. Disadvantage is that
it is highly subjective and ratings can be manipulated because the
evaluations are linked to HR actions like promotions etc.
10. Essay Method: In this method the rater writes
down the employee description in detail within a number of broad
categories like, overall impression of performance, promoteability of
employee, existing capabilities and qualifications of performing jobs,
strengths and weaknesses and training needs of the employee. Advantage –
It is extremely useful in filing information gaps about the employees
that often occur in a better-structured checklist. Disadvantages – It
its highly dependent upon the writing skills of rater and most of them
are not good writers. They may get confused success depends on the
memory power of raters.
11. Cost Accounting Method: Here performance is
evaluated from the monetary returns yields to his or her organization.
Cost to keep employee, and benefit the organization derives is
ascertained. Hence it is more dependent upon cost and benefit analysis.
12. Comparative Evaluation Method (Ranking & Paired Comparisons): These
are collection of different methods that compare performance with that
of other co-workers. The usual techniques used may be ranking methods
and paired comparison method.
- Ranking Methods: Superior ranks his worker based on
merit, from best to worst. However how best and why best are not
elaborated in this method. It is easy to administer and explanation.
- Paired Comparison Methods: In this method each
employee is rated with another employee in the form of pairs. The number
of comparisons may be calculated with the help of a formula as under.
N x (N-1) / 2
Future Oriented Methods
1. Management By Objectives: It means management
by objectives and the performance is rated against the achievement of
objectives stated by the management. MBO process goes as under.
- Establish goals and desired outcomes for each subordinate
- Setting performance standards
- Comparison of actual goals with goals attained by the employee
- Establish new goals and new strategies for goals not achieved in previous year.
Advantage – It is more useful for managerial positions.
Disadvantages – Not applicable to all jobs, allocation of merit pay
may result in setting short-term
goals rather than important and
long-term goals etc.
2. Psychological Appraisals: These appraisals are
more directed to assess employees potential for future performance
rather than the past one. It is done in the form of in-depth interviews,
psychological tests, and discussion with supervisors and review of
other evaluations. It is more focused on employees emotional,
intellectual, and motivational and other personal characteristics
affecting his performance. This approach is slow and costly and may be
useful for bright young members who may have considerable potential.
However quality of these appraisals largely depend upon the skills of
psychologists who perform the evaluation.
3. Assessment Centers: This technique was first
developed in USA and UK in 1943. An assessment center is a central
location where managers may come together to have their participation in
job related exercises evaluated by trained observers. It is more
focused on observation of behaviors across a series of select exercises
or work samples. Assessees are requested to participate in in-basket
exercises, work groups, computer simulations, role playing and other
similar activities which require same attributes for successful
performance in actual job. The characteristics assessed in assessment
center can be assertiveness, persuasive ability, communicating ability,
planning and organizational ability, self confidence, resistance to
stress, energy level, decision making, sensitivity to feelings,
administrative ability, creativity and mental alertness etc.
Disadvantages – Costs of employees traveling and lodging, psychologists,
ratings strongly influenced by assessee’s inter-personal skills. Solid
performers may feel suffocated in simulated situations. Those who are
not selected for this also may get affected.
Advantages – well-conducted assessment center can
achieve better forecasts of future performance and progress than other
methods of appraisals. Also reliability, content validity and predictive
ability are said to be high in assessment centers. The tests also make
sure that the wrong people are not hired or promoted. Finally it clearly
defines the criteria for selection and promotion.
4. 360-Degree Feedback: It is a technique which
is systematic collection of performance data on an individual group,
derived from a number of stakeholders like immediate supervisors, team
members, customers, peers and self. In fact anyone who has useful
information on how an employee does a job may be one of the appraisers.
This technique is highly useful in terms of broader perspective, greater
self-development and multi-source feedback is useful. 360-degree
appraisals are useful to measure inter-personal skills, customer
satisfaction and team building skills. However on the negative side,
receiving feedback from multiple sources can be intimidating,
threatening etc. Multiple raters may be less adept at providing balanced
and objective feedback.
PERFORMANCE APPRAISAL OF PUBLIC SERVICES IN INDIA:
The performance of civil servants is commented upon by the controlling authority which normally is the head of the department. Incumbents are rated on several parameters like competence,punctuality,efficiency,capability,ability to work with the team,leadership qualities,etc. by means of Outstanding,very good,good or fair.
A consistent outstanding grades is given special weight for promotions.
The assessing authority rates integrity as Totally beyond reproach, of unquestionable integrity,beyond doubt or as nothing adverse has come to notice.
More concentration is given to efficiency than Integrity in Public service performance appraisals in India which needs to be changed and equalised in order to ensure probity and root out corruption.
WEAKNESSES OF PERFORMANCE APPRAISAL OF PUBLIC SERVICES IN INDIA:
1. There is a high degree of subjectivity and is used as a means to make subordinates not ethical or efficient by the superiors but "subservient".
2. Employees especially if they are due for promotion have to run after the concerned reporting,reviewing and accepting authorities to ensure that their appraisal report is written on time.
3. Appraisal reports are never written on time causing great distress and demotivating to the employees.
4. Frequently transferred employees are denied a just and proper assessment for obvious reasons.
5. Desk work officials like the secretariat employees find it difficult to write meaningful reports of theirs due to lack of targets and achievements.
6. Only adverse remarks are communicated to employees and even then it is not done on time or not done at all in many departments.
7. Number of Annual Confidential Reports being reported or reviewed should be limited to span of control test lest it become a meaningless,routine activity.
8. A uniform format is used for ACRs regardless of the job performed by the employee and his nature of functions. There are wide variations in grading of civil servants between the states and the linking of empanelment of civil servants to ACRs has led to politicisation of the process. This should be revised and updated/changed accordingly.
RECOMMENDATIONS AND PROPOSED REFORMS FOR BETTER OBJECTIVITY OF APPRAISAL:
The Karnataka Administrative reforms Commission in its interim report in 2001 proposed the following:
1. Computerisation of all ACRs to ensure there are no missing reports or level jumping in the process.
2. Different formats for ACRs for Secretariats,field and public sector employees.
3. Confidentiality should be done away with and a full copy of the ACR should be provided to the
employee so that he is motivated with his/her good points and works on his.her bad points.
4. As done in the armed forces and central police organisations, a grading system on a 10 or a 7 point scale to assess individual traits and attributes of the employee could be introduced as a necessary facet of the ACR exercise.
5. Proper training of objectivity should be given to all levels of officers who have to write ACRs.
6. Counseliing should be introduced for employees who get repeated adverse remarks.
7. Time frame to be decided for ACR submission/writing and Action to be taken against officers and Ministers delaying ACRs.
8. Comments in ACR to be used as inputs for training,job assignments and career development planning.
