Course: Management Strategies in Educational Institutions (8615)
Semester: Spring, 2019
Assignment No.1
Answer:
Performance Appraisal is the systematic
evaluation of the performance of employees and to understand the abilities of a
person for further growth and development. Performance appraisal is generally
done in systematic ways which are as follows:
1. The supervisors measure the pay of employees and compare
it with targets and plans.
2. The supervisor analyses the factors behind work
performances of employees.
3. The employers are in position to guide the employees for
a better performance.
Objectives of Performance Appraisal
Performance Appraisal can be done with following objectives
in mind:
1. To maintain records in order to determine compensation
packages, wage structure, salaries raises, etc.
2. To identify the strengths and weaknesses of employees to
place right men on right job.
3. To maintain and assess the potential present in a person
for further growth and development.
4. To provide a feedback to employees regarding their
performance and related status.
5. To provide a feedback to employees regarding their
performance and related status.
6. It serves as a basis for influencing working habits of the
employees.
7. 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:
1.
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.
2.
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
include bonus, high salary rates, extra benefits, allowances and pre-requisites
are dependent on performance appraisal. The criteria should be merit rather
than seniority.
3.
Employees Development:
The systematic procedure of performance appraisal helps the supervisors
to frame training policies and programmes. It helps to analyses strengths and
weaknesses of employees so that new jobs can be designed for efficient
employees. It also helps in framing future development programmes.
4.
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.
5.
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:
a. Through performance appraisal, the employers can
understand and accept skills of subordinates.
b.The subordinates can also understand and create a trust
and confidence in superiors.
c. It also helps in maintaining cordial and congenial labor
management relationship.
d. It develops the spirit of work and boosts the morale of
employees.
All the above factors ensure effective communication.
6.
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.
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 there porting 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
regency 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 assesses
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, promote
ability 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 c-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
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