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What does it mean by the Performance Appraisal System in HRM? We can thoroughly go through these terms as; The performance appraisal is the process of assessing employee performance by way of comparing present performance with already established standards. These standards have already been communicated to employees, subsequently providing feedback to employees about their performance level to improve their performance as required by the organization. Everything you need to know about the performance appraisal of human resource management: performance appraisal process is a systematic evaluation of the employee’s present job capabilities and potential for growth and development by his superiors. It can be either informal or formal.
How often should a Performance Appraisal System in HRM be Done?Performance measurement will be carried out at a given time of any company, such as annually or half-yearly or quarterly or weekly. It all depends on its nature or scale, and managers often need to determine their workers’ performance assessment cycle. Let’s Learn about it! Performance Appraisal system in HRM included some important things:
Performance appraisal MeaningWhat does the term performance mean? Employees are performing well when they are productive. Productivity implies both concerns for effectiveness and efficiency; effectiveness refers to goal accomplishment. However, it does not speak of the costs incurred in reaching the goal. Appraisals are judgments of the characteristics, traits, and performance of others. Based on these judgments, we assess others' worth or value and identify what is good or bad. In industry, employee performance appraisal is a systematic evaluation of employees by supervisors. The Performance Appraisal system in HRM creates a healthy competition between colleagues. It also helps employees compare and improve upon their skills if needed. Appraisals are usually held annually in most companies. CharacteristicsA employee performance appraisal system that may have the following features may become a sound system of evaluation:
GoalsFor different purposes, performance evaluation may be performed. One of the most valuable tools that a business has is human resources. Therefore, in terms of efficiency and productivity, any company should recognize where their workers stand. Here are some more success assessment goals:
How Performance Appraisals WorkSome companies also adopt one-on-one check-ins, which are less formal ways than the annual assessments. Managers can provide frequent feedback to their employees in this system. These check-ins help the employees to check their performance and re-evaluate their goals if needed periodically. This approach works well on agile and collaborative projects and helps companies in better performance appraisal decisions. Performance Appraisal Process
MethodsThere are various methods for conducting employee performance appraisal to identify performance areas that should be modified or improved and provide information to management for specific actions such as promotion, transfers, and compensation adjustment. There are mainly two types of methods, e.g., Traditional Methods & Modern Methods of the Performance Appraisal System in HRM. Traditional MethodsHere you go for Traditional Methods in Performance Appraisal System in HRM. Rating ScalesThe department prepares the numerical scale for performance appraisal that represents the job evaluation criterion such as the output, initiative, attendance, attitude, dependability, etc., and ranges from excellent to low. Forced Choice MethodThis employee performance appraisal method assumes that an employee’s job performance conforms to the standard distribution curve, i.e., a bell-shaped curve. Hence, the rater is compelled to put employees on each point on the scale. Forced Distribution MethodThis performance appraisal method assumes that an employee’s job performance conforms to the standard distribution curve, i.e., a bell-shaped curve. Hence, the rater is compelled to put employees on each point on the scale. Critical Incidents MethodUnder this method, the supervisor records each employee's critical behavior that makes a difference in the effective or non-effective performance. It is taken into consideration while evaluating his performance. Behaviorally Anchored Rating ScaleThe department puts on the scale points the descriptive statements about employees’ behavior, both effective and ineffective. The rater indicates which behavioral point describes the employee behavior the best & employee performance appraisal is done based on the points. Field Review MethodUnder this method, someone who does not belong to an employee's department or is usually from the corporate office or the HR department evaluates the performance of an employee for performance appraisal. Performance Tests and ObservationsThe test, either written or oral, is conducted to test the knowledge and skills of employees. Confidential ReportsThe government departments mostly prepare confidential reports, wherein the company evaluates employee on some of the following parameters:
Essay MethodUnder this method, the rater writes a detailed description of the employee's performance. The performance of an employee, his relations with other Co-workers, requirements of training and development programs, strengths and weaknesses of the employee, etc., are some of the points that a rater includes in the essay. Comparative Evaluation ApproachesUnder this method, several comparative analyses are done, wherein one employee's performance is compared with that of another Co-worker, and the rating is determined accordingly. Modern MethodsSome of the modern methods of Appraisal are here: Graphic Rating Scale MethodGraphic scales are practical; they are cost-effective and can be developed quickly. They also help in measuring a particular objective effectively. This scale rates the employees on a fixed scale (say 1-10) based on the extent to which they meet each of the desired criteria. For example, some organizations may evaluate employees based on quality and quantity of work, decisiveness & emotional stability for its employee performance appraisal. Ranking MethodThe administration can change this simple method of ranking employees in several ways. One of these methods is the paired comparison ranking style wherein the company compares the employees in pairs of two against each other. The number of times one employee is preferred over someone else is recorded. The top employee is the one with the highest number of preferences. Checklist MethodThe checklist can have various factors that the human resource department has chosen to be necessary. The employees are then judged based on those factors. The employers must select between the yes/no options in those checkboxes. For example, Behaviour Based appraisals are done by using the checklist method. Management by Objectives Method (MBO)MBO is one of the most systematic methods in performance appraisals. The idea is to give each employee a set of objectives that have to be achieved by them. During the performance appraisal, the supervisors will evaluate the extent to which the goals have been completed. 360-degree Feedback AppraisalThis approach is a group performance review. His/her close subordinates collect the data regarding an employee’s behavior. An employee’s colleagues might be able to review his/her performance under a variety of situations and circumstances, which might have escaped the employer. General Performance AppraisalIn general, a manager sets goals and targets for an employee and urges them to achieve it. This pushes the employee to achieve them and encourages them to grow. Technological Performance AppraisalIn this method of employee performance appraisal, HR judges the employee’s technological capabilities. Technical skills are kept at the forefront of all the other skills not related to their job. Sales Performance AppraisalThe manager should discuss goals and deadlines for sales. This way, an employee can have a goal to achieve. Advantages and DisadvantagesAdvantages
Disadvantages
ConclusionThere you've got it, the full HRM performance evaluation guide. Quality assessments are just as successful as their execution and the system in which they are carried out. If it is done merely for the sake of doing it, then it does not have any value. However, if the strategy is applied correctly, it can enable the company to be more efficient, more concentrated and help authority figures make better decisions. What are 3 types of performance appraisal?The most common types of appraisal are:. straight ranking appraisals.. grading.. management by objective appraisals.. trait-based appraisals.. behaviour-based appraisals.. 360 reviews.. What method of performance appraisal evaluate an employee on the basis of certain event and episode?CRITICAL INCIDENTS METHODS
This technique of performance appraisal was developed by Flanagan and Burns. The manager prepares lists of statements of very effective and ineffective behavior of an employee. These critical incidents or events represent the outstanding or poor behavior of employees on the job.
What is trait based performance appraisal?Trait-Focused Performance Appraisal
Supervisors rate employees by indicating specific traits each employee exhibits. Most trait-focused systems use a simple checklist with ratings of excellent, satisfactory or needs improvement, or similar options. This system is traditionally popular with customer service departments.
Which appraisal relates to assessing capability of an employee for a particular job?Performance Appraisal thus is a systematic and objective way of judging the relative worth of ability of an employee in performing his task. Performance appraisal helps to identify those who are performing their assigned tasks well and those who are not and the reasons for such performance.
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