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Suitable appraisal system

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Suitable Appraisal system Performance appraisal can be defined as a planned official interface between an employee and supervisor that occurs periodically as an interview, in which the work performance of the employee is assessed and discussed, with a purpose to recognize weaknesses and strengths in addition to opportunities for improvement, rewards and development of skills. (North, 2007) This essay intends to advise the suitable appraisal system for the functional employees, Professional employees and directors of the company. It will explain generally about appraisal system, purpose, need for appraisal, its requirements and various methods of conducting appraisal for different group of employees. Furthermore it will highlight the various drawbacks in each case and their possible solutions. It is a common human nature to evaluate the work done by the employees. There had been informal system of performance appraisal since long, but formal appraisal has recently been introduced. Currently Performance appraisal (PA) has become important practice of Human resource (HR) management universally. It is an organizational change lever and management control tool for assessing employee performance. (Redman and Wilkinson, 2006, p.155) Today PA has become more widespread. It includes all occupational groups of company. Appraisal has moved down in organizational hierarchy from the top blue collars to each employee. It has been adapted from private sector to public sector as well. PA helps the organization to plan, delegate and assess the operations of their services. (LGMB, 1994, P.6) Performance management department of organization establishes the criteria through the performance appraisal process for the progress and development of company. PA aims to increase the work force efficiency and connects the company goals and objectives with the work targets for each employee. The PA evaluates the employee's present and past performances relative to his performance standards set up by company. This process includes setting up of employee work standards according to organizations goals, targets and objectives. Then individual actual performance is evaluated and compared with set standards. ...read more.


This system discourages creativity and innovation among employees due to lesser team work. Many companies have abandoned it due to increasing litigations and there are doubts whether this system justifies administrative costs linked with replacing employee and providing training. (Redman and Wilkinson, 2006, p.154) Graphic rating scale method is a simple and popular technique to appraise functional employees. This scale lists a number of traits like quality, productivity, work knowledge etc and range of performance level from outstanding to unsatisfactory having its own rating scale. The employees are rated according to the performance against each trait. (Desseler, 2004, p.243) Alternation ranking method is method to rank employees from best to worst according to their performance against each trait. In Paired comparison method all the employees are paired and they are compared with each other on each trait to indicate better employ on each trait. In Forced distribution method, it is like grading of employees on the curve. A preset percentage of rating is placed against various performance categories on each trait like quality, productivity, reliability of employees. For example 15% high performing employees, 20% average performers and 15 % low performers. This method undermines team work. (Desseler, 2004, p.247) In Critical incident method of appraisal line manager keep record of positive and negative examples of employee's work related behavior. Manager reviews it and meet with employee once or twice in year to discuss his performance using his record of incidents. Behaviorally Anchored rating scales connects benefits of both quantified graphic rating scales and narrative critical incidents method. It gives more reliable, accurate and equitable appraisal results for employees. MBO or Management by objectives, In this system specific measurable targets is set by manager for each employee and then progress of performance is reviewed periodically and feedback is discussed. This method is time consuming as setting individual targets then evaluating and providing feedback is a very long process. ...read more.


In 'Horns effect' one negative criterion leads the appraisal rating. In 'Dopper gauger effect' appraisal rating depicts some similarity between appraiser and appraisee. In 'Crony effect' appraisal ratings are affected due to some relationship between appraiser and appraisee. In 'Veblen effect' there is tendency of appraiser to give low rating to all irrespective of their work performance. In 'impression effect' employees put good impression on manager and hide their actual performance. Good impression on manager results in distorted ratings. (Redman and Wilkinson, 2006) Sometimes appraisal ratings are manipulated by managers according to their favorable conditions which suits them in their future career building. It is known as 'Organizational games'. In some instances managers purposely under rate some rebellious employee to get rid of them. (snape et al) There are problems with the appraisal of professionals as they doubt the potential of managers to undermine professional autonomy. Such issues are raised in NHS UK. Many companies do not follow the positive outcomes of appraisal results .All data are just kept in files and no action is taken. All these pitfalls change the appraisal ratings and make the appraisal meaningless for the company and affects performance negatively. So company should avoid such pitfalls while conducting appraisal and should follow the positive outcomes of appraisal results. If positive outcomes are sincerely followed by company then it can do wonders for organizations work culture and productivity. Moreover regular restructuring of the PA system is necessary so that it remains compatible with the new business environments. The PA is a vital managerial tool or HR management technique for motivating and controlling work force of the company. It is a good way of maintaining loyalty and commitment of employees towards the company objectives than directly managing there performance. The Performance appraisal process is the most important activity for company's development. The meaningful and effective performance appraisal provides purpose, route and dedication for the change and development. The appraisal outcome has lot of influence on work culture, efficiency and productivity of company. The performance appraisal is not unrealistic it is practical and essential activity for the overall growth of company. ...read more.

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