Job Satisfaction Project

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PERFORMNANCE APPRAISAL

INTRODUCTION
Human Resource Management:
Human Resource Management (HRM) is the function within an organization that focuses on
recruitment of, management of, and providing direction for the people who work in the
organization. Human Resource Management can also be performed by line managers.

Human Resource Management is the organizational functions that deals with issues related to
people such as compensation, hiring, performance management, organization development,
safety, wellness, benefits, employee motivation, communication, administration, and training.

Human resource management (HRM or HR) is the strategic approach to the effective and
efficient management of people in a company or organization such that they help their
business gain a competitive advantage. It is designed to maximize employee performance in
service of an employer's strategic objectives. Human resource management is primarily
concerned with the management of people within organizations, focusing on policies and
systems.HR departments are responsible for overseeing employee-benefits design, employee
recruitment, training and development, performance appraisal, and reward management, such
as managing pay and Employee benefits benefit systems.HR also concerns itself with
organizational change and industrial relations, or the balancing of organizational practices
with requirements arising from collective bargaining and governmental laws.

The overall purpose of human resources (HR) is to ensure that the organization is able to
achieve success through people.HR professionals manage the human capital of an
organization and focus on implementing policies and processes. They can specialize in
finding, recruiting, selecting, training, and developing employees, as well as maintaining
employee relations or benefits. Training and development professionals ensure that
employees are trained and have continuous development. This is done through training
programs, performance evaluations, and reward programs. Employee relations deals with the
concerns of employees when policies are broken, such as cases involving harassment or
discrimination. Managing employee benefits includes developing compensation structures,
parental leave programs, discounts, and other benefits for employees. On the other side of the

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field are HR generalists or business partners. These HR professionals could work in all areas
or be labor relations representatives working with unionized employees.

HR is a product of the human relations movement of the early 20th Century, when
researchers began documenting ways of creating business value through the strategic
management of the workforce. It was initially dominated by transactional work, such as
payroll and benefits administration, but due to globalization, company consolidation,
technological advances, and further research, HR as of 2015 focuses on strategic initiatives
like mergers and acquisitions, talent management, succession planning, industrial and labor
relations, and diversity and inclusion. In the current global work environment, most
companies focus on lowering employee turnover and on retaining the talent and knowledge
held by their workforce.[citation needed] New hiring not only entails a high cost but also
increases the risk of a new employee

not being able to adequately replace the position of the previous employee. HR departments
strive to offer benefits that will appeal to workers, thus reducing the risk of losing employee
commitment and psychological ownership.

Human Resource Management (HRM) is the term used to describe formal systems devised
for the management of people within an organization. The responsibilities of a human
resource manager fall into three major areas: staffing, employee compensation and benefits,
and defining/designing work. Essentially, the purpose of HRM is to maximize the
productivity of an organization by optimizing the effectiveness of its employees. This
mandate is unlikely to change in any fundamental way, despite the ever-increasing pace of
change in the business world. As Edward L. Gubman observed in the Journal of Business
Strategy, "the basic mission of human resources will always be to acquire, develop, and retain
talent; align the workforce with the business; and be an excellent contributor to the business.
Those three challenges will never change.

Definition:
“Human Resource as human future to a whole consisting of inter-related, inter-depends
and interacting psychologically and sociologically ethical component”

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-JUSICS

“The field of HRM involves planning, organization, directing and controlling functions of
procuring, developing, maintaining and utilizing a labor force”.

-M.J.JUCIOUS

“HRM is the provision of leadership and direction of people in their working or


employment relationship”.

-DALE VODER

PRINCIPLES OF HUMAN RESOURCE MANAGEMENT


Business consultants note that modern human resource management is guided by several
overriding principles. Perhaps the paramount principle is a simple recognition that human
resources are the most important assets of an organization; a business cannot be successful
without effectively managing this resource. Another important principle, articulated by
Michael Armstrong in his book A Handbook of Human Resource Management, is that
business success "is most likely to be achieved if the personnel policies and procedures of the
enterprise are closely linked with, and make a major contribution to, the achievement of
corporate objectives and strategic plans."

A third guiding principle, similar in scope, holds that it is the HR's responsibility to find,
secure, guide, and develop employees whose talents and desires are compatible with the
operating needs and future goals of the company. Other HRM factors that shape corporate
culture-;whether by encouraging integration and cooperation across the company, instituting
quantitative performance measurements, or taking some other action-;are also commonly
cited

as key components in business success. HRM, summarized Armstrong, "is a strategic


approach to the acquisition, motivation, development and management of the organization's
human resources. It is devoted to shaping an appropriate corporate culture, and introducing
programs which reflect and support the core values of the enterprise and ensure its success."

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1.1 INDUSTRY PROFILE


The lack of mango market development globally opens a large untapped opportunity or India
to make an organized entry in the fresh mango pulp market. Is well positioned to capitalize
on this opportunity with a very large national production of mangos, including leading
varieties lie alphorns. India has the potential to create a long –term global market position and
to capitalize on the fast growth of mango as a preferred fresh fruit with in the Indian domestic
market, as well as globally. Mango is in strong demand with in the worldwide retail sector.
The total market value of Indian mango and pulp represents 25% of the value of agricultural
and processed food products exported by India. Moreover, the consumption growth for
mangoes in the united states and Europe has average 10-15%per year during the last 5years.
Collectively, these factors indicate strong opportunity to position India mango and mango
products to meet a growing international demand. India is the world’s a largest supplier of
mango’s having annual production of 10.5 million metric tons in 2003.

The accounts for 41% of the estimated worldwide mango production of 25.56 million metric
tons in 2003.despite this large mango production, India is a major exporter of mango and
mango products at this time. During the five –year period from 1998-2002.exporter of mango
and mango products at this time during this time. Date on exporter of Indian mango pulp and
juice products are more limited data from 1995 indicated that exporter of Indian mango pulp
juice products are more limited data from 1995 indicated that exported that India exported
37.7 thousand metric tons of mango pulp.

Data from 2001 indicated that India exported 3.2 thousand tons of mango juice, but also
imported 2.2 thousand metric tons of mango juice. Collectively. These observations indicate
that despite being by far the world largest mango producer, India exports less than 1% of its
mango crop as fresh mangos or processed mangos or processed mango products. These
observations with mango are consistent with aggregate data available on Indian fruit and
vegetable exports.

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Our barriers to efficient development of the Indian mango industry are an exceeding complex
supply chain. Within the value chain, a number of buyers and other aggregators operates
operators at local minds and APMC to assemble larger lots frap, the many small producers in
any gave region. Associated with this in efficient aggregation process is the application of
numerous commissions as fresh agricultural products trade hands.

India mango and mango pulp industry development:


Through partnerships with mango growers, processors, export organizations, and Indian
government originations, among other, PFID-F & V is working to strengthen the small and
medium mango grower base by providing capacity building at all levels.

Education and training in good agriculture practice and other sanitary standards, as well as
employment of certification systems, will lead to better yields pesticide use in accordance
with regulations, and a more efficient supply chain.

Mango market development:


PFID- F&V India has continued to forge and strengthen public and private partnership to the
point of that, now, just over one-year project start- up, notable results are beginning to show
in the form on increasing contributions from partnership members. Goals of India mango
market development: Currently only 1% of the total mango production in India is exported.
one reason contributing to this poor export performance is that over as buyers have sticker
standers that are currently accepted with in the Indian domestic market. PFID-F& V will
facilitate the development and implementation of quality and safety standards which will
meet the demands of the export market.

 PFID-F&V will partner with relevant India organization in establishing a global


image for the Indian mango starting with the establishment of quality standards and
good agricultural practices (GAPs) standards of India.
 PFID partnership is India can facilitate the development of a distribution a network in
European and other countries where the realization for mango and mango pulp are the
highest.
 PEID partnership can assist growers and processer in developing an “India” brand
image for fresh mango and processed mango products that meet consumer’s

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preferences. The predominant mango varieties grown in India make this product
unique in country abroad.
 After demonstrated success in developing a strengthening the market development of
mangoes, PFID India liaisons an easily adapt this approach to the further development
of other fruit and vegetable product in India.

Food processing sector is indispensable for the overall development of an economy as it


provides a vital linkage and synergy between the agriculture and industry. It helps to
diversify and commercialize farming; enhance income of farmers; create markets for export
of agro foods as well as generate greater employment opportunities. Through the presence of
such industries, a wider range of food products could be sold and distributed to the distant
locations.

The term 'food processing' is mainly defined as a process of value addition to the
agricultural or horticultural produce by various methods like grading, sorting and packaging.
In other words, it is a technique of manufacturing and preserving food substances in an
effective manner with a view to enhance their shelf life; improve quality as well as make
them functionally more useful. It covers spectrum of products from sub-sectors comprising
agriculture, horticulture, plantation, animal husbandry and fisheries.

Food processing industry is one of the largest industry in India and is ranked 5th in terms of
production, consumption and export. Earlier, food processing was largely confined to the
food preservation, packaging and transportation, which mainly involved salting, curdling,
drying, pickling, etc. However, over the years, with emerging new markets and technologies,
the sector has widened its scope. It has started producing many new items like ready-to-eat
food, beverages, processed and frozen fruit and vegetable products, marine and meat
products, etc. It also includes establishment of post-harvest infrastructure for processing of
various food items like cold storage facilities, food parks, packaging centers, value added
centers, irradiation facilities and modernized abattoir.

The food processing sector comprises of two segments- Primary processed food and Value
added food. Primary segment comprises of packaged fruit and vegetables, milk, flour, rice,
spices etc and constitutes around 62% in value terms of the processed foods. Value added
segment includes processed fruits and vegetables, juices, jam & jelly etc and holds around 38

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% share in the total processed food. In an emerging country like India, where growth with
equity is a primary policy thrust, the optimum development of the food processing sector will
contribute significantly in tackling several developmental concerns such as disguised
unemployment in agriculture, rural poverty, food security, food inflation, improved nutrition,
prevention of wastage of food etc. By serving as a bridge between agriculture and
manufacturing and by dealing with a basic need of all Indian citizens – the assured supply of
healthy and affordable food at all locations in the country, this sector has the potential to be a
major driver in India ‘s growth in the coming years. In fact, the food processing sector has
been growing faster than the agriculture sector.

The food processing industry includes a diverse group of companies involved in the
processing of products like fish, meat, milk, crops and water. It includes millions of Small &
Medium Enterprises (SMEs) worldwide and also some of the largest companies in the world.
Many of these companies’ deliver products directly to consumers, while others specialize in
Businessto-Business activities (ingredients, commodity markets). Some companies directly
participate in all areas of food production, from farming activities through to final production
and retail. Others are concentrated more at the top end of the production chain or buy through
commodity markets. In fact, Food processing is one of the world‘s largest industries from the
perspective of the number of companies involved in the sector, as well as in terms of its total
economic value.

History of food processing


Food processing dates back to the prehistoric ages when crude processing incorporated
slaughtering, fermenting, sun drying, preserving with salt, and various types of cooking (such
as roasting, smoking, steaming, and oven baking). Salt- preservation was especially common
for foods that constituted warrior and sailors' diets, until the introduction of canning methods.
Evidence for the existence of these methods can be found in the writings of the ancient
Greek, Chaldean, Egyptian and Roman civilizations as well as archaeological evidence from
Europe, North and South America and Asia. These tried and tested processing techniques
remained essentially the same until the advent of the industrial revolution. Examples of
ready-meals also exist from preindustrial revolution times such as the Cornish pasty and

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Haggis. During ancient times and today these are considered processing foods. Food
processing has also helped create quick, nutritious meals to give to busy families.

Modern food processing technology in the 19th and 20th century was largely developed to
serve military needs. In 1809 Nicolas Apart invented a vacuum bottling technique that would
supply food for French troops, and this contributed to the development of tinning and then
canning by Peter Durand in 1810. Although initially expensive and somewhat hazardous due
to the lead used in cans, canned goods would later become a staple around the world.
Pasteurization, discovered by Louis Pasteur in 1862, was a significant advance in ensuring
the micro-biological safety of food.

In the 20th century, World War II, the space race and the rising consumer society in
developed countries (including the United States) contributed to the growth of food
processing with such advances as spray drying, juice concentrates, freeze drying and the
introduction of artificial sweeteners, coloring agents, and preservatives such as sodium
benzoate. In the late 20th century products such as dried instant soups, reconstituted fruits
and juices, and self-cooking meals such as MRE food ration were developed. In Western
Europe and North America, the second half of the 20th century witnessed a rise in the pursuit
of convenience. Food processing companies marketed their products especially towards
middle-class working wives and mothers. Frozen foods (often credited to Clarence Birdseye)
found their success in sales of juice concentrates and "TV dinners". Processors utilized the
perceived value of time to appeal to the postwar population, and this same appeal contributes
to the success of convenience foods today.

Food processing industry in India


The Indian food processing industry stands at $135 billion and is estimated to grow with a
CAGR of 10 per cent to reach $200 billion by 2015. The food processing industry contributed
7% to India‘s GDP. The industry employs around 13 million workers directly and about 35
million indirectly.

The industry is segmented into sectors namely, milk and allied products (dairy), meat and
poultry, seafood, bakery and confectionery, fruit and vegetables, grain, pulses and oilseeds

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(staple) products, alcoholic and non-alcoholic products (beverages), and packaged foods. The
classification is not distinct as many processed products overlap different segments.

India ranks No. 1 in the world in production of Milk (Fresh, whole, buffalo), Pulses, Ginger,
Chick Peas, Bananas Guavas, Papayas and Mangoes. Further, India ranks No. 2 in the world
in production of Rice, Wheat, Potatoes, Garlic, Cashew Nuts, Groundnuts, Dry Onion, Green
Peas, Pumpkins, Gourds, and cauliflowers. With the huge production base India can easily
become the leading food supplier to the world and at the same time serving its vast growing
domestic market with over a billion people.

Investments in the registered food processing units have been growing in the recent years. In
2007-08 the fixed capital of registered food processing units have increased by 18.93% over
the previous year.

Food processing industry in India is increasingly seen as a potential source for driving rural
economy as it brings synergy between industry and agriculture. A developed food processing
industry is expected to lead increase in farm gate prices translating into increased rural
incomes, reduce wastages, ensure value addition, promote crop diversification, generate
employment opportunities as well as export earnings. With such a large and diversified
production base coupled with low manpower cost and modern technology, the Indian food
processing sector is poised for growth, if the advantages are leveraged optimally.

The growth is driven by the fact that the central government has given a priority status to all
agro-processing businesses. Government incentives in the field of mega food parks, cold
chain and exports benefits are also playing an important role in promoting food processing.

The major challenges are investments at different points of the supply and value chain, proper
research, farm and lab connectivity, up gradation of technology, increase in farm holding,
skill and manpower training, backend and front-end integration and cold chain integration.

The opportunities in the food processing industry are vast. However, there is a need to
improve technology and productivity to be competitive globally. As the economy grows, the
food processing industry will offer bigger opportunities to the new as well as the existing
players.

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India has the second largest arable land of 161 million hectares and has the highest acreage
under irrigation. Next to China, India ranks second largest food producer in the world and has
the potential to immerge the biggest with its food and agricultural sector. India accounts for
less than 1.5% of international food trade despite being one of the world ‘s major food
producers, which indicates huge potential for both investors and exporters.

1.2 COMPANY PROFILE

Srini Food Park Inaugurated on 9th July, 2012


Srini Food Park Pvt Ltd – India’s first mega food park inaugurated on 9th July, 2012 by Shri.
Sharad Pawar – Hon. Minister of Agriculture and Food Processing, Govt of India. Shri N.
Kiran Kumar Reddy – Hon’ble Chief Minister of AP will be the chief guest during the
occasion with distinguished guests Minister for Tourism, GoI Shri Subodh Kant Sahai,
Minister of State for Agriculture and Food Processing, GoI Dr. Charan Das Mahant, Minister
for Revenue & ULC, GoAP Dr. N. Raghuveera Reddy, Minister for Mines and Geology,
GoAP Smt. Aruna Kumari Galla and other dignitaries.

Overview
Nestled in a sprawling 147-acre space, Srini Food Park is located at Mogili Village in
Chittoor Dist. of Andhra Pradesh, India. This state-of-the-art facility provides world-class
facilities for pulping, IQF, bottling, tetra packing, modular cold storage, warehousing and
advanced testing lab. It enables basic and supply chain infrastructure, cluster farming and is
ably backed by field collection centers, self help groups and individual farmers.

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We believe in extracting nature's finest offerings and creating products that nourish life. As a
result of our close interaction with nature, we have achieved the capability to skillfully blend
natural ingredients with technological capabilities to achieve the perfect recipe for a
balanced life.

From seed to shelf, Srini Food Park facilitates end-to-end food processing with beneficial
forward and backward linkages. On par with techno-intensive software parks, this new-age
facility is equipped with Central Processing Centre and Primary Processing Centres. It aims
at becoming a pioneering infrastructure enabler and facilitator for the Food Processing
Industry.

Srini Food Park will empower food industry with state-of-the-art infrastructure and quality
raw material sourcing.

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Mega Food Park occupies an area of 147 acres at a strategically advantageous location on
the National Highway connecting Bangalore and Chennai; is only 120 kms from Tirupati, a
pilgrim center with more than 150,000 floating population per day. Being equi-distant from
two major metros in India, a major port (Chennai) and two international airports (Chennai
and Bengaluru) and one domestic airport (Tirupati), it offers great benefits to food
processors and buyers.

Central Processing Centre


Facilities at Central Processing Centre (CPC), Chittoor

The CPC is the hub where all food processing facilities (from procurement to processing to
storage) are made available on hire basis to farmers and food processors, big and small.
Apart from the processing facilities the Food Park provides common facilities such as trade
information centre, transport facilities such as reefer trucks and vans, capacity building and
training infrastructure, entrepreneurial venture incubation centre at the Mega Food Park.

Core Processing Infrastructure Status of Execution Capacity

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Multi Fruit Pulping Line - Aseptic Commissioned 10 TPH


Multi Fruit Pulping Line - Concentration Commissioned 6 TPH
Testing Lab Commissioned  
Ripening Chambers Commissioned 14 * 200 tonnes
CA Chambers Under construction 5000 MT
Cold Storage Commissioned 6 * 100 tonnes
IQF Commissioned 1 TPH
Deep Freezing Commissioned 2 * 250 tonnes
Warehouse Commissioned 100, 000 sft
Tetra Pack Commissioned 2200 to 6600 PPH
Pet Bottle Line Proposed 2500 BPH

Multi Fruit Pulping Line and Aseptic Filling: Single Strength


Multi Fruit Pulping Line and Aseptic Filling: Double Strength
Tomato 28 Brix Paste

Primary Processing Centres


Primary Processing Centers are envisaged as key components to facilitate strong backward
linkages for sustainable supply for adequate raw materials to ensure year round operation.
Our PPCs are to be strategically located in Nuzvid, Tirupati, Madanapalle and Mogilli, for
an optimum coverage in zone of influence.

Location Map

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Address: Sy. No. 11-24/2 Mogili, Village, Bangarupalem,

Andhra Pradesh 517416

Capacities at Mogili Pack-house

Room No's MT Capacities

Cleaning, washing &


2 3 MT per hour
grading Line

Banana Ripening Rooms 4 20 MT each

Mango Ripening Rooms 14 200 MT each

Cold Storage 4 100 MT each

Banana Ripening Mango Ripening


Crates & Trays
Chambers Chambers

Ideal for food processing units within


Mega Food Park
Mega Food Park has made provision for plots on long lease
for food processing units within the Food Park itself. Several
Food Processing units have already indicated interest and
MoUs have been entered in view of the apparent benefit of

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being in a food park with all attendant facilities. The plots are ideal for manufacturers or
food processors involved in the following food processing activities:

Pulping
Frozen foods
Dehydration
Pectin foods
Poultry
Juices
Ready to eat
Feed mixing
Bottling
Tetra packs
Spices

MSME- Entrepreneurial venture incubation centre


Micro Small Medium Enterprises (MSME) can avail of a unique opportunity provided by the
Mega Food Park. We provide plug and play processing facility, office and other attendant
facilities at the Food Park during the incubation phase for any MSME involved in food
processing. This is aimed at enterprises that do not have the capital to scale up initially. Mega
Food Park thus empowers several small enterprises (farmers, new entrepreneurs) to grow
gradually while using the common infrastructure.

Mega Food Park provides facilities such as:

 Modular Plug and Play facility of starting any processing


 Power, Water, Steam, and ETP facilities
 Communication
 Office space
 Guest houses
 Canteen

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 Bank

These facilities are in addition to processing, testing and other related activities for
entrepreneurs in incubation stage. Expert advise is also provided to such entrepreneurs until
they are ready to scale up.

Other facilities
Other facilities in the Mega Food Park comprise of:

 
Inland Container Depot Power plant
Water supply reservoirs Bank
Overhead tanks Post office
Capacity Building and Training Parking area
Centre Fire station
Administration Building Bus terminus
Hostel and Stay facilities Fuel station
Conference hall Security block
Central canteen Overhead tanks
Creche Pump rooms
Shopping complex Sustainable Solid Waste Disposal
Business Incubator System
 Financial Benefits

“Ideal destination for food processors ….


The Mega Food Park is ideal for setting up Food Processing units involved in
pulping, frozen foods, dehydration, pectin foods, poultry, juices, ready to eat, feed
mixing, bottling, tetrapak and spices. The Food Park not only offers the
convenience of state of the art infrastructure that can be shared at lesser costs,
common facilities, accessibility to markets, assured raw material supply at better
prices and wider reach to markets. Growing at 7%, the size of food processing
industry in India is expected to grow from US$ 200 billion in 2008 to US $ 310 mn
in 2015. With the highest growth in the Fruits and Vegetables sector (20%) and
with Chittoor being the largest Fruits and Vegetables cluster in India, the Mega
Food Park becomes an ideal destination for food processing units..

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Here are a few reasons why you should set up a unit at Mega Food Park:

150 Kms to major South Indian consumption Metros of Chennai and


Bangalore
120 Kms to Tirupathi a major pilgrim circuit with 150,000 daily floating
population
Power at subsidized cost for units in Food Park
Established, experienced and successful entrepreneurs with sound business
credentials
International exposure, export markets
Technical expertise
End to end solutions
Backward linkage with farmers
State of the art processing centre
Forward linkage with exporters, retailers
State of Art Testing Laboratory in the Park
Governmental support
Single window clearances for food processing units
Special labor regulations
Marketable surpluses in neighboring districts, abundant raw material in area
Vast pool of skilled manpower

BENEFITS FOR

Food Processors Farmers


Developed plot in the Mega Food Sell produce to collection centres
Park on lease with Power, Water, Benefit from higher pricing
and ETP facilities Avail of information regarding seed

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Cutting edge processing facilities in and other best practices


CPC Improve product quality
Reap benefits of power cost, Reduce losses through best practices
common facilities, testing, in handling and packing
government support Avail of primary processing facilities,
Avail of backward and forward Cold Storages, Ripening Chambers,
linkage benefits and Ware houses
Increase profitability
Retail Chains MNC Exporters
Avail of good quality produce Avail good quality product from
Avail standardized products producers

Benefit from quality assurance from Be sure of product quality through


our testing labs food chain

Benefit from good transportation Quality assurance provided


facilities viz reefer trucks and vans
Avail of labeling, packing facilities
at mega park
Satisfy your customer through good
product

Imporatnce
1) Strategy management:

This is an important aspect of any organisation and plays a vital role in human resource
management. HR managers manage strategies to ensure the organisation reaches its business
goals, as well as contributing significantly to the corporate decision-making process, which

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includes assessments for current employees and predictions for future ones based on business
demands.

2) Benefits analysis:

HR managers work towards reducing costs, such as with recruitment and retention. HR
professionals are trained to conduct efficient negotiations with potential and existing
employees, as well as being well-versed with employee benefits that are likely to attract
quality candidates and retaining the existing workforce.

3) Training and development:

Since HR managers contribute significantly to training and development programmes, they


also play a pivotal role in strengthening employer-employee relationships. This contributes to
the growth of employees within the company, hence enhancing employee satisfaction and
productivity.

4) Interactivity within employees:

HR managers are responsible for conducting activities, events and celebrations in the
organisation which gives way to team building opportunities. Moreover, it enhances
interactivity within employees and instils a sense of trust and respect among peers.

5) Conflict management:

The department to go to when any kind of professional conflict arises between employees is
HR. They ensure that issues and conflicts are resolved effectively, approaching the problem
with an unbiased attitude and encouraging effective communication to reach a solution. In
addition, they help employees understand various ways of developing effective work
relationships and the importance of not letting personal judgement affect their behaviour.

6) Establishing a healthy work culture:

A healthy work culture is pivotal in bringing out the best in employees. HR managers
contribute significantly in setting up a healthy and friendly work culture, which further
translates into better productivity among employees.

7) Compliance:

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HR professionals work towards making the organisation compliant with employment laws,
as well as maintaining records of hiring processes and applicants’ log.

8) Recruitment and Training

This is one of the major responsibilities of the human resource team. The HR managers come
up with plans and strategies for hiring the right kind of people. They design the criteria which
is best suited for a specific job description. Their other tasks related to recruitment include
formulating the obligations of an employee and the scope of tasks assigned to him or her.
Based on these two factors, the contract of an employee with the company is prepared. When
needed, they also provide training to the employees according to the requirements of the
organisation. Thus, the staff members get the opportunity to sharpen their existing skills or
develop specialised skills which in turn, will help them to take up some new roles.

9) Performance Appraisals

HRM encourages the people working in an organisation, to work according to their potential
and gives them suggestions that can help them to bring about improvement in it. The team
communicates with the staff individually from time to time and provides all the necessary
information regarding their performances and also defines their respective roles. This is
beneficial as it enables them to form an outline of their anticipated goals in much clearer
terms and thereby, helps them execute the goals with best possible efforts. Performance
appraisals, when taken on a regular basis, motivate the employees.

10) Maintaining Work Atmosphere

This is a vital aspect of HRM because the performance of an individual in an organisation is


largely driven by the work atmosphere or work culture that prevails at the workplace. A good
working condition is one of the benefits that the employees can expect from an efficient
human resource team. A safe, clean and healthy environment can bring out the best in an
employee. A friendly atmosphere gives the staff members job satisfaction as well.

11) Managing Disputes

In an organisation, there are several issues on which disputes may arise between the
employees and the employers. You can say conflicts are almost inevitable. In such a scenario,

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it is the human resource department which acts as a consultant and mediator to sort out those
issues in an effective manner. They first hear the grievances of the employees. Then they
come up with suitable solutions to sort them out. In other words, they take timely action and
prevent things from going out of hands.

12) Developing Public Relations

The responsibility of establishing good public relations lies with the HRM to a great extent.
They organise business meetings, seminars and various official gatherings on behalf of the
company in order to build up relationships with other business sectors. Sometimes, the HR
department plays an active role in preparing the business and marketing plans for the
organisation too.

Objectives
The primary objective of resource management is to ensure seamless experience for the staff
and other people associated to management and organisational goals. Objectives of HRM

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include ensuring availability of resources, easy access to data, on-time payroll, ensuring
compliances, etc.

HRM objectives are basically influenced by organisational goals and vertical. Objective of
HRM is to ensure a stable work environment with data at one place and efficient operations.

 Achieve organisational goals


 Work culture
 Team integration
 Training and Development
 Employee motivation
 Workforce empowerment
 Retention
 Data and compliance

Scope

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1) Personnel aspect- This is concerned with manpower planning, recruitment, selection,


placement, transfer, promotion, training and development, layoff and retrenchment,
remuneration, incentives, productivity etc.

2) Welfare aspect- It deals with working conditions and amenities such as canteens, cr?ches,
rest and lunch rooms, housing, transport, medical assistance, education, health and safety,
recreation facilities, etc.

3) Industrial relations aspect- This covers union-management relations, joint consultation,


collective bargaining, grievance and disciplinary procedures, settlement of disputes, etc

PERFORMANCE APPRAISAL

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Introduction

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:

 The supervisors measure the pay of employees and compare it with targets and plans.
 The supervisor analyses the factors behind work performances of employees.
 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:

 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:

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

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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.

3) 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.

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:

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.

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.

Disadvantages of Performance Appraisal

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1) Prone To Biasness.

Some raters may rate one depending on the general impression one gives. For instance, one
might be rated high on all criteria even though he/she just performed well in a single area.
The rater’s biases and prejudices also affect the process. These cases are seen when a one
gets underrated because of sex, religion, favoritism, appearance, and race.

2) Contrast Error.

Performance appraisal is always based specific standards, however, when one gets rated
without taking the standards into account a contrast error occurs. This also can occur if the
rater looks at an employee’s current performance based on the past performance.

3) Generalization Tendency Error.

This occurs when a rater rates everyone within a narrow range because he/she thinks that the
employees are all on the same level averagely.

4) Severity Or Leniency.

Appraisals demand that an evaluator should objectively draw a conclusion regarding an


employee’s performance.

5) Sampling Error.

This occurs when a rater uses a small portion of an employee’s work to draw a conclusion.

6) Regency And Primary Errors.

Employee behavior at the start of the appraisal period and at the end can affect the process a
time. For instance, a salesperson’s performance varies with season, at times it can be low and
a time high.

Overall, appraisals are good only if the management operating them stick with their standards
otherwise it will pointless.

Performance Appraisal Tools and Techniques

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Following are the tools used by the organizations for Performance Appraisals of their
employees.

1. Ranking
2. Paired Comparison
3. Forced Distribution
4. Confidential Report
5. Essay Evaluation
6. Critical Incident
7. Checklists
8. Graphic Rating Scale
9. BARS
10. Forced Choice Method
11. MBO
12. Field Review Technique
13. Performance Test

We will be discussing the important performance appraisal tools and techniques in detail.

1) Ranking Method

The ranking system requires the rater to rank his subordinates on overall performance. This
consists in simply putting a man in a rank order. Under this method, the ranking of an
employee in a work group is done against that of another employee. The relative position of
each employee is tested in terms of his numerical rank. It may also be done by ranking a
person on his job performance against another member of the competitive group.

Advantages of Ranking Method

 Employees are ranked according to their performance levels.


 It is easier to rank the best and the worst employee.

Limitations of Ranking Method

 The “whole man” is compared with another “whole man” in this method. In practice,
it is very difficult to compare individuals possessing various individual traits.
 When a large number of employees are working, ranking of individuals become a
difficult issue.

2) Forced Distribution method

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This is a ranking technique where raters are required to allocate a certain percentage of rates
to certain categories (eg: superior, above average, average) or percentiles (eg: top 10 percent,
bottom 20 percent etc). Both the number of categories and percentage of employees to be
allotted to each category are a function of performance appraisal design and format. The
workers of outstanding merit may be placed at top 10 percent of the scale, the rest may be
placed as 20 % good, 40 % outstanding, 20 % fair and 10 % fair.

Advantages of Forced Distribution

 This method tends to eliminate raters bias


 By forcing the distribution according to pre-determined percentages, the problem of
making use of different raters with different scales is avoided.

Limitations of Forced Distribution

 The limitation of using this method in salary administration, however, is that it may
lead low morale, low productivity and high absenteeism.
 Employees who feel that they are productive, but find themselves in lower grade(than
expected) feel frustrated and exhibit over a period of time reluctance to work.

3) Critical Incident techniques

Under this method, the manager prepares lists of statements of very effective and ineffective
behaviour of an employee. These critical incidents or events represent the outstanding or poor
behaviour of employees or the job. The manager maintains logs of each employee, whereby
he periodically records critical incidents of the workers behaviour. At the end of the rating
period, these recorded critical incidents are used in the evaluation of the worker’s
performance. Example of a good critical incident of a Customer Relations Officer is : March
12 - The Officer patiently attended to a customers complaint. He was very polite and prompt
in attending the customers problem.

Advantages of Critical Incident techniques

 This method provides an objective basis for conducting a thorough discussion of an


employees performance.
 This method avoids recency bias (most recent incidents are too much emphasized)

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Limitations of Critical Incident techniques

 Negative incidents may be more noticeable than positive incidents


 It results in very close supervision which may not be liked by an employee

4) Checklists and Weighted Checklists

In this system, a large number of statements that describe a specific job are given. Each
statement has a weight or scale value attached to it. While rating an employee the supervisor
checks all those statements that most closely describe the behaviour of the individual under
assessment. The rating sheet is then scored by averaging the weights of all the statements
checked by the rater. A checklist is constructed for each job by having persons who are quite
familiar with the jobs. These statements are then categorized by the judges and weights are
assigned to the statements in accordance with the value attached by the judges.

Advantages of Checklists and Weighted Checklists

 Most frequently used method in evaluation of the employees performance.

Limitations of Checklists and Weighted Checklists

 This method is very expensive and time consuming


 Rater may be biased in distinguishing the positive and negative questions.

Performance Appraisal Biases

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Managers commit mistakes while evaluating employees and their performance. Biases and
judgment errors of various kinds may spoil the performance appraisal process. Bias here
refers to inaccurate distortion of a measurement. These are:

1) First Impression (primacy effect): Raters form an overall impression about the ratee on
the basis of some particluar characteristics of the ratee identified by them. The identified
qualities and features may not provide adequate base for appraisal.

2) Halo Effect: The individual’s performance is completely appraised on the basis of a


perceived positive quality, feature or trait. In other words this is the tendency to rate a man
uniformly high or low in other traits if he is extra-ordinarily high or low in one particular
trait. If a worker has few absences, his supervisor might give him a high rating in all other
areas of work.

3) Horn Effect: The individual’s performance is completely appraised on the basis of a


negative quality or feature perceived. This results in an overall lower rating than may be
warranted. “He is not formally dressed up in the office. He may be casual at work too!”.

4) Excessive Stiffness or Lenience: Depending upon the raters own standards, values and
physical and mental makeup at the time of appraisal, ratees may be rated very strictly or
leniently. Some of the managers are likely to take the line of least resistance and rate people
high, whereas others, by nature, believe in the tyranny of exact assessment, considering more
particularly the drawbacks of the individual and thus making the assessment excessively
severe. The leniency error can render a system ineffective. If everyone is to be rated high, the
system has not done anything to differentiate among the employees.

5) Central Tendency: Appraisers rate all employees as average performers. That is, it is an
attitude to rate people as neither high nor low and follow the middle path. For example, a
professor, with a view to play it safe, might give a class grade near the equal to B, regardless
of the differences in individual performances.

6) Personal Biases: The way a supervisor feels about each of the individuals working under
him - whether he likes or dislikes them - as a tremendous effect on the rating of their
performances. Personal Bias can stem from various sources as a result of information

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obtained from colleagues, considerations of faith and thinking, social and family background
and so on.

7) Spillover Effect: The present performance is evaluated much on the basis of past
performance. “The person who was a good performer in distant past is assured to be okay at
present also”.

8) Recency Effect: Rating is influenced by the most recent behaviour ignoring the commonly
demonstrated behaviours during the entire appraisal period.

The Importance of Performance Appraisals


People work in organizations for monetary and nonmonetary reasons. While monetarily,
employees look forward to increasing pay and perks, they also look for job satisfaction and
fulfillment in their jobs. Thus, the motivators that determine whether a particular employee
would stick to the job or leave the organization are based on the monetary and nonmonetary
incentives.

For instance, monetarily, they might be expecting a pay rise every year in addition to healthy
bonuses. In the same manner, they expect recognition for their work as well as job
satisfaction through challenging assignments. As all these aspects are determined during the
appraisal process where not only the pay and perks but also the chances for promotion and
being given more fulfilling work are decided.

Thus, it is clear that performance appraisals must be taken seriously in addition to being
accorded the importance they deserve. Indeed, performance appraisals can be thought of the
most important time in an employee’s stint with the organization and hence, they must also
be conducted with care and caution.

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Methods of Performance Appraisal:

II) Traditional Methods:


1) Ranking Method:
 In this method manager compares an employee to other similar employees, rather
than to a standard measurement.
 Employees are ranked from the best to the poorest on the basis of overall
performance.
 Ranking can also be used for developmental purposes by letting employees know
where they stand in comparison to their peers—they can be motivated to improve
performance.
 The employees ranked in the top group usually get the rewards (raise, bonus,
promotion), those not at the top tend to have the reward withheld, and those at the
bottom sometimes get punished.
 Managers have to make evaluative decisions, such as who is the employee of the
month, who gets a raise or promotion, and who gets laid off. So when we have to
make evaluative decisions, we generally have to use ranking.
 It is the quick and simple method but also subjective so invites criticism.
2) Paired Comparison Method:
 A better technique of comparison than the straight ranking method, this
method compares each employee with all others in the group, one at a time.
Under this method the employees of a group are compared with one another
at one time. This method compares each employee with all others in the
group, one at a time. After all the comparisons on the basis of the
overall comparisons, the employees are given the final rankings.

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 It is a method of comparing employee and job with another one on the


basis of skill sets, time required to execute tasks, knowledge etc.
 If there are 5 employees A-E, A will be compared individually to B, to
C and similarly to the remaining employees. If A is better than be a “+” will
be marked against his name, and if he is not as good as C, a “-“will be marked.
The total number of decisions in this case will be 10.
 The number of decisions can be calculated by the formula N(N-1)/2, where N
represents the total number of employees being evaluated. In the diagram
below employee C has the most “+” and hence will receive more incentives.
 It is a reliable method and provides reasoning behind decision making.
 This method cannot be used in organizations with a large number of
employees as it would be too difficult to compare so many people on an
individual basis.
3) Grading Method:
Under this technique of performance evaluation certain categories of worth are
determined in advance and they are carefully defined. These selected and well defined
categories include grade ‘A’ for outstanding, ‘B’ for very good, ‘C’ for average, ‘D’
for poor etc. These grades are based on certain selected features of employees such as
knowledge, judgment, analytical ability, leadership qualities, self expression etc. The
actual performance of employees is compared with the above grades and employees
are allotted grades that speak for their performance.
4) Forced Distribution Method:
 Employers or raters are found to have tendency to rate their employees near
average or above average performing categories. In around late 90s, Tiffen
introduced a new method of performance appraisal call forced distribution, in
an attempt to eliminate the flaws of the raters.
 The system requires the managers to evaluate each individual, and rank them
typically into categories. The categories can be poor, average, good and
excellent or percentile based like 10% poor, 40% fairly good, 40% good and
10% excellent.
 Forced ranking is a method of performance appraisal to rank employee but
inorder of forced distribution. For example, the distribution requested with 10
or 20 percent in the top category, 70 or 80 percent in the middle, and 10
percent in the bottom. The top-ranked employees are considered “high-
potential” employees.
 In contrast, those ranked at the bottom may be given a probationary period to
improve their performance.
 This method eliminates the leniency of the appraiser.
 This method creates false competition between employees.
 All employees might not fit neatly into a category, leading to their placement
in such a category that does not reflect their true image.
 Raters may end up placing more visible employees in superior categories and
less visible ones in poor category, irrespective of their job performance.

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5) Checklist Method:
 A checklist represents, in its simplest form, a set of objectives or descriptive
statements about the employee and his behaviour. The checklist contains a list
of statements on the basis of which the rater describes the job performance of
the employees.
 A more recent variation of the checklist method is the weighted list. Under
this, the value of each question may be weighted equally or certain
questions may be weighted more heavily than others.
 Appraiser bias or human errors may be reduced in this method.
 It requires proper planning
6) Essay Method:
 This method is also known as “Free Form method”. It is a non-quantitative and
open-ended technique and provides a good deal of information about the
employee and also reveals more about the evaluator. Essay appraisal method
involves superiors of employees. Superiors write description about the performance
of their employees. Appraiser evaluates the performance of an employee through his
description. Description should be based on facts and includes always examples
and evidences. The rater or appraiser is asked to express the strong as well as weak
points of the employee’s behavior. The rater considers the following factors related to
employee:
 Attitudes and perceptions
 Planning, organizing and controlling ability in general;
 Relations with co-workers and superiors;
 Job knowledge, skills and potential
 Knowledge and understanding of the company’s programmes, policies, objectives,
etc.
 This method allows appraisers to place varied degrees of emphasis on certain
qualities, issues, or attributes of employee. .
 This method is highly subjective.
 This is time-consuming method.A busy appraiser may write the essay without
properly assessing the actual performance of the worker due to his busy schedule..
7) Critical Incidents Method:
 If there are 5 employees A-E, A will be compared individually to B, to C
and similarly to the remaining employees. If A is better than be a “+” will be
marked against his name, and if he is not as good as C, a “-“will be marked. The
total number of decisions in this case will be 10.
 The number of decisions can be calculated by the formula N(N-1)/2, where N
represents the total number of employees being evaluated. In the diagram below
employee C has the most “+” and hence will receive more incentives.
 It is a reliable method and provides reasoning behind decision making.
 This method cannot be used in organizations with a large number of
employees as it would be too difficult to compare so many people on an
individual basis.5.Critical incidents method

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 The technique was formally codified by the works of Fitts and Jones in 1947 for
classifying pilot error experiences in reading and interpreting aircraft instruments.
Fitts and Jones used the term “errors” rather than “critical incidents”.
 As opposed to Fitts and Jones way of collecting data, data gathering during task
performance is now considered a defining criterion for critical incident
methods. The work of John Flanagan in 1954 became the landmark critical
incident technique, after his title entitled “The Critical Incident Technique”
appeared in the psychological bulletin. The manager prepares lists of
statements of very effective and ineffective behavior of employee.These
critical incidents or events represent the outstanding or poor behavior of
employees on the job. The manager maintains logs on each employee, whereby he
periodically records critical incidents of the workers behavior.
 At the end of the rating period, these recorded critical incidents are used in the
evaluation of the workers’ performance.
8) Graphical Rating Scale Method:
 In 1922, Paterson working with the employees of the Scott Company
developed a graphic scale to provide the reliability, consistency over time,
usefulness and practicality. Graphic rating scale is one of the oldest and
commonly used methods of performance appraisal.
 Under this approach, the employees are evaluated on the basis of
various job performance criterions like Attitude, Knowledge of Work,
Managerial Skills, Team Work, Honesty, Regularity, Accountability,
Interpersonal relationships, Creativity and Discipline etc.,
 Each criterion is categorically divided into poor, fairly poor, fairly good, good
and excellent. Also, these criterions carry certain score weight.
 The rater ticks the category that best describes the employee and finally
the score is totaled. Score vary from employee to employee depending up on
his performance levels and endeavor in his job.
 This method is very popular because it is simple and does not require any
writing ability..
 Comparison among pairs is possible. This is necessary for decision on
salary increases, promotion etc.
9) Forced-Choice Method:

This method was developed during World War II for evaluating the performance of
American army personnel’s. The evaluators have the tendency to rate the performance as
high, moderate or low and escape the important responsibility assigned to them. This method
requires more objective and least subjective assessment of the performance.

The rating elements are predetermined statements divided equally into negative and
positive relating to efficiency and personal traits. The rationale is the statements are grouped
having equal importance. The evaluator is forced to select from each group of statement
(normally two).

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10) Field Review Method:

Under this method a supervisor is interviewed from human resource expert from
human resource department. The evaluator is equipped with test questions usually
memorized by him which asks to the supervisor. Supervisor is expected to give his
opinion about the subordinates such as about his weakness and strength, outstanding
ability, willingness to cooperate etc. The evaluator records the details which are
approved by the supervisor and these are kept in the personal file of the employee.

To make the method more effective evaluator must be well versed and competent in
his job. This method is useful for a large organisation where lots of employees are
working. It is not suitable for small organisations. It is a costly method and keeps two
managerial staff busy with a single work hence costly.

11) Confidential Report:

Confidential report system is mostly being used by the Government organizations for
promoting or transferring of any employee. It is also use as a tool to know about the
employee and to take any decision connecting to him. Superior writes confidential
report after observing the following in an employee:

 Knowledge and quality of work


 Character and conduct of an employee
 Absenteeism of an employee
 Punctuality of employee
 Unauthorised absenteeism or leave without permission
 Ability of supervision and controlling

Integrity and honesty Superior can also adder marks,if any. This report will be
Confidential and will not be revealed to anyone. Finally confidential reports will be
forwarded to the concerned officials for taking decision

II) Modern Methods:


1) Management By Objectives:

Management by objectives (MBO) is the appraisal method where managers and


employees together identify, plan, organize, and communicate objectives to focus on
during a specific appraisal period. After setting clear goals, managers and
subordinates periodically discuss the progress made to control and debate on the
feasibility of achieving those set objectives.

This performance appraisal method is used to match the overarching organizational


goals with objectives of employees effectively while validating objectives using the
SMART method to see if the set objective is specific, measurable, achievable,
realistic, and time-sensitive.

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At the end of the review period (quarterly, half-yearly, or annual), employees are
judged by their results. Success is rewarded with promotion and a salary hike whereas
failure is dealt with transfer or further training. This process usually lays more stress
on tangible goals and intangible aspects like interpersonal skills, commitment, etc. are
often brushed under the rug.

2) Behaviourally Anchor Rating Scales:

Behaviorally anchored rating scales (BARS) bring out both the qualitative and
quantitative benefits in a performance appraisal process. BARS compares employee
performance with specific behavioral examples that are anchored to numerical ratings.

Each performance level on a BAR scale is anchored by multiple BARS statements


which describe common behaviors that an employee routinely exhibits. These
statements act as a yardstick to measure an individual’s performance against
predetermined standards that are applicable to their role and job level.

The first step in BARS creation is generation of critical incidents that depict typical
workplace behavior. The next step is editing these critical incidents into a common
format and removing any redundancy. After normalization, the critical instances are
randomized and assessed for effectiveness. Remaining critical incidents are used to
create BARS and evaluate employee performance.

3) 360 – Degree Appraisal:

360-degree feedback is a multidimensional performance appraisal method that


evaluates an employee using feedback collected from the employee’s circle of
influence namely managers, peers, customers, and direct reports. This method will not
only eliminate bias in performance reviews but also offer a clear understanding of an
individual’s competence.

4) Assessment Centres:

The concept of assessment centre was introduced way back in 1930 by the German
Army but it has been polished and tailored to fit today’s environment. The assessment
centre method enables employees to get a clear picture of how others observe them
and the impact it has on their performance. The main advantage of this method is that
it will not only assess the existing performance of an individual but also predict future
job performance.

During the assessment, employees are asked to take part in social-simulation exercises
like in-basket exercises, informal discussions, fact-finding exercises, decision-making
problems, role-play, and other exercises that ensure success in a role. The major
drawback of this approach is that it is a time and cost intensive process that is difficult
to manage.

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5) Cost Accounting Method:

Human resource (cost) accounting method analyses an employee’s performance


through the monetary benefits he/she yields to the company. It is obtained by
comparing the cost of retaining an employee (cost to company) and the monetary
benefits (contributions) an organization has ascertained from that specific employee.

When an employee’s performance is evaluated based on cost accounting methods,


factors like unit-wise average service value, quality, overhead cost, interpersonal
relationships, and more are taken into account. Its high-dependency on the cost and
benefit analysis and the memory power of the reviewer is the drawback of human
resources accounting method.

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