Performance Appraisal - A New Perspective

Performance appraisal is that occasion when once a year you find out who claims sovereignty over you.

-Peter Block

Organizations are run and steered by people. It is through people that goals are set and objectives realized. The performance of an organization is thus dependent upon the sum total of the performance of its members. The success of an organization will therefore depend on its ability to measure accurately the performance of its members and use it objectively to optimize them as a vital resource. The performance of an employee is his resultant behavior on task which can be observed and evaluated. It refers to the contribution made by an individual in the accomplishment of organizational objectives. Performance can be measured by some combination of quantity, quality, time and cost.

Performance appraisals are essential for the effective management and evaluation of the staff. Formal performance appraisal is generally conducted annually for all staff in the organization. The annual performance review is essential to present an undistorted image of an employee’s work. Each employee is appraised by their line manager. Directors are appraised by the CEO’s, who is appraised by the chairman or company owners.

Performance Appraisal (PA) refers to all those procedures that are used to evaluate the personality, the performance and the potential of its group members.  Performance appraisal system provides management an opportunity to recall as well as feedback to people as to how they are doing, so that they can correct their mistakes and acquire new skills. It is a method by which the job performance of an employee is evaluated (generally in terms of quantity, quality, cost and time) by the corresponding manager or supervisor. It is the process of obtaining, analyzing and recording information about the relative worth of an employee to the organization.

There exists different approaches  for appraising an employee. Employees can be appraised against an absolute standard, relative standard, managed by objectives or 360 degree appraisal system/feedback. Thus, there are various appraisal processes in different organizations. Nevertheless, it is not the appraisal template or the type of appraisal methodology that determines whether actual performance is getting measured, but how the process is run.

The major objectives of Performance Appraisal are:

• Performance appraisal provides a basis for promotion, transfer or termination.

• It aids in enhancing employee’s effectiveness by helping him to identify his strengths and weaknesses and informing him as to what performance is expected from him.

• It helps in identifying employee’s training and development needs.

• It aids in designing training and development programs.

• Performance appraisal helps employees internalize the norms and values of the organization by correcting the misconceptions which might result in work alienation.

• It helps in creating a positive and healthy climate in the organization.

• It aids in improving the relations between superior-subordinate through realization that each is dependent on the other for better performance and success.

• Performance appraisal can in development of scientific basis for reward allocation, wage fixation, raises incentives etc.

• It also provides a means for exercising control.

• It serves as a mechanism for communication between superiors and subordinates.

The most important use of performance-evaluation data is to provide feedback about the employee’s strengths and weaknesses so that further training can be implemented.  This kind of evaluation is best done by holding a formal review interview. In such  “Tell” and “Sell” approach of performance appraisal interview, a supervisor “Tells” an employee everything she has done ineffectively and then “Sells” her on the ways she can improve.

Certain techniques can be used to make the interview more effective. 

It includes:

1. Allocating Time: The supervisor and the employee must have time to prepare for the review interview. Allocating definite time helps both the parties in being ready to face the interview.

2. Scheduling the Interview: Performance appraisal review interviews should be scheduled at least once in six months. The interview location should be in a neutral place that ensures privacy.

3. Preparing for the Interview: While preparing for the interview, both the supervisor and the employee should review the ratings that are ascribed. The reasons for ascribing the ratings should be specified so that quality feedback could be given.

4. The Interview: The review process is best begun by initiating a small talk until both the parties feel less anxious. It is a good idea to begin the interview with the employee communicating the ratings ascribed by him or her and specifying the reasons for the same. Then the supervisor communicates the ratings ascribed by him folowed by its reasons and explanations. This communication should be restricted to the performance and the behavior of the employee and not target the traits of possessed or not possessed by the employee. During the interview the positive review should be given first followed by a negative feedback and finishing with more positive feedback. This technique is referred to as the “Feedback Sandwich”. Any major discrepancies in the ratings should be discussed till both understand the reasons for the same. Conflicts should be avoided by libral  usage of positive feedback. The employee might receive poor ratings which may be due to the presence of external forces. Awareness and acknowledgement of such factors avoids attribution errors by the employee and the supervisor. Once the problems have been identified the solutions for the same are to be chalked out. 

As a conclusion, the goals should to be mutually set for future performance appraisal and both the parties should understand how these goals will be accomplished.

Article Contributed by :

Mrs. Sharmin Palsetia

Asst. Professor, Department of Psychology,

Nowrosjee Wadia College, Pune.

This article was published in the  Calibre Creators LEARNING LETTER issue of June 2015, Vol. 3, Issue No.10.  

 

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