Project Report on Performance Appraisal

The success of an organization, therefore, depends on its ability to accurately measure the performance of its members and use it objectively to optimize them as vital resources. 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 combining quantity, quality, time and cost. People do not learn unless they are given feedback on the results of their actions.

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For learning to take place, feedback should be provided regularly and it should register both successes and failures. It should also follow soon after the relevant action or actions. Performance appraisal system provides management an opportunity to recall as well as give feedback to people. This feedback is pertaining the performance of the worker.

This helps them to correct their mistakes and acquire new skills. Performance appraisal (PA) refers to all those procedures that are used to evaluate the personality, the performance and the potential of its group members. Evaluation is different from judgment.

The former is concerned with performance and the latter is concerned with the individual. While evaluation deals with achievement of goals, a judgment has an undercurrent of personal attack and is likely to evoke resistance.

Performance appraisal could be informal or formal. Informal performance appraisal is a continuous process of feeding back information to the subordinates about how well they are doing their work in the organization. The informal appraisal is conducted on a day-today basis. For example, the manager spontaneously mentions that a particular piece of work was well performed or poorly performed.

It is due to the close connection between the behavior and the feedback on it, the informal appraisal quickly encourages desirable performance and discourages undesirable performance before it becomes permanently ingrained.

Therefore, informal appraisal should not be perceived merely as a casual occurrence but as an important activity and an integral part of the organization’s culture. The formal performance appraisal occurs usually annually on formal basis and involves appraise and appraiser in finding answers to the following questions: 1. What performance level has to be achieved during the period? . Has it been achieved? 3. What has been the shortfall and constraints? 4. What are we going to do now? 5.

How will we know that we have done it? 6. What kind of feedback can be expected? 7. What assistance can be expected to improve performance? 8. What rewards and opportunities are likely to follow from the performance appraisal? When the employees have this type of information, they are aware of the following specifications:- 1. What the organization expects from them? 2. What assistance is available? 3.

What can they expect when the required level of performance is achieved?

This increases employee acceptance of the appraisal process and results in the trust that the employee has in the organization. An environment that affords an opportunity for further growth while minimizing stressful situations certainly enhances appraisal acceptance. Establishing this type of environment goes far beyond the performance appraisal process. Every aspect of managing people and their work relates to the improvement of their quality of work life. Performance appraisal is an integral part of a trusting, healthy and happy work environment that goes a long way in promoting the same.

Performance appraisal has been used for the following three purposes: • Remedial • Maintenance • Development A performance appraisal needs to cover all these three purposes with the same focus.

If any purpose predominates, the system becomes out of balance. For instance, if remedial purpose is foremost, then the performance appraisal may become a disciplinary tool, a form of a charge sheet and a tool of power instead of instrument of evaluation. Sometimes maintenance becomes the main objective for an organization. In this case, the process may become short, skimped and per functionary ritual.