How is performance appraisal done?

[luttu]

How to introduce an effective merit-rating programme in an organisation?
Or
What are the steps involved in performance evaluation of an employee?

[nbm]

(1) Determining objectives—It is advisable to set the objectives of the performance appraisal. There may be two objectives of performance appraisal, either to evaluate the actual of the individual on the job or to determine the potential of individuals to higher jobs or both.

(2) Establishing the Standard of Performance—Now it is necessary to establish the standards of performance against which their performance should be compared. Standards of performance should be established in writing.

(3) Selection of Appraiser-It should be decided well in advance who will be the appraiser. Generally, the appraiser is immediate supervisor of the people to be appraised because he is most familiar to them and their work and he is considered to be the suitable man to appraise them well. Some companies have a committee consisting of the representatives of the employees and supervisors.

(4) Collection of Data—The appraiser starts collecting the necessary information relating to jobs and the workers. Appraisal forms should be different for different types of jobs such as clerical, mechanical, technical etc. and all the information collected should be depicted in the forms especially designed for the purpose.

(5) Rating the employee—After collecting the information, the rater evaluates the worth of the employees by applying any of the methods of performance appraisal and estimates their potential for future development.

(6) Consultation—The appraiser after completing the rating process discusses the situation with supervisor and union representatives and defines the performance level and incorporates the valuable suggestions if any, given by them.

(7) Designing the Development-The appraiser prepares the rating report and submits it to the review committee which reviews the report and accepts it. Reviewer interviews the employee on the basis of the report. Top executives designs the various development programmes in consultation with supervisors.

(8) Follow-up—The review of performance appraisal should be made frequently as a follow-up programme. It should most probably be made yearly or half-yearly. New employees should be rated more frequently than the older ones.