Definition to Performance Appraisal
The real asset of a company is not its infrastructure nor it is the profits, it is its employees who work wholeheartedly for the company. The companies, who understand this thing well, never get into higher losses. So the essence is that every company should try to make its employees happy all the while. Now if we talk about the performance part of the employees, so it also matters a lot for the company and yes it is not exaggerated to say that employees should also feel the responsibility of work. So to make employees motivated toward work there is a concept of “performance appraisal” in every company which is basically the allowance, paid to the employee whose performance is excellent in every assignment provided to him. So this is basically linked directly to the performance of the employee.
The Objective of Performance Appraisal
The objective behind the performance appraisal is given below:
- Performance appraisal motivates the employees of the company which leads to better performance and also the quality of work.
- It produces a feeling of competition in the employees, like if one employee gets an appraisal for his better services, then the other employee also motivates himself to do better work for getting appraisal next time.
- It basically benefits the company per se, because of the better quality of work by the employee leads to higher manufacturing, etc. and it brings profits to the company.
- Performance appraisal also helps to identify the real strength of the employees in the company which is quite necessary.
- It also works as a tool for enhancing mutual understanding between the employer and employee.
Methods of Performance Appraisal
So there are several methods to determine the performance appraisal for the employees in a company like:
1. Traditional Method
This is the best method to determine the appraisal for the employees, in this particular method several parameters are used to determine appraisal these are: Rating scales, field view, review record, employee interaction, etc. So there are many other parameters also which are used. So by evaluating all these parameters a fix allowance according to the performance is given to the employee.
2. Modern Method
This is a new method of evaluation of the performance appraisal; this is different from the traditional method. In this method the parameters which are used for evaluation are different, It contains Psychological performance, MBO, competition mode, etc. This method is suitable for companies which have big no. of employees and where there is a strict procedure of performance appraisal.
Advantages of Performance Appraisal
There are many advantages of performance appraisal which are as follows:
1. Development of Employees
The main advantage of performance appraisal is the holistic development of employees, which includes the mental and economic perspective both. If an employee feels good in the atmosphere of the company due to its policies and other facilities provided to him, it motivates him to give his best, which is real development.
2. Motivation and Competition
Human is a social animal, who try to get everything which other people have. So in a company as well, when an employee gets performance appraisal for his good services, his colleagues also get motivation and a feeling of competition emerges in them, that they also want the appraisal. This is the real essence of an appraisal.
3. Scrutiny of Employees
A performance appraisal is given to an employee whose performance is best in the company or when someone has done exceptionally good work which is given to him. So the company also uses this process to scrutinize the employees that which employee which better and provide him other essential responsibility in the company. The person who is doing good in every assignment, makes his reputation by doing this.
4. Statistical Information
The data of performance appraisal also used by the managers and other officials to analyze the behavior of employees and also to see that, what are the pro and cons of the performance appraisal on the employees. The company also maintains a record of the appraisals and this particular record is further used during the season of promotions to employees.
Disadvantages of Performance Appraisal
There are also cons of the performance appraisals which are given below:
- There are politics in every company as we all know that if a manager likes some employee in company reasons may be so many like he may be his relative, friend, or other, so there is a biased decision every time during the appraisal period because that particular manager always refers his close one for the appraisal which affects directly the genuine employee. So Nepotism is the biggest disadvantage.
- Sometimes there is a misunderstanding between the officials and workers which leads to lower performance and also this may hit the performance appraisal of the worker.
- The managers and other higher officials are not qualified enough and they are not able to judge a worker properly; this thing also leads to the biasness in the factor of performance appraisal. The old managers also made mistakes during the assessing of the performance of the employee, which affects the worker in his appraisal time.
- The parameters which are used to assess an employee’s performance are not according to requirement and these vague parameters lead the officials toward wrong information which are not required to check the performance.
- Sometimes the amount of performance appraisal is so less, which did not motivate the employees to do work with full enthusiasm and they feel satisfied with what they are getting.
Performance appraisal is a good thing and everyone favors it, but the criteria and the thinking behind this are not good. This is more like harassment for the employees because companies put pressure on the employees to work more than their physical tolerance. This mentality should be abrogated because if a company makes a profit by putting its employee’s life on risk, this is pathetic and really a worse thing. The performance appraisal should be given to employees as gratitude, not as a favor. Which is beneficial for employees and as well as for the company.
This is a guide to Performance Appraisal. Here we discuss the Objective and Methods of Performance Appraisal along with Advantages and Disadvantages. You can also go through our other suggested articles to learn more–