Performance appraisal is a universal phenomenon in which the organization is making judgment about one is working with and about oneself. It serves as a basic element of effective work performance. Performance appraisal is essential for the effective management and evaluation of staff. It aims to improve the organizational performance as well as individual development.
The history of performance appraisal is quite brief.Â Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War - not more than 60 years ago. Performance appraisals have been increasingly implemented by most modern organization as a tool for employee assessment.
Performance is an employee's accomplishment of assigned work as specified in the critical elements and as measured against standards of the employee's position. The term "Performance Appraisal" is concerned with the process of valuing a person's worth to an organization with a view to increasing it.
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Traditional Appraisal system; Performance appraisal is developed as a simple method of income justification. Appraisal used to decide whether the salary of an individual was justified or not. The decrease or increase in pay depends upon employee's performance.
Modern Appraisal System: Performance appraisal is defined as a structured formal interaction between a subordinate and a supervisor that usually takes the form of a periodic interview, in which the work performance of the subordinate is examined and discussed with a view to identify weakness, strength and opportunities for improvement and skills development. Performance-Based Actions are the reduction in grade or removal of an employee based solely on performance at the unacceptable level.
Performance Plans are the documentation of performance expectations communicated to employees from supervisors. Plans define the critical elements and the performance standards by which an employee's performance will be evaluated.
Performance Standards are statements of the expectations or requirements established by management for a critical element at a particular rating level. A performance standard may include, but is not limited to, factors such as quality, quantity, timeliness, and manner of performance
Performance Award is a one-time cash payment to recognize the contributions of an employee and is based on the rating of record. A performance award does not increase basic pay.
Performance Improvement Plans (PIP) are developed for employees at any point in the appraisal cycle when performance becomes Level 1 (unacceptable) in one or more critical elements. This plan affords an employee the opportunity to demonstrate acceptable performance and it is developed with specific guidance provided by a servicing human resources office.
Performance Management is the integrated process by which an agency involves its employees in improving organizational effectiveness in the accomplishment of agency mission and strategic goals. Performance Management consists of: performance planning, monitoring employee performance, employee development, evaluating employee performance, and recognition.
Performance appraisal system describes how agency will identify performance standards and core competencies and communicate them to employees. Periodical appraisal helps the company to compare employee's performance and to take apt decisions for further improvement. A structured business planning depends on the performance of the employee and it will be successful only when the employees are analyzing their work performance individually. The formal performance appraisal in a company is conducted annually for all staff and each staff member is appraised by their line manager. Generally employees are appraised based on the structure of the company. Annual performance appraisals evaluate the role of the employee in the organizational development and also monitoring the standard, expectations, objectives, efficiency in handling task and responsibilities in a period of time. Appraisal also helps to analyze the individual training needs of the employee and planning of future job allocation. It also help to adopt appropriate strategy based on organizational training needs. Performance appraisal analyzes employee's performance and which utilize to review the grades and modify the annual pay. It generally reviews each individual performance against the objectives and standard of the organization. Performance management creating a work environment and it is enabling the employees to perform best of their abilities. Through performance management companies are hiring efficient people .Then the company building up their skills and talents through employee development programmes. The tools like performance appraisal, performance review, and appraisal forms create the process of nurturing employee developments. Effective appraisal considering increase in staff productivity, knowledge and contribution. Formal management procedure used the evaluation of work performance. Effective appraisal helps the employer in providing increased productivity, knowledge and contribution from the staff. These resources increase the ability to do performance consulting, measure performance improvement, and provide resultant training using internal staff, which increases self-sufficiency in performance consulting and improvement. Providing feed back about employee's job performance and the contribution of reward for their work is very essential in the smooth functioning of an organization.
Always on Time
Marked to Standard
Performance appraisal tries to:
Give feedback to employees to improve subsequent performance.
Identify employee-training needs.
Document criteria used to allocate organizational rewards.
Form a basis for personnel decisions-salary (merit) increases, disciplinary actions, etc.
Provide the opportunity for organizational diagnosis and development.
Facilitate communication between employee and administrator.
Purpose of Performance Appraisal.
Feed back of Performance provide an opportunity to discuss strength and resolution of performance deficiencies of an employee. Which also encouraged preparing ratings of their supervisors. Performance appraisal allows a person to grow in what ever the direction he wants to move. Employers promote positive attitude, advancement, and motivation to make the employee to understand their own special potential, and find roles that really fit well. Developing the whole-person is also an important aspect of modern corporate responsibility, and separately whole-person development is a crucial advantage in the employment market; in which all employers compete to attract the best recruits, and to retain the best staff. The UK Employment Equality (Age) Regulations 2006, (consistent with Europe), effective from 1st October 2006, make it particularly important to avoid any comments, judgments, suggestions, questions or decisions which might be perceived by the appraise to be based on age. Usually performance appraisal used for developmental purpose which also helps to identify the eligible person for reward. It stimulates the performance and making promotions, transfer and discharge decisions.
Aspects of Job Analysis
Job Analysis is a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job. Job Analysis is a process where judgments are made about data collected on a job. Information regarding duties and tasks, Environment, tools and equipments, external and internal relationships and the minimum requirements to perform the job are considered under job analysis.
Rating in Performance Evaluation.
Rating can be performed by the committee of several superiors, employee's peers, employees' subordinates. Apart from these self evaluation also valid. These rating are based on observation, analysis of data and records, discussion with the employee.
Problems during performance Appraisal
There are chances of opposition for valuation due to fear. If the evaluation system is poor, it will not give adequate effect. Rater's problems like leniency or harshness error, central tendency error, personal bias error, contrast error are also affecting the performance appraisal of an employee. Each employee should evaluate by his supervisor and to discuss each other to set objectives for upcoming evaluation. This discussion should cover the review of overall progress, problems encountered, performance improvement possibilities, long term career goals, specific action plan about job description and responsibilities, employee development interest and needs, to concentrate specific areas of development, to review performance objectives and performance standard, ongoing feed back and periodic discussions Performance appraisals are important for staff motivation, attitude and behavior development, communicating organizational aims, and fostering positive relationships between management and staff. Performance appraisals provide a formal, recorded, regular review of an individual's performance, and a plan for future development. In short, performance and job appraisals are vital for managing the performance of people and organizations.
METHODS OF PERFORMANCE APPRAISAL
Once the employees has been selected, trained and motivated, he is then apprised for his performance. Performance appraisal is the step where the management finds out how effective it has been hiring and placing employees. If any problem is identified, steps are taken to communicate with the employees and to remedy them. So "so a performance appraisal is a process of evaluating an employees performance of a job in terms of its requirement " Several methods and techniques of appraisal are available for measurement of the performance of the employee. The methods and scales differ for obvious reason. First they differ in sources of traits and qualities to be apprised. The quality may differ because of difference in job requirements. Second they differ because of different kinds of workers who are being rated .third the variation may be caused by the degree of precision attempted in an evaluation. Finally they differ because of the method used to obtain weighting for various traits. The performance appraisal method is divided into three categories these are
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With a vision to acquire self - sufficiency in fertilizer production in the country, FFC was incorporated in 1978 as a private limited company. This was a joint venture between Fauji Foundation (a leading charitable trust in Pakistan) and Haldor Topsoe A/S of Denmark. The initial authorized capital of the company was 813.9 Million Rupees. The present share capital of the company stands at Rs. 3.0 Billion. Additionally, FFC has Rs. 1.0 Billion stakes in the subsidiary Fauji Fertilizer Bin Qasim Limited (formerly FFC-Jordan Fertilizer Company Limited). FFC commenced commercial production of urea in 1982 with annual capacity of 570,000 metric tons. Through De-Bottle Necking (DBN) program, the production capacity of the existing plant increased to 695,000 metric tons per year. Production capacity was enhanced by establishing a second plant in 1993 with annual capacity of 635,000 metric tons of urea. FFC participated as major shareholders in a new DAP/Urea manufacturing complex with participation of major international/national institutions. The new company Fauji Fertilizer Bin Qasim Limited (formerly FFC-Jordan Fertilizer Company Limited) commenced commercial production with effect from January 01, 2000. The facility is designed to produce 551,000 metric tons of urea and 445,500 metric tons of DAP. This excellent performance was due to hard work and dedication of all employees and the progressive approach and support from the top management. In the year 2002, FFC acquired ex Pak Saudi Fertilizers Limited (PSFL) Urea Plant situated at Mirpur Mathelo, District Ghotki from National Fertilizer Corporation (NFC) through privatisation process of the Government of Pakistan. This acquisition at Rs. 8,151 million represents one of the largest industrial sector transactions in Pakistan
FFC's mission is to sustain its role as the leader in industrial and agricultural advancement of Pakistan by setting and achieving new and higher goals and taking initiatives. The Company is committed to ensuring safe and conducive work environment, providing high quality products and allied services to its customers and profitable returns to its shareholders.
FFC is focused on harmonizing its capabilities and maximizing its potential. FFC's vision for the future envisages diversification and undertaking ventures at home and abroad in collaboration with leading international partners.
Another major landmark for Fauji Fertilizer Company is ISO-9002 certification for its manufacturing division at Goth Machhi. Quality in all areas has been a hallmark of the Company right from the beginning and our product "SONA UREA" has already established its rightful place in the market. Therefore, to bring our system in line with internationally recognized quality standards, we decided to go for ISO-9002 certification. To achieve a total quality management system, we surpassed the requirement of ISO-9002 standards by including all support services like Administration, Personnel, Finance, Hospital, Schools and Management Club etc. also in the certification scope. We selected Bureau of Veritas Quality International (BVQI), England, a leading certification agency as our registrar.BVQI is honoured by various accreditation authorities of the world. Quality Management System of FFC got ISO certified in its first attempt during November 1997 with the honor of being the 1st Fertilizer Plant in Pakistan. Since then we have not looked back. We have passed all surveillance audits with commendable remarks from our registrar. Since 21 February, 2001 Quality Management System of FFC now stands recertified (ISO 9002) by BVQI after successful completion of initial certification period of 3 years.
Human Resource Management
The culture of the organization is very much differentiated with their competitor. The culture of the organization is too much dynamic that is encouraged to the individual to do hardworking & show the achievement. Following are the practices that make the culture of the organization dynamic.
The culture of the organization is centralized and also decentralized that everyone has followed the orders of the Top management and decentralized in the sense that some decision are taken into consideration and solved by the specific department head.
The culture has focused on the good relations among the employees. each and every person is working in the friendly environment and co-operate with each other.
Human resource practices:
Following are the practices conducted in the FFC.
Compensation & Benefits
They made evaluation of their employees after six months. Feedback is taken from employees and their performance is judged. In FFC purpose of performance appraisal is developmental goal setting is not formal performance appraisal is annual Jan-Dec (assignment oriented) in which Top down approach is used Controlling is a very much important aspect of big business. FFC controlling technique is Bureaucratic. Because of in rules and regulation they use Bureaucratic controlling mean the formal control, feed forward control aims to prevent problem before they arise, feed back control implies the performance measure by the data and analysis the results. With this they have the also have audit management and budgetary control by the help of auditors, balance sheet, income statement and financial ratios.
Set performance stander
Continuous work progress
Some times employees show reaction against these control then management take the actions against him/her.
PERFORMANCE STANDARDS: Performance standards form the framework by which performance will be evaluated. Performance standards can either be specific skills and/or behaviors from each area of competence, or other appropriate standard. Select standards that are relevant to the employee's work assignments. Establish what the employee is expected to achieve during the review period-both ongoing and specific skills and competencies. At the beginning of the performance appraisal period, the supervisor and the employee should discuss the competencies and performance standards upon which the employee will be evaluated. If the employee has input in developing the standard, the supervisor can expect fewer disagreements or disappointments later.
Outstanding Performance is exceptional and far exceeds expectations. Consistently demonstrates excellent standards.
Expectations Performance is consistent and exceeds expectations.
Performance Performance is consistent. Clearly meets job requirements.
Meet Expectations Performance is satisfactory. Meets minimum requirements of the job.
Meet Improvement Performance is inconsistent. Meets requirements of the job occasionally.
Constantly Exceed Expectations
Frequently Exceed Expectations
Performance meet the requirements
Performance have not been consistent
Less than 35
Quality of Work
Training and Development
Safety / Security
PROBLEM IN PERFORMANCE APPRAISAL
The problem with subjective measure is the rating which is not verifiable by others and has the opportunity for bias. The rate biases include: (a) halo effect (b) the error of central tendency, (c) the leniency and strictness biases (d) personal prejudice, and (e) the recent performance effect
(a) Halo Effect: It is the tendency of the raters to depend excessively on the rating of one trait or behavioral consideration in rating all others traits or behavioral considerations. One way of minimizing the halo effect is appraising all the employees by one trait before going to rate on the basis of another trait.
(b) The error of Central Tendency: Some raters follow play safe policy in rating by rating all the employees around the middle point of the rating scale and they avoid rating the people at both the extremes of the scale. They follow play safe policy because of answerability to management or lack of knowledge about the job and person he is rating or least interest in his job.
(c) The Leniency and Strictness: The leniency bias crops when some raters have a tendency to be liberal in their rating by assigning higher rates consistently. Such ratings do not serve any purpose. Equally damaging one is assigning consistently low rates.
(d) Personal Prejudice: If the rater dislikes any employee or any group, he may rate them at the lower end, which may distort the rating purpose and affect the career of these employees.
(e) The Recent performance Effect: The raters generally remember the recent actions, of the employee at the time of rating and rate on the basis of these recent actions favorable or unfavorable than on the whole activities.
Other factors that are considered as problems are
ÂÂ· Failure of the superiors in conducting performance appraisal and post performance appraisal interview.
ÂÂ· Most part of the appraisal is based on subjectivity.
ÂÂ· Less reliability and validity of the performance appraisal techniques.
ÂÂ· Negative ratings affect interpersonal relations and industrial relations system.
ÂÂ· Influence of external environmental factors and uncontrollable internal factors.
ÂÂ· Feedback and post appraisal interview may have a setback on production.
ÂÂ· Management emphasizes on punishment rather than development of an employee in performance appraisal.
ÂÂ· Some ratings particularly about the potential appraisal are purely based on guess work.
The other problems of performance appraisal reported by various studies are:
* Relationship between appraisal rates and performances after promotions was not significant.
* Some superiors completed appraisal reports within a few minutes.
* Absence of inter-rater reliability.
* The situation was unpleasant in feedback interview.
* Superiors lack that tact of offering the suggestions constructively to subordinates.
* Supervisors were often confused due to too many objectives of performance appraisal
FFC EMPLOYEES ENGAGEMENT SURVEY
Please read each statement below. Indicate to what degree you agree with each statement using the following key:
5=Strongly agree , 4=Agree. 3=Neither agree nor disagree, 2=Disagree,1=Strongly Disagree
To what extent do the following conditions exist in the FFC?
I am provided with the necessary materials to accomplish my work.
I understand my role in the FFC as a whole.
Poor performers are held accountable.
I have opportunities to develop new skills to do my present job.
The resources I receive are distributed fairly.
I am kept well informed about FFC events and issues.
My supervisor is supportive of employees.
I am proud of the FFC overall.
The benefits package I receive is fair.
I am open to opposing views.
FFC promotes work life balance.
I am provided information when I need it.
I am satisfied with the leadership of the FFC.
Salary increase decisions are made impartially.
I am compensated fairly based on performance.
It is important to me that I meet or exceed expectations of FFC
FFC supports continuous learning and development.
I have career opportunities in FFC.
The tools and equipment I need to do my job are provided.
My work priorities are clear and non-conflicting.
My work plan is updated when my responsibilities change.
My supervisor does not show favoritism.
I receive my performance appraisals on schedule.
I am included in the decision-making process.
I receive regular feedback on my current performance from my supervisor.
My leadership makes good use of my skills and abilities.
I enjoy my job.
I have opportunities to grow and develop in my position.
My pay is similar to what our competitors (private/public) pay.
The FFC culture encourages team spirit.
My upper management acts with integrity.
I have the necessary information to do my job.
I have been given sufficient training to perform my job effectively.
FFC supports risk taking.
My most recent performance rating was fair.
Work is distributed fairly within my work unit.
My supervisor shares the spotlight with me and gives me credit.
Decisions, policies and procedures are applied consistently to all employees.
In FFC, there is a clear difference in the way we compensate average versus outstanding performers.
Promotional decisions are made based on proven performance.
How many years of service do you have?
How many years have you been with the FFC ?
How many years have you been in the current position?
Do you directly supervise other employees?
If you are a supervisor, please provide the following information:
How many years have you been a supervisor?
How many direct reports do you have?