In order for every organisation to succeed in the competitive and globalised world they need to focus on the HRM function of employee appraisal. In order to keep an organisation competitive the management should handle the performance of the employees effectively. Performance management is the function which must be implemented with great care and each procedure must be planned, monitored and developed perfectly. Performance management has 5 key components which are the base in order for successful execution. Firstly planning of the performance management is very important. Each individuals or group have been given goals and targets which they have to complete with great efforts in order to achieve organisation objectives. Flexibility should be maintained when changing programme objectives as per the requirements of the organisation. The assignments and projects on which the employees are performing should be carefully monitored by the management. Regular checkups should be made to maintain the standards and also to change the unrealistic data maintained by the employees. The data should be recorded and should be rated in order to determine the retention service and reduce the force.
The individuals in the organisation are been measured by giving them training on different assignments to check their skills and degree in which they can perform. This helps the management to develop the employees and encourage them for good performance and increasing competencies within the workforce. The performance of the employees should be rated in order that they keep the standards required to complete a task or assignment given to them. No organisation can retain its best employees if they do not reward them well and on time. This is because when an organisation rewards an employee he feels a part of the organisation and performs at his highest level. Good managers are very good in rewarding their employees timely.
Performance Management Cycle:
The performance management cycle helps an organisation to track the employee's performance depending upon the degree of work. The cycle starts with planning phase in which goals and targets are been set, which are needed to be maintained at a standard by the employees. When the accountabilities of the employees regarding the goals are been set, it is also important to identify the level at which the competitor's employee's accountabilities are been set. After the planning phase is been done and all the objectives are been set, the next step is to carry out the action. The managers and the employees should provide feedback on the tasks and assignments on the ongoing project and reinforce the dates in order for achieving the objectives. All the issues must be aroused and needed to modify them and plan according to the priorities. After the changes are been made, the action must be continued. After completion of all the task and objectives by employees with support of the management, the self assessment should be made on how well the project is been performed. This helps them to prepare ideas for developing a new plan when a new project has to be started. After self assessment of the project and the performance of the employees they should be given reward by appraising them.
Literature Review: After the in-depth research of the employee appraisal technique explained by Niven Paul R and the effect it has on the employee performance, it is very important that an organisation plans employee appraisal scheme with great care. The objectives and the goals that the employee need to be achieved should be very clear in the mind of the employees and the HR manager should be able to help them in understanding the goals so that the tasks are been completed on time. The HR manager must monitor the work that is going on and he should also monitor the level of performance that each and every employee is giving under different circumstances of his work. The HR manager must solve all the problems of the employee that arise during the task. The feedback of the employee on task completion should be taken to measure how well the task is been performed so that the rewards can be given to the employees.
This is because if the organisation is not able to implement the employee appraisal techniques successfully and if the HR manager is not able to monitor all the processes. The employees in the organisation will not be performing at the peak and thus the completion of task or objectives may not be completed on time which would be a drastic situation for an organisation. Hence from the reading, we come to know that the role of HR manager in implementing the employee appraisal technique is the most important so that the employees are able to develop their skills for better performance so that the organisation can provide them with the necessary rewards and retain them for developing a better organisation.
Methodology: The research done by me is exploratory and my aim is to collect the in-depth research of the employee appraisal technique that plays an important role and building the performance of an employee. My research contains secondary data, secondary data is the research done by someone else and used by me.
The secondary data is been collected from various books, Journals and website links. When we do analysis of secondary data, we are referring to someone else research and critically evaluating whether the person had gone through in-depth research.
Definition required of employee appraisal
The general principle of employee appraisal is to review the performance and the potential of the employee. The appraisal if carried out systematically can benefit both the employees as well as the employers helping them to identify weaknesses and strength. When the appraising method is been designed it is important to know the exact individuals who are to be appraised and also the one who appraise them for the appraisal method. In order for the employee appraisal to be successful in an organisation, the following questions needed to be answered. They are as follows;
What are appraisals: The employee appraisal gives the company an opportunity to view the overall content and the volume of work that is needed to be achieved in the reporting period.
Objectives of Appraisal: The main objective of an appraisal system is to review the performance of an employee and his potential that is been identified during training in order to meet the career plans.
Benefits of appraisal: If the appraisal technique is been successfully implemented it helps the organisation to identify the strengths and weakness and determine how the strength can be developed and how weaknesses can be overcome. The appraisal technique also helps to review the problems that might be restricting the employee to work efficiently. A good appraisal technique helps the employee to eliminate the fear in performing the task that he is afraid of and can perform better if he is been properly motivated. The management and the employee can make a better system with the constant feedbacks from the employee to the management in order for better performance.
Who should be appraised: Over the years it has been seen that the white collar employees have carried out the appraisal techniques. But with new technologies the white collar people in the organisation are extending the appraisal techniques for the overall employees of an organisation.
Who should carry out the appraisal: In order for the employees to perform better they need to be monitored by someone who has great experience in managing the employees. A senior manager can keep the all the employees at a standard level and be flexible with them in order to get their feedbacks and also to make sure that the reporting standard are been maintained. Someone who can communicate with the employees in order to emphasis on the key issues of team working maintain the skills of the employees. The whole process is called as multi source assessment in which the comments of several sources such as sub ordinates , peers, other managers and possible customers is been implemented. The culture of the company also plays the key role in appraisal technique. Thus, it is the work of a Human resource manager to look after all the key functions which are been related to the individuals working within an organisation.
What is performance?
It is a type of degree that needs to be accomplished on the given task or how well the job requirements is been fulfilled by an individuals. Performance evaluation is an activity that personalizes the extent to which the employees is performing his job and how effective is his degree of work. The whole process of managing the performance is called performance management which is been monitored and managed directly by the HR manager. In order for the performance management to be successful within an organisation, there are two level of efforts to be performed by the individuals. Firstly it is to determine the internal environment that is been currently running within an organisation. Secondly the efforts at the managerial level of the roles a manager needs to play and supervise the staff within him. Also the HR manager needs to maintain the standards or level at which the project needs to be practiced.
Performance Appraisal Definition:
"Performance appraisal is a method of evaluating the behaviour of employees in the work spot, normally including both the quantitative and qualitative aspect of job performance. It's a systematic and objective way of evaluating both work related behaviour and potential employees".
Prose of performance management:
A good manager is able to speak and practice effective performance management and execute each component process well. The manager sets the goal and works accordingly in different routines to achieve the goals. During the practice of performance, the feedback of the employees helps him to complete his task effectively. A very high standard of the employee is been maintained. For this a critical and non critical elements are been used as a standard for the performance. These elements tell the employee what they need to do and how well they have to meet the standards.
Critical elements of performance management:
It is an assignment or responsibility of importance that if been neglected would result in the determination of the employees overall performance. And his whole performance will be unacceptable. This performance regulates the employee to maintain at least one critical element in his or her performance to be acceptable. An acceptable performance has at least 3 or 7 critical elements that are appropriate in the given working situation. A failure of a non critical element is an adverse effect on performance and hence leads in demotion or removal of an employee and is said to be failed.
Required in employee performance Plan
Credited in the summary level
Can describe a group performance
Non - Critical Elements
Additional Performance Elements
Except when written for a supervisor or manager who has individual management control over a group's production and resources
Non critical element of performance management:
Group performance are the only way in which a group or team performs task in order to achieve its goal. They need to plan and track the objectives in order to achieve the goal. Every team member plays a vital role because his contribution for the performance plan for every element is been rated and the sum of all is been counted to make up a team's performance. The non critical elements cannot be recorded and thus they have no effects on the rating level. However if the employees are maintaining the performance for the task they have been given and on the accomplishment of the task, they require rewards and thus rewarding each and every employee on the performance he or she has been performed in order for fulfilling the objectives.
'All the monetary, non-monetary and psychological payments that an organisation provides for its employees in exchange for the work they perform'. Bratton and Gold 2005
The employee reward system covers how the people are been rewarded for their performance and the value they have towards organisation. This reward consists of both financial and non financial which embrace all the policies and strategies required for the structure and the process to develop and maintain the reward system. The effectiveness of the organisation is been considered in the way the employees are been valued and a good relationship is been maintained. The main aim of reward policies is to attract retains and motivates people to work with high quality. If the employee reward policy is not been implemented properly then it could have a negative effect on the morale of the employee.
What is Reward: Reward is a procedure and a process in which the employee is been trusted by the organisation. The organisation rewards and employee on the basis of his performance, this reward is been provided by the organisation in 2 ways. Firstly the employee is been rewarded in money terms. But not every employee wants the reward of only money. He can be motivated by providing him higher designation for the work or job been performed by him during a task. The decision that the organisation needs to take while rewarding is how much to pay, and whether the payment should be done individually or as a group. Also while the reward system is been designed, its objectives must be clear in order to support the organisation's strategy. This can be done by recruiting qualified employees by retaining capable employees and to ensure the internal and the external equity of reward. The main objective of the reward system is to motivate the employees so that they can perform at their highest and to strengthen their psychological mindset.
Types of employee rewards: The employees in an organisation are been rewarded because of their time spent, energy and competence they provide during completion of a task.
Team Rewards: When a team has been set to achieve the targets in order to complete a task and if the team is able to complete the task with good co-ordination of all the team members then the team is been rewarded for the effective application of skills , the time and money been provided to the organisation. Examples providing team bonuses gain sharing.
Organisational Rewards: When an organisation provides an individual or a group with a set of goals where they need to achieve and if the individual or group is able to successfully reach the goals then the organisation provides them with organisational reward. Examples profit sharing, gain sharing and share ownership.
Roles that a Human Resource Manger plays in implementing successful employee appraisal techniques for improving the employee performance and determining the employee reward on the basis of their performance:
The role of HR manger in an employee appraisal techniques starts with the design and the implementation of the appraisal and how it is going to be introduced within the organisation. For this they need to consult with employees, other managers and trade unions representatives. This is to be done for the overall objectives of the appraisal techniques to be spot on. They should adopt a pilot scheme in which the sample of managers and the employees are been developed and tested in order to measure the performance. The check-list of all the items needs to be maintained, during the introduction of appraisal system. The appraisal techniques need to be straight forward as possible. This is because over elaboration of paper work can sometime fail the appraisal system. Hence for the appraisal system to work effectively, the HR manager needs to record the system that is going to be used by different individuals during the period of performance appraisal.
A proper timetable needs to be maintained for the successful implementation of the scheme. The HR manager needs to give the employees and the trade unions representatives with a written information how the appraisal going to work and how it is going to affect the way they going to perform their duties. He needs to inform the new employees of the organisation by calling an induction meeting in the way the appraisal system should be performed. It is his job to do a briefing about the overall objectives of the scheme and what is exactly expected from each and every individual involved. The HR manager should nominate the union representative to answer all the queries that come up during the scheme.
He also needs to provide the employees with a proper and adequate training. Also the line managers who carry out the appraisal must be given training to help them perform effectively and to motivate the employees to take out the best skills out of them during the appraisal process. The HR manger needs to take a timely report on the work done by the employees. This helps him in knowing which employees are performing better and which requires more training in order for the scheme to work out. The HR manager should also give a feedback to the employee on the report and discuss the differences and problems they have faced during the implementation. They should also show the differences in the marking of all the employees to make them understand how to improve. He also needs to train the trainees who have just been employed by the organisation and give them practice for mock appraisal interviews and he should give them comments on their performances from the tutors.
After the successful implementation of the appraisal techniques and assigning task to the employees and other trade union representative, it is important that the HR manger gives high priority to the appraisal techniques. He needs to see that the interviews are been taken and there should be a co-ordination for the forms to be completed correctly. His own performance of how effectively he undertakes the appraisal techniques and how useful and successful he can make the whole appraisal technique. This is because if the HR manager does not give equal opportunities to each and every step that is to be performed effectively and efficiently during the whole appraisal scheme. He needs to set an annual timetable for the various stages to be completed in order for the appraisal to get finished within the skilled time.
The HR manager's main responsibility is to monitor the appraisal system:
He needs to check that the appraisal are been carried out perfectly and also to determine whether there is any other need to make some modifications in the system to meet the changing needs of the organisation.
He needs to give a proper suggestion for the problems that have been encountered during the monitoring for the work performed by the employees. This is important because the HR manager is the person who needs to curtail the system for the upcoming problems and give a considerable solution to each and every problem.
The HR manager needs to monitor the type of reaction the employee gives during the degree of work been performed. These reactions can help the HR manager to understand more about their employees.
Quality for each job needs to be performed based on the job description.
The people need to play a vital role in maintain the quality that is required in successful completion of the job.
The HR manager does not only need to list the functions and maintain quality but also needs to judge the mechanism to approve the work of the employee. The candidates can be rated by the supervisor who has assigned them the task. The behavioural dimension of the work performed can be measured by the experiment few psychological test. The mechanism of the employees can be measured by the simulation games and exercises to uncover the potential of the candidate.
The HR manager needs to maintain equality and diversity within the workforce. Equality is important within a workforce for non discrimination between different employees working together in a diverse work force. This helps the employees to perform at the highest level and to develop their skills. Hence the HR manager plays a crucial role in defining the way in which equality and diversity are to be dealt within an organisation giving equal opportunities to employees is at the heart of HRM practices. When he monitors the appraisal techniques the promotion and development of cultural diversity helps the operational level of the working individual to be vulnerable. These are the roles of the HR manger in the successful execution of appraisal technique. If he is able to follow each and every step with great concern and good implementation, the success of appraisal techniques helps an organisation and the employees working within it.
Hence, the role played by HR manager in given process of employee appraisal helps the employees in an organisation to optimize their performance level and also enhance their performance. If the HR manager monitors the performance of each employee and takes their feedback on each and every issue and helps them solving the problem which arises anytime during the processing of a task increases the employee's ability to perform the same task in the near future even better. Every organisation has a dream to retain their employees and to see to it that they are able to increase their performance. But in today's world the employees just not need to work without any reward. It is seen in many organisations that the best way to appraise an employee is to reward him in money terms or giving higher designation to the employee.
The organisation must have a good policy term to reward the employee on the level of the performance made by him during a task to be completed. This will help the employee in any organisation to feel that they are been appreciated and that they are been needed by the organisation. The organisation who are able to retain their employee with successful implementation of appraisal technique to improve their performance and reward them on their merit of job done seem to be making huge profits and maintaining a good HRM management within an organisation.