tejas.gaikwad.1044
Tejas Gaikwad
Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.
A performance appraisal is a systematic and periodic process that assesses an individual employee’s job performance and productivity in relation to certain pre-established criteria and organizational objectives. Other aspects of individual employees are considered as well, such as organizational citizenship behavior, accomplishments, potential for future improvement, strengths and weaknesses, etc. To collect PA data, there are three main methods: objective production, personnel, and judgmental evaluation. Judgmental evaluations are the most commonly used with a large variety of evaluation methods. Historically, PA has been conducted annually (long-cycle appraisals), however many companies are moving towards shorter cycles (every six months, every quarter), and some have been moving into short-cycle (weekly, bi-weekly) PA . The interview could function as “providing feedback to employees, counseling and developing employees, and conveying and discussing compensation, job status, or disciplinary decisions”. PA is often included in performance management systems. PA helps the subordinate answer two key questions; first, "What are your expectations of me?" second, "How am I doing to meet your expectations?" Performance management systems are employed “to manage and align" all of an organization's resources in order to achieve highest possible performance. “How performance is managed in an organization determines to a large extent the success or failure of the organization. Therefore, improving PA for everyone should be among the highest priorities of contemporary” organizations.
An authorized person provides an estimate of the valuation/ current price/ net worth of property, generally real estate or a business, which is termed as appraisal. A valid appraisal entails that the appraiser hold a designation from a regulatory body governing the concerned jurisdiction, and that the appraisal be an impartial analysis.
A written appraisal is usually required when a property is bought, sold, insured, or mortgaged; or compensation claims are demanded for damages against an insured property.
‘Appraisal’ is also used as an alternative term for ‘valuation’.
There are 3 commonly used methods for appraising the fair market value of a property:-
a) Comparison method:- Here, the value of other comparable properties is used as reference and the fair price of the property in question is estimated after making requisite adjustments.
b) Cost method:- Here, the production and replacement costs of the property, less depreciation plus land value (in case of real estate)are calculated to give a fair estimate.
c) Income approach:- Here, the present income and net present value of the future intended incomes from the business/ property is calculated to provide an estimation of the valuation of the same.
Example:-
1. Property prices in various areas of the city are estimated by experts and published in newspapers.
2.The net worth of a firm is estimated by authorized financial experts employed by the potential buyer of the company.
Who conducts Performance appraisals:-
Human resource management (HRM) conducts performance management. Performance management systems consist of the activities and/or processes embraced by an organization in anticipation of improving employee performance, and therefore, organizational performance. Consequently, performance management is conducted at the organizational level and the individual level. At the organizational level, performance management oversees organizational performance and compares present performance with organizational performance goals. The achievement of these organizational performance goals depends on the performance of the individual organizational members. Therefore, measuring individual employee performance can prove to be a valuable performance management process for the purposes of HRM and for the organization. Many researchers would argue that “performance appraisal is one of the most important processes in Human Resource Management”.
The performance management process begins with leadership within the organization creating a performance management policy. Primarily, management governs performance by influencing employee performance input (e.g. training programs) and by providing feedback via output (i.e. performance assessment and appraisal). “The ultimate objective of a performance management process is to align individual performance with organizational performance”. A very common and central process of performance management systems is performance appraisal (PA). The PA process should be able to inform employees about the “organization's goals, priorities, and expectations and how well they are contributing to them”.
Objectives Of Performance appraisal:-
1. To review the performance of the employees over a given period of time.
2. To judge the gap between the actual and the desired performance.
3.To help the management in exercising organizational control.
4.Helps to strengthen the relationship and communication between superior – subordinates and management – employees.
5. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future.
6. To provide feedback to the employees regarding their past performance.
7. Provide information to assist in the other personal decisions in the organization.
8. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.
9. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.
10. To reduce the grievances of the employees.
A performance appraisal is a systematic and periodic process that assesses an individual employee’s job performance and productivity in relation to certain pre-established criteria and organizational objectives. Other aspects of individual employees are considered as well, such as organizational citizenship behavior, accomplishments, potential for future improvement, strengths and weaknesses, etc. To collect PA data, there are three main methods: objective production, personnel, and judgmental evaluation. Judgmental evaluations are the most commonly used with a large variety of evaluation methods. Historically, PA has been conducted annually (long-cycle appraisals), however many companies are moving towards shorter cycles (every six months, every quarter), and some have been moving into short-cycle (weekly, bi-weekly) PA . The interview could function as “providing feedback to employees, counseling and developing employees, and conveying and discussing compensation, job status, or disciplinary decisions”. PA is often included in performance management systems. PA helps the subordinate answer two key questions; first, "What are your expectations of me?" second, "How am I doing to meet your expectations?" Performance management systems are employed “to manage and align" all of an organization's resources in order to achieve highest possible performance. “How performance is managed in an organization determines to a large extent the success or failure of the organization. Therefore, improving PA for everyone should be among the highest priorities of contemporary” organizations.
An authorized person provides an estimate of the valuation/ current price/ net worth of property, generally real estate or a business, which is termed as appraisal. A valid appraisal entails that the appraiser hold a designation from a regulatory body governing the concerned jurisdiction, and that the appraisal be an impartial analysis.
A written appraisal is usually required when a property is bought, sold, insured, or mortgaged; or compensation claims are demanded for damages against an insured property.
‘Appraisal’ is also used as an alternative term for ‘valuation’.
There are 3 commonly used methods for appraising the fair market value of a property:-
a) Comparison method:- Here, the value of other comparable properties is used as reference and the fair price of the property in question is estimated after making requisite adjustments.
b) Cost method:- Here, the production and replacement costs of the property, less depreciation plus land value (in case of real estate)are calculated to give a fair estimate.
c) Income approach:- Here, the present income and net present value of the future intended incomes from the business/ property is calculated to provide an estimation of the valuation of the same.
Example:-
1. Property prices in various areas of the city are estimated by experts and published in newspapers.
2.The net worth of a firm is estimated by authorized financial experts employed by the potential buyer of the company.
Who conducts Performance appraisals:-
Human resource management (HRM) conducts performance management. Performance management systems consist of the activities and/or processes embraced by an organization in anticipation of improving employee performance, and therefore, organizational performance. Consequently, performance management is conducted at the organizational level and the individual level. At the organizational level, performance management oversees organizational performance and compares present performance with organizational performance goals. The achievement of these organizational performance goals depends on the performance of the individual organizational members. Therefore, measuring individual employee performance can prove to be a valuable performance management process for the purposes of HRM and for the organization. Many researchers would argue that “performance appraisal is one of the most important processes in Human Resource Management”.
The performance management process begins with leadership within the organization creating a performance management policy. Primarily, management governs performance by influencing employee performance input (e.g. training programs) and by providing feedback via output (i.e. performance assessment and appraisal). “The ultimate objective of a performance management process is to align individual performance with organizational performance”. A very common and central process of performance management systems is performance appraisal (PA). The PA process should be able to inform employees about the “organization's goals, priorities, and expectations and how well they are contributing to them”.
Objectives Of Performance appraisal:-
1. To review the performance of the employees over a given period of time.
2. To judge the gap between the actual and the desired performance.
3.To help the management in exercising organizational control.
4.Helps to strengthen the relationship and communication between superior – subordinates and management – employees.
5. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future.
6. To provide feedback to the employees regarding their past performance.
7. Provide information to assist in the other personal decisions in the organization.
8. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.
9. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.
10. To reduce the grievances of the employees.