History of Performance Appraisal

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I. Contents of getting history of performance appraisal ================== Judging people's work has occurred informally for centuries. Evaluating employees to improve productivity has its roots in the work of Frederick Taylor, a mechanical engineer. Appraising employee work became common during World War II. Modern performance management systems provide structured environments to help managers provide employee evaluations that are fair, defensible and accurate, and that adhere to local, state and federal regulations. Scientific Management Technical work in the early 1900s was usually performed by skilled craftsmen. In 1911, Frederick Taylor described how the application of the scientific method to management could improve productivity in manufacturing. Additional research by Frank Bunker Gilbreth, a management engineer, helped managers learn to identify the procedures required to accomplish work. These techniques helped managers optimize the way tasks were performed. The strategies allowed managers to simplify the work so that workers could be trained and evaluated on performing short tasks in a consistent manner, without having to produce the whole product. By providing training to new employees so they could accomplish short, simple tasks or functions, management could hire unskilled personnel to do the work. Performance Appraisals Early performance-appraisal systems didn't take morale and motivation into consideration. Modern companies use employee evaluation activities to identify training and development needs. Managers also use performance appraisals to make decisions regarding promotions or

terminations. Managers may also use employee evaluations to justify paying some workers more than others based on their productivity. Ranking In the 1990s, Ford Motor Company tried to implement a system in which the lowest-ranked employees lost their jobs. While that practice has been eliminated, rankings still play a role in the employee evaluation process. Managers need to identify high performers, not only so that they can reward them, but also so that those employees can coach and mentor other employees. Employee evaluation rankings also help workers know how well they're doing relative to their peers. By identifying their strengths and weaknesses, employees can learn how to improve their production rate. Current Issues Managers usually conduct employee evaluations for their direct subordinates. Without effective recordkeeping or documentation, managers who rate employees below par run the risk of not being able to prove their allegations. Managers may fear that providing negative comments will result in legal action or employee retaliation, so they often avoid dealing with poor performers. Additionally, critics observe that executive leadership tends to disregard employee evaluation results and conducts evaluations inconsistently. In general, though, organizations usually agree that a well-designed performance management plan benefits both the company and the employees. Mandating that employees develop an annual plan to improve their technical and professional skills allows them to manage their own careers, as well as contribute to overall company success. ==================

III. Performance appraisal methods

1. Essay Method In this method the rater writes down the employee description in detail within a number of broad categories like, overall impression of performance, promoteability of employee, existing capabilities and qualifications of performing jobs, strengths and weaknesses and training needs of the employee. Advantage – It is extremely useful in filing information gaps about the employees that often occur in a better-structured checklist. Disadvantages – It its highly dependent upon the writing

skills of rater and most of them are not good writers. They may get confused success depends on the memory power of raters.

2. Behaviorally Anchored Rating Scales statements of effective and ineffective behaviors determine the points. They are said to be behaviorally anchored. The rater is supposed to say, which behavior describes the employee performance. Advantages – helps overcome rating errors. Disadvantages – Suffers from distortions inherent in most rating techniques.

3. Rating Scale Rating scales consists of several numerical scales representing job related performance criterions such as dependability, initiative, output, attendance, attitude etc. Each scales ranges from excellent to poor. The total numerical scores are computed and final conclusions are derived. Advantages – Adaptability, easy to use, low cost, every type of job can be evaluated, large number of employees covered, no formal training required. Disadvantages – Rater’s biases

4. Checklist method

Under this method, checklist of statements of traits of employee in the form of Yes or No based questions is prepared. Here the rater only does the reporting or checking and HR department does the actual evaluation. Advantages – economy, ease of administration, limited training required, standardization. Disadvantages – Raters biases, use of improper weighs by HR, does not allow rater to give relative ratings

5.Ranking Method The ranking system requires the rater to rank his subordinates on overall performance. This consists in simply putting a man in a rank order. Under this method, the ranking of an employee in a work group is done against that of another employee. The relative position of each employee is tested in terms of his numerical rank. It may also be done by ranking a person on his job performance against another member of the competitive group. Advantages of Ranking Method Employees are ranked according to their performance levels. It is easier to rank the best and the worst employee. Limitations of Ranking Method The “whole man” is compared with another “whole man” in this method. In practice, it is very difficult to compare individuals possessing various individual traits. This method speaks only of the position where an

employee stands in his group. It does not test anything about how much better or how much worse an employee is when compared to another employee. When a large number of employees are working, ranking of individuals become a difficult issue. There is no systematic procedure for ranking individuals in the organization. The ranking system does not eliminate the possibility of snap judgements.

6. Critical Incidents Method The approach is focused on certain critical behaviors of employee that makes all the difference in the performance. Supervisors as and when they occur record such incidents. Advantages – Evaluations are based on actual job behaviors, ratings are supported by descriptions, feedback is easy, reduces recency biases, chances of subordinate improvement are high. Disadvantages – Negative incidents can be prioritized, forgetting incidents, overly close supervision; feedback may be too much and may appear to be punishment.

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