Performance Appraisal Systems

October 12, 2008 · Filed Under Workplace Communication 

MoneyMoz.com presents you “Performance Appraisal Systems”, an article written by Jimmy Sturo. We hope you’ll find a lot useful information in here.

MoneyMoz.com will present you every article we find interesting and educating, and which has no copyright protection. If available we’ll link the source.

Performance appraisal is a nine-step process. At the first stage, performance standards are established based on job description and job specification. The standards should be clear, objective and incorporate all the factors. The second stage is to inform these standards to all the employees including appraisers. The third stage is following the instructions given for appraisal measurement of employee performance by the appraisers through observation, interview, records and reports.

The fourth stage is finding out the influence of various internal and external factors on actual performance. The influence of these factors may be either inducing or hindering the employee performance. The measured performance may be adjusted according to the influence of external and internal factors. The performance derived at this stage may be taken as actual performance. The fifth stage is comparing the actual performance with that of other employees and previous performance of the employee and others. This gives an idea where the employee stands. If performance of all the employees is ranked either too high or too low, there may be something wrong with the standards and job analysis.

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Jack Welch joined a conference that was held in Duke Fuquay Business School where he was invited to promote his new book called “Winning”. He told audience about how culture is important in a company. Culture builds integration and integration guarantees better products and services for customers. In GE's 1994 annual report his statements were no different. “Boundaryless behavior…” he said “…has become the right behavior at GE, and aligned with this behavior is a rewards system that recognizes the adapter or implementer of an idea as much as its originator. Creating this open, sharing climate magnifies the enormous and unique advantage of a multibusiness GE, as our wide diversity of service and industrial businesses exchange an endless stream of new ideas and best practices.” A little over 10 years, does his story still stick? Yes but only in theory… Many multibusinesses have figured out harshly that they need to understand their core business competency and capitalize on that in order to survive, rather than surrendering their many businesses with one culture like Welch said. Simply because, it was not working! Since that was understood plainly, across the globe, multibusiness managements have been under increasing pressure, as they struggle with decisions about what businesses they should be in and how they should structure and influence these businesses. GE, Siemens, Tyco, 3M, and few others have escaped from this fact as they could answer the crucial question: What is your corporate strategy? But this doesn't mean that they could answer the upcoming question: What is the value behind having permanent employees?



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The sixth stage is comparing the actual performance with the standard and finding out the deviations. Deviations may be positive or negative. If employee performance is more than the standards, it is positive deviation and vice versa is negative deviation. The seventh stage is communicating, the actual performance of the employee and other employees doing the same job and discuss with him about the reasons for positive or negative deviations from the pre-set standard as the case may be.

The eighth stage is suggesting necessary changes in standards, job analysis in internal and external environment. Lastly, there is follow up of performance appraisal report. This stage includes guiding, counseling, coaching and directing the employee or making arrangements for training and development of the employee in order to ensure improved performance. If the actual performance is very poor and beyond the scope of improvement, it may be necessary to take steps for demotion, retrenchment or any other suitable measure.

Performance Appraisals provides detailed information on How to Write a Performance Appraisal, Job Performance Appraisals, Performance Appraisal Software, Performance Appraisal Systems and more. Performance Appraisals is affiliated with Manufacturing Performance Management.

Keywords assigned to this article by MoneyMoz: How to Write a Performance Appraisal, Job Performance Appraisals, Performance Appraisal Software, Pe

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