Performance Management

Employee Performance Management is a process for establishing a shared workforce understanding about what is to be achieved at
an organization level. It is about aligning the organizational objectives with the employees agreed measures, skills, competency
requirements, development plans and the delivery of results. The emphasis is on improvement, learning and development in order
to achieve the overall business strategy and to create a high performance workforce, meeting and perhaps exceeding targets and
standards.
Performance management includes activities to ensure that goals are consistently being met in an effective and efficient manner.
Performance management can focus on performance of the organization, a department, processes to build a product or service,
employees, etc.
Employee retention would require a lot of efforts, energy, and resources but the results are worth it.
PERFORMANCE APPRAISAL
Performance appraisals are an important part of performance management. Appraising the workforce on the basis of their
performance instills the motivation in them to excel in their work, there by, increasing the productivity of the organization. In itself
an appraisal is not performance management, but it is one of the ranges of tools that can be used to manage performance.
People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same
job being done by two different people.
Performance appraisals are widely used in the society. The history of performance appraisal can be dated back to
the 20th century and then to the second world war when the merit rating was used for the first time. An employer
evaluating their employees is a very old concept. Performance appraisals are an indispensable part of performance
measurement. Performance appraisal is necessary to measure the performance of the employees and the
organization to check the progress towards the desired goals and aims.
CONTENTS OF PERFORMANCE APPRAISAL FORM:
1. Quality of work
Consider accuracy, thoroughness, effectiveness.
Pressure, ability to meet standards of quality.
Use of time and volume of work accomplished.
2. Quantity of work
Competence, thoroughness, and efficiency of work regardless of volume.
Neatness and accuracy.

3. Teamwork:
Establish and maintain effective working relationship with others.
Shares information and resources with others
Follows instructions of supervisor and respond to requests from others in the team in a helpful manner
4. Job knowledge
Application of appropriate level of technical and procedural knowledge in specific field
Degree of technical competence
Understanding of job procedures, methods, facts and information related to assignments.
Perform duties with minimal supervision but seek guidance where and when appropriate to the job, consults the
appropriate staff

5. Initiative
Consider the extent to which the employees sets own constructive work practice and recommends and creates
own procedures.
Self-starter, develop and implement new methods, procedures, solutions, concepts, designs and/or applications of
existing designs or procedures
Accepts additional challenges and responsibilities and willingly assist others, self-reliant.
Completes assignment on time.
6. Interpersonal relations
Consider the extent to which the employee is cooperative, considerate, and tactful indealing with supervisors,
subordinates, peers, faculty, students and others.
7. Health and safety compliance
The degree to which he or she complies with or over sees the compliance with university safety rules
8. Communications abilities
. are also to be completed for supervisory personnel and members of the administrative staff.

9. Planning and organizing:

Adapting to changes and using resources effectively; Maintains confidentiality as appropriate. Setting
objectives, establishing priorities, developing plans; Arranging work schedules and prioritizing work to meet
deadlines. Know when to ask for clarification before proceeding on a work project.
10. Problem analysis and decision making
Anticipating problems and facilitate problem resolution. Willingness to make necessary and immediate decisions
given incomplete information.55

Understanding practical and workable solutions. Recognizing when a decision is necessary, asking for input,
making decisions and providing information and feedback in a timely manner.
11. Staff development
The extent to which the individual provides guidance and opportunities to his or her staff for their development
and advancement in the university.
12. Dependability
Performance appraisal of dependability includes elements as
Respects time allowed for breaks and lunch;
Follows policies for requesting and reporting time off;
Helps ensure work duties are covered when absent;
Employees presence can be relied upon for planning purposes.
Attendance and punctuality meets supervisors requirements.

Performance appraisal of communications includes elements as:

Ability to listen and understand information;
Presents information in a clear and concise manner.
Knows appropriate way of communicating with immediate superiors and the management

Compensation
Compensation constitutes the largest part of the retention process. The employees always have high expectations regarding
their compensation packages. Compensation packages vary from industry to industry. So an attractive compensation package plays a
critical role in retaining the employees. Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options, bonuses,
vacations, etc. While setting up the packages, the following components should be kept in mind:
Salary and monthly wage:
It is the biggest component of the compensation package. It is also the most common factor of comparison among employees. It includes
Basic wage
House rent allowance
Dearness allowance
City compensatory allowance Salary and wages represent the level of skill and experience an individual has. Time to time
increase in the salaries and wages of employees should be done. And this increase should be based on the employees performance
and his contribution to the organization.
Bonus:
Bonuses are usually given to the employees at the end of the year or on a festival.
Economic benefits:
It includes paid holidays, leave travel concession, etc.
Long-term incentives:
Long term incentives include stock options or stock grants. These incentives help retain employees in the organization's startup stage.
Health insurance:
Health insurance is a great benefit to the employees. I t saves employees money as well as gives them a peace of mind that they have somebody
to take care of them in bad times. It also shows the employee that the organization cares about the employee and its family.
After retirement:
It includes payments that an Employee gets after he retires like EPF (Employee Provident Fund) etc.
Miscellaneous compensation:
I t m a y i n c l u d e e m p l o y e e a s s i s t a n c e p r o g r a m s ( l i k e psychological counseling, legal assistance etc), discounts on company
products, use of a company cars, etc.
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