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A critical factor related to an organisations long term success is its ability to measure how well employees perform and then use that information to ensure that performance meets present standards and improves overtime, this process is referred to as performance evaluation It is a complex task that is difficult to do, and it is not done well by most organisation

Performance evaluation are a source of seemingly endless and costly grievances and cause of employee dissatisfaction and disaffection A number of outcomes that can have very high value to people are often directly linked to performance evaluation Evaluating performance is typically, by necessity, a subjective process. It is of obvious importance that performance evaluation be done fairly and accurately and be defensible

Performance evaluation is the process of judging the worth of observed performance How good or bad was the performance that was observed? What number should be assigned to the level of performance exhibited by a worker? The typical approach to evaluating performance begins with observing the worker The person doing the rating then judges the worth of what has been observed, using a mental yardstick as a measure for the value of what was observed
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Here are some serious problems with this approach of evaluating performance 1. Just what characteristics of the worker if the manager focusing on? 2. Which type of yardstick that the manager is using. Is it the same one everyone else is using? The above 2 problems lead to evaluations that are not based on the same factors or on the same internal standards

If workers are not being evaluated on relevant performance characteristics, the resulting decisions, such as pay raises, promotions and terminations cannot contribute to maximising organisation effectiveness Some managers may make big distinctions among performance levels while others may relatively little distinction among performance level Mental yardsticks may be calibrated at different levels and use scales, words, with some being more stretched out and others being more compact
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Graphic rating scale: Most popular among the methods. Appraiser is asked to assess the appraise by assigning numerical value Forced choice : Appraiser is provided with a set of statements describing performance standards of a job from which he or she should choose a specified number of statements in reference to appraise

Management by objective: Mutually (appraiser-appraise) assessing the performance of appraisal against the mutually set targets Essay: Appraiser describes strengths and weakness of appraise in a descriptive form. Critical Incident Technique: appraiser writes about key performance incidence/achievements of appraise.

Weighted checklist: The appraiser will be provided with a list of performance traits against which assessment is to be carried out. Behaviourally anchored rating scales: Appraiser assesses appraisees performance against defined, specified and pre-set measurable performance items

Behavioural observation scales: Appraise assess performance in reference to predetermined performance behaviour standards. Ranking: Based on overall criteria, appraiser generates list of appraises in order of ranking with respect to their performance.

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Paired comparison: each time appraiser is presented with two names of appraises from whom he/she should choose the high performer. Based on this exercise overall ranking will be done. Forced distribution: the percentage of appraises to be assessed as outstanding, good, average etc.. Will be pre-decided in this method against which appraiser should distribute. Performance test: A combination of paper and simulator based test will be conducted to assess the performance
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Levels of Management refer to the segregation between the different managerial positions in an organization. Depending on the size of the business and the size of work force the number of levels of management increases or decreases. Levels of management decide the chain of command, the amount of authority & responsibility assigned.

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Top level / Administrative level Middle Level / Executive Low level / Supervisory / Operative / Firstline managers

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For top managers

Return on capital employed Contribution to community development Degree of upward communication from

middle-level executives Degree of growth and expansion of enterprise.

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Departmental performance Coordination among employees Degree of upward communication from supervisors Degree of clarity about corporate goals and policies

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Quality and quantity of output in a given period Labor cost per unit of output in a given period Material cost per unit in a given period Rate of absenteeism and turnover of employees No of accidents in a given period

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HUMAN RESOURCE MANAGEMENT, Srinivas R Kandula, Prentice hall of India pvt ltd, 2005 HUMAN RESOURCE MANAGEMENT, Fisher, Schoenfeldt, Shaw, All India Publishers &Distributors, ed.3 PERFORMANCE MANAGEMENTCONCEPTS, SKILLS & EXERCISES, Robert L.Cardy, Bryan Leonard, PHI Learning pvt ltd, ed.2, 2011

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