...Performance Appraisal system Performance appraisal is a system of review and evaluation of an individual or team’s job performance. An effective system assesses accomplishments and evolves plans for development. Performance management is a process that significantly affects organizational success by having managers and employees work together to set expectations, review results, and reward performance. Its goal is to provide an accurate picture of past and / or future employee performance. To achieve this, performance standards are established. I. The Performance Appraisal Process Many of the external and internal environmental factors previously discussed can influence the appraisal process. Legislation requires that the appraisal systems be nondiscriminatory. The labor union might affect the appraisal process by stressing seniority as the basis for promotions and pay increases. Factors within the internal environment can also affect the performance appraisal process. The type of corporate culture can serve to help or hinder the process. Identification of specific goals is the starting point for the PA process. After specific appraisal goals have been established, workers and teams must understand what is expected from them in their tasks. Informing employees of what is expected of them is a most important employee relations task. At the end of the appraisal period, the appraiser observes work performance and evaluates it against established performance standards. The evaluation...
Words: 1211 - Pages: 5
...Performance Appraisal In every industry, performance appraisal is very important to determine or evaluate every employee’s performance based on company’s standards and policies. The main objectives of performance appraisal is to improve employee’s productivity and performance, in order to set goals for the employees, to help the managers to evaluate employees’ effectiveness, before taking actions related to hiring, promotions, demotions, trainings, increase of salaries and terminations. Many companies have used performance appraisal as an effective tool in maximizing the effectiveness of all areas of the organization such as staffing, development, production and customer service. Generally, employee appraisal systems are being recognized as important factor of achieving company’s goals. For instance, a traditional appraisal method is discreet; the employees are not authorized to see or to know what the evaluation of their managers on them is. But, in 1900s, most companies have opened their options to allow their employees to benefit from the criticisms and praises made by the management. Aside from this, many companies decided to let their employees to participate in their appraisal systems. The employees are being asked also to evaluate their own job performance, self-analysis, and their views on how they can improve their participation in the organization, at the same time, getting feedbacks from their co-employees. Performance appraisals must result to further...
Words: 802 - Pages: 4
...then known as Malaysian Airways Limited and later on, as Malaysia-Singapore Airlines (MSA) in 1966. The airline company scored a revenue of S$100 million back in 1968. In 1970s, two entities known as SIA and Malaysian Airline system emerged from the split of MSA, and ever since then, SIA experienced growth as the company focuses on its operations. According to World Airline Awards (2014), Singapore Airlines is ranked third in the global airline ranking. The airline has earned an outstanding reputation with its high quality service provided to their customers, thus further strengthen the airline’s premier position in the tight competitive market. 2.0 Review of the Organisation’s Reward Strategy and Performance Management System 2.1 Performance Appraisal System In the effort to evaluate the quality of employees’ performance relative to the standards of the company, Towards Optimal Productivity (TOP) is a scheme launched by SIA together with Singapore Airlines Staff Union (SIASU) to recognize and rewards good performance through its performance-based culture framework for Singapore based employees (Singapore Air, 2013). Rewards such as promotions, merit awards and career growth are part of a further improved and extensive appraisal system carried out by TOP. Workplace Improvement and Innovation Scheme (WINS) is...
Words: 2709 - Pages: 11
...Armstrong and Baron (1998) performance management is a strategic and integrated approach of delivering sustained successes to the company by improving individual and group performances and also developing the capabilities of teams and individuals. Currently at work performance management appraisal (PMA) is carried out on a quarterly basis and is a conversation carried out by a line manager and an employee, it is aimed at improving the effectiveness and capability of an employee through development. It is aimed at personnel who want to achieve excellence in their respective fields and want to acquire more skills and knowledge, which will assist in the achievement of personal and professional development goals. Performance management serves as an important tool for realizing organisational goals by implementing competitive HRM strategies. It helps in aligning and integrating the objectives of the company with the key performance indicators (KPI’s) in an organisation across all job categories and levels. This helps in driving all the employees right from the bottom level towards one single goal. Performance management is an important driver in most companies today and is regarded as the tool to use to ensure that the people working for them will deliver the agreed contract and objectives which were set mutually. This study will reveal the importance of a well managed, performance management system by conducting a critical analysis of the performance management system used and what benefits...
Words: 1711 - Pages: 7
...of HR management. Here in this paper, a discussion concerning to the trends and challenges of HR management will be done along with the discussion of how a complete performance management system differs from the use of annual performance appraisals. In addition to this, an evaluation of the effectiveness of various performance appraisal methods and possible problems affecting performance appraisals and a discussion of the advantages of managing turnover in organizations will be also be done. In the end, the significant safety and health management issues in the workplace will be identified along with the other trends and challenges of human resource management. Complete Performance Management System and Annual Performance Appraisals A complete Performance Management System facilitates an organization in sustaining profitability and functioning by connecting the employees' remuneration to capability and contribution (Heathfield, 2010) whereas in an annual performance appraisal, salary increase is associated with outcome, which is quite old in present modern era (Deiterich, 2010). A complete performance management system offers opportunities for cooperative personal development and career expansion. It imparts all the employees beneath a single strategic role, whereas in annual performance appraisal individuals are not provided with similar strategic direction as they all work individually for attaining high outcome. The...
Words: 612 - Pages: 3
...rP os t W15151 PERFORMANCE MANAGEMENT SYSTEM AT ATTOCK REFINERY LIMITED op yo Dr. Sadia Nadeem and Ruhma Islam wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2015, Richard Ivey School of Business Foundation Version: 2015-05-05 In today’s highly competitive and performance driven business climate, both globally and locally, we cannot afford to rest on our laurels. Our highly professional and dedicated human resources [team] works in a culture supportive of openness, fairness, meritocracy, team knowledge sharing and innovation in the relentless pursuit of continual improvement and achieving excellence. — M. Adil Khattak, chief executive officer, Attock Refinery Limited tC After attending the management committee meeting in November 2013 at the company...
Words: 7874 - Pages: 32
...INTRODUCTION Performance appraisal is a systematic evaluation of present potential capabilities of personnel and employees by their superiors, superior’s superior or a professional from outside. It is a process of estimating or judging the value, excellent qualities or status of a person or thing. It is a process of collecting, analyzing and evaluating data relative to job behavior and results of individuals. The appraisal system is organised on the principle of goals and management by objectives. Management decisions on performance utilise several integrated inputs: goals and plans, job evaluation, performance evaluation, and individual history. It connotes a two-dimensional concept - at one end, the goals set by the authority and at the other end, the performance achieved by the individual or any given group. Performance appraisal can be either formal or informal. Usage of former systems schedule regular sessions in which to discuss an employee’s performance. Informal appraisals are unplanned, often just chance statements made in passing about an employee’s performance. Most organisations use a formal appraisal system. Some organisations use more than one appraisal system for different types of employees or for different appraisal purposes. Organisations need to measure employee performance to determine whether acceptable standards of performance are being maintained. The six primary criteria on...
Words: 584 - Pages: 3
...on the same job being done by two different people. Performance appraisals of Employees are necessary to understand each employee’s abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance. According to a prominent personality in the field of Human resources, "performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims. Performance appraisal continues to be a subject of interest and importance to human resource specialists. For decades, performance appraisal has received considerable attention in the literature, from both researchers and practitioners alike. The latest mantra being followed by organizations across the world is "get paid according to what you contribute" – the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards...
Words: 1044 - Pages: 5
...Performance Analysis Brittannie DePew Bus 303 Ricci Rizzo 10/6/2014 Performance Analysis Annually or bi-annual every employee has experience with reviews the show performance through the time of work one may be employed. Performance appraisals are assessment tools that have proven to have advantages to the effectiveness of the work place. The performance appraisal process can be referred to as terms that provoke and propel strong responses; opinions, judgment, and sentiments are expressed in contextual format (Kumar 2005). Scholars have regarded performance appraisals as a strategic and integral part of an organization (Longenecker and Goff 1992). Typically those who administer the performance appraisals are human resource managers/professionals or managers. A tool used in the appraisal process needs to be standardized, reliable, valid, and appropriate for the position; making sure this tool meets all these qualifications is a mere part of the process of administering the appraisal process. Success in a business can be dependent upon an employer’s ability to be proactive with their employees. “Research shows that managers with poor communication or interpersonal skills are often the downfall of a company's otherwise sound performance management program (“Setting up a performance management system”, 1999). Strong communication skills provide comfort and the ability to provide feedback with empathy and remain professional; which are considered very important when communicating...
Words: 1046 - Pages: 5
...on credit system in fertilizer marketing and to evaluate a suitable credit rating system to minimize risk 4. A study on Customers perception on air conditioners : A study with reference to shopkeepers 5. Analysis of it services requirements In the organizations. 6. A study on Awareness and attitude about modular switches among mid size builder segment 7. A Study on Investors Preference towards equity broking. 8. A study on Consumer buying behavior on FMCG 9. A study on Absenteeism among the employees 10. A study on Training Effectiveness in the organization 11. A study on Credit Appraisal for Car loan financing in the finance companies. 12. A study on Consumer buying behavior towards two wheeler bikes. 13. A study on Effectiveness of Performance Management system among the employees 14. A study on Effectiveness of Quality Initiativeness among the employees. 15. A study on Safety , Welfare and Health among the employees. 16. A study on Training and Recreation programmes among the employees. 17. A study on the investor behavior towards the mutual funds investments. 18. A study on Induction Training Program among the employees. 19. A study on Quality of Work Life among the employees. 20. A study on potentiality of Auto and Engineering companies. 21. A study on Customer Financial Need Analysis. 22. A study on financial position of the firm and a comparison of cash management product and multicity cheque facility 23. A study on Effectiveness of performance...
Words: 1750 - Pages: 7
...effectively. So, the question is how do we gauge the efficiency and effectiveness of the workforce? The answer is, through the implementation of a competent performance appraisal system. In light of the results of the recent employee survey conducted, there are both real and perceived issues that exist between HR and the management team. The lack of cohesion within the organization has resulted in low employee morale which affects performance and ultimately, profitability. The purpose of this presentation is to explain the merits of a good performance appraisal system, for both individuals and teams of the organization and to show how it will help to resolve the problems uncovered by the survey. Moreover, my intention is to describe the process for assessing team performance and the differentiating factors for executing an appraisal for an individual versus a team in an organization. Lastly, the board of directors asked for a report with regard to succession planning in the last board meeting. I want to describe the benefits of succession planning and propose a solution for the implementation of succession planning in our organization. Performance Appraisals Performance appraisals, when properly used, are an essential and invaluable tool in the managers arsenal to plan and control productivity. Managers should use appraisals for the proliferation and oversight of their subordinates. For example, appraisals can be used to determine promotions, commendations, and terminations...
Words: 3327 - Pages: 14
...Performance appraisal system: Name: Institution: Performance appraisal is a human resource management practice, which has attracted a lot of attention from scholars and practitioners. It refers to the process by which a person’s job performance in an organization is scrutinized and evaluated. The reason for the implementation of performance appraisal is accomplish the goals and objectives of a firm. Performance appraisal has become part of a more strategic approach in integrating human resource activities to a company. Today, it has increasingly become a major focus in business and every organization. The system is crucial to the performance management and it directly reflects the strategic plan of an organization. The focus of PA is on an individual and not the performance of a team and this has made it to unpopular with workers in different fields. There are two types of performance appraisal, informal approach and formal approach; this paper will look at the later with respect to AMACO insurance company. The company taken for research was AMACO insurance. The company is based in Nairobi but has branches all over Kenya. The first process in which the company’s appraisal system is carried out is establishing performance criteria. The most common appraisal criteria in the company are goal achievement, behavior, traits, competencies, and improvement potential the company carefully selects each performance criteria because it pertains to achieving the company’s goals. Certain...
Words: 1526 - Pages: 7
...| Contents INTRODUCTION 3 COMPANY BACKGROUND 3 TASK 1. HUMAN RESOURCE MANAGEMENT 3 1.1. Human resource Management activities, within Coca Cola Company, their objectives and how they are achieved 3 1.2 Two theoretical models of human resource management 5 TASK 2. HR PLANNING AND DEVELOPMENT 7 2.1. HR planning and development models within Coca Cola Company Georgia 7 2.2. Evaluation of effectiveness of HR planning and development models in achieving organisational objectives 11 TASK 3. PERFORMANCE 12 3.1. Monitoring of HR performance within Coca-Cola Georgia 12 3.2. Effectiveness of HR performance monitoring systems 14 CONCLUSION 15 RECOMMENDATIONS: 15 REFERENCES 16 INTRODUCTION The following report gives an understanding of importance of Human Resource Management, it shows the contributions of HRM to the organisational achievements. In the report the writer examines HR planning and development methods and suggests the ways to improve the HR performance. COMPANY BACKGROUND The Coca-Cola Company is one of the world’s top soft drink makers. Coca-Cola owns the best-known soft drink brands such as, Coca-cola, Diet Coke, Fanta and Sprite. this is an organisation with a history starting from 1892. The company’s flagship product, Coca-Cola was invented by a pharmacist John Stith Pemberton (The Coca-Cola Company, 2010). Coca-Cola is headquartered in Atlanta and it is currently offering 500 different brands in 200 different countries worldwide...
Words: 4026 - Pages: 17
...INTRODUCTION Performance management can be defined as a strategic and integrated approach to delivering sustained success to organizations by improving the performance of the human capital and by developing the capabilities of teams and individuals within that organization (Armstrong and Baron, 2000). The process of performance management therefore focuses not only with ‘WHAT’ is produced but, also ‘HOW’ it is produced. It seeks to ensure that what has been produced is in line with the organization’s needs and these products have been produced in line with the organization’s way of doing things. Performance management can be achieved through many different ways. These include performance appraisal system and coaching. Performance appraisal system can be described as a fairly old system of measuring employees’ performance that has been in use in many organizations. However, Performance appraisal has not brought in the amount of positive results that was expected of it. Armstrong and Mulis (1994:86) quoted one manager describing performance appraisal as “a dishonest annual ritual”. The question that arises then is: “If Managers (the custodians of the system) do not have confidence in their own system, what more employees (who happen to be victims of the system)?” The meaning of the word “appraisal” is “to fix a price or value for something”. This is used in finance in terms such as project appraisal or financial appraisal where a value is attached to a project. Similarly performance appraisal...
Words: 11650 - Pages: 47
...Personnel appraisals, although very widely used, have well-recognised shortcomings and limitations. Even when the process emphasises appraisal rather than counselling, it is far from universally satisfactory. There are certain barriers which work against the effectiveness ol appraisal system. The identification of these barriers is necessary to minimise their impact on the appraisal system. Among the principal barriers to effective appraisal programmes are: 1. Faulty assumptions, 2. Psychological blocks, and 3. Technical pitfalls. (1) Faulty Assumptions Because of the faulty assumptions of the parties concerned—superior and his subordinate—in appraisal system, it does not work properly or objectively. These assumptions work against an appraisal system in the following manner: (i) The assumption I hat managers naturally wish to make fair and accurate appraisals of subordinates is untenable. McFarland feels that both .superiors and subordinates show tendencies to avoid formal appraisal processes, as well as to heed them in their respective work roles. Their organisational roles, and partly in technical deficiencies and the unwise management of appraisal policies and procedures. (ii) Another faulty assumption is that managers take a particular appraisal system as perfect and feel that once they have launched a programme, that would continue forever. They expect too much from it, and rely too much on it, or blame for their faults. It should be recognised that...
Words: 1254 - Pages: 6
