A Study On Employee Performance Management System
A Study On Employee Performance Management System
A Study On Employee Performance Management System
1
O.Pawan Upadhyay, 2Dr.Murugan Ramu
1
Student,First Year, BBA.LLB(Hons), Saveetha school of law, Saveetha University ,
Saveetha institute of medical and technical sciences, Chennai- 77,Tamilnadu,India.
2
Assistant Professor of Management , Saveetha school of law, Saveetha University,
Saveetha institute of medical and technical sciences , Chennai-77, Tamilnadu,India.
1
Pawanupadhyay 335@gmail.com,2muruganramu.ssl@saveetha.com
ABSTRACT
In this dynamic and ever exponentially changing global market, nothing can
be measured with accuracy because business world made market attributes volatile. In
the complex business world, human beings are the most valuable assets. Human
resources attitude is also volatile as subjected to many experiences and situations. In
such scenario, one needs to measure how Human Resources perform for the purpose
of reward, assessment and knowledge. The tools & techniques innovated for
measuring human productivity and performance with respect to the required
capability, intellect and experience is under an umbrella named Performance
Appraisal System. No single Performance Appraisal system can assure the reliability
of its results. PAS can only be performed as impartial as possible by choosing the best
fit method out of trending ones. Performance appraisal process is a continuous
process to monitor the actual performance of the employee i,e the work done by the
employees throughout the year. In this stage careful selection of the appropriate
techniques of measurement such as personal observation, statistical reports, and
written reports for measuring the performance is needed. This paper attempts to
explain PAS followed in Indian IT companies.
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INTRODUCTION
Performance can be defined as the actual output delivered to the organization
when provided with certain roles and responsibilities within a given period of time.
Performance appraisal is evaluation of the performance of an employee for a defined
period of time. Any organizations‟ development is primarily based on its employees‟
efficiency and attitude towards the organizational goal Neeraj Kumari.These
appraisals can be used in deciding the pay, career prospects, training. Performance
appraisal is normally given to the employee to the next superior designated person
who would observe the employees' efforts, performance and efficiency. Performance
Appraisal creates a negative effect on the employees as well as towards the
organizational objectives. performance management systems as concerned with
directing and supporting employees to work as effectively and efficiently as possible
in line with the needs of the organization Coelho.Broadly, performance management,
which is continuous process must contain performance appraisal to assess the
employees stand in pursuing individual as well as organizational goals. Performance
appraisal simply serves as an aid for managers in the process of performance
management. Performance Planning: According to T V Rao, “It is defined as
systematic outlining of the manager‟s activities which are expected to undertake
during specified period contributing for organizational outcome.” The performance of
each mentee was given by ratings from their superiors. Significant relations were
found between interaction opportunities and both motivation and commitment, and
between relationship closeness and both these attitudes Orper.c ,(1997).It is just a
beforehand blueprint of future plans to be implemented and accomplished. Appraiser:
A person who undertakes/ is given the responsibility to evaluate in terms of
performance, skills and ability of his team (individually) or subordinates or employees
at the immediate next & down level of superiority is called appraiser.Appraisee: A
person who is being evaluated (knowingly or unknowingly) by the Appraiser is called
Appraisee Performance Review Discussion: It is the brainstorming and thought
sharing activity performed by appraiser and appraisee. It is also called performance
counseling. Here, even the negative feedback must be given in a positive and
constructive way by the appraiser.Self-Appraisal: A notes developed by an employee
about the tasks and accomplishments performed by to know variations for the last
year and now in his performance even if organization does not mandate its
requirement.Performance indicators (PIs) and performance measurement are popular
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Review of literature :
➢ Performance management system sets expectations for employee performance
and motivates employees to work hard. It involves identifying strengths and
weaknesses of employees in their performance as it sets work standards, measure
actual performance and gives feedback to employee regarding performance.
David Moy, (2003)
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OBJECTIVE:
➢ To study of performance management system
➢ To examine why an appraisal system is important
HYPOTHESIS:
Null hypothesis : There is no impact of appraisal system in the performance
Alternate hypothesis: There was an impact of appraisal system in the performance
OBSERVATIONS:
Different dimensions of Performance Management are:
➢ Output or result dimension
➢ Input dimension
➢ Time dimension
➢ Focus dimension
➢ Quality dimension
➢ Cost dimension
Each of these dimensions must be focused in order to secure the best performance
(of employee) as well as to evaluate the performance of the employee (by employer).
Reward system in any organization play three different but related roles that are:
motivating employee, retaining employee and attracting employee. motivation to
share knowledge through an intra‐ organizational social media platform is the desire
to help the organization reach its goals and helping colleagues, while financial
rewards and advancing one's career were seen as least motivating Vuori.v &
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In traditional methods
➢ Essay appraisal method considers examples and evidences which are factual-
based. Straight ranking does comparative evaluation whereas paired comparison
makes each employee to be compared with all other employees. Critical incidents
method judges by observing the performance during critical incidents given. In
field review method, superior employee trains the supervisor about how to
evaluate their workers. Checklist contains statements with yes or no answer for
judging job performance.
➢ Graphic rating scale suggests for quality and quantity of work to be marked on a
rating scale. In bell curve or forced distribution, all employees are distributed in
fixed categories while comparing with each other.
In modern methods,
➢ Assessment centre method assess an employee by assigning a role in job if he/she
is given promoted. Usually this method is used for assessing the need of training
and development of employees. Behaviorally Anchor Rating scale is a
combination method of critical incident method as well as graphic rating method.
HR accounting method defines performance as the difference of contribution to
the company and cost incurred for the employee. 360 degree feedback method
takes the appraisals from himself/ herself, superior, sub-ordinate and peer group.
➢ In Management By Objectives, employees set their own goals with their superior
which in parallel to set the standard performance which can be reference to the
actual performance.
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Infosys
Infosys is a multinational corporate providing Business consulting,
Information Technology or outsourcing services. Its revenue is US$10.208 billion and
profit is US$2.140 billion. The no. of employees are 200,364. These employees were
assessed according to traditional. Bell curve method but now trying change to 'iCount'
which is explained below:'iCount' is the model developed for appraisals of Infosys'
employees. Its CHRO stated that they are striving to inculcate the strength of dialogue
and feedback through iCount. As per iCount, employees are rewarded on specific
short term targets and are given feedbacks throughout the year. This iCount is
brainchild of Vishal Sikka, CEO with concepts of 'new and renew' strategy linking
'design thinking'. Under iCount each employee is individually given feedback
throughout the year and not relatively compared with other unlike Bell Curve.
Saurabh Govil, CHRO of Wipro stated that the appraisal system has shifted now to
develop an employee rather than criticizing the employee by describing what he/she
have done.
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CONCLUSION
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