Performance Appraisal Strategies in India

7/31/2019 Performance Appraisal Strategies in India

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Performance management is a continuous process of

Identifying, measuring, and developing the

performance of individuals and teams, and Aligning performance with the strategic goals of the

organization


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A performance appraisal (PA) is a systematic and periodic

process that assesses an individual employees job

performance and productivity in relation to certain pre-

established criteria and organizational objectives.

Improving the ability of the jobholder;

Identifying obstacles which are restricting performance

Agreeing a plan of action, that will lead to improved

performance.


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To find the types of appraisal system follows in different

companies.

To find the positive and negative outcomes of performance

appraisal system used in the different companies.

To reveal the various loopholes in the appraisal system

To find the consequences of an inappropriately conducted

appraisal system.

To recommend the best appraisal system from the analysis

done on the companies.


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Tata Consultancy Limited- 360 Degree

Dabur- Management by Objective (MBO)

National Thermal Power Corporation- FormalAppraisal

Bharat Heavy Electricals Limited- Formal Appraisal

Steel Authority of India- 360 Degree


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Infosys Limited- 360 Degree

Larsen and Turbo- 360 Degree

Hewlett and Packard- Management By Objective(MBO)

Coca cola- 360 Degree

Philips- Formal Appraisal


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From the organizations studied, 5 out of 10 organizations appraisal

is done annually while in 4 organizations appraisal is done half

yearly and in 1 organization i.e. L&T appraisal is done quarterly.

Annually TCS, Dabur, BHEL,Philips, SAIL

Half Yearly Infosys, Coca Cola, HP

Quarterly L&T


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From the study it is found that 9 out of 10 organizations take follow

up actions on the basis of appraisal while in HP no such provision

was identified.

In 6 out of 10 organizations employees performance is judged on

both-result basis and behavior basis, while in 3 organizationsemployees performance is judged on result basis and in 1

organization i.e. Philips performance is judged on behavior basis.

Result & Behaviour TCS, Infosys, NTPC, BHEL,SAIL, L&T

Result Dabur, Coca Cola, HP

Behaviour Philips


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The study gives us an insight that the 360 degree appraisal is

followed by 5 out of 10 organizations, followed by 3 out of 10

organizations following formal appraisal and 2 organizations

i.e. HP and Dabur following MBO method.

360 Degree Infosys, TCS, L&T, CocaCola, SAIL

Formal Appraisal BHEL, NTPC, Philips

MBO Dabur, HP


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In 8 out of 10 organization the appraisal is done by theimmediate supervisor followed by 2 organizations i.e.Infosys and TCS where a second level appraiser ispresent who reviews the appraisal done by the immediate

supervisor and is the immediate point of contact forconflict resolution.

In 7 out of 10 organizations training sessions are held for

employees as a part of performance improvement whilein 2 organizations i.e. BHEL and SAIL, counselingsessions are provided. In HP, no such provision has beenidentified.


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It is imperative for the organization and managers to allocate

time for performance counseling and to provide a structure

and forum for counseling in knowledge intensive organization

where organization reputation and focus on employee

development is critical issue.

Employees Jobs and Responsibilities are required to be

carefully planned and rationalized in terms of Companys

target and top managements plans. Departmental goals shouldmap out what and how the Department is to contribute towards

achieving the companys goals and cascading down to

individual goals.


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DOING EFFECTIVE APPRAISALS: the key features that need

to be built into a performance are as under:

Start at the Top

HR Should Support, Not Own the System

Cascade Strategy and Goals to all Levels

Set Measurable Goals

Set Talent Development Objectives


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Rate Outcomes, Rate Performance but Dont Rank

Train Managers and Employees

Link Rewards to Performance but discuss development

separately

Appraise the Appraisers

Consider Having Review Discussions On-line


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In conclusion, a performance appraisal is a very important tool

used to influence employees. A formal Performance review is

important as it gives an opportunity to get an overall view of

job performance and staff development. It encourages

systematic and regular joint stocking and planning for thefuture. Good performance reviews therefore dont just

summarize the past they help determine future performance.


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Performance Appraisal Strategies in India

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