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Friday, November 11, 2011

Effectiveness of Performance Appraisal System at Eureka Forbes Limited - Project Report

1.INTRODUCTION
Appraising the performance of individuals, groups and organizations is a common practice of all societies. While in some instances the appraisal processes are structured and formally sanctioned, in other instances they are an informal and integral part of daily activities. Thus, teachers evaluate the performance of students, bankers evaluate the performance of creditors, parents evaluate the behavior of the children, and all of us, consciously or unconsciously evaluate our own actions from time to time.

“Performance appraisal” has been identified as one of the most complex of man-management activities. It is often a difficult and emotion laden process. Performance appraisal has become part of organizational life. Every organization has some kind of evaluating the performance of its personnel.

“Performance appraisal” or “Merit rating” is one of the oldest and universal practices of management. This approach resulted in an appraisal system in which the employee’s merits like initiative, dependability, personality etc were compared with others and ranked or rated.

HISTORY
During and after World War I, systematic performance appraisal was quite prominent. Credit goes to Walter Dill Scot for systematic performance appraisal technique of “man-to-man rating system” (merit rating). It was used for evaluating military officers. Industrial concerns also used this system during 1920s and 1940s for evaluating hourly paid workers. However, with the increase in training and management development programs from 1950s, management started adopting performance appraisal for evaluating technical, skilled, professional and managerial personnel as a part of training and executive development programmes. With this evolutionary process, the term merit rating had been changed into employee appraisal or performance appraisal.

MEANING
Performance Appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance. Performance here refers to the degree of accomplishment of the tasks the make up an individual’s job. It indicates how well an individual is fulfilling the job demands. Often the term is confused with effort, which means performance is always measured in terms of results.

“Performance appraisal” is a systematic evaluation of present and 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.”

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