The document discusses performance appraisals, including: 1) Performance appraisals date back to the early 20th century and were widely used during World War 2 to rate employees. They are now an indispensable part of measuring employee performance. 2) Performance appraisals help align individual employee performance with organizational goals, develop employee abilities, and reward contributions. They also rate employees and evaluate their contributions to organizational goals. 3) When done properly, performance appraisals help employees understand their roles and receive feedback to improve future performance.

1. Performance Appraisal

2. Performance appraisals are widely used in the
society:
The history can be dated back to the 20th century
and then to the second world war when the merit
rating was used for the first time. An employer
evaluating their employees is a very old concept. It is
an indispensable part of performance measurement.
Successful organizations know that to win in today’s
competitive marketplace they must attract, develop,
and retain talented and productive employees.
Winning organizations get their competitive edge
from a performance management system that helps
them hire talented people and place them in the
right position, align their individual performance
with the organization’s vision and strategic
objectives, develop their abilities, and reward
performance commensurate with contributions to the
organization’s success. Please turn over

3. The latest mantra being followed by organizations
across the world being – "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 the organizational goals. If the
process of performance appraisals is formal and
properly structured, it helps the employees to clearly
understand their roles and responsibilities and give
direction to the individual’s performance. It helps to align
the individual performances with the organizational
goals and also review their performance. Performance
appraisal takes into account the past performance of the
employees and focuses on the improvement of the
future performance of the employees.
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4. Performance Appraisal is the process of
measuring an individual's work behaviors
and outcomes against the expectations of
the job. Performance appraisal is frequently
used in promotion and compensation
decisions, to help design and validate
personnel selection procedures.
People differ in their abilities and their aptitudes.
There is always some difference between the
quality and quantity of the same work 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.
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5. Benefits of Effective Performance
Management:
Improved Productivity -- Improvement in
both the way people work and the outcomes
they produce.
Improved Employee Morale -- Resulting
from on-time performance appraisals and
rewards commensurate with employee
contributions.
Retention of Top Performers – Employees
who feel accomplished in their work become
loyal employees.
Increased Profitability – Loyal employees
deliver higher levels of service that result in
customer loyalty. Please turn over

6. From the point of view of the organization, performance
appraisal serves the purpose of:
providing information about human resources and their
development;
measuring the efficiency with which human resources are being
used and improved;
providing compensation packages to employees; and
maintaining organizational control.
Performance appraisal should also aim at the mutual goals of the
employees and the organization. This is essential because
employees can develop only when the organization's interests are
fulfilled. The organization's main resources are its employees, and
their interest cannot be neglected. Mutual goals simultaneously
provide for growth and development of the organization as well as of
the human resources. They increase harmony and enhance
effectiveness of human resources in the organization.
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7. A properly designed performance appraisal system can:
help each employee understand more about their role and become clear
about their functions;
be instrumental in helping employees to better understand their
strengths and weaknesses with respect to their role and functions in
the organization;
help in identifying the developmental needs of employees, given their
role and function;
increase mutuality between employees and their supervisors so that
every employee feels happy to work with their supervisor and thereby
contributes their maximum to the organization;
act as a mechanism for increasing communication between employees
and their supervisors. In this way, each employee gets to know the
expectations of their superior, and each superior also gets to know the
difficulties of their subordinates and can try to solve them. Together, they
can thus better accomplish their tasks;
provide an opportunity to each employee for self-reflection and individual
goal-setting, so that individually planned and monitored development takes
place;
help employees internalize the culture, norms and values of the
organization, thus developing an identity and commitment throughout the
organization;
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8. help prepare employees for higher responsibilities in the
future by continuously reinforcing the development of the
behavior and qualities required for higher-level positions
in the organization;
be instrumental in creating a positive and healthy
climate in the organization that drives employees to give
their best while enjoying doing so; and
assist in a variety of personnel decisions by periodically
generating data regarding each employee
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9. Appraisals can help to improve employees' job
performance by identifying strengths and
weaknesses and determining how their
strengths can be best utilized within the
organization and weaknesses overcome. They
can help to reveal problems which may be
restricting employees’ progress and causing
inefficient work practices.
Appraisals can also provide information for
human resource planning to assist succession
planning and to determine the suitability of
employees for promotion, for particular types
of employment and training. In addition they can
improve communications by giving employees an
opportunity to talk about their ideas and
expectations and to be told how they are
progressing. This process can also improve the
quality of working life by increasing mutual
understanding between managers and employees.
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10. Larsen & Toubro, Human Resource development-Performance
Appraisal System
CONFENDENTIAL NAME EMP.PS.NO. CADRE DEPT.
PA FORM: 28
EXECUTIVES &
SUPERVISORS
LT
LARSEN & TOUBRO LIMITED
HUMAN RESOURCE DEVELOPMENT-PERFORMANCE APPRAISAL SYSTEM
PERFORMANCE ANALYSIS AND REVIEW
NAME DATE SIGNATURE
EMPLOYEE
IMMEDIATE SUPERIOR
NEXT SUPERIOR
HRD DEPT.
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11. A PERFORMANCE REVIEW AGAINST OBJECTIVES B1 By Immediate Superior
outstanding
Inadequate
A1 By Employee
V. Good
Adequate
Good
AGREED OBJECTIVES & RESULTS
TARGETS ACHIEVED
1.
2.
3.
4.
5.
A2 SELF REVIEW(by Employee)
SIGNIFICANT CONTRIBUTORS (JOB OR PROFESSION RELATED-NOT COVERED
ABOVE)
IMPORTANT FACTORS FACLITATING PERFORMANCE
IMPORTANT FACTORS HINDERING PERFORMANCE
B2
PERFORMANCE AGAINST OBJECTIVES (By Immediate Superior)
OUTSTANDING V.GOOD GOOD ADEQUATE
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INADEQUATE

12. Inadequate
V. Good
C Appraisal of Critical Attributes (By
Adequate
Outstanding
Good
Immediate Superior)
C2 Critical Attributes
1. INNOVATIVENESS
2. INITIATIVE
3. INTERPERSONAL &TEAM
RELATION
4. RESOURCEFULNESS
5. COMMUNICATION SKILLS
Specific role related attributes (identified in the beginning of the year)
6.
7.
C2 Areas of Strength and Improvements (By Immediate Superior)
C3 Potential Areas of Growth (By Immediate Superior)
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13. D Recommendations for Training and Development (By
Immediate Superior)
D1 IN-COMPANY TRAINING PROGRAMMES
Description Code Description Code
1. 2.
D2 OTHER TRANING PROGRAMMES
1. 2.
D3 SPECIFIC DEVELOPMENT PLANS
Proposed Action Details of Actions Required
(tick as applicable)
 Job rotation
 Job enlargement
 Special assignment
 Deputation of other department
 Other (please specify)
E Comments by next superior(s)
E1 On specific Development Plans stated Above in D3
E2 Overall Observations:
F For use by HRD Coordinator
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14. Thank You !!!......