2. Introduction
• Performance Management System
Performance appraisal practices in Indian organizations
• “No appraisal” to a “sophisticated multipurpose, multicomponent based
appraisal system”
• “Annual confidential report” to a “open discussions with appraisee”
Components
of a
Performance
management
system
5.Performance
diagnosis and
coaching
4.Performance
rewards
3. Performance
appraisal
meetings
2.Ongoing
performance
communication
1. Performance
planning
3. Appraisal Practices
• Rao (1982) conducted a survey of appraisal practices in 45
organizations
0
10
20
30
40
50
60
Employee behaviour and capabilities Controling and regulating employee behaviour Development purposes
Percentages
4. Components % reporting its use
Some form of agreement between a boss and the subordinate on
tasks or targets or functions forming a basis of appraisal. 62
Appraisal discussions aiming at helping the employee to recognise
his strengths. 49
Appraisal discussions aiming at helping the employee to recognise
his weaknesses. 53
Appraisal feedback (written or verbal) to tell the employee the
areas he needs to improve. 69
Self-appraisal to communicate to the boss the accomplishments of
an employee 44
Appraisal on managerial qualities required to perform any
managerial job, for example leadership, co-ordination and so on. 73
Identification of training and developmental needs 87
Appraising potential for promotions 78
Identification of factors affecting performance and communicating
them to the boss for his assistance and future action 44
Signature by subordinates on the form after assessment by the
boss. 33
Confidential ratings by an officer one level above or reporting
officer. 71
Confidential ratings by an officer at least two levels above the
employee being assessed. 40
5. Interesting practices followed in different
organizations
• Appraisal for outstanding category
• Final ratings are given by an officer three levels above the
appraisee.
• Appraisal forms is sent to employees from other department
one level above the appraisee
• One page for worker and lengthy for managers
• Appraisal reports are shown to the appraisee
• Merit award
• Ratings are multiplied by this co-efficient factor
• Assessment is done at different levels
• Appraisee is informed about his strengths and weaknesses
• Objectives set by senior managers and MDs for the
employee
6. Appraisal Systems in Banks
Banking services is one sector where a great degree of
attention is being paid to performance appraisal systems.
Allahabad Bank has introduced a system that
aims at helping officers to identify their strengths
and weaknesses and encourage improvement
of performance on the job.
Indian Overseas Bank has a system in which
a branch manager gives a self appraisal on
business growth, customer service, internal
administration and training requirements.
7. Appraisal Systems in Banks
In the Union Bank of India the appraisee is
assessed on technical, human and conceptual
skills
The Punjab National Bank has a primarily
development-oriented appraisal form. It has a
self appraisal system by the appraisee.
Bank of Baroda has elaborate development-
oriented appraisal system. They require a
performance review discussion as a part of the
appraisal system
9. General Trends
• Trait based confidential formats
• Role of appraisals as instruments for developing
human resource
• Change in appraisal format without training
• Finding suitable appraisal format for the
organisation
• Role of developing human resource only for the
HRD department
• Symbols are taken as actions