Page 197 - DCOM102_DMGT101_PRINCIPLES_AND_PRACTICES_OF_MANAGEMENT

Unit 11: Performance Appraisal and Career Strategy

performance, this method also ensures total employee involvement (TEI) and employee Notes
empowerment. This method also reduces subjective evaluation system in an organisation.

Potential Appraisal

Potential appraisal is a holistic approach for studying wholesome qualities of an employee with
a given intellect, personal4ity and character. Industry practices apply two widely used approaches
for potential appraisal, i.e., helicopter and whole person qualities. Helicopter method tries to
measure the potentiality of a person on large as well as on specific issues. Whole person qualities
method measures the wholesome qualities/potentialities of a person with a given set of variables,
mentioned above, which are already determined for the person. Potential appraisal data is
extremely useful for career planning, as the latent abilities of an individual can be captured and
matched with the future role and responsibilities. However, in India, we do not have documented
practices on potential appraisal in the corporate world.

Task Based on a few selected performance parameters, evaluate the academic
performance of yourself and your friends.

11.5 Steps in Performance Appraisal

Irrespective of the methods applied for performance appraisal, its steps follow more or less a set
pattern, which are listed as below:
1. Establishment of performance standards. This is done mostly while developing job
descriptions.
2. Communication of standards to the employees.
3. Measurement of performance.

4. Comparison of performance with the job standards.
5. Discussing the appraisal results with the employees.
6. Initiating corrective action, where necessary.

Caselet The Human Side of Performance Metrics

his has to be alluded to in our statement requirements. For a performance model to
work, employee performance appraisal criteria must be aligned with the
Tperformance metrics, i.e., if an employee does his task well, this is directly linked
to process performance and to ultimate department/division performance and the ultimate
goals of the company.

Enthusiastic acceptance, not mere passive understanding is required from managers and
employees at all levels of the organisation. Successful metrics must be capable of being
cascaded down the line and to reinforce the desired behaviour.

For most businesses, the end objective of profits, brand equity and market valuation are
dependent largely on how well the organisation meets and exceed customer expectations.
Contd...

LOVELY PROFESSIONAL UNIVERSITY 189