Page 133 - DMGT406_HUMAN_RESOURCE_MANAGEMENT

Human Resource Management Amit Kumar Sharma, Lovely Professional University

Notes Unit 8: Performance Management System

CONTENTS
Objectives
Introduction
8.1 Performance Appraisal
8.1.1 Meaning and Definition

8.1.2 Objectives of PA
8.2 Performance Appraisal Process
8.3 Methods of Performance Appraisal
8.3.1 Past-oriented Scale
8.3.2 Future-oriented Appraisal
8.4 Performance Management System
8.5 Problems and Challenges in Performance Appraisal
8.5.1 Problems with Performance Appraisal

8.5.2 Challenges
8.6 Summary
8.7 Keywords
8.8 Review Questions
8.9 Further Readings

Objectives

After studying this unit, you will be able to:
 Define the term Performance appraisal

 Discuss objectives of PA
 State the relevance of performance appraisal process
 Discuss the challenges in performance appraisal

 Analyze the significance of performance management system
Introduction

All organisations use performance appraisal for various purposes. The main issue hovers around
the question of what criteria should be used to appraise performance. Given that all appraisals
involve judgements which are not always fair, organisations use multifarious techniques and
tools to measure performances as objectively as possible. Besides a good technique, successful
performance appraisal requires a consistent approach; clear standards and measures and bias
free ratings. A critical part of the evaluation process is the preparation of the rater. Raters must
be trained on the system being used and it's purpose to ensure consistency and accuracy. Finally,
if the employees' performance is to improve, they must be provided feedback on their
performance and advice on how to make improvements.

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