Performance appraisal is important for employees at all levels throughout the organization. The parameters, the characteristics and the standards for evaluation may be different, but the fundamentals of performance appraisal are the same. But as the level of the employees’ increases, performance appraisal is more effectively used as the tools of managing performance. Performance appraisals of Managers:Appraising the performance of managers is very important, but at the same time, it is one of the most difficult tasks in the organization. It is difficult because most of the managerial work cannot be quantified i.e. it is qualitative in nature like leading his/her team, guiding, motivating, planning etc.
Therefore, the two things to be noted and evaluated for the purpose of appraisals are:
Performance in accomplishing goals, and
Performance as managers
Performance in accomplishing goalsManagers are responsible for the performance of their teams as a whole. Performance in accomplishing goals would mean to look at the completion or achievement of the goals set for a team of employees which is being assigned to or working under a particular manager. The best measuring criteria for a manager are hi goals, his plans of course of action to achieve them and the extent of achievement of the goals.Performance as managersThe responsibilities of managers include a series of activities which are concerned with planning, organizing, directing, leading, motivating and controlling. Managers can be rated on the above parameters or characteristics
Criteria for measuring performance at different levels:The criteria for measuring performance changes as the levels of the employees and their roles and responsibilities change.A few examples for each level are described below:
For top level management
Degree of organizational growth and expansion
Extent of achievement of organizational goals
Contribution towards the society
Profitability and return on capital employed
Extent of achievement of organizational goals
Contribution towards the society
Profitability and return on capital employed
For middle level managers
Performance of the departments or teams
Co-ordination with other departments
Optimal use of resources
Costs Vs. revenues for a given period of time
The communication with superiors and subordinates
For front line supervisors
Quantity of actual output against the targets
Quality of output against the targets
Number of accidents in a given period
Rate of employee absenteeism
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