Researcher:  Sumaira Muhammad Razzak

Research Supervisor: Syed Faisal Ali

University: Khadim Ali Shah Bukhari Institute

Key Words:  Performance Appraisal System, Assessment & Development Plan, Organizational Effectiveness. 

Abstract:   

Through the process of reviewing the employee’s performance, the performance of the whole organization, is assessed, developed & managed. Ultimately, the levels and standards that are achieved by its employees determine the level and quality of an Organization effectiveness. Therefore, it’s very important to assess employee’s performance. It is the modern tool adopted to improve the efficiency of the employees and also to gain insight about the areas in which they can make the most of their potentials. It specifies the courses of action to improve the performance of the employees. In this Era now Focus has been shifted from simple rewards, incentives and punishment to the need of defining, planning and managing performance of the employees. In this research, A review of literature have depicted that a positive and significant correlation exist between employee performance and the firm’s financial performance.

This paper explores that Performance appraisal is a process to be aware of each employee’s abilities, competencies and relative merit and worth for the organization. Finally it is a pre requisite for the success of any organization as it result’s to identify competency gaps and taking steps to bridge such gaps through appropriate HR development, It measures to face the challenge’s of competitive world  in order to put organizational effectiveness ahead all the time.

MIND MAPPING FOR RESEARCH 

INTRODUCTION

During the British period, An increment’s & promotion were not considered on the basis of Performance.  The System was very biased and partial. Perception, caste and creed, attitude, ethics were the criteria for consideration.  Generally, seniority was the main criteria at least in deciding the promotion policy. Till past decade, Performance Appraisal System was seen as apre perceive or the decided result by the Manager, who used to write a report about his subordinates and the same was kept confidential.  In fact, even today, Performance Appraisal is known as ‘Confidential Report’ in Government sector or in some other organization’s as well. As there was no transparency and openness in the process. The individual was not informed about their shortcomings, weaknesses and necessitating the improvements thereupon and hence very little purpose of the system was getting back.  It was, therefore, always said that Performance Appraisal System had become mainly a routine Form Filling Farce and hardly served the purpose that an organization wishes to achieve.

However, times are changing. With the advent of globalization, Organization’s today believe that every individual has potential and strength and those human capabilities could be sharpened, developed and utilized better for achieving Organizational Goal’s. Today, System’s are widely recognized as a key business strategy for creating Performance-driven culture in the Organization and in turn, for driving strong business results. Now Performance Management  & Appraisal Systems are very effective and meaningful process. It results employee assessment and development plans only if the system is clearly define with all of its elements. Through the process of reviewing the employee’s performance, the performance of the whole organization, is assessed, developed & managed. Ultimately, the levels and standards that are achieved by its employees determine the level and quality of an Organization performance or effectiveness. Therefore, It’s very important to assess employee’s performance formally which should be transparent and accurate & gives you a fair idea about Employee development plan. Employee development plan is the modern tool adopted to improve the efficiency of the employees and also to gain insight about the areas in which they can make the most of their potentials. It specifies the courses of action to be under taken to improve the performance of the employees. Employee development plan has got high relevance in the present organizational set up as there has been a paradigm shift in the focus of performance appraisal system across the world.

Focus has been shifted from simple rewards, incentives and punishment to the need of defining, planning and managing performance of the employees. Today organizations’ are focused on managing the performance of the employees. It has been observed that in many organizations’ the employees were not given neither suitable task or environment or responsibility to realize their potential to the maximum. This has resulted in job dissatisfaction and high rate of job hopping.

PERFORMANCE MANAGEMENT MODEL SHOWING RELATIONSHIP WITH ORGANIZATINAL OVERALL STRATEGY AND PERFORMANCE

Ø PROBLEM STATEMENT

The research is conduct in order to find out an impact of employee assessment & development plans as a result of performance appraisal process in context of Organization’s over all performance or effectiveness.

Ø WHY REQUIRED TO RESEARCH IN THIS AREA

The real challenge of Performance Management does not lie in appreciating the value of concept but in turning this understanding into a practical reality.  This practical aspect can best be understood by using the key principles, benefits and issues related to Performance Management. Considering the importance of the topic of research as stated above, the need is felt to undertake the research work related to recent trends in Performance Appraisal Systems and Practice followed in an Organization’s.

Ø OBJECTIVES OF THE RESEARCH

 To study the systems of Performance Appraisal practiced in Organizations.

To understand the impact of performance Appraisals on employee assessment & development plan.

To examine whether Performance Appraisal System is served as tool for communicating & fulfilling the Competencies gaps.

To examine the usefulness of Performance Appraisal System for the Employees with respect to achieving Organizational Goals & effectiveness.

 To examine whether the Performance Appraisal System possess the elements which result’s can put Organizational effectiveness ahead.

Literature Review

The Appraisal Process

 In the meeting between a manager and employee, the manager should first explain the purpose and the process of the performance appraisal. Generally, a performance appraisal is conducted to clarify job expectations, set goals for improvement of weaknesses and reward for accomplishments and overall performance. The manager’s job is to explain the steps involved during and after the performance appraisal. (Ruth Mayhew began writing in 1985)

Characteristics of Effective Performance Appraisal system for employee and its organization

Characteristics are caption below extracting from exsisting literature.

Clarify Job Expectations

A mutual understanding of the job expectations is essential to dividual  an effective performance appraisal. Absent this, the appraisal meeting could spiral downward because the manager div employee might be working from completely different vantage points. A review of the job description, and employee skills, qualifications and responsibilities should precede the actual performance appraisal.( Brown, S. P., & Peterson, R. A. (1994)

Review and Update Job Skills

Review the employee’s beginning job skills, meaning what qualifications the employee had at the start of the evaluation period one year ago. Discuss any improvements necessary and praise the employee for skills that have improved during this time. Determine what additional skills the employee can learn during the next evaluation period by setting reasonable goals for professional development.{Williams, R. E. (1989)} The employee should feel free to provide input throughout the performance appraisal. Employers who formally implement employee input often have an employee self-appraisal form. If this is the case, the employee will come to the performance appraisal meeting with the completed self-appraisal.( Colquitt, J.2001)

 Review Accomplishments and Goals

Accomplishments throughout the evaluation year will be enumerated. If there are quantifiable goals established for the review period, the manager and employee determine if the goals have been met. Often, a “management by objective” technique is used to track specific goals, progress and completion for each quarter. Using this technique simplifies the performance appraisal because there are intermediate assessments made during the evaluation period. Churchill, G. A., (1985).

Results-Focused

The performance plans include a critical element that focuses on achieving results.Review the appraisal with the appraiser’s manager to ensure there is mutual agreement prior to communicating the appraisal to the employee. This step also allows the second-level manager to ensure the standards being used are equivalent with other appraisers..{Williams, R. E. (1989)}

Skilled Appraisers

 There is considerable legal precedent for the notion that even the best designed methods and processes in the hands of untrained appraisers will be misused. In fact the requirement that appraisers be “trained” is codified into the law and must not be ignored. {Dalessio, A. T. (1998)} Unfortunately the guidance as to what constitutes adequate training is far less clear and each organization must decide what meets its needs. What is critical is that appraisers are trained before they assume the responsibility. Police departments do not give recruits badges and guns and send them on assignment without having them attend the academy first, because they know they will be held accountable for everyone the recruits shoot.  Although the damage that can be done by an untrained supervisor is not that dramatic it certainly can be significant. {Brown, S. P., & Peterson, R. A. (1994)}

Ø METHODOLOGY ADOPTED TO PURSUE RESEARCH

METHODOLOGY

The survey research method will be the basic research design. Researcher methodology is based on three components that are sample methodology, data collection methodology and analysis of data methodology.

POPULATION

People associated and working in Organizations of Pakistan.

SAMPLE

100 persons located in different areas of Karachi is selected randomly who is working for past two years in an Organization.

DATA COLLECTION METHODS

Data will be collected through Questianare's by conducting survey of diffrent organizations. 

STATISTICAL TOOL AND SOFTWARE FOR DATA ANALYSIS AND PROCESSING

Standard statistical techniques will be used to organization and analysis of data. Spread sheet and other software will be used to processing and analysis of data.

STATISTICAL TOOL

These standard statistical techniques will be used to analysis results,histogram and graphs is also be marked.

SOFTWARE

Spread sheet and SPSS software are used to processing and analysis of data.

Mind Mapping for Questinarries

Research Finding Relative To Appraisal Effectiveness

This study finds one of the pre-eminent researchers in the HR field, provides empirical support for many of the principles that have been put forth in this paper. The results were made the characteristics of an appraisal system found to have the most impact on its effectiveness were, in order of significance, supporting statistical analysation of data collected by survey through questions display under:

vownership by line management

v  appraisers adequately trained

v  how results were attained included in the appraisal

v  senior management actively provides leadership of PM

v  the system is periodically evaluated

v  employees being rated are trained, not just notified

v  performance goals are driven by business strategy

v  ongoing feedback on performance provided

v  managers are appraised on how well they do appraisal

v  jointly established goals are used

v  performance planning and development done

v  competencies, when used, are based on business strategy

v  pay actions are closely tied to appraisals

v  competencies are considered in the appraisal process 

CONCLUSIONS

Performance management is becoming more dynamic.It results as increase in effectiveness of aver all performance of all employees by gauging, assessing and developing Human talent for achieving future goals.Performance reviews need a balance and a diversity of data sources, It should process the accuracy and transparency element in order to make a positive link between individual Objective with Organizational achievements so that result of PA pursue organizational effectiveness ahead.Performance appraisal is a critical part of performance management. It is a necessary but npw a days its pre-requisite for employee effectiveness. Planning, continuous measurement and effective development are also required if appraisal is to contribute significantly to employee effectiveness if it is done well. Doing appraisal well requires a significant commitment of resource .But the investment almost assuredly is worth it.

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