May 21st, 2019
Business / শিল্প-বাণিজ্য
Performance appraisal: A key to success
September 23rd, 20103,839 views

Management by Objectives (MBO), a process of agreeing upon objectives within an organization so that management and employees agree to the objectives, has four parts - setting objective, developing action plan, periodic review and performance appraisal. Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future. At the beginning of each year, job objective is set for each employee and the performance is assessed to what extent an employee has achieved his/her agreed and set objective. It is a powerful tool to standardise, improve and reward the performance of the employee. It helps analyse an employee's achievements and evaluate his contribution towards the achievements of the overall organisational goals.

The latest mantra followed by many organisations across the world is "get paid according to what you contribute". Since the financial benefit like bonus, promotion, awards etc., in many organisations, depend on the rating of the performance appraisal of a staff; it should always be fairly measured.

The job objective of every staff should be set and clarified in such a way so that the respective staff knows what to achieve if they expect to get a specific rating in the performance appraisal. In the target oriented jobs like sales, performance can be easily measured just evaluating the achieved sales against the preset sales target. But the performance measurement is complicated in other department like the back office and service providing department. In the modern technology driven companies, there can be a central point where the performance of all employees will be automatically recorded. So, when the performance is assessed periodically, the relevant data can be obtained from that central source and the staff can be rated on the basis of his performance accordingly. The accuracy, meeting the turnaround time, the complaints and the compliments and other factors can be considered while evaluating the staff performance. If there is any scope to apply the judgmental call of the line managers to rate the subordinates, there is a chance of the staff being unjustifiably rated. Besides, in such cases, the responsibility of the performance appraisal should not be given to a single line manager of a unit. A team comprising of a senior staff of Human Resource Department should be formed to evaluate the staff-performance and the staff should be rated on the basis of the result of this combined evaluation.

It should not be prefixed by the employer that a certain percentage of the staff will not get financial benefit like bonus even though they are good performers and the organisation earns profit. If it is decided beforehand that a specific portion of the employees of each department will not get bonus, some staff may be intentionally made or declared underperformer. While reviewing the performance of the staff, if it is really found that someone's performance is below the standard, proper corrective action should be taken to ameliorate the performance of the respective staff. Besides, since financial factors are involved in the performance appraisal, it may be auditable to check if the performance of any staff is unfairly rated.

The unfairly treated staff of an organisation can hardly treat the customers be it internal or external fairly. If the performance of the employees is unjustly appraised, they will be de-motivated and its impact will be on others affecting the overall performance of the organization. So, the organisation should have all tools to ensure proper performance appraisal system.

The writer, a graduate of IUB, currently a student of Evening MBA, Department of Banking, Dhaka University.

--Pulok Debnath