CSS Solved Business Administration Past Paper 2020 | What is the importance of Performance Appraisal? Discuss the problems faced in employee Appraisal.
The following question is attempted by Miss Nimra Masood, the top scorer in CSS Business Administration papers. Moreover, the answer is written on the same pattern, taught by Sir to his students, scoring the highest marks in compulsory subjects for years. This solved past paper question is uploaded to help aspirants understand how to crack a topic or question, how to write relevantly, what coherence is, and how to include and connect ideas, opinions, and suggestions to score the maximum.
Topic Breakdown:
Topic: Appraisal and Motivation
Subject: Human Resource Management
Human Resource Management is one section of Business Management apart from Management, Marketing and Finances. For the past years CSS examiner has continuously focused on Performance Appraisal; therefore, students cannot ignore this area.
Introduction:
Human resource management is divided into four broad areas: Planning, Recruiting, Training and Appraisal. To deliver goods and services company requires human resources. Individuals work for the organization to gain personal benefits; monetary or non-monetary. Thus companies look forward to different performance appraisal methods to get the most out of their available human resource. Compensations and benefits are tools used by companies to motivate their human resource to achieve performance targets.
Definition of Performance Appraisal:
“ Performance Appraisal is the process through which managers ensure that employee activities and output are congruent with the organizational goals.”
Or
“It is the process through which an organization gets information on how well an employee is doing his or her job.”
Performance Appraisal:
Employees are an integral part of every organization. It is human resources that make, implement and deliver policies and strategies of every organization. Performance appraisal is about giving employees feedback about their performance. Performance appraisal helps identify loopholes and achievements in the performances of individuals. There are many ways in which performance appraisal is done; each one has its own drawbacks.
Importance of Performance Appraisal:
- It ensures that all employees are judged on the same criteria on the same method of measurement
- It is important to identify areas where training is needed.
- It assists in making the correct placement of workers
- Appraises employees for their performance and expected results so that they could bridge the gap.
- It provides a review and assessment of temporary or contractual employees for permanent hiring
- It eliminates personal biasness and gives insight into the employee.
- It assists in developing the reward and compensation system according to employee performance, especially for efficient employees.
Problems in Developing Performance Appraisal System:
- Purpose:
The tricky part of the performance appraisal system is to determine its purpose. Management, on most occasions, is unable to clearly define the purpose of performance appraisal.
- Criteria for Evaluating Performance:
This is the most critical part of developing the performance appraisal system. The criteria should be clear, precise and relevant to get the desired outcomes.
- Validity:
It is the extent to which the process measures what it is intended to measure. Meaning that the result can be interpreted and used for the intended purpose.
- Reliability:
The degree to which the appraisal results are consistent with the previous results.
- Acceptability:
It will be the criteria of acceptable to the employee who is to be evaluated.
- Cost:
Another factor is the cost involved in conducting the appraisal.
- Specificity:
The appraisal method measures what it is intended to measure.
What to Measure:
This is to consider what the performance appraisal is intended for. For example, if the payment is to be reviewed, then job results must be evaluated, and if training is the issue, then employee behaviour should be focused on. Employee needs, objectives and the nature of the job are three things that help in setting the direction of appraisal.
- A. Method of Measurement:
There are several different ways of doing a performance appraisal. Appraiser needs to decide which method will deliver the most valid results and will also be acceptable to the employee being appraised
(I) Comparative method:
This method compares the performance and output of employees working on a similar rank with the same tasks and duties.
(ii) Attribute Approach Method:
This approach follows the attribute and characteristics model.
(iii) Behavioral Approach:
It requires that a manager keeps a record of specific examples of effective and ineffective performance. It combines elements of the traditional rating scale and the critical incident method. Many evaluators judge an employee’s performance on a number of dimensions
- B. Giving Feedback:
The most dangerous and risky part of the whole is giving feedback. There is always a risk of abrupt employee reaction. Response to feedback is based on understanding, fairness and importance given to the results.
Psychological and Statistical Problems in Performance Appraisal:
- Lack of objectivity is the biggest in this method
- It overlooks the Psychological factor of Employees
- It does not take into account the impact of internal and external environments on the employee performance
- It overlooks the fact that every employee has a different level of access to company resources.
- Every Employee has a varying level of skills and strengths.
Other problems include
- Halo Error:
When the evaluator perceives one factor to be of paramount importance; therefore, judgment is based on that one factor.
- Central Tendency:
All the employees are incorrectly rated along the average scale.
- Personal Bias:
It is one of the biggest hurdles in this method. The supervisor has a bias towards any one personal trait such as gender, colour and religion
- Rigidity:
Apart from the essay, all its evaluation techniques are rigid, only giving a few options to select from.
- Recent Behavior Bias:
It is the natural tendency of an individual to remember the most recent behaviour of the individual. Whereas the performance appraisal is based on a certain time period. This means that employee performance should be judged for the whole assessment period instead of the recent past.
- Manipulating the Evaluation:
Supervisor, in reality, controls all the dimensions of the appraisal process; hence, they are in a position to pollute the whole process.
- Leniency Error:
The perception was that the appraiser was more lenient and friendly to other employees than to him.
- Strictness Error:
The perception was that the appraiser was more strict and harsh to him than others.
Conclusion:
To conclude, there are various approaches to performance appraisal, each has its own benefits and drawbacks. With innovation and technology, the appraisal process has continued to evolve, filling in many loopholes. The most effective of the techniques is the result-based approach. This technique takes into account different dimensions that could influence the performance of an employee. But there is still room for improvement to ensure that the appraisal depicts the true picture of employee performance.
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