PERFORMANCE  APPRAISAL  IN  PRACTICE       

There are three different approaches for performing appraisals. Workers may be appraised against (i) absolute standards (where worker performance is measured against some of established standards; here the subjects are not compared with any other person) (ii) associated standards (where the subjects are compared against other individuals) and (iii) objective. Here, workers are evaluated by how good they accomplish a particular set of objectives that have been determined to be crucial in the successful completion of their job. No one approach is always excellent; each has its weaknesses and strengths. Obviously, a successful performance appraisal system needs more than good method. It based on a consistent approach for comparability of results, apparent standards and measures, and bias-free ratings. Against this setting, let's see how some leading companies carry out the appraisal procedure.

1.      Hughes Escorts: Hughes Escorts, the subsidiary of the US-headquartered telecom company, Hughes, used a competency-depend performance-improvement model. Each of the position in the organisation is described in terms of 23 key competencies, categorised into four groups: attitude-depend, skill-centred, knowledge-driven and based. The company utilized these competencies to compute shortfalls and gives relevant training inputs. It is done to both maximise efficiency and make workers aware of their professional standing.

2.      Panasonic: This Japanese white-goods major has build up a performance-assessment system driven by key result areas (KRAs). KRAs defined performance goals, functional, business and behavioural ones along defined time-frames and are decided jointly by the worker and the manager at the starting of the year. It is a structured exercise utilizing a written format. These KRAs are then utilized to map the employee's progress and, depend on the results; the company selects to plug performance gaps with the help of related to training inputs. Panasonic puts a big deal of emphasis on this procedure for re-skilling its worker as it believes in developing its own timber rather than opting for costly mid-career hires.

3.      Larsen & Toubro: Engineering major Larsen & Toubro has build up a competency matrix which lists 73 competencies that differ across managerial levels to measure performance & gauge development requirements of its worker. Each listed competency has related knowledge, skills, and attributes. The company appraises individual workers in the listed competencies, & zeroes in on the managerial, functional and behavioural skill gaps. Then, customised reinforcement is provided. Furthermore, as the matrix is related to business strategy alternatively and training requirements on the other, strategic needs drive the company's growth policies, making the procedure of re-learning and re-skilling simply, and more focused.

4.      Daewoo Motors: Auto major Daewoo Motors Ltd. has selected a parameter on team work in its appraisal procedure. Objective are set according to business plans in the starting of the year and assigned to several functional teams. Afterwards, the team's performance is measured on the basis of its attainment vis-à-vis its goals. This done, the top management allocate ratings (which may vary from excellent to average) to each team. In a parallel procedure, the team-supervisor apprises each of team members. Both ratings are taken into account before a last rating is assigned by the senior management team to each of functional team and each team member. Rewards, by including performance, bonuses, increments and promotions are given out on the basis of this last rating.

5.      EIH Ltd.: Hospitality Company EIH currently overhauled its performance appraisal system to make it more competency-driven and participatory. Employees now are appraised on the attainment of specific individual & functional targets, plus generic competencies like, functional, technical, decision-making, managerial and leadership skills. Performance ratings ranging from excellent to below- average are given accordingly. The exercise is followed by worker feedback procedure, where workers are necessary to give answer. EIH had taken its managers by an extensive tour of its new appraisal procedure to raise comfort levels, and hopes to use it like a vehicle for people based growth.

6.      Pepsi Co: Beverage giant Pepsi Co. employs an annual appraisal procedure that is (numerical) target driven. As a big part of Pepsi's compensation package comprises performance pay in the form of bonuses altering from 15 % at junior levels to 60 plus per cent at senior rungs the manager's performance is find out on three key parameters:, market share, volume growth and net operating profit, to calculate the variable component to compensation. Managers are also rated on key behavioural & functional competencies to assess their potential for development within the organisation.