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Introduction to Public Administration

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Introduction To Public Administration­MGT111
VU
LESSON 24
PERFORMANCE APPRAISAL
At the end of lecture the students will be able to:
-  Explain the concept of Performance Appraisal
-
Examine Types of Performance Appraisal
-  Examine the need for performance Appraisal
-
Understand the concept of Compensation
-
Understand the need for promotion, demotion and transfer and the 4 C's model
What is Performance Appraisal
Performance Appraisal means to evaluate, judge or check the work of employee over a period of
time, and then inform whether the employee achieved the objectives in that time period.
Following are the characteristics of the Performance Appraisal:
1.  Agreed Objectives related to the assigned job/standard (job and position description)
2.  Time period
3.  Skills required to achieve objectives
4.  Check that objectives are achieved or not
5.  Inform the employee if the objectives were achieved or not
6.  If not achieved why these were not achieved
7. If achieved, reward and motivate
In the above characteristics, 6 and 7 constitute "feedback"
Figure 1
Agreed Objectives
Objectives
Work Performed
/ Performance
achieved/ Standard
Standard
Achieved
Feedback
(Accountability)
In figure 1 the whole process of performance evaluation is shown in diagrammatic form, indicating
that performance evaluation starts with agreed objectives or performance standards, then the work is
performed and then it is checked if objectives are achieved.
Importance of Performance appraisal
Performance appraisal is important task of managers to help other employees to improve their
performance. The manager who supervises the work of subordinate, knows the knowledge, skills and
attitudes required for accomplishing jobs and whether these are possessed by employees.
Performance Appraisal of employees is important for the organization because the appraisal of
work completed by each employee determines whether the organization is moving in the direction of its
objectives. However, most managers find it difficult to help others to coach ( guide) and appraise
performance of employee. Judging an employee's performance accurately is not always easy, because it
requires constant watch on the work of employees.
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Types of Appraisal
There are mainly two types of appraisal in the organization. Which are:
-
Formal Appraisal
-
Informal Appraisal
Formal Appraisals
Formal systematic appraisal usually occurs semi-annually or annually. Formal appraisal has four
major purposes:
1.
To let employees know formally how their current performance is being rated;
2.
To identify employees who deserve merit raises;
3.
To locate employees who need additional training; and
4.
To identify candidates for promotion
How is Formal Appraisal Done?
As we know Human Resource manager have job and position descriptions for all jobs in the
organization. The objectives to be achieved are mutually agreed between the `supervised' and `supervisor'.
The agreed objectives are written down on a `form'. This form is a special form which contains following
information:
1.
Name of employee
2.
Job title
3.
Job/position description
4.
Objectives/goals to be achieved in a year or six months or three months
5.
training received
6.
Training to be received
7.
Does the employee require special guidance
8.
Strengths and weakness of employee
9.
Signature of immediate boss
The performance appraisal forms are different in different organizations but most of the form will
have the above information.
Informal Appraisals
Informal appraisal is a day to day routine appraisal, when managers meet their subordinate almost
daily. In this process they use following methods:
1.
Observe
2.
Communicate
3.
Check work
4.
Give immediate feedback
So informal performance appraisal means continual process of feed back to employees. It is
information about how well employees are doing their work for the organization. Informal appraisal can be
conducted on a day-to-day basis.
Compensation
Compensation is the monetary return given to employee for the work they do in a position/job in
an organization. There are three types of compensation:
1.
Standard salary/ wage that one receives for being in that particular position
2.
Additional compensation for doing work not defined in the job and position description
3.
Fringe benefits/perquisites (like provision of transport, utility bills etc.)
Compensation has traditionally been linked to a particular job or job description. The general idea
is that more the responsibility a manager has, the more compensation he or she should earn. Often times
salary for jobs are rated by a job evaluation system which takes into account such variables as:
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1.
The number of subordinates supervised by manager/supervisor,
2.
Level in the organizational hierarchy, and
3.
Complexity (level of difficulty) and importance of job functions.
In a bureaucratic structure, senior organizational executives are paid very well, as compared to low
level employees. They are also paid perquisites and other benefits.
Some organization pay wages and salaries in accordance with the difficulty and risk of life involved
in the jobs, e.g. Commercial Pilot are paid more.
Promotions, Transfers, Demotions, and Separations (Lay Off)
Employees are promoted to next higher position when their performance is in accordance with
standards laid down by the organizations, i.e. when employees achieve targets over a given period of time,
for certain number of years.
Employees are transferred for variety of reasons. When employee is promoted, they can be
transferred because the higher level position may be available at some other places. Employees are
transferred because the performance may not be satisfactory and organization cannot lay-off employee,.
Employees may be transferred for personal reasons or they are transferred because of on ­the-job training.
Demotion is a kind of punishment. When employees have not performed according to the laid
down standards, or show indiscipline or disobedience or negligence or irresponsibility etc. they may be
demoted
In case of extreme and continuous negligence and indiscipline employees can be laid-off. The
movement of personnel within an organization ­ their promotion, transfer, demotion, and separation ­ is a
major aspect of human resource management. The actual decisions about whom to promote and whom to
fire can be the most difficult, and important, which a manager has to make.
The Four C's Model
The Four Cs model forms the basis of HRM. It addresses areas that must be focused when
selecting people for organization. These are:
1. Competence. How competent are employees in their work? Do they need additional training?
Performance evaluations by managers can help determine what talent is available. To what
extent do HRM policies attract, keep and develop employees with skills and knowledge needed
now and in the future?
2. Commitment. How committed are employees to their work and organization? Surveys can be
conducted through interviews and questionnaires to find answers to this question.
3. Congruence. Is there agreement, between the basic philosophy and goals of the  organization
and its employees? Is there trust and common purpose between
manages
and
employees? Incongruence can be detected in the frequency of strikes,
conflicts
between
managers and subordinates, and grievances. A low
level of congruence results in low levels
of trust.
4. Cost effectiveness. Are HRM policies cost-effective in terms of wages? benefits,
turnovers,
absenteeism, strikes, and similar factors
Conclusions
The process of performance appraisal both formal and informal was discussed. The formal
method of performance appraisal helps organization to determine if the employees are working to achieve
the goals of organization. And if they are unable to do so then what are the gaps in skills or knowledge for
which training should be imparted training. Performance also helps in determining the compensation and if
promotion, demotion or lay-off is to be done. All the processes of HRM are interconnected and
interrelated.
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Concepts
Performance appraisal:
evaluation or checking the work employees over a period of time.
Compensation:
wages and salaries given to employees in a job position.
Competence:
ability to perform on a particular job.
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Table of Contents:
  1. INTRODUCTION:Institutions of State, Individualism
  2. EVOLUTION OF PUBLIC ADMINISTRATION:Classical School, The Shovelling Experiment
  3. CLASSICAL SCHOOL OF THOUGHTS I:Theory of Bureaucracy, Human Relation Approach
  4. CLASSICAL SCHOOL OF THOUGHTS II:Contributors of This Approach
  5. HUMAN RELATIONS SCHOOLS:Behavioural School, System Schools
  6. POWER AND POLITICS:Conflict- as Positive and Negative, Reactions of Managers, Three Dimensional Typology
  7. HISTORY OF PUBLIC ADMINISTRATION I:Moghul Period, British Period
  8. HISTORY OF PUBLIC ADMINISTRATION II
  9. CIVIL SERVICE:What are the Functions Performed by the Government?
  10. CIVIL SERVICE REFORMS:Implementation of the Reforms, Categories of the Civil Service
  11. 1973 CONSTITUTION OF PAKISTAN:The Republic of Pakistan, Definition of the State
  12. STRUCTURE OF GOVERNMENT:Rules of Business, Conclusion
  13. PUBLIC AND PRIVATE ADMINISTRATION:The Public Interest, Ambiguity, Less Efficient
  14. ORGANIZATION:Formal Organizations, Departmentalization
  15. DEPARTMENTALIZATION:Departmentalization by Enterprise Function, Departments by Product
  16. POWER AND AUTHORITY:Nature of Relationship, Delegation of Functional Authority
  17. DELEGATION OF AUTHORITY:The Art of Delegation, Coordination
  18. PLANNING I:Four Major Aspects of Planning, Types of Plans
  19. PLANNING II:Planning ProcessThree principles of plans
  20. PLANNING COMMISSION AND PLANNING DEVELOPMENT:Functions, Approval Authority
  21. DECISION MAKING:Theories on Decision Making, Steps in Rational Decision Making
  22. HUMAN RESOURCE MANAGEMENT (HRM):Importance of Human Resource, Recruitment
  23. SELECTION PROCESS AND TRAINING:Levels at Which Selection takes Place, Training and Development
  24. PERFORMANCE APPRAISAL:Formal Appraisals, Informal Appraisals
  25. SELECTION AND TRAINING AND PUBLIC ORGANIZATIONS:Performance Evaluation,
  26. PUBLIC FINANCE:Background, Components of Public Finance, Dissimilarities
  27. BUDGET:Components of Public Income, Use of Taxes, Types of Taxation
  28. PUBLIC BUDGET:Incremental Budget, Annual Budget Statement, Budget Preparation
  29. NATIONAL FINANCE COMMISSION:Fiscal Federalism Defined, Multiple Criteria
  30. ADMINISTRATIVE CONTROL:Types of Accountability, Internal Control, External Control
  31. AUDIT:Economy, Effectiveness, Objectives of Performance Audit, Concepts
  32. MOTIVATION:Assumptions about Motivation, Early ViewsThree Needs
  33. MOTIVATION AND LEADERSHIP:Reinforcement Theory, Leadership, The Trait Approach
  34. LEADERSHIP:Contingency Approaches, Personal Characteristics of Employees
  35. TEAM I:Formal & Informal teams, Functions of Informal Groups, Characteristics of Teams
  36. TEAM II:Team Cohesiveness, Four ways to Cohesiveness, Communication
  37. COMMUNICATION I:Types of Communication, How to Improve Communication
  38. COMMUNICATION II:Factors in Organizational Communication, Negotiating To Manage Conflicts
  39. DISTRICT ADMINISTRATION:The British Period, After Independence, The Issues
  40. DEVOLUTION PLAN I:Country Information, Tiers or Level of Government
  41. DEVOLUTION PLAN II:Aim of Devolution Plan, Administrative Reforms, Separation of powers
  42. POLITICAL REFORMS:District, Tehsil, Functions of Union Council, Fiscal Reforms
  43. NEW PUBLIC MANAGEMENT (NPM):Strategy, Beginning of Management Approach
  44. MANAGERIAL PROGRAMME AGENDA I
  45. MANAGERIAL PROGRAMME AGENDA II:Theoretical Bases of Management, Critique on Management