EXTERNAL GUIDE INTERNAL GUIDE

• MR. RAGHUNATH JALI MR. HIMANSHU BHUSAN MISHRA

(ASSISTANT GENERAL MANAGER) (LECTURER, IMIT, CUTTACK)
• MR. M.R. PATRA
(ASSISTANT MANAGER)

SUBMITTED BY
SITU GUPTA
REGD NO - 1806102084
MBA 2ND YEAR
IMIT, CUTTACK
 AKNOWLEGEMENT
It gives me immense pleasure to take this opportunity to acknowledge all
those whose guidance and encouragement served as platform for completing
this project.
I do express my deep sense of gratitude to Mr. Himanshu Sekhar Mishra,
Lecturer at IMIT,Cuttack regarding this project.

I would like to convey my best regards with lot of thanks to all the persons of
IMIT who gave me their kind cooperation, cordiality and guidance for making
this project a successful one. I am also in debated my faculty member for
providing me the necessary guidance, support and moral courage in this effort.
I am also thankful to Mr. Himanshu Sekhar Mishra, lecturer at IMIT for helping
me in completing this project. I am also thankful to my friends and family
members for their support.
Finally I thank one and all who were directly and indirectly involved in
preparation of this report.

Date :-
Place :-BHUBANESWAR SITU GUPTA
 DECLARATION
I, SITU GUPTA do hereby that the project entitled “A Project Report on
Employees welfare in AAI” is the result of 4 weeks summer training done in
AAI,BPIA, BBSR. This report is submitted by me for official fulfillment of MA in
Personnel Management & Industrial Relation Program (2018-20) of Institute of
management& information technology, cuttack Affiliated to BPUT.
This is to further declare that this project report is a result of my original work
and not any portion has been copied or duplicated nor has any project report
similar to this has been submitted to any of the university or organization of this
sort to service a degree.

DATE
PLACE: BHUBANESWAR SITU GUPTA
 TO WHOM IT MAY CONCERN
This is certify that , Miss. SITU GUPTA student of 2ND year MBA
Programme of IMIT, CUTTACK bearing REGD no-1806102084 has worked on
the summer project entitled “Performance Management System in AAI” for the
partial fulfillment for the award of Degree in MBA under my supervision and
guidance from dt_03/07/2019 to Dt 30/07/2019.
I wish her all success in her life.

MR. RAGHUNATH JALI

ASSISTANT GENERAL MANAGER(HR)
MR. MANORANJAN PATRA
GENERAL MANAGER (GM)
AIRPORTS AUTHORITY OF INDIA
BIJU PATNAIK INTERNATIONAL AIRPORT
CORPORATE OFFICE , BHUBANESWAR , ODISHA
 CERTIFICATE OF THE ACADEMIC GUIDE
This is to certify that the project “Performance Management System” has
been done by SITU GUPTA bearing Regd no- 1806102084 in an original work of
the student under my supervision and guidance and is submitted in the partial
fulfillment of the degree of MBA in this college.

(Academic guide )
Mr HIMANSHU BHUSAN MISHRA

Date:- LECTURER, IMIT

Place:-BHUBANESWAR
 CONTENTS

CHAPTERS

Ch- 1

• Introduction
• Objective of the study
• Methodology

Ch-2

• Organizational profile
• Vision & Mission of AAI
• Profile
• Modern Airport
• Customer Satisfaction & Safety
• Modernization
• Official Language
• Human Resources
• Training
• Biju Pattnaik International Airport
• Performance Management system of AAI

Ch-3

• Review of Literature
• Introduction to Performance Management System
• Prospective of Performance Management System
• Objective
• Process
• Challenge
• PERFORMANCE APPRAISAL
1. Introduction
2. Objective
3. Advantages
4. Method
5. Important

Ch-4

• Performance management system in AAI

• Objective & Application of Performance Management system
• Reviews
Ch-5

• Analysis
• Survey Report

Ch-6

• Conclusion
• Findings
• Suggestions
• Bibliography
• Objective of the study
• Methodology
OBEJECTIVE OF THE STUDY

The objective of the study are...

• To empirically assess performance management as a tool for improving performance.

• To study the process and methods of existing performance management systems.
• To identify the effects of performance review techniques on employee’s performance.
• To study of performance review techniques; employee’s performance; performance
incentives and employee’s morale.

METHODOLOGY
It is a systematic study which guides the scientific accuracy of investigation. It
refers to the body of methods used in the study and
Maximum care has been taken to make the study systematic and scientific. The
data for the present study has been collected form HR officials working in
corporate office in AAI, BBSR and survey method through questionnaire.
❖ Vision and mission of AAI
❖ A profile
❖ Model Airport
❖ Customer satisfaction and safety
❖ Modernization
❖ Official language
❖ Human resource
❖ Training
❖ Biju Patnaik International Airport
❖ Organization structure of AAI
VISION OF AAI
To be a world class organization providing leadership in air traffic services and
airport management and making India in major hub in Asia Pacific Region by
2016.
MISSION OF AAI
To achieve highest standards of safety and quality in air traffic services and
airport management by providing state of the art infrastructure for total
customer satisfaction, contributing to economic growth and prosperity of the
nation.
A PROFILE
The Airports Authority of India (AAI) was established by an Act of Parliament of
1st April, 1995 by merging the international Airports Authority of India and the
National Airports Authority. The objectives of the merge was for better
administration and cohesive management of airports and civil enclaves whereat
air transport services are operated and of all aeronautical communication
stations and for matters connected there with or incidental thereto.
AAI provides Air Navigation Services over 2.8 million square nautical miles of air
space reaching far beyond the continental airspace. Expansion of the activities
of AAI covering serves at 11 international airports, 86 domestic airports and also
facilitating passenger services at 28 Civil enclaves speaks volumes about its
commitment to develop civil aviation in the country towards achieving the
corporate mission.
MODEL AIRPORT
AAI has identified 12 Domestic Airports which are being developed as Model
Airports based on the importance of the city, traffic/tourist potential and
coverage of all the regions in the country.
The runways at these airports are designed to cater to A-320 operations with
standard approach and leading aids, modern communication and navigational
facilities. The terminal buildings offer excellent facilitation keeping in view the
ecology and local environment. The modern airports are Jaipur, Lcuknow,
Vadodara, Calicut, Coimbatore, Patna, Bhubaneswar, Guwahati, Hyderabad and
Imphal. Apart from this, AAI is developing some of the cardinal airports which
generate tourist. This includes Goa, Bangalore, Varanasi and Agra.
CUTOMER SATISFACTION AND SAFETY
Customer satisfaction and safety are the core priorities of AAI. In its endeavour
to provide world class passenger amenities and services, the authority is
developing more international airports in the country and improving facilities in
domestic airports.
MODERNIZATION
Developing world class air navigation infrastructure effectively manage Air
Traffic is an identified trust area.
The authority is in the process of implementing a VSAT based satellite
communication network to connect 80 airports in the country to present as well
as CNS/ATM environment.
Satellite navigation has also been one of the initiatives for enhancing the
accuracy and reliability of GPS signal which could be gainfully by other transport
sectors like road transport, railways surveying, forestry, resource exploration,
environmental management.
A phased induction of ATC automation systems and also induction of new
facilities to improve standards of safety at airports and in the Air is in progress.
OFFICIAL LANGUAGE
Progressive use of Hindi for effective implementation of official language act and
rule is constantly encouraged. AAI has begged a number of prises for successful
implementation of the Rajbhasa.
HUMAN RESOURCE
AAI comprises of highly professional, motivated and trained man power which
help it emerge as a professional organization on the horizon of aviation sector.
The authority has successfully used the Human Resource tools like Job rotation,
Reemployment etc to sustain the employee’s interest in their job.
AAI has a strength of employees both executives and non-executives. The
management of AAI firmly believes that through this invaluable asset of human
resource alone, it can achieve its goals. Utmost care is taken in the employees
welfare and various schemes have been introduced for the upliftment and
better standards of the AAI fraternity.
“Kalyanamayee” the women welfare association of AAI was setup with the main
objectives of caring out social, cultural and educational activities for the benefit
of the members and their families, so as to promote and imbibe a feeling of
harmony and belongingness within the organization, carrying out social,
charitable and upliftment work for the down – trodden in the society.
The activities of Kalyanamayee have spread throughout India and have become
a platform to cater to the welfare, social and recreational needs of the whole
family of AAI.
TRAINING
To cope up with constant changes and strides in technology and fill up the gape
between actual performance and planned performance, skill acquisition and up
gradation is ensured amongst the employees through the process of training
and various levels. The training requirements are catered through:
Civil aviation training college (CATC), Allahabad
National Institute of Aviation Management and Research (NIAMAR), Delhi
Fire Services Training Center (FSTC), Kolkata
Fire Training Center (FTC), Delhi
CIVIL AVIATION TRAINING COLLEGE (CATC), ALLAHBAD
CATC is AAI’s residential training establishment, only one of its kind in the
country, operating since 1948. CATC imparts job centre training as per ICAO
standard in the field of CNS/ATM maintenance and operations primarily to both
executives and non-executives of AAI at ab-initio, career progression, refresher
and specialist levels. CATC is a full time member of ICAO trainer programmer
since 1993 and has an establishment course development unit (CDU), which
have developed seven standard training packages (STPs), which are already
available for global sharing.
NATIONAL INSTITUTE OF AVIATION MANAGEMENT AND RESEACH (NIAMAR),
DELHI
NIAMAR is a training institute imparting training in all disciplines of airport
management. NIAMAR is conducting courses in airport
operations/engineering/construction/maintenance/project/management/fina
nce/commercial/international aviation law and cargo management including
IATA approved course on dangerous goods regulation.
FIRE SERVICE TRAINING CENTRE (FSTC), KOLKATA
FSTC, Kolkata conduct basic course refresh courses for various levels of fire
service staffs, with duration varying from 4 weeks- 16 weeks. FSTC also imparts
training to outside agencies such as IIPM officials, Indira Gandhi Rastriya Udaan
Academy and Foreign Nationals. The FSTC trains around 600 persons per annum.
FIRE TRAINING CENTRE (FTC) DELHI
FTC located at Delhi imparts training for fire personnel in handling and
maintaining of equipment in order to deal with major aircraft fire by means of a
most carefully planned and vigorously followed programme of training FTC also
caters to the requirement of outside agencies.
BIJU PATNAIK INTERNATIONAL AIRPORT
Biju Patnaik International Airport (IATA: BBI, ICAO: VEBS), also known as
Bhubaneswar Airport, is situated in the city of Bhubaneswar, Odisha, India. It is
the sole international airport in the state. It is named after the former Chief
Minister of Odisha, Biju Patnaik, who was also a famed aviator and freedom
fighter. As of 2013, Bhubaneswar was ranked the 17th busiest airport in India by
the Airports Authority of India (AAI) registering a 1.82% traffic growth over the
previous year. On 5 March 2013, a new terminal (T1) was inaugurated by
Minister of Civil Aviation, Ajit Singh. The terminal caters to all domestic flights
while the older terminal (T2) has been refurbished to support impending
international operations. The Government of India accorded international status
to the airport on 30 October 2013.
TERMINALS:-
Terminal 1-
The state-of-the-art terminal, inaugurated in March 2013, has a capacity of 4
million passengers per annum and was built at a cost Rs 145 crore. The new
terminal has been developed by the (AAI) as part of the upgrade of 35 non-
metro airports across the country. Terminal T1, a two-storied building with a
total area of 18,240 square meters (196,300 sq ft), consists of 2 aerobridges, 4
elevator, several escalators, 16 check-in counters, 3 arrival luggage conveyors, a
spa, and seating areas. It has many lounges like Pal Heights Spa Lounge, Dakota
Lounge, Mayfair Lounge and VIP Lounges apart from the Departure and Arrival
Lounges. The terminal in environment friendly, built according to green building
standards, with provision for rain water harvesting, sewage treatment plants,
etc. The internal walls of the terminal are decorated with tribal motifs, designs,
marks, and sculptures, giving travelers a glimpse of Odisha’s rich culture. The
new terminal also has food kiosks, gift shops, book shops, handloom, art
galleries and handicraft kiosks. The terminal was built by Lanco Infratech
(Octamec).
Terminal 2-
As of 2014, the airport is planned to start international operations after 2014
Indian General Election, connecting the city to Southeast Asia and the Middle
East. The Terminal T1 is being used for domestic flights, while international
terminal (T2) is renovated and ready to handle international operations. Biju
Patnaik International Airport received its first international charter jet from
Spain carrying 12 Spanish members on 3 May 2014. Biju Patnaik International
airport received its second international charter jet from Luton Airport, London
carrying 19 passengers on 28 May 2014. Biju Patnaik International Airport its
third international charted jet from Toronto Pearson International Airport,
Toronto carrying 5 passengers on 4 December 2014. Biju Patnaik International
Airport received its fourth international charter jet from Beijing Capital
International Airport, Beijing, China on 26 March 2015.
Cargo-
The Common User Domestic Cargo Terminal (CUDCT) of Biju Patnaik
International Airport, Bhubaneswar is currently under planning. On 19 March
2015, Airports Authority of India in association with Industrial Promotion &
Investment Corporation of Odisha Limited organized a coordination meeting
with main agendas such as available resources, were discussed with the
representatives of the airlines and industries.
Organization structure of AAI
 ch-2 REVIEW OF LITERATURE

❖ Introduction to Performance Management System

❖ Prospective of Performance Management System
❖ Objective
❖ Process
❖ Challenges

PERFORMANCE APPRAISAL

❖ Introduction to Performance Appraisal

❖ Objective
❖ Process
❖ Advantages
❖ Challenges
❖ Method
❖ Importance
Introduction to Performance Management System

Performance Management is the process though which managers ensure that

employees activities and output contribute to organisational goals.
Performance Management may be defined as a planned and systematic
approach to managing the performance of individuals ensuring their personal
development and contribution towards organisational goals.
Performance Management System is a tool which is used to communicate the
organizational goal to employees individually. Allot individual accountability
towards that goal and tracking of the progress in the achievement of the goals
assigned and evaluating their individual performance.
It is a process that significantly affects organizational success by having
managers and employees work together to set expectations, review results,
and reward performance.
Performance Management System is a tool that helps the manager to manage
their resources and eventfully result in the success of the organization.
Performance Management System is very broader and complicated function of
HR. It includes activities such as joint goal settings, frequent communications,
continuous progress review, feedback of the performance and rewarding the
achievements.
ELEMENTS
1. Establishing Performance Standards
a) Identifying the relevant standards
b) Selecting the indicators
c) Specifying the goals and targets
d) Communicating the expectations
2. Performance Measurement
a) Refining the existing indicators and define the measures
b) Developing data systems
c) Collecting data
3. Quality Improvement Process
a) Decision making using the data and improve policies, programs
and outcomes
 b) Change management
c) To create a learning organisation
4. Progress Reporting
a) Analysing the data
b) Provide feedback to the staff, managers, policy makers etc.
c) To establish a proper and regular reporting cycle.

Prospective of Performance Management System

Providing career development support and promotional guidance to the

employees.
Helps in giving regular feedback and coaching during the period of delivery of
performance.
Helps to identify the employees development opportunities, which could be
crucial part of succession planning process.
It can boost the productivity and output of a company.
It rewards the employees who are good performers as employees deserving
the promotions can easily be identified.

Objective of Performance Management System

1. To facilitate the employees to achieve higher level of performance.

2. To enhance the employees performance with the help f motivation
employee empowerment, and effective reward system.
 3. To develop a foundation for various promotions and performance based
payment systems, administrative decisions, strategic planning and
succession planning.
4. To establish two way channel of communication between superiors and
subordinates so that various expectations can be clearly communicated.
To improve the performance of employees and teams to their optimum
level so that it can benefit both employees and the organizations.

Process of Performance Management System

Performance Management System process is a systematic process of

managing and monitoring the employees performance against their key
performance parameters or goals.
Process includes :
Phase 1 : Performance Planning :The first phase in the performance
management is performance planning. Developing performance
expectations and objectives for individual and groups is considered as
performance planning and the main focus remains on directing their
efforts for the accomplishment of the organisational goals. This step is
started by creating the strategic plans and annual goals for the
organisation. Key Result Areas, key performance areas, Goal-setting
exercises, activity plans, task and target, identification, and finally the
performance standards are determined.
Phase 2: Performance Analysis: Assessment or analysis of different
factors which contribute to the performance for a certain time and
effective management of these factors for the upcoming period are
included in performance analysis. This is the phase in which actual
performance is made and regular monitoring and documentation of
performance of the employees and feedback is done according to
various activities related to the role, standards establishment and
measurement.
 Phase 3: Performance Appraisal: The most important phase in the
performance process is the performance appraisal. It is seen as a
systematic and objective technique of determining the comparative
value or ability of an employee to perform certain job. It can be seen as
one of the inevitable methods.
Phase 4: Performance Development: Developing the work-related skills,
experience, and knowledge of an employee can be seen as an important
component of performance management. It can be understood as a
process of stimulating an environment of continuous learning and
professional development, enhancing skill, knowledge and experience
and thus improving the competence of the employee for having better
employment opportunity within the same organisation.
Phase 5: Performance Management Audit: The process of regularly
appraising the worthiness of the prevailing performance management
system is called performance management audit.
It aims at:
1) Appraising common practices and principles.
2) Determining various methods of defining and agreeing to
expectations of individual employees as well as team planning.
3) Formulating various methods of performance.
4) Establishing connections with compensation
5) Developing various methods for reviewing performance.
6) Developing training and development system in operation with
reference to performance management.

Challenges of Performance Management System

Some of the major challenges in managing performance could be as follows:

1. Wrong Design:
The performance management system and tools must fit with the specific
needs of the organization. It cannot be a duplication of a system designed and
implemented in another organization, even an organization in the same
industry or the same business group. Intense consultation with various
stakeholders and users of the system is necessary. User trust is an absolute
necessity for the success of the system. The design should be tried out on a
pilot basis before it is rolled out to the organization as a whole. All documents
and forms must be in place. The system should be fair and equitable.
Performance management should be viewed as a continuous process and not
an activity conducted once or twice a year. The design should also include
mechanisms for rewarding performance and handling poor performers.

2. Absence of Integration:
The performance management system has to be integrated with the strategic
planning and human resource management systems as well as with the
organizational culture, structure and all other major organizational systems
and processes.

3. Lack of Leadership Commitment:

Leadership commitment and support is a must for smooth implementation of
the system. Leaders must drive the process and make performance
management an integral part of the management of the company. Leaders
contribute not only in setting the strategic direction and performance
measures but also in monitoring and reviewing performance across the
organization. They also reinforce the performance cycle by recognizing and
rewarding performance.

4. Ignoring Change Management in System Implementation:

Strategic management of change is a vital part of implementing the system.
Driven by the top management, it involves careful management of resistance.
Communication would be a major intervention and a key tool in managing the
change. Implementation milestones and schedules must be followed. Proper
documents must be in place.
5. Incompetence:
Competence to use the performance management system is necessary to
ensure smooth implementation of the system. Some of the major skills would
include:

• Defining strategic objectives, performance indicators, core competencies

and performance contracts
• Defining performance measures that correspond to the KPIs
• Giving and taking feedback, conducting appraisal interviews, and active
listening
• Performance coaching

The focus would be on designing and implementing training and development

interventions that would help in developing the competence of various job
holders. Special emphasis would be on building the behavioral dimensions of
performance.

PERFORMANC APPRAISAL
Performance appraisal is a tool which is used to evaluate the employee’s performance at the
workplace. It generally includes qualitative and quantitative dimensions of employees' job
performance. In this context, performance is defined as the level of work achievement. It generally
represents how successfully an individual satisfied the job requirements. Performance is constantly
evaluated on the basis of outcomes. For example, a student applied great effort while preparing for
exams but he received poor remarks. In such case, the effort applied is of high level but performance
is comparatively low. Immediate supervisors, subordinates, customers being served, computers and
even self-appraisal can evaluate the performance of an individual.

According to Mondy et al.,” Performance appraisal is a system of review and evaluation of an

individual’s (on team’s) performance”.
According to DeNisi,” Performance appraisal is a system whereby an organisation assigns some to
indicate the level of performance of a target person or group”.

According to Flippo,” Performance appraisal is defined as a systematic, periodic and so far as

humanly possible, an impartial rating of an employee’s excellence in matters pertaining to his
present job and to his potentialities for a better job”.

The performance appraisal is the process of assessing employee performance by way of comparing
present performance with already established standards which have been already communicated to
employees, subsequently providing feedback to employees about their performance level for the
purpose of improving their performance as needed by the organisation.

As said above the very purpose of performance uprising is to know performance of employee,
subsequently to decide whether training is needed to particular employee or to give promotion with
additional pay hike. performance appraisal is the tool for determining whether employee is to be
promoted, demoted or sacked ( remove ) in case of very poor performance and no scope for
improvement.

Every corporate sector uses performance appraisal as a tool for knowing about the employee and
take decisions about particular employee. for the purpose of performance appraisal of employees
there are different methods under the category of traditional methods and modern methods

Performance Appraisal is the systematic evaluation of the performance of employees and to

understand the abilities of a person for further growth and development. Performance appraisal is
generally done in systematic ways which are as follows:

The supervisors measure the pay of employees and compare it with targets and plans.

The supervisor analyses the factors behind work performances of employees.

The employers are in position to guide the employees for a better performance.

Features of Performance Appraisal

Features of performance appraisal are as follows:

1. Organised Process: Performance appraisal is an organised process having following three

steps:
• Deciding performance standards.
• Comparing actual performance of employee with performance standards.
• Providing feedback so that the employee can remove errors and enhance his/her
performance in due course of time.
2. Evaluating Process: It identifies the employee’s performance level and tries to develop a
future improvement plan.
3. Periodic Process: Performance appraisal is performed at regular intervals as per the
specified plan. It is not a one-time process.
4. Futuristic: Performance appraisal does not focus on the past rather it focuses on the future.
It identifies and indicated the areas where employees are lagging behind, help employees to
organise and produce results utilising their capabilities in an appropriate manner.
5. Identifies Employee’s Potentialities: Performance appraisal determines the capability of the
employee to perform the allocated job effectively.
6. Develops Employees: Performance appraisal also emphasises on overall development of
employees. It guide manager to act like a coach rather than judge. It helps in identifying the
issues for discussion, removes any significant problems, and determines new goals for the
purpose of attaining high performance.
7. Formal or Informal Process: Informal evaluation is generally based on opinions and ideas
rather than facts. These are also affected by individual factors. Due to this, some employees
may get better chance of obtaining rewards than others. On the other hand, a formal system
is more reasonable and based on facts. It is executed in an organised manner by using
printed appraisal forms.

Objective of Performance Appraisal

Objective of Performance appraisal are as follows:

1. Providing Feedback: Main objective of performance appraisal is to provide feedback to its

employees. Through this process, the individual learns how he performed during past twelve
months. Then, he can utilize this information for improving his performance in the future.
Thus, performance appraisal aims to ensure that the expectations of manager are properly
communicated to employees.
2. Facilitating Promotion and Downsizing Decision: Performance appraisal helps in making
decisions regarding promotion and Downsizing so that efficient employees can be retained
and low performers can be removed.
3. Motivating Superior Performance: Performance appraisal also helps in stimulating people
for rendering superior performance in a number of ways. Firstly, it helps in understanding
what an organisation means by being “superior”. Secondly, as most people desire to be
treated as superior performers, performance appraisal process helps them to understand
their actual performance. Lastly, Performance appraisal motivates employees to become
superior performers.
4. Settings and Measuring Goals: Goals established has been confirmed as a management
process which produces advanced performance. The performance appraisal process is
generally used to ensure that every individual sets and attains valuable goals.
5. Determining Compensation: The concept of pay for performance is generally followed by
every organisation. Performance appraisal helps in ensuring that good performers are paid
more. Thus, employees are rewarded as per their performance.
6. Counselling Poor Performers: It is not possible for everyone to meet the standards of
organisations. Performance appraisal pressurises the managers to deal with those who are
not fulfilling the organisation expectations.
7. Encouraging Coaching and Mentoring: Managers are supposed to be good coaches for their
subordinates and mentors for their trainees. Performance appraisal determines the need for
coaching and motivates managers to play an active role of coach.
8. Supporting Manpower Planning: Well- groomed organisation frequently evaluate their
strength to ensure that they have the required talent. Organizations need to find out their
most effective employees. They also need to locate the departments having talented
employees and those that are lagging behind. Performance appraisal provides the
 organisation with a tool to ensure that they are having that creative strength which is
needed in future.
9. Determining Training and Development Needs: With the help of data obtained from
performance appraisals, training and development experts can better decide the areas
where an organisation should focus its training efforts.
10. Validating Hiring Decisions: Once the performance of newly selected employees is
evaluated, only then the organisation can determine that whether or not it has selected the
right candidate.
11. Providing Legal Defensibility for personnel Decisions: More or less every personnel
Decision, whether termination, denial of a promotion or transfer to another department, is
governed by legal inspection. If any of these decisions are challenged, the organisation could
also be challenged. Therefore, organisation must be capable of justifying that the decisions
taken were not established on any personal issues or any other protected aspects. A strong
record of performance appraisals deeply assists in legal defensibility, when any complaint
about biasness is made.

Process of Performance Appraisal

Performance appraisal includes various steps as:

1. Establish Performance Standards with Employees: The process of performance appraisal

starts with the formulation of performance standards, according to organisation planned
goals. These standards should be easy to understand so that they can be easily
comprehended and evaluated. Generally, these standards are expressed with confusing
remarks that one understands little such as “ a full day work” or “ a good job”. It is difficult
to understand what is a full day work or a good job. A manager should have a clear-cut
picture in his mind about what he expects from his employees. Thus, he would be able to
convey these expectations to the employees in the future and evaluate their performance as
per these standards.
2. Mutually Set Measurable Goals: After the formation of standards, the most important thing
is to convey the expectations so that am Employee would not waste his time in presuming
what is being expected from him. Many jobs have ambiguous performance standards and
the problem occurs when these standards are formulated separately without ant discussion
with Employees. Only transfer of information from manager to Employee cannot be termed
as communication because communication is a two-way process.
3. Measure Actual Performance: Measurement of actual performance is the next phase of the
appraisal process. To measure actual performance, it is necessary to collect information
about it. Managers should be aware of what is to be measured and how. There are four
common sources of information which are often exercised by the managers to evaluate
actual performance. These sources are: personal observations, statistics reports, oral reports
and written reports. Every source has its own benefits and limitations. However, a group of
these sources will boost the number of input source and prospects of collecting trustworthy
information. Selecting wrong criteria may result in severe outcomes.
 4. Compare Actual Performance with Standards: Next step involves comparison of standards
with actual performance. This step includes identification of fluctuations between the
standards performance and the actual performance in order to proceed further.
5. Discuss the Appraisal with the Employee: During this phase, the appraiser discusses the
appraisal with the Employee. For a manager, the most difficult job is to provide a precise
appraisal to the Employee. The review of performance appraisal affect Employee’s self-
esteem and most importantly his performance. Obviously, providing positive feedback is
comparatively easier for both the appraisal and the Employee than providing and negative
outcomes.
6. If Necessary, Take Corrective Action: The last phase of appraisal process involves taking
remedial actions wherever needed. These actions could be immediate or basic. Immediate
actions mostly deal with the symptoms. These actions are frequently regarded as ' putting
out fires' as they deal with urgent problems. They rectify the problems immediately and
smoothened the flow of work. On the other hand, basic action deal with causes of the
problem.

These actions cover the reasons of fluctuations and also aim at controlling the difference
permanently. They diagnosis how and why the performance is fluctuated. In some cases,
appraisers may give a reason that due to time they did not take basic remedial actions.
Hence, appraisers feel satisfied in putting out fires. Efficient managers know that spending a
little time in evaluating the problem today, may save their time in solving the problem
tomorrow.

Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the company which can be justified by
following advantages:

Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes
for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case.

Compensation: Performance Appraisal helps in chalking out compensation packages for employees.
Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to
a performance. Compensation packages which includes bonus, high salary rates, extra benefits,
allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit
rather than seniority.

Employees Development: The systematic procedure of performance appraisal helps the supervisors
to frame training policies and programmes. It helps to analyse strengths and weaknesses of
employees so that new jobs can be designed for efficient employees. It also helps in framing future
development programmes.

Selection Validation: Performance Appraisal helps the supervisors to understand the validity and
importance of the selection procedure. The supervisors come to know the validity and thereby the
strengths and weaknesses of selection procedure. Future changes in selection methods can be made
in this regard.

Communication: For an organization, effective communication between employees and employers

is very important. Through performance appraisal, communication can be sought for in the following
ways:

Through performance appraisal, the employers can understand and accept skills of subordinates.

The subordinates can also understand and create a trust and confidence in superiors.

It also helps in maintaining cordial and congenial labour management relationship.

It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication.

Motivation: Performance appraisal serves as a motivation tool. Through evaluating performance of

employees, a person’s efficiency can be determined if the targets are achieved. This very well
motivates a person for better job and helps him to improve his performance in the future.

Methods/Techniques of Performance Appraisal

Each method of performance appraisal has its strengths and weaknesses may be suitable for
one organisation and non-suitable for another one. As such, there is no single appraisal
method accepted and used by all organisations to measure their employees’ perfor-mance.

All the methods of appraisal devised so far have been classified differently by different
authors. While DeCenzo and Robbins’^ have classified appraisal methods into three
categories: absolute meth-ods, relative methods and objective methods; Aswathappa has
classified these into two categories past-oriented and future-oriented.

Traditional Methods:

Ranking Method:

It is the oldest and simplest formal systematic method of performance appraisal in which
employee is compared with all others for the purpose of placing order of worth. The
employees are ranked from the highest to the lowest or from the best to the worst.
In doing this the employee who is the highest on the characteristic being measured and also
the one who is L lowest, are indicated. Then, the next highest and the next lowest between
next highest and lowest until all the employees to be rated have been ranked. Thus, if there
are ten employees to be appraised, there will be ten ranks from 1 to 10.

However, the greatest limitations of this appraisal method are that:

(i)It does not tell that how much better or worse one is than another,

(ii) The task of ranking individuals is difficult when a large number of employees are rated,
and

(iii) It is very difficult to compare one individual with others having varying behavioural traits.
To remedy these defects, the paired comparison method of perfor-mance appraisal has
been evolved.

Paired Comparison:

In this method, each employee is compared with other employees on one- on one basis,
usually based on one trait only. The rater is provided with a bunch of slips each coining pair
of names, the rater puts a tick mark against the employee whom he insiders the better of
the two. The number of times this employee is compared as better with others determines
his or her final ranking.

The number of possible pairs for a given number of employees is ascertained by the
following formula:
N (N-1)/2

Where N = the total number of employees to be evaluated. Let this be exemplified with an
imaginary example.

If the following five teachers have to be evaluated by the Vice Chanceller of a University:

(K), Mohapatra (M), Raul (R), Venkat (V), and Barman (B), the above formula gives 5 (5 -1) / 2
or 10 pairs.
Thus, the pairs so ascertained give the maximum possible permutations and combinations.
The number of times a worker is considered better makes his/her score. Such scores are
determined for each worker and he/she is ranked according to his/her score. One obvious
disadvantage of this method is that the method can become unwieldy when large numbers
of employees are being compared.

Grading Method:
In this method, certain categories of worth are established in advance and carefully defined.
There can be three categories established for employees: outstanding, satisfactory and
unsatisfactory. There can be more than three grades. Employee performance is compared
with grade definitions. The employee is, then, allocated to the grade that best describes his
or her perfor-mance.

Such type of grading is done is Semester pattern of examinations and in the selection of a
candidate in the public service sector. One of the major drawbacks of this method is that the
rater may rate most of the employees on the higher side of their performance.

Forced Distribution Method:

This method was evolved by Tiffen to eliminate the central tendency of rating most of the
employees at a higher end of the scale. The method assumes that employees’ performance
level confirms to a normal statistical distribution i.e., 10,20,40,20 and 10 per cent. This is
useful for rating a large number of employees’ job performance and promo ability. It tends
to eliminate or reduce bias.

It is also highly simple to understand and easy to apply in appraising the performance of
employees in organisations. It suffer from the drawback that improve similarly, no single
grade would rise in a ratings.

Forced-Choice Method:

The forced-choice method is developed by J. P. Guilford. It contains a series of groups of

statements, and rater rates how effectively a statement describes each individual being
evaluated. Common method of forced-choice method contains two statements, both
positive and negative.

Examples of positive statements are:

1. Gives good and clear instructions to the subordinates.

2. Can be depended upon to complete any job assigned.

A pair of negative statements may be as follows:

1. Makes promises beyond his limit to keep these.

2. Inclines to favour some employees.

Each statement carries a score or weight, which is not made known to the rater. The human
resource section does rating for all sets of statements— both positive and negative. The final
rating is done on the basis of all sets of statements. Thus, employee rating in this manner
makes the method more objective. The only problem associated with this method is that the
actual constructing of several evaluative statements also called ‘forced-choice scales’, takes
a lot of time and effort.

Check-List Method:

The basic purpose of utilizing check-list method is to ease the evaluation burden upon the
rater. In this method, a series of statements, i.e., questions with their answers in ‘yes’ or ‘no’
are prepared by the HR department. The check-list is, then, presented to the rater to tick
appropriate answers relevant to the appraisee. Each question carries a weight-age in
relationship to their importance.

When the check-list is completed, it is sent to the HR department to prepare the final scores
for all appraises based on all questions. While preparing questions an attempt is made to
determine the degree of consistency of the rater by asking the same question twice but in a
different manner.

However, one of the disadvantages of the check-list method is that it is difficult to assemble,
analyse and weigh a number of statements about employee characteristics and
contributions From a cost stand point also, this method may be inefficient particularly if
there are a number of job categories in the organisation, because a check-list of questions
must be prepared for each category of job. It will involve a lot of money, time and efforts.

Critical Incidents Method:

In this method, the rater focuses his or her attention on those key or critical behaviours that
make the difference between performing a job in a noteworthy manner (effectively or
ineffectively). There are three steps involved in appraising employees using this method.

First, a list of noteworthy (good or bad) on-the-job behaviour of specific incidents is

prepared. Second, a group of experts then assigns weightage or score to these incidents,
depending upon their degree of desirability to perform a job. Third, finally a check-list
indicating incidents that describe workers as “good” or “bad” is constructed. Then, the
check-list is given to the rater for evaluating the workers.

The basic idea behind this rating is to apprise the workers who can perform their jobs
effectively in critical situations. This is so because most people work alike in normal
situation. The strength of critical incident method is that it focuses on behaviours and, thus,
judge’s performance rather than personalities.

Its drawbacks are to regularly write down the critical incidents which become time-
consuming and burdensome for evaluators, i.e., managers. Generally, negative incidents are
positive ones. It is rater’s inference that determines which incidents are critical to job
performance. Hence, the method is subject to all the limitations relating to subjective
judgments.

Graphic Rating Scale Method:

The graphic rating scale is one of the most popular and simplest techniques for appraising
performance. It is also known as linear rating scale. In this method, the printed appraisal
form is used to appraise each employee.

The form lists traits (such as quality and reliability) and a range of job performance
characteristics (from unsatisfactory to outstanding) for each trait. The rating is done on the
basis of points on the continuum. The common practice is to follow five points scale.

The rater rates each appraisee by checking the score that best describes his or her
performance for each trait all assigned values for the traits are then totaled. A typical
graphic rating scale.

This method is good for measuring various job behaviours of an employee. However, it is
also subjected to rater’s bias while rating employee’s behaviour at job. Occurrence of
ambiguity in design- mg the graphic scale results in bias in appraising employee’s
performance.

Essay Method:

Essay method is the simplest one among various appraisal methods available. In this
method, the rater writes a narrative description on an employee’s strengths, weaknesses,
past performance, potential and suggestions for improvement. Its positive point is that it is
simple in use. It does not require complex formats and extensive/specific training to
complete it.

However, essay method, like other methods, is not free from drawbacks. In the absence of
any prescribed structure, the essays are likely to vary widely in terms of length and content.
And, of course, the quality of appraisal depends more upon rater’s writing skill than the
appraiser’s actual level of performance.

Moreover, because the essays are descriptive, the method provides only quali-tative
information about the employee. In the absence of quantitative data, the evaluation suffers
from subjectivity problem. Nonetheless, the essay method is a good start and is beneficial
also if used in conjunction with other appraisal methods.
Field Review Method:

When there is a reason to suspect rater’s biasedness or his or her rating appears to be quite
higher than others, these are neutralised with the help of a review process. The review
process is usually conducted by the personnel officer in the HR department.

The review process involves the following activities:

(a) Identify areas of inter-rater disagreement.

(b) Help the group arrive at a consensus.

(c) Ensure that each rater conceives of the standard similarity.

However, the process is a time-consuming one. The supervisors generally resent what they
consider the staff interference. Hence, the method is not widely used.

Confidential Report:

It is the traditional way of appraising employees mainly in the Government Departments.

Evaluation is made by the immediate boss or supervisor for giving effect to promotion and
transfer. Usually a structured format is devised to collect information on employee’s
strength weakness, intelligence, attitude, character, attendance, discipline, etc. report.

Modern Methods:

Management by Objectives (MBO):

Most of the traditional methods of performance appraisal are subject to the antagonistic
judgments of the raters. It was to overcome this problem; Peter F. Drucker propounded a
new concept, namely, management by objectives (MBO) way back in 1954 in his book.

The Practice of management. The concept of MBO as was conceived by Drucker, can be
described as a “process whereby the superior and subordinate managers of an organization
jointly identify its common goals, define each individual’s major areas of responsibility in
terms of results expected of him and use these measures as guides for operating the unit
and assessing the contribution of each its members”.

In other words, stripped to its essentials, MBO requires the manager to goals with each
employee and then periodically discuss his or her progress toward these goals.
In fact, MBO is not only a method of performance evaluation. It is viewed by the Practicing
managers and pedagogues as a philosophy of managerial practice because .t .s a method by
wh.ch managers and subordinates plan, organise, communicate, control and debate.

An MBO programme consists of four main steps: goal setting, performance standard,
compari-son, and periodic review. In goal-setting, goals are set which each individual, s to
attain. The superior and subordinate jointly establish these goals. The goals refer to the
desired outcome to be achieved by each individual employee.

In performance standards, the standards are set for the employees as per the previously
arranged time period. When the employees start performing their jobs, they come to know
what is to be done, what has been done, and what remains to be done.

In the third step the actual level of goals attained are compared with the goals agreed upon.
This enables the evaluator to find out the reasons variation between the actual and standard
performance of the employees. Such a comparison helps devise training needs for increasing
employees’ performance it can also explore the conditions having their bearings on
employees’ performance but over which the employees have no control.

Finally, in the periodic review step, corrective measure is initiated when actual performance
deviates from the slandered established in the first step-goal-setting stage. Consistent with
the MBO philosophy periodic progress reviews are conducted in a constructive rather than
punitive manner.

The purpose of conducting reviews is not to degrade the performer but to aid in his/her
future performance. From a motivational point of view, this would be representative of
McGregor’s theories.

The MBO method of performance appraisal presently used by an engineering giant i.e.,
Larsen and Turbro Limited.

Limitation of MBO:

MBO is not a panacea, cure for all organisational problems.

As with other methods, it also suffers from some limitations as catalogued below:

(i) Setting Un-measurable Objectives:

One of the problems MBO suffers from is unclear and un-measurable objectives set for
attainment. An objective such as “will do a better job of training” is useless as it is un-
measurable. Instead, “well have four subordinates promoted during the year” is a clear and
measurable objective.
(ii) Time-consuming:

The activities involved in an MBO programme such as setting goals, measuring progress, and
providing feedback can take a great deal of time.

(iii) Tug of War:

Setting objectives with the subordinates sometimes turns into a tug of war in the sense that
the manager pushes for higher quotas and the subordinates push for lower ones. As such,
goals so set are likely to be unrealistic.

(iv) Lack of Trust:

MBO is likely to be ineffective in an environment where management has little trust in its
employees. Or say, management makes decisions autocratically and relies heavily on
external controls.

Behaviourally Anchored Rating Scales (BARS):

The problem of judgmental performance evalu-ation inherent in the traditional methods of

performance evaluation led to some organisations to go for objective evaluation by
developing a technique known as “Behaviourally Anchored Rating Scales (BARS)” around
1960s. BARS are descriptions of various degrees of behaviour with regard to a specific
performance dimension.

It combines the benefits of narratives, critical incidents, and quan-tified ratings by anchoring
a quantified scale with specific behavioural examples of good or poor performance. The
proponents of BARS claim that it offers better and more equitable appraisals than do the
other techniques of performance appraisal we discussed so far.

Developing BARS typically involves five steps:

1. Generating Critical Incidents:

Critical incidents (or say, behaviours) are those which are essential for the performance of
the job effectively Persons who are knowledgeable of the job in question (jobholders and/or
supervisors) are asked to describe specific critical incidents of effective and ineffective
performance. These critical incidents may be described in a few short sentences or phrases
using the terminology.

2. Developing Performance Dimensions:

The critical incidents are then clustered into a smaller set of performance dimensions,
usually five to ten. Each cluster, or say, dimension is then defined.

3. Reallocating Incidents:

Various critical incidents are reallocated dimensions by another group of people who also
know the job in question. Various critical incidents so reallocated to original dimensions are
clustered into various categories, with each cluster showing similar critical incidents. Those
critical incidents are retained which meet 50 to 80% of agreement with the cluster.

4. Scaling Incidents:

The same second group as in step 3 rates the behaviour described in each incident in terms
of effectiveness or ineffectiveness on the appropriate dimension by using seven to nine
points scale. Then, average effectiveness ratings for each incident are determined to decide
which incidents will be included in the final anchored scales.

5. Developing Final BARS Instrument:

A subset of the incidents (usually six or seven per cluster) is used as a behavioural anchor for
the final performance dimensions. Finally, a BARS instru-ment with vertical scales is drawn
to be used for performance appraisal.

How BARS is developed can be exemplified with an example of grocery checkout clerks
working in a large grocery chain.

A number of critical incidents involved in checking out of grocery can be clustered into seven
performance dimensions:

1. Knowledge and Judgment

2. Conscientiousness

3. Skill in Human Relations

4. Skill in Operation of Register

5. Skill in Bagging

6. Organisational Ability of Check stand Work

7. Skill in Monetary Transactions

8. Observational Ability

Now, a BARS for one of these performance dimensions, namely, “knowledge and judgment”
can be developed. Notice how the typical BARS is behaviourally anchored with specific
critical incidents.

BARS method of performance appraisal is considered better than the traditional ones
because it provides advantages like a more accurate gauge, clearer standards, better
feedback, and consistency in evaluation. However, BARS is not free from limitations.

The research on BARS indicates that it too suffers from distortions inherent in most rating
scales. The research study concluded that “it is clear that research on BARS to date does not
support the high promise regarding scale independence In short, while BARS may
outperform conventional rating techniques, it is clear that they are not a panacea for
obtaining high interrater reliability”

Assessment Centres:

The introduction of the concept of assessment centres as a method of performance method

is traced back in 1930s in the Germany used to appraise its army officers. The concept
gradually spread to the US and the UK in 1940s and to the Britain in 1960s.

The concept, then, traversed from the army to business arena during 1960s. The concept of
assessment centre is, of course, of a recent origin in India. In India, Crompton Greaves,
Eicher, Hindustan Lever and Modi Xerox have adopted this technique of performance
evaluation.

In business field, assessment centres are mainly used for evaluating executive or supervisory
potential. By definition, an assessment centre is a central location where managers come
together to participate in well-designed simulated exercises. They are assessed by senior
managers supple-mented by the psychologists and the HR specialists for 2-3 days.

Assessee is asked to participate in in-basket exercises, work groups, simulations, and role
playing which are essential for successful performance of actual job. Having recorded the
assessee’s behaviour the raters meet to discuss their pooled information and observations
and, based on it, they give their assessment about the assesee. At the end of the process,
feedback in terms of strengths and weaknesses is also provided to the assesees.

The distinct advantages the assessment centres provide include more accurate evaluation,
mini-mum biasedness, right selection and promotion of executives, and so on. Nonetheless,
the technique of assessment centres is also plagued by certain limitations and problems. The
technique is relatively costly and time consuming, causes suffocation to the solid
performers, discourages to the poor performers (rejected), breeds unhealthy competition
among the assessees, and bears adverse effects on those not selected for assessment.
360 – Degree Appraisal:

Yet another method used to appraise the employee’s performance is 360 – degree appraisal.
This method was first developed and formally used by General Electric Company of USA in
1992. Then, it travelled to other countries including India. In India, companies like Reliance
Industries, Wipro Corporation, Infosys Technologies, Thermax, Thomas Cook etc., have been
using this method for appraising the performance of their employees. This feedback based
method is generally used for ascertaining training and development requirements, rather
than for pay increases.

Under 360 – degree appraisal, performance information such as employee’s skills, abilities
and behaviours, is collected “all around” an employee, i.e., from his/her supervisors,
subordinates, peers and even customers and clients.

In other worlds, in 360-degree feedback appraisal system, an employee is appraised by his

supervisor, subordinates, peers, and customers with whom he interacts in the course of his
job performance. All these appraisers provide information or feedback on an employee by
completing survey questionnaires designed for this purpose.

All information so gathered is then compiled through the computerized system to prepare
individualized reports. These reports are presented to me employees being rated. They then
meet me appraiser—be it one’s superior, subordinates or peers—and share the information
they feel as pertinent and useful for developing a self-improvement plan.

In 360 – degree feedback, performance appraisal being based on feedback “all around”, an
em-ployee is likely to be more correct and realistic. Nonetheless, like other traditional
methods, this method is also subject to suffer from the subjectivity on the part of the
appraiser. For example, while supervisor may penalise the employee by providing negative
feedback, a peer, being influenced by ‘give and take feeling’ may give a rave review on
his/her colleague.

Cost Accounting Method:

This method evaluates an employee’s performance from the monetary benefits the
employee yields to his/her organisation. This is ascertained by establishing a relationship
between the costs involved in retaining the employee, and the benefits an organisation
derives from Him/her.

While evaluating an employee’s performance under this method, the following factors are
also taken into consideration:

1. Unit wise average value of production or service.

 2. Quality of product produced or service rendered.

3. Overhead cost incurred.

4. Accidents, damages, errors, spoilage, wastage caused through unusual wear and tear.

5. Human relationship with others.

6. Cost of the time supervisor spent in appraising the employee.

Important of Performance Appraisal

An effective appraisal and performance management process can have a significant impact
on an organisation’s culture, staff morale and employee engagement levels – all of which
enhance employer brand and support the retention of key talent within a business.

There is debate as to whether traditional appraisal systems are still effective for the needs of
an evolving workforce. Organisations such as Deloitte have announced that they are moving
towards more ongoing discussions and feedback with employees. Whether it’s traditional
six-month reviews and appraisals, or ongoing one-to-ones and performance catch ups, the
important element is that there is a clear and consistent approach to performance
management and reviews.

A commitment to having appraisal conversations with employees can help to improve the
bottom line by aligning individual performance with business objectives. It also supports the
creation of a more people-focused culture and an environment in which employees will
want to stay, progress and thrive.

Employee recognition and rewards:

Appraisals provide the opportunity to recognise and reward employees and to ensure they
feel valued for the work that they do. By monitoring performance and progress against
objectives employers can assess whether to reward staff with salary increases, promotions
or bonuses. It’s also a chance to say thank you and to provide verbal feedback and praise.
Rewarding any successes highlighted doesn’t have to be financial. Although money still holds
considerable importance, and salaries should be regularly reviewed to ensure they remain
competitive and in line with performance, simple and sincere acknowledgements still go a
long way towards maintaining employee engagement.
New challenges and clear objectives:

Organisations with a great workplace culture are ones where employees feel a real sense of
belonging. They understand what the organisation is trying to achieve, are inspired by its
mission and values and recognise how their role plays a part in achieving overall success. The
discussions which take place during appraisal meetings will help employees to understand
how the individual objectives set for them will play a part in the wider business plan. This
helps to give employees a sense of ownership within the collective vision and to empower
them to achieve the results needed. It’s also a great opportunity to regularly review
objectives and to provide ongoing challenges to ensure employees remain motivated by new
goals and experiences.

Continued progression and development:

Organisations which provide clear progression opportunities are attractive to new recruits
and are more likely to be able to retain talented employees by mapping out a career path for
them. Regularly looking at performance will help to identify when employees are ready to
take on more responsibility. Setting aside the time to discuss an employee’s individual
ambitions will also help organisations to spot and develop potential talent and build a strong
succession pipeline.

Culture of trust and openness:

In today’s fast paced business world, it’s more important than ever to maintain a
meaningful, two-way dialogue with employees to help keep talented people within your
organisation. One of the key enablers for achieving employee engagement is to ensure that
employees have a voice and appraisal and performance review meetings can help to fuel
discussion and empower staff to share their opinions. They will feel encouraged to influence
innovation by feeding ideas upwards and the relationship which develops from open
communication within appraisal systems will help employees to feel more able to approach
and discuss any ideas or issues outside of these meetings as well.

Support and training:

Open discussions on performance can help to identify any problems early and provides the
opportunity to explore positive solutions. Managers can look at what additional training and
support could be provided to enable the employee to achieve results which they would feel
proud of. High performing employees can be supported with further training to help them to
progress to the next level in their careers.

Prevention of long-term dissatisfaction:

Issues can usually be nipped in the bud before they escalate to the point of someone leaving
if they can be raised through appraisal meetings. It is a great opportunity for an employee to
raise any worries or concerns, or to discuss any barriers which they feel are holding them
back. Taking the time to listen to employees and address any concerns helps to create a
happier workforce and will continue to fuel a culture of openness and trust.

Supporting staff to deliver an effective appraisal system:

For appraisals and performance communications to work to best effect, managers need to
feel effectively equipped to provide regular feedback and ongoing performance
management. Investing in training for managers to able to deliver effective performance
appraisals with an authentic approach is a worthwhile investment. Maintaining a natural
management style will help them to foster the trust and respect needed to build open and
transparent relationships and developing skills such as active listening and performance
assessment will help to ensure a constructive appraisal system is in place.
ch-4 Performance management system in AAI

❖ Introduction to Performance management system

❖ Objective & Applicability of Performance management system
❖ Roles & Responsibility
❖ Reviews
 Performance Management System

Introduction:

Performance management is the current buzzword