Formal Performance Appraisal Analysis

treatment among the members of a group as distinguished from actions affecting all members equally".

Another expert says, "It is a process of estimating or judging the value, excellence, qualities, or status of some object, person or thing."

McGregor, the eminent management expert, observed "The formal performance appraisal plans are designed primarily to meet the organisational needs and to provide systematic judgements to back-up salary increases, transfers, demotions or terminations. Performance appraisal also tells the employees as to how they are doing and about the required changes in their behaviour, attitudes, skills or job knowledge, in other words, making the employees aware as to where they stand in the eyes of superiors. These

Moreover, it improves employee job performance, encourages employees to express their views or to seek clarification on job duties, broadens their outlook, capacity and potential, promotes a more effective utilisation of manpower and improves placement, facilitates selection, reward and promotion of the best qualified employee, prevents grievances and increases the analytical abilities of

It also generates a feeling of belongingness and pride among those concerned. During the span of the last three decades, a lot of work has been done in developing this concept and its application has been producing better results in achieving performance and productivity among employees. Like any other science, the study of management is also systematic wherein the questions of 'what', 'how' and 'why' need to be answered. The basic question concerns the relevance of this concept, which arises from self-appraisal. Nobody knows you better than yourself because only you know your aims, objectives and goals. The basis of the entire performance appraisal system depends on the individual whose performance has to be evaluated. Therefore, it is very important to generate a feeling of self-actualisation among all the concerned individuals. Motivation, communication and counselling are the tools used for optimising the utilisation of the human resource. In fact, the appraisal of the performance of an individual is a procedure that involves the regular use of the recorded assessment of performance and potential in work situations. [Performance appraisal and compensation management by