PERFORMANCE APPRAISAL SYSTEM AT MUTHRA GLOBAL AT CHENNAI
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Abstract
The performance appraisal system ideally is an organisation designed programme
involving both the organisation and the personnel to improve the capability of both. The
elements of performance management include: purpose, content, method, appraiser, frequency,
and feedback. The appraisal process involves determining and communicating to an employee
how he or she is performing the job and establishing a plan of improvement. The information
provided by performance appraisal is useful in three major areas: compensation, placement, and
training and
development. Appraisal helps to improve performance by identifying the strengths and
weaknesses; it helps to identify those with a potential for greater responsibility; and assists in
deciding on an equitable compensation system. The methods of performance appraisal include
rating scale, critical incident, ranking methods, and management by objectives. Several common
errors have been identified in performance appraisal. Leniency occurs when ratings are grouped
at the positive 7end instead of being spread throughout the performance scale. The central
tendency occurs when all or most employees are ranked in the middle of the rating scale. The
halo effect occurs when a manager allows his or her general impression of an employee to
influence judgment of each separate item in the performance appraisal.
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