SHIBIN MOHAMED IQBAL

S2 Mtech CEM

PERFORMANCE
APPRAISAL, EMPLOYEE
HANDBOOK &
PERSONNEL
MANAGEMENT
CPM Seminar report

Performance appraisal
Introduction: What is performance appraisal?
The process by which a manager or consultant
(1) Examines

and

evaluates

an employee's work behavior by

comparing it with preset standards,

(2) Documents the results of the comparison, and
(3) Uses the results to provide feedback to the employee to show
where improvements are needed and why.
Performance appraisals are employed to determine who needs what training,
and who will be promoted, demoted, retained, or fired.
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:
1. The supervisors measure the pay of employees and compare it with
targets and plans.
2. The supervisor analyses the factors behind work performances of
employees.
3. The employers are in position to guide the employees for a better
performance.

What are the Objectives of Performance Appraisal?

Performance Appraisal can be done with following objectives in mind:
1

1. To maintain records in order to determine compensation packages,

wage structure, salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right
men on right job.
3. To maintain and assess the potential present in a person for further
growth and development.
4. To provide a feedback to employees regarding their performance and
related status.
5. To provide a feedback to employees regarding their performance and
related status.
6. It serves as a basis for influencing working habits of the employees.
7. To review and retain the promotional and other training programs.
What are the Advantages of Performance Appraisal?
It is said that performance appraisal is an investment for the company which
can be justified by following advantages:
1. 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.
2. 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.
2

3. 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.
4. 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.
5. 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:
a. Through performance appraisal, the employers can understand
and accept skills of subordinates.
b. The subordinates can also understand and create a trust and
confidence in superiors.
c. It also helps in maintaining cordial and congenial labour
management relationship.
d. It develops the spirit of work and boosts the morale of
employees.
All the above factors ensure effective communication.
6. Motivation: Performance appraisal serves as a motivation tool.
Through evaluating performance of employees, a persons efficiency
3

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.
How is performance appraisal done?
1.

Objectives definition of appraisal

2.

Job expectations establishment

3.

Design an appraisal program

4.

Appraise the performance

5.

Performance Interviews

6.

Use data for appropriate purposes

7.

Identify opportunities variables

8.
Using social processes, physical processes, human and computer
assistance

Personnel management
Personnel

management can

be

defined

as

obtaining,

using

and

maintaining a satisfied workforce. It is a significant part of management

concerned with employees at work and with their relationship within the
organization.
According to Flippo, Personnel management is the planning, organizing,
compensation, integration and maintainance of people for the purpose of
contributing to organizational, individual and societal goals.
According to Brech, Personnel Management is that part which is primarily
concerned with human resource of organization.
Nature of Personnel Management
4

1. Personnel

management

includes

the

function

of

employment,

development and compensation- These functions are performed

primarily by the personnel management in consultation with other
departments.
2. Personnel management is an extension to general management. It is
concerned with promoting and stimulating competent work force to
make their fullest contribution to the concern.
3. Personnel management exist to advice and assist the line managers in
personnel

matters.

Therefore,

personnel

department

is

staff

department of an organization.
4. Personnel management lays emphasize on action rather than making
lengthy schedules, plans, work methods. The problems and grievances
of people at work can be solved more effectively through rationale
personnel policies.
5. It is based on human orientation. It tries to help the workers to develop
their potential fully to the concern.
6. It also motivates the employees through its effective incentive plans
so that the employees provide fullest co-operation.
7. Personnel management deals with human resources of a concern. In
context to human resources, it manages both individual as well as
blue- collar workers.
Role of Personnel Manager
Personnel manager is the head of personnel department. He performs both
managerial and operative functions of management. His role can be
summarized as :

1. Personnel manager provides assistance to top management- The top

management are the people who decide and frame the primary
policies of the concern. All kinds of policies related to personnel or
workforce can be framed out effectively by the personnel manager.
2. He advices

the

line

manager as a staff specialist- Personnel

manager acts like a staff advisor and assists the line managers in
dealing with various personnel matters.
3. As a counsellor,- As a counsellor, personnel manager attends
problems and grievances of employees and guides them. He tries to
solve them in best of his capacity.
4. Personnel manager acts as a mediator- He is a linking pin between
management and workers.
5. He acts as a spokesman- Since he is in direct contact with the
employees, he is required to act as representative of organization in
committees appointed by government. He represents company in
training programs.

Employee handbook
What is an employee handbook?
An employee

handbook,

sometimes

also

known

as

an employee

manual or staff handbook, is a book given to employees by an employer.

Usually, the employee handbook contains information about company
policies and procedures.
The employee handbook can be used to bring together employment and jobrelated information which employees need to know, such as holiday
arrangements, company rules and disciplinary and grievance procedures. It
can also provide useful source of information to new staff as part of the
6

induction process. A written employee handbook gives clear advice to

employees and creates a culture where issues are dealt with fairly and
consistently.
Why employee handbook?
An employee handbook acts as a valuable communication piece for both
employers and employees. It relays important information such as the
history of the company, the organizations mission and vision, policies,
procedures, and benefits. It also communicates important state and federal
laws surrounding employment. It takes all of these items and puts them into
written format for a clear and concise document. When an employee
handbook is written correctly, it will clearly define the expectations of
employees and management. The employee handbook can also be a vital
tool in helping to protect the company against unfair and/or inconsistent
treatment and discrimination or other legal claims.

What does it contain?

While it often varies from business to business, specific areas that an
employee handbook may address include:

A welcome

statement,

which

may

also

briefly

describe

the

company's history, reasons for its success and how the employee can
contribute to future successes. It may also include a mission statement,
or a statement about a business' goals and objectives.

Orientation procedures. This usually involves providing a human

resources manager or other designated employee completed income
tax withholding forms, providing proof of identity and eligibility for
employment and other required forms.

Definitions of full- and part-time employment, and benefits each

classification receives. In addition, this area also describes timekeeping
procedures (such as defining a "work week"). This area may also include
information about daily breaks (for lunch and rest).

Information about employee pay and benefits (such as vacation and

insurance). Usually, new employees are awarded some benefits, plus
additional rewards after having worked for a company for a certain period
of time. These are spelled out in this section.

Expectations about conduct and discipline policies. These sections

include conduct policies for such areas as sexual harassment, alcohol and
drug use, and attendance; plus, grounds for dismissal and due process.
This area may also include information about filing grievances with
supervisors and/or co-workers, and communicating work-related issues
with supervisors and/or company managers.

Guidelines for employee performance reviews (such as how and when

they are conducted).

Policies for promotion or demotion to a certain position.

Rules

concerning

mail;

use

of

the

telephone,

company

equipment, Internet and e-mail; and employee use of motor vehicles for
job assignments.

Procedures on handling on-the-job accidents, such as those that result

in injury.

How an employee may voluntarily terminate his/her job (through

retirement or resignation), and exit interviews.

A requirement that employees keep certain business information

confidential. This area usually includes information about releasing
employee records and information, as well as who may retrieve and
inspect the information.

Conclusion:
Performance appraisal is a part of personnel management carried out in
order to encourage the employees to perform their works more efficiently.
Performance appraisal checks how well is the employee working through a
step by step process and appraises him/her. The results of the appraisal
system should be followed up through a set of well-designed and enforced
policies, and translated into rewards and punishments.
An employee handbook is an important communication tool between the
employer

and

employees.

well-written

handbook

sets

forth

the

expectations of the employer for their employees, and describes what they
can expect from the company. Details of performance appraisal are also
specified in the employee handbook.