PERFORMANCE APPRAISAL,

EMPLOYEE HANDBOOK &

PERSONNEL MANAGEMENT
CPM Seminar report

SHIBIN MOHAMED IQBAL

S2 Mtech CEM
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. 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.

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 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.
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:

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 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 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.

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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

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 a 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 :

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 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 job-related 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 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

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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.
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 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. A 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.