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Module 3: Performance Management and Industrial Relations

20252m

Performance appraisal is primarily used for:

  • (i) Wage Fixation
  • (ii) Employee Evaluation
  • (iii) Industrial Dispute Settlement
  • (iv) Collective Bargaining
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Answer: (ii) Employee Evaluation

Justification:

  • Primary purpose of Performance Appraisal is to systematically evaluate employee's job performance and contribution against set standards (Flippo, Yoder).
  • Uses: Identifying strengths/weaknesses, feedback, promotion/transfer decisions, training needs, validating selection.
  • Why not others:
    • (i) Wage Fixation - Uses job evaluation, not appraisal directly (though appraisal may influence increments)
    • (iii) Industrial Dispute Settlement - Via conciliation/arbitration/collective bargaining
    • (iv) Collective Bargaining - Negotiation between union & management

Appraisal = Is the person doing the job well? - hence evaluation.

Modern tools: Rating scales, BARS, 360°, MBO, Assessment Centre.

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