Therefore, the two things to be noted and evaluated for the purpose of appraisals are:

  • Performance in accomplishing goals, and
  • Performance as managers

Performance in accomplishing goals

Managers are responsible for the performance of their teams as a whole. Performance in accomplishing goals would mean to look at the completion or achievement of the goals set for a team of employees which is being assigned to or working under a particular manager. The best measuring criteria for a manager are hi goals, his plans of course of action to achieve them and the extent of achievement of the goals.

Performance as managers

The responsibilities of managers include a series of activities which are concerned with planning, organizing, directing, leading, motivating and controlling. Managers can be rated on the above parameters or characteristics

Criteria for measuring performance at different levels:

The criteria for measuring performance changes as the levels of the employees and their roles and responsibilities change.

A few examples for each level are described below:

For top level management

  • Degree of organizational growth and expansion
  • Extent of achievement of organizational goals
  • Contribution towards the society
  • Profitability and return on capital employed

For middle level managers

  • Performance of the departments or teams
  • Co-ordination with other departments
  • Optimal use of resources
  • Costs Vs. revenues for a given period of time
  • The communication with superiors and subordinates

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For front line supervisors

  • Quantity of actual output against the targets
  • Quality of output against the targets
  • Number of accidents in a given period
  • Rate of employee absenteeism