caused by mal-human resource management/ personnel management and industrial relations in ... (Management), MBA, MA in Labour Studies and MCom.
Performance Evaluation of Human Resources
(The first comprehensive book on employee performance evaluation written in any language in Sri Lanka)
Specially designed for the course – Performance Evaluation in the BSc HRM Degree programme and the course - Appraisal in the BSc Business Administration Degree program of the University of Sri Jayewardenepura.
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Performance Evaluation of Human Resources © Dr Henarath H D N P Opatha I S B N 955-95885-4-0 First Edition 2002 May Second Edition 2002 December
All rights reserved. This book or any part thereof may not be reproduced, stored in a retrieval system, or in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the author.
Published by the Author Printed in Sri Lanka
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Performance Evaluation of Human Resources
Dr. Henarath H. D. N. P. Opatha BSc (B.Ad) Special (Hons) (USJ); MSc (B.Ad) Personnel Mgt (USJ); MBA (Birmingham); Dip PM & IR (Camb. Col); Dip Eve Eng (CPM); PhD HRM (Utara-UUM)
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This book is dedicated with love to my wife W. Renuka Nilanthi.
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PREFACE I believe that Performance Evaluation will play a key role in determining the success and progress of success of our employees, organizations and Sri Lankan society as a whole during the new millennium. The Author
This book is about Performance Evaluation (PE) of human resources, which is one of the most significant issues of management of organizations today. Sri Lanka is a developing country where industrialisation is pacing ahead considerably. It is my firm belief that many of the problems being faced by Sri Lankan organizations have been caused by mal-human resource management/ personnel management and industrial relations in general and lack of employee performance evaluation or malpractice of employee performance evaluation in specific. Being one of the most important concerns of managing organizations in general and managing human resources in specific today, PE identifies, measures, influences and develops human performance. This book is about how to effectively and efficiently evaluate performance of human resources. Sri Lankan literature on performance evaluation of human resources is nil or negligible and specially there is no indigenous book on PE which can be used by the Sri Lankan student and the Sri Lankan manager. My basic objective of designing this book is to fill this gap to a certain extent. Apart from that, there are two specific objectives of creating this book. First one is to impart knowledge, skills and attitudes of performance evaluation of human resources to undergraduates and postgraduate students reading for various management degrees. Specially the book can be used as a textbook for the course – HRM 310 Performance Evaluation of the BSc Human Resource Management Degree program and the course BAD 361 Appraisal of the BSc Business Administration Degree program offered by the University of Sri Jayewardenepura. Of course this book will be useful for postgraduate programmes such as MSc v
(Management), MBA, MA in Labour Studies and MCom. The second objective is to create a formal source from which organizational managers and entrepreneurs can acquire a comprehensive understanding of how to evaluate performance of their employees. Long – term success of this endeavour made by myself as the pioneer in Sri Lankan literature of performance evaluation depends on the degree of increasing productivity of organizations through the application of the competency acquired from this book. May this book contribute to increase organizational productivity and success and then enhancement of standard of living of people! This is my heart- felt wish. This book is not a mere collection of thoughts of various foreign authorities but a book based on a distinct model developed by my perspective of performance evaluation of human resources. I tried to write the book in a way that appeals to the person who has no or little competency of performance evaluation of human resources. Also an attempt was made to present complex subject matters by simplifying English language with the intention of enhancing readability and understandability of the reader. Indeed I am very much grateful to Mr. A. Jagath Wijenayaka BSc (Mgt) Special (USJ), MAAT, LICA, MBA (Canada), one of my former university teachers, for his financial assistance given to publish this book and Mr. Ajith Gammanpila BSc (Mgt) Special (USJ), LICA, MAAT, Dip Mgt, one of my intimate friends for his all the supports given to publish second edition of this book. Also I thank specially Dr. H.M.A. Herath, former Dean of the Faculty of Management Studies and Commerce of the University of Sri Jayewardenepura for his statement about the book. Dr Henarath Hettiarachchige Desapriya Nandana Pushapakumara Opatha 129/5
Thiththawelgolla
Kirigampamunuwa
Dambulla.
Polgasowita.
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CONTENTS PART 1
PERFORMANCE EVALUATION ARENA
1.
Human Resource Management
2.
Performance Evaluation
13
3.
Purposes of Performance Evaluation
23
PART 11
2
MODEL OF PERFORMANCE EVALUATION
4.
Process of Performance Evaluation
33
5.
Policies of Performance Evaluation
40
6.
Performance Evaluation Criteria and Standards
53
7.
Performance Evaluation Methods
68
8.
Performance Evaluation Form and Procedure
95
9.
Training of Evaluators
109
10. Performance Evaluation Discussion
118
11. Review and Renewal
131
PART III
SPECIAL ISSUES OF PERFORMANCE EVALUATION
12. Some Issues of Performance Evaluation
138
13. Expatriate Performance Evaluation
153
14. Several Applications of Performance Evaluation
163
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