Performance Appraisal System for

Construction Engineers & Managers

Abhijeet S Gandage
Dept. of Civil Engg. MIT Pune
Prof. Abhijeet S. Gandage M.I.T. 1
Pune
 Human Resource Development
Development is enhancement of acquired capabilities.
HRD is a process by which the employees of an
organisation are helped in a planned way to –
♦ acquire or sharpen skills and capabilities to perform
various functions associated with their present or expected
future roles.
♦ develop their general capabilities as individuals and help to
discover and exploit their own inner potentials.
♦ develop an organizational culture in which Superior-
subordinate relationships, teamwork and collaboration
among sub-units are strong and contribute to the
professional well being, motivation and pride of
employees.
Prof. Abhijeet S. Gandage M.I.T. 2
Pune
 Process of HRD
Development of Career Planning
Leadership and Performance Appropriate
and Development
Organisation Appraisal Reward System
Commitment

Human Resource
Counseling Information Grievance
Potential
Appraisal System (HRIS) Handling

Technical
Management Development Supervisory Organisation
Development Development Development

Succession Employee Welfare Feedback

Training &
Planning
Education

Prof. Abhijeet S. Gandage M.I.T. 3

Pune
 What do you mean by Performance Appraisal?
In general terms – it is a
Process of evaluating the performance or
contribution of a company’s own people, especially
executives and managers towards the objectives or
goals of the company.

Alternatively it can be defined as –

An individual employee’s behaviour and
accomplishments for a fixed time period are
measured and evaluated. The major purpose of
measuring and evaluating is to assess the worth or
value. Prof. Abhijeet S. Gandage M.I.T. 4
Pune
 What do you mean by Performance Appraisal?

Also Performance Appraisal can be defined as –

Performance Appraisal is a systematic and objective method of judging
the relative worth or ability of an employee in performing his task.

Performance Appraisal helps to identify those who are performing their

assigned tasks well and those who are not and reviewing an individual’s
performance and progress in the job and assessing his potential for
future improvement.

It is a systematic method of obtaining, analysing and recording

information about a person that is needed –

• For the efficient management of the business/organisation.

• By the manager to help him to improve the job-holders
performance and plan his career.
• By the job holder to assist him to evaluate his own performance
and develop himself.
Prof. Abhijeet S. Gandage M.I.T. 5
Pune
 What do you mean by Performance Appraisal?

According to Carl Heyel –

Performance Appraisal is the process of evaluating the
performance and qualification of the employees in terms of the
requirements of the job for which he is employed, for the purpose
of administration including placement, selection for promotions,
providing financial rewards and other actions which require
differential treatment among the members of a group distinguished
from actions affecting all members equally.

According to Dale Yoder –

Performance Appraisal refers to all formal procedures used in
working conditions to evaluate personalities and contributions and
potentials of group members. It is a systematic and periodic
evaluation or rating of an executives performance in his existing
job and on his personality for taking up greater responsibilities.
Prof. Abhijeet S. Gandage M.I.T. 6
Pune
 What do you mean by Performance Appraisal?
According to Flippo –
Performance Appraisal is systematic and periodic review with
accurate measurement of human performance. It attempts to
reduce, if not eliminate, human bias and prejudice by means of a
system, particularly a system that is subject to impartial review
and check. The focus of appraisal system is to find what the
executive contributes rather than what the executive is.

According to McGregor –
Performance Appraisal is often perceived as a technique of
personnel administration, but when it is used for administrative
purposes then it becomes a part of a managerial strategy, the
implicit logic of which is that in order to get people to direct their
efforts towards organisational goals and objectives, with the
management guiding them on what to do, judge how well they
have done, and reward or punish them accordingly.
Prof. Abhijeet S. Gandage M.I.T. 7
Pune
 Objectives of Performance Appraisal
According to McGregor main objectives of Performance
Appraisal are –

1.They provide systematic judgments to back-up salary

increases, transfers, demotions or terminations.

2.They are means of telling a subordinate how he is doing,

and suggesting needed changes in his behaviour, attitudes,
skills or job knowledge. They let him know “where he stands”
with respect to the boss.

3.They are used as a base for coaching and counseling the

individual by the superior.

Prof. Abhijeet S. Gandage M.I.T. 8

Pune
 Objectives of Performance Appraisal

According to Levinson main objectives of Performance

Appraisal are –

•It seeks to provide adequate feedback to each individual for

his or her performance.

•It purports to serve as a basis for improving or changing

behaviour towards some more effective working habits.

•It aims at providing data to managers with which they may

judge future job assignments and compensation.

Prof. Abhijeet S. Gandage M.I.T. 9

Pune
 Objectives of Performance Appraisal
In general objectives of Performance Appraisal can be –
1. To enable an organisation to maintain an inventory of the
number and quality of all managers and to identify and meet
their training needs and aspirations.

2. To determine increments and provide a reliable index for

promotions and transfers to positions of greater
responsibilities.

3. To maintain individual and group development by informing the

employee of his performance standard.

4. To suggest ways of improving the employee’s performance

when he is not found to be up to the mark in the review period.

5. To identify the potential strengths and weakness of job holders

and make best use of the strengths and overcome weaknesses.
Prof. Abhijeet S. Gandage M.I.T. 10
Pune
 Objectives of Performance Appraisal (contd.)
In general objectives of Performance Appraisal can be –
6. To serve basis to improve quality and quantity of performance of the
executives in their present jobs.

7. To identify potential problems affecting performance and design of

corrective actions to be adopted to improve the performance.

8. It acts as a tool to improve communication between superior and the

subordinate.

9. It helps the superior to direct the subordinate to accomplish the

performance, while it enables the subordinates to understand their
superior’s expectations.

10.To develop inter-personal relationships. Superiors and subordinates

are dependent on each other for better performance and success.
By facilitating introspection, self evaluation and goal setting, their
behaviour and attitude towards work can be modified leading to
better interpersonal relations ultimately forming a cohesive team.
Prof. Abhijeet S. Gandage M.I.T. 11
Pune
 Process of implementation of PAS
Important steps for implementing Performance Appraisal System are –
Step 1 – Determine overall approach for PAS
Step 2 – Where and how should Performance Appraisal be introduced
Step 3 – Decide who has to be covered
Step 4 – Decide on whether same approach has to adopted for all level
of personnel
Step 5 – Set up Project Team
Step 6 – Define role of Human Resource Department
Step 7 – Decide whether to use external Consultants
Step 8 – Define Performance Management process and documentation
Step 9 – Pilot test
Step 10 – Implementation Plan
Prof. Abhijeet S. Gandage M.I.T. 12
Pune
 Performance Appraisal Methods

Traditional Methods Modern Methods

• Straight Ranking Method • Appraisal by Results or

Management by Objective (MBO)
• Grading Method
• 360o Appraisal
• Man to Man Comparison
• Group Appraisal Method
• Field Review Method
• Rating
• Checklist
• Essay Method
Prof. Abhijeet S. Gandage M.I.T. 13
Pune
 Methods of Performance Appraisal
Appraisal Method Meaning
Straight Ranking Order of rating from best to
worst
Grading Gradation of performance
Man-to-man comparison Comparing rates to one
another
Group Appraisal Multi rater assessment
Field Review Emphasis on process rather
than outcome
Rating Standardized quantitative
rating
Checklist Descriptive rating
Essay Candid statement from the
rate
Appraisal by Results or MBO Measuring performance
against results
360o Appraisal Evaluation
Prof. Abhijeet S. Gandage M.I.T. by superiors, 14
Punepeers, juniors, customers etc.
 Need for Performance Appraisal System for Construction
Engineers
Construction Project Managers have to combine technical knowledge
and expertise alongwith management skills to lead & manage multi-
disciplinary, multi-organisational team.
Based on Project life cycle Construction Engineer/Manager has
various responsibilities –
Pre-Planning Planning Execution O&M
• Analysis Estimation Ensure co-ordination Repairs in D &
• Feasibility etc. WBS Carry out operations as L period
• PFR, DPR Tender/Contract per specifications, drgs Claims/dispute
Ensure Quality, Safety etc.

Prof. Abhijeet S. Gandage M.I.T. 15

Pune
 Need for Performance Appraisal System for Construction
Engineers
• Understand the strengths and weakness of engineers/managers.
• Helps to understand the requirements for performance improvement
of managers.
• It helps the superior to help the job-holder to acquire new skills.
• Plan effective use of talents of job-holder.
• Helps in planning career development of job-holders.
• Creation of new roles and assigning new responsibilities and
developing the capabilities of job holders to deliver.
• Determining Training Needs.
• Overall organisation development.
• Scope for job enrichment.

Prof. Abhijeet S. Gandage M.I.T. 16

Pune
 Factors in an Appraisal Model
The Appraisal Factors are classified in the following categories viz. –
A.Technical - understanding of and proficiency in a specific kind of
activity particularly one involving methods, processes,
procedures or techniques.
B.Human - ability to work effectively as a group member and to
build co-operation with team members.
C.Conceptual - ability to see the organisation as a whole and it
includes recognising how the various functions of the
organisation depend on one another.
D. Financial - knowledge of elements of Fin. Mgt. that helps in
scheduling of activities, estimate demand forecast etc.
E. Social Env. - ability to interact with personnel associated directly &
indirectly with the project.
At the end of the grading few concluding aspects about the
performance of the job-holder have to be drafted.
Prof. Abhijeet S. Gandage M.I.T. 17
Pune