The document discusses various aspects of performance appraisal including definitions, objectives, processes, methods, issues, advantages, and disadvantages. Specifically, it defines performance appraisal as evaluating an employee's job performance and sharing feedback to improve. It lists objectives for both employees and organizations. It outlines the typical performance appraisal process and describes traditional and modern methods like graphic rating scales, forced choice, critical incidents, field review, behavioral anchored rating scales, and 360 degree/MBO approaches. It also notes some common issues and both advantages like motivating employees and disadvantages like potential bias.

2. Objectives Meaning Definition Modern Traditional Index About Performance appraisal Process of Performance Appraisal Methods / Techniques of Performance Appraisal Issues in Performance Appraisal Advantages of Performance Appraisal Disadvantages of Performance Appraisal

3. Definitions According to Newstrom, “It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance’’.

4. Meaning Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees . A “Performance appraisal” is a process of evaluating an employee’s performance of a job in terms of its requirements.

7. Process Setting performance standards Taking corrective standards Discussing results Comparing standards Measuring standards Communicating standards

9. As compared to A B C A + - + B - + - C + - + A - + + B + - + C + + - As compared to A B C For the Trait “Creativity” + + + + + + + + + - - - - - - - - - Person rated Person rated Ranking employees by paired comparison Method For the Trait “Quality of work”

10. Graphic or Linear Rating Scales Take decisions in consultation with others whose views he values Slow to take decisions Take decisions after careful consideration Takes decisions promptly Take decisions without consultation 0 5 10 15 20 0 5 10 15 20 Attitude No interest In work: consistent complainer Careless: In-different Instructions Interested in work: Accepts opinions & advice of others Enthusiastic about job & fellow-workers Enthusiastic opinions & advice sought by others Decisiveness

12. Forced distribution method No. of employees 10% 20% 40% 20% 10% poor Below average average good Excellent Force distribution curve

14. Ex: A fire, sudden breakdown, accident Workers Reaction scale A Informed the supervisor immediately 5 B Become anxious on loss of output 4 C Tried to repair the machine 3 D Complained for poor maintenance 2 E Was happy to forced test 1 Critical Incident method

15. Performance subordinate peers superior customer Dimension Leadership ^ ^ Communication ^ ^ Interpersonal skills ^ ^ Decision making ^ ^ ^ Technical skills ^ ^ ^ Motivation ^ ^ ^ Field review method

16. Group appraisal method

18. Behavioral Anchored Rating Scales Performance Points Behavior Extremely good 7 Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country. Good 6 Can expect to initiate creative ideas for improved sales. Above average 5 Can expect to keep in touch with the customers throughout the year. Average 4 Can manage, with difficulty, to deliver the goods in time. Below average 3 Can expect to unload the trucks when asked by the supervisor. Poor 2 Can expect to inform only a part of the customers. Extremely poor 1 Can expect to take extended coffee breaks & roam around purposelessly.

19. 360 degree performance appraisal

21. Issues in appraisal system Formal and informal Whose performance? Who are the raters? What problems? How to solve? What to evaluate? When to evaluate? What methods? Appraisal Design

22. Constant check induces employee to perform better

23. Advantages

24. Disadvantages