Performance appraisal is the process ofmeasuring quantitatively andqualitatively an employees‟ past orpresent performance against thebackground of his expected roleperformance, the background of hiswork environment ,and about his futurepotential for an organization.
According to Edward Flippo ,“performance appraisal is the systematic,periodic and an impartial rating of an employee‟sexcellence in matters pertaining to his present joband his potential for a better job.”According to Dale S. Beach„‟Performance appraisal is the systematic evaluation ofthe individual with respect to his or her performanceon the job and his or her potential for development‟‟.
It is systematic and objective descriptionof an employee’s strength andweaknesses in terms of the job. The appraisal is an ongoing andcontinuous process. The performance appraisal seeks tosecure information. Performance appraisal may be formal orinformal.
An effective system of performanceappraisal help the supervisor to evaluatethe performance of his employeessystematically and periodically. The result of performance appraisal maybe used by the supervisor in constructivelyguiding the employees in the efficientperformance of their jobs. It provides the management and objectivebasis. It can be used for transfer and promotion ofemployee.
Appraisals can be used to analyze thetraining and development needs andevaluate the effectiveness of existingtraining programs.
Traditional method 1,Confidential report 2,Graphic scales 3,Straight ranking 4,Paired comparisons 5,Grading system 6,Forced distribution
Assessment centre Human resource accounting Behaviorally anchored rating scales Management by objectives 360 degree performance appraisal
The confidential report is written for a unit of oneyear and relates to the performance ,ability andcharacter of the employee during that yerar.Thereport is not data based but subjective.2.Graphic scale methodA rating scale lists traits and a range of performancevalue for each trait. The supervisor rates eachsubordinates by circling or checking the score thatbest describes his performance for each trait. Theassigned value for the trait are then tottaled .Theselection of factor to be measured on the graphicrating scale is an important point under this system.
3.Straight Ranking MethodEvery employee is judged as a whole withoutdistinguishing the rate from his performance.A list is then prepared for ranking theworkers in order of their performance on thejob so that an excellent employee is at thetop and the poor at the bottom.4.Paired comparisons methodIn this method every person is compared trait–wise, with other persons ,one at a time ,the number of times one person iscompared with other is tallied on a piece ofpaper. These numbers help in yielding rankorder of employees.
5.Grading SystemUnder this system certain features likeanalytical ability,co-operativenes,dependability, job knowledge etc. areselected for evaluation. The employees aregiven grades according to the judgementof the rater.6.Forced distribution methodThis system minimizes rater’s bias so that allemployees are not similarly rated. Thissystem is based on the presumption that allemployees can be divided in to fivecategories.ie,outstanding, above average ,average ,below average and poor.
1,Assessment centreAssessment center is a method also used toselect candidate for entry level position. Allcandidate get an equal opportunity toprove their merit. They are evaluated by ateam of trained evaluators under similarcondition.2.Human resource accountingUnder this method ,performance is judged interms of cost and contributions ofemployees.
3, Behaviorally anchored rating scaleIt combines the benefit of critical incidentsand graphic rating scale by anchoring ascale with specific behavioral examples ofgood or poor performance.4,Management by objectivesMBO can be on a modest scale withsubordinates and superiors jointly settinggoals and periodically providing feedback.It refers to a comprehensive,organisationwise goal setting and appraisalprogramme .
6,360 Degree performance appraisalThis appraisal provides formalizedcommunication link between an employeeand his customers. By design this appraisal iseffective in identifying and measuringinterpersonal skills, customer satisfactionand team building skills.
Performance appraisal is a significantelement of information and controlsystem in organisations.It can be put toseveral uses concerning the entirespectrum of HRM function.