human resource management

1. PERFORMANCE
APPRAISAL
BY :-
KARAN DALVI

4. Objectives
 Opportunity to Regularly Discuss Results
 Supervisor Identifies Strengths and
Weaknesses
 Fair and Equitable Format
 Basis for Salary/Promotion
Recommendations

5. Performance Appraisal: Uses
Performance improvement
Compensation adjustments
Placement decisions
Training & Development
needs
Career planning &
development
Identify deficiencies in
staffing process
Detect informational
inaccuracies
Diagnose job design errors
Avoidance of discrimination
External challenges

6. Methods of Performance Appraisal
Several methods and techniques are used for evaluating employee
performance. These may be classified into broad categories.
Performance Appraisal
Traditional Methods Modern Methods
1. Confidential Report
2. Free Form or Essay
3. Straight Ranking
4. Paired Comparisons
5. Forced Distribution
6. Graphic rating Scales
7. Checklist Method
8. Critical Incidents
9. Group Appraisal
10. Field Review
1. Assessment Centre
2. Human Resource
Accounting
3. Behaviorally Anchored
rating Scales
4. Appraisal through MBO

7. TRADITIONAL METHOD
1. Confidential Report
This is a traditional form of appraisal used in most
government organization. A confidential report is a report
prepared by the employee’s immediate superior. It cover the
strengths and weaknesses, main achievements and failure,
personality and behavior of the employee’. It is descriptive
appraisal used for promotion and transfers of employees.
2. Free Form or essay Method
Under this method, the evaluator writes a short essay on
the employee’s performance on the basis of overall
impression. The description is expected to be as factual and
concrete as possible. An essay can provide a good deal of
information about the employee especially if the evaluator is
asked to give examples of each one of his judgments.

8. 3. Straight Ranking Method
In this method technique, the evaluator assigns relative
ranks to all the employees in the same work unit doing the same
job. Employees are ranked from the best to the poorest on the
basis of overall performance. The ‘wholeman is compared with
the whole man’ without analyzing performance. The relative
position of an employee is reflected in his numerical rank.
Employee Rank
A 2
B 1
C 5
D 4
E 3
Straight ranking is one of the oldest and simplest methods.
It is time saving and a comparative evaluation technique of
appraisal.

9. 4. Paired Comparisons Method
This is a modified from of man to man ranking. Herein,
each employee is compared will all the others in pairs one at
a time. The number of times an employee is judged better
then the others determines his rank. Comparison is made on
the basis of overall performance.
5. Forced Distribution Method
In this technique, the rater is required to distribute his
rating in the form of a normal frequency distribution. The
purpose is to eliminate the rater’s basis of central tendency.
Here also ranking technique is used. This method is highly
simple to understand and easy to apply

10. 45
40
35
30
25
20
15
10
5
0
Poor Below
Average
Average Good Excellent
No. of
employee

11. 6. Graphic Rating Scales
It is a numerical scale indicating different degrees of a
particular trait. The rate is given a printed from for each
employee to bee rated. The form contains several
characteristics relating to the personality and performance of
employees. Intelligence, quality of work , leadership skills,
judgment, etc. are some of these characteristics. The rater
records his judgment on the employee’s trait on the scale.
The numerical points given to an employee are added up to
find out his overall performance a standing in the group.

13. 7. Checklist Method
A checklist is a list of statements that describe
characteristics and performance of employee on the job. The
ratter checks to indicate if the behavior of an employee is
positive or negative to each statement. The performance of
an employee is rated on the basis of number of positive
checks.
There are three types of checklist.
1.Simpale Checklist
2. Forced Choice Block
3. Weighted Checklist

14. Simple Checklist
1. Is the employee regular on the job Yes/No
2. Is the employee respected by his subordinates Yes/No
3. Is the employee always willing to help his peers Yes/No
4. Does the employee follow instruction properly Yes/No
5. Dose the employee keep the equipment in order Yes/No
Forced Choice Block
1. Regularity on the job Most Least
(a) Always regular √
(b) Informs in advance for absence/delay √
(c) Newer regular √
(d) Remains absent without prior notice √
(e) Neither regular nor irregular

15. Weighted Checklist
Traits Weights Performance Ratings
1. Attendance 0.5
1. Knowledge of the job 1.0
1. Quantity of work 1.0
1. Quality of work 1.5
1. Dependability 1.5
1. Interpersonal relation 2.0
1. Organization loyalty 1.5
1. Leadership potential 1.5

16. 8. Critical Incidents Method
In this method the supervisor keeps a written record of
critical events and how different employee behaved during
such events. The rating of an employee depends on his
positive/negative behavior during these events.

17. 9. Group Appraisal Method
Under this method, a group of evaluators assesses
employees. This group consists of the immediate supervisor
of the employee, other supervisor having close contact with
employee’s work, head of the department and a personnel
expert. The group determines the standers of performance for
the job , measures actual performance of an employee,
analyses the causes of poor performance and offers
suggestions for improvement in future.

18. 10. Field Review Method
In this method, a training officer from the personal
department interviews line supervisors to evaluate their
respective subordinates. The interviewer prepares in
advance the questions to be asked. By answering these
questions a supervisor gives his opinions about the level of
performance of his subordinate, the subordinate’s work
progress, his strengths and weaknesses, promotion potential,
etc.

19. Modern Methods
1. Assessment Centre Method
An assessment centre is a group of employees drawn
from different work units. These employees work together on
an assignment similar to the one they would be handling when
promoted. Evaluates observe and rank the performance of all
the participants. Experienced managers with proven ability
serve as evaluators. This group evaluaters all employees both
individually and collectively by using simulation techniques like
role playing, business games and in basket exercises.
Employees are evaluated on job related characteristics
considered important for job success. The evaluators observe
and evaluate employees as they perform jobs.

20. 2.Human Resource Accounting
Method
Human resources are a valuable asset of
any organisation. This asset can be valued in terms of money.
When competent, and well-trained employees leave an
organisation the human asset is decreased and vice versa.
Under this method performance is judged in terms of costs and
contribution of employees. Costs of human resources consist of
expenditure on human resource planning, recruitment,
selection, induction, training, compensation, etc. Contribution
of human resources is the money value of labour productivity or
value added by human resources is the money value of labour
productivity or value added by human resources.

21. 3. Behavioral Anchored Rating Scales
Performance Point 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.

22. 4.Appraisal by Results or MBO
The concept of management by objectives(MBO) was
developed by Peter Drucker in 1954. He called it management by
objectives and self control’. Since then MBO has became an
effective and operational technique of performance appraisal and
a powerful philosophy of managing. It is also known as Work
Planning and Review or Goal setting approach to appraisal.
Management by objectives has been defined as “a
process whereby the superior and subordinate managers of an
organisation jointly identify its common goals, define each
individual’s major areas of responsibility in terms of results
expected of him and use these measures as guides for operating
the unit and assessing the contribution of each of its members” In
other words.MBO involves appraisal of performance against clear,
time bound and mutually agreed job goals.

23. THANK
YOU