Points to be discussed in the Lecture Sessions:
Concept and objectives of Performance Appraisal.
The appraisal Process.
Appraisal Methods and Interview.
Pitfalls in Performance Appraisal.
Uses of Performance Appraisal.
……is the process of evaluating the performance of an employee
and communicating the results of the evaluation to him for the
purpose of rewarding or developing the employee.
Purpose ----JUDGEMENT PURPOSE AND DEVELOPMENT
OBJECTIVE OF PERFORMANCE APPRAISAL
Setting targets and goals as performance standards.
Evaluating employee performance.
Identifying training and developing needs.
Uses of Performance
Training and Development.
Improvement of Organizational effectiveness.
Basis for compensation
management, transfers, promotion, career
planning activities etc.
Helps in evaluating the existing plans
THE APPRAISAL PROCESS.
Set measurable targets.
Assess against targets.
Develop Action Plans.
Who appraises the performance?
Customers / Clients
What are the methods of Performance Appraisal?.
Management by Objectives( MBO)/ Goal Setting.
Graphic Rating Method.
Work Standards approach.
Critical Incident Method.
Forced choice rating scale.
Point Allocation Method.
Behaviorally Anchored Rating Scale BARS)
360 Degree PA.
MANAGEMENT BY OBJECTIVES (MBO)
main aspect of MBO are clear and well defined goals, a
definite time span to achieve the goals, an action plan and
finally , constructive feedback.
Quantifiable and measurable goals that are neither too easy nor
too difficult to achieve.
A well—laid out action plan providing for contingencies.
Employees who are suitably equipped and motivated to achieve
Continuous and constructive feedback and guidance.
Objective evaluation of performance.
Identification of areas for improvement and corrective action.
Graphic Rating Scale.
Dependability No Direction
Centre counted on
Sample Checklist of appraisal.
Is he punctual?
Are the orders promptly attended to?
Is he helpful to other colleagues?
Does he lose temper Often?
WORK STANDARDS APPROACH.
Suitable in manufacturing scenario, where
the goals are predetermined work standards.
The work standard can be set on the basis
of average output of a typical employee in the
organization or by bench marking against the
work standards of a competitors in a similar
Goals to be measured are very objective
and also quantifiable
Forced Choice Method.
Sample Statements for a salesman.
Slow but steady
Meet customers with confidence.
Friendly and informal.
A typical BARS for Machine shop Inspector.
BALANCED SCORE CARDS.
FOUR PERSPECTIVES ARE TAKEN INTO CONSIDERATION
2. Internal business
4. Financial perspectives
PITFALLS IN PERFORMANCE APPRAISAL
HALLO EFFECT: The rater consider only single
characteristic to judge rate's performance.
LENIENCY EFFECT: Raters have the intensity to rate high
and consider only the positive feed back to the
STRINGENCY EFFECT: Opposite to leniency effect.
RECENCY EFFECT: The appraiser try to get influence by the recent
performance of the employee.
PRIMACY EFFECT: The performance of the appraise at the beginning
of the appraisal period dominates the evaluate.
CENTRAL TENDENCY EFFECT: Is the tendency of the appraiser to
rate individual in average of the performance scale.
STEREOTYPING: Judging someone based on the group he belongs to.
PERCEPTUAL SET: Tendency of the appraiser to have an expectation
of the performance level , which might distort the perception and
judgment of actual performance.
FUNDAMENTAL ATTRIBUTION ERROR: An employee’s performance
may be affected due to some external factors out side his control. The
appraiser sometimes undermine that factors and rates
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