3. Introduction
It includes all the procedures such as
Evaulating the personality of a person
Evaluating the performance of person
Finding the potential of each member in a
group
Performance Appraisal is a method in which the behavior of the
employees is evaluated at workplace, including both quantitative and
qualitative aspect of the job
PA is a systematic & periodic rating of an employee’s excellence in his
present job and also finding out the potential of a person for a better
job in future
Performance Management is the process of identifying, measuring,
managing, and developing the performance of the human resources in
an organization.
4. Performance Appraisal Performance Management
Operational Strategic
Top-down assessment More likely to involve dialog
Retrospective for corrections Future-oriented for growth
Typically once or twice per year
Ongoing or continuous review,
interspersed with formal reviews
Often uses ratings or rankings Less likely to involve ratings
Rigid structure/system Flexible process
Not linked to business needs Linked to business needs
Usually takes a quantitative
approach
Combines quantitative and
qualitative approaches
Individual Collective
Often linked to compensation Not usually linked to compensation
Often very bureaucratic with a
focus on paperwork/documents
Less concerned with documentation
Usually housed in HR department
Conducted by managers and
supervisors
Performance Appraisal Vs. Performance Mgmt.
5. Provide feedback about employees
Provide database
Diagnose the strengths & weakness of individuals
Provide coaching, counseling, career planning to subordinates
Develop positive relation and reduce grievance
Facilitates research in personnel management
Needs and Objectives
6. Develop performance
standards
Communicating Std. &
Expectation
Decision Making
Measuring Performance
Comparing With
Statndards
Discussing Result
Process of Performance Appraisal
Should be clear, easily
understandable and
measurable term
Determine what outputs,
accomplishments and
skills will be evaluated
Communicating to
employee
Feedback should be
receivedPersonal observation,
statistical reports, oral
reports, and written
reportsComparison reveal the
deviation between
standard performance
and actual performanceTo know their own
strengths and
weaknesses
The impact may be
positive or negativeRewarding, promotions,
demotions, transfers,
suspensions and
dismissal
7. Methods of Performance Appraisal
Traditional
Methods
Confidential report
Essay evaluation
Graphic rating scale
Paired comparison
Critical incidents
Straight Ranking
Checklists
Modern
Methods
Assessment centre
Behaviorally anchored
rating scale
Management by Objective
360 degree performance
apparaisal
8. Confidential Report :
• It is mostly used in government organizations.
• It is a descriptive report prepared by the employee’s immediate
superior generally at the end of every year
• The report highlights the strengths and weaknesses of the
subordinate
Essay Method :The method ask managers/supervisors to describe
strengths and weaknesses of an employee’s behavior in essay form
Straight Ranking :
• In this method, the appraiser ranks the employees from the best
to the poorest on the basis of their overall performance
• Merits- Ranked according to their performance
Easier to rank the best and worst employees
• Demerits- Difficult to compare individual
Difficult to rank large number of employees
Traditional Method
9. Paired Comparison :
• A better technique of comparison than the straight ranking
method, this method compares each employee with all others in
the group, one at a time
• Merits -Value of job is expressed in monetary times
Can be applied to wide range of jobs
• Demerits - The pay for each factor is based on judgment that are
subjective
Checklist Method :
• The evaluator is given a checklist which contains a list of
statements on the basis of which the he or she describes the on
the job performance of the employees
• Merits : Improve task performance
Improve memory recall
• Demerits: Unnecessary complexity decreases reliability
Burdensome process delays completing evaluation
10. Critical Incidence :
• The evaluator rates the employee on the basis of critical events and
how the employee behaved during those incidents
• It includes both negative and positive points
• The drawback of this method is that the supervisor has to note down
the critical incidents and the employee behavior as and when they
occur
• Merits : Its based on the direct observations
Its time tested
• Demerits: It delays the giving of feedback
All satisfactory and unsatisfactory behaviors are not equal
Graphic Scale Method :
• In this method an employee’s quality and quantity of work is assessed
in a graphic scale indicating different degrees of a particular trait
• The factors taken into consideration include both the personal
characteristics and characteristics related to the on the job
performance of the employees
• For example a trait like Job Knowledge may be judged on the range of
average, above average, outstanding or unsatisfactory
11. Management By Objective : A process by which the superior and
subordinate members of an organization jointly identify its
common objectives such as
Establishment of Goals
Setting the performance standard
Establishing new goals and new strategies for goals which
are not previously attained
360 Degree Feedback : It is a multi-evaluator feedback system where
an individuals performance is evaluated by a number of persons
such as his
Boss
Colleagues
Internal customers
External customers
Modern Method
12. Appraisal Interview
In appraisal interview supervisor and subordinate review the appraisal and
make plans to remedy deficiencies and reinforce strengths
Types of Appraisal Interview :
1. Satisfactory-Promotable
2. Satisfactory-Not promotable
3. Unsatisfactory-Correctable
4. Unsatisfactory-Uncorrectable
Things to keep in mind :
1. Talk in terms of objective
work data
2. Don’t get personal
3. Encourage the person to talk
4. Don’t tiptoe around
14. The rater must use
the same standards
and weights for every
employee
The rater should be
able to show coherent
arguments in order to
explain the difference
A teacher wont give
same grades to all
students, few times it
depends on the
affection that the
teacher has towards a
specific student
The evaluators uses
different standards
and expectations for
different employees
who are performing
similar jobs
Varying Standards
Problem Example Solution
15. Train evaluator to
recognize the problem
and differentiating the
person with the
performance they do
If a employee was
absent for few days
but the evaluator has
a good relationship
with him, then rating
will be higher in all
other areas of work in
order to balance it
When a evaluator
rates an employee
high on all items
because of one
characteristic that he
or she likes
Halo Effect
Problem Example Solution
16. The re-examination is
done by higher-level
managers to correct
such appraising
because they are
supposed to be more
partial
A manager treats
someone different
because he or she
belongs to different
religion or lower caste
The manager rates
according to his or her
values and prejudices
which distort the
rating
The differentiations
can be made due to
the ethnic group,
gender, age, religion,
sex, appearance, etc.
Personal Biasness
Problem Example Solution
17. The rating should
reflect the actual
performance of an
individual but not by
comparing with
others performance
If a teacher has to
evaluate 2 students
who usually wont
complete their
homework but one is
silent and other one is
naughty then teacher
will give more marks
to silent one
The evaluator may
have tendency to
evaluate a persons
performance by
comparing with
others performance
rather than his or her
individual
performance
Comparison Rating
Problem Example Solution
18. In order to avoid
these the evaluator
should use some
methods such as
documenting both in
positive and negative
aspects and should
also consider past
performances
When a professor
gives grades to the
students based on
their last week
performance but not
his or her entire
semester
performance
The evaluator may
evaluate an employee
by comparing his
latest performance
but not his or her
entire years
performance
Recency Effect
Problem Example Solution
19. Each group member
should be evaluated
individually based on
his or her contribution
If evaluator is using 7
pointer scales then he
or she will rate all the
employees in the
range of 3-5
When the evaluator
gives average score to
a group, the member
in group who have
performed excellent
work will also get
average score
Central Tendency
Problem Example Solution
