3. Performance
Appraisal
“Performance appraisal is a formal
and systematic process by means of
which the relevant strengths and
weaknesses of the employees are
identified, measured, recorded &
developed.”
- Gomej Mejia
4. Features of
Performance Appraisal
❑ Systematic process of evaluation of an employee.
❑ Analysis of the strengths and weaknesses of an employee.
❑ To find out how well an employee is performing the job.
❑ Appraisal is done periodically.
❑ It is based on a definite plan.
❑ Performance appraisal is different from job evaluation.
❑ Is a continuous process.
5. Providing Feedback:
Through performance appraisal process the individual learns exactly
how well he/she did during the previous periods and can then use
that information to improve his/her performance in the future.
Facilitating Promotion Decisions:
Performance appraisal makes it easier for the organization to make
good decisions about making sure that the most important positions
are filled by the most capable individuals.
Objective of
Performance Appraisal
6. Objective of
Performance Appraisal
Rightsizing or Downsizing Decisions:
When economic realities force an organization to downsize, performance
appraisal helps make sure that the most talented individuals are retained & to
identify poor performers who effects the productivity of the organization.
Encouraging Performance Improvement:
A good performance appraisal points out areas where individuals need to
improve their performance.
Counselling Poor Performers:
Not everyone meets the organization’s standards. Performance appraisal forces
managers to confront those whose performance is not meeting the company’s
expectations.
7. Encouraging Coaching and Mentoring:
Managers are expected to be good coaches to their team members and mentors
to their proteges. Performance appraisal identifies the areas where coaching is
necessary and encourages managers to take an active coaching role.
Supporting Manpower Planning:
Companies need to determine who and where their most talented members are.
They need to identify the departments that are rich with talent and the ones
that are suffering a talent drought. Performance appraisal gives companies the
tool they need to make sure they have the intellectual manpower required for
the future.
Objective of
Performance Appraisal
8. Objective of
Performance Appraisal
Determining Individual Training & Development Needs:
If the performance appraisal procedure includes a requirement that individual
development plans be determined and discussed, individuals can then make
good decisions about the skills and competencies they need to acquire to make
a greater contribution to the company. As a result, they increase their chances
of promotion and lower their odds of layoff.
Determining Organizational Training & Development Need:
By reviewing the data from performance appraisals, training and development
professionals can make good decisions about where the organization should
concentrate company-wide training efforts.
9. Validating Hiring Decisions.
Only when the performance of newly hired individuals is assessed can the
company learn whether it is hiring the right people.
Need for employee training:
These appraisals also identify the necessary training and development needs
to employees to close the gap between current performance and desired
performance.
Objective of
Performance Appraisal
11. What is to be appraised?
Every organization has to decide what to apprise before the program
is approved. Generally, the content to be apprised in determined on
the basis of job analysis. The content to be apprised may be:
❑ 1. behavior which measures observable physical
action, movements
❑ 2. objectives that measure job-related results like
the amount of deposit mobilized and traits that are
measured in terms of personal characteristics
observable in employee job activities.
12. Who will be appraised?
The appraiser may be any person who has the skill to apprise and also
thorough knowledge about the job contents to be apprised. The appraiser
should be capable of determining what is more important and what is
relatively less important. He should prepare reports and make judgmental
without bias.
Typical apprises are:
❑ Supervisor
❑ An employee themselves
❑ A consultants etc.
13. When to be appraised?
Informal appraisals may be conducted whenever the
supervisors or the HR manager feel it necessary. However,
systematic appraisals are conducted on a regular basis.
For example, annually or half-yearly, however, appraisers
are most often conducted once a year. Recent research
suggests that more frequent feedback correlates positively
with improved performance.
14. The process of
performance Appraisal
Establishment
of performance
standards
Annual set
measurable goals
measurement of
performance
Comparison of actual
performance with the
standard set
discussion of the
appraisal with
the employee
Identification
and initiation of
action
16. Ensuring Effective
Performance Appraisal
❑ Prepare for and schedule the performance in advance.
❑ Create a supportive environment to put employees at ease.
❑ Describe the purpose of the appraisal to employees.
❑ Involve the employee in the appraisal discussion based on
self-evaluation.
❑ Focus discussion on work behavior, not on employees.
❑ Support evaluation with specific examples.
❑ Give both positive and negative feedback.
19. Methods of performance appraisal
using absolute standard
Performance appraisal using absolute standards involves evaluating an employee's
job performance based on predetermined criteria or benchmarks. Some methods
of performance appraisal using absolute standards include:
❑Forced ranking: This method involves ranking employees
in order from highest to lowest performance.
❑Rating scales: This method involves evaluating employees
on a predetermined scale, such as a 1-5 rating scale.
❑Checklists: This method involves evaluating employees
based on the presence or absence of specific job skills or
behaviors.
20. Methods of performance appraisal
using absolute standard
❑ Critical incident method: This method involves creating a
list of specific behaviors that represent either very effective or
very ineffective job performance.
❑ Objective setting: This method involves setting specific,
measurable, achievable, relevant, and time-bound goals for
employees to work towards, and evaluating their performance
based on their progress towards achieving those goals.
It's important to note that each of these methods has its own strengths and limitations,
and it's up to the organization to determine which method is most appropriate for their
needs.
21. Methods of performance appraisal
using relative standard
❑Ranking: This method involves ranking employees in order from
highest to lowest performance, based on the evaluations of their
supervisors or colleagues.
❑Paired comparison: This method involves comparing each
employee to every other employee, and determining which
employee is more effective in each pair.
Performance appraisal using relative standards involves evaluating an employee's
job performance in comparison to their peers or to a predetermined standard.
Some methods of performance appraisal using relative standards include:
22. Methods of performance appraisal
using relative standard
❑Forced distribution: This method involves dividing employees
into performance categories, such as top performer, average
performer, and below average performer.
❑Graphic rating scale: This method involves evaluating
employees based on a predetermined scale, such as a 1-5 rating
scale, and plotting their performance on a graph.
Performance appraisal using relative standards involves evaluating an employee's
job performance in comparison to their peers or to a predetermined standard.
Some methods of performance appraisal using relative standards include:
23. It's important to note that each of these methods has its own strengths
and limitations, and it's up to the organization to determine which
method is most appropriate for their needs.
❑Behaviorally anchored rating scale (BARS):
This method involves evaluating employees based on specific
behaviors or skills, and rating their performance on a predetermined
scale.
25. Features of An
Effective Appraisal System
An effective appraisal system should have the following features:
Clearly defined goals and objectives: The appraisal system should be
aligned with the overall goals and objectives of the organization.
Fair and unbiased: The appraisal system should be fair and unbiased,
and should not be influenced by personal biases or favoritism.
Transparent: The appraisal process should be transparent, and employees
should be made aware of how their performance will be evaluated.
26. Regular feedback: An effective appraisal system should provide
employees with regular feedback on their performance, so they can
understand how they are doing and identify areas for improvement.
Developmental focus: The appraisal system should be focused on
helping employees develop and grow, rather than just evaluating their past
performance.
Flexibility: The appraisal system should be flexible enough to
accommodate different roles and responsibilities within the organization.
Features of An
Effective Appraisal System
27. Two-way communication: An effective appraisal system should
involve two-way communication between the employee and the manager
so that employees have the opportunity to discuss their performance and
provide input on their goals and development plans.
Validity and reliability: The appraisal system should be valid and
reliable, meaning that it accurately reflects an employee's performance
and is consistent across different evaluators.
Features of An
Effective Appraisal System
28. Factors That
Can Distort Appraisal
According to the principles of human resource management, the following
factors can distort the appraisal process and lead to inaccurate or unfair
evaluations of an employee's performance:
Personal biases: Personal biases and prejudices can distort an
evaluator's perception of an employee's performance.
Lack of objective criteria: If the appraisal system lacks clear and
objective criteria for evaluating performance, it can be subject to
subjective interpretation by the evaluator.
29. Lack of training: If the evaluator is not properly trained in how to
conduct an effective appraisal, they may make mistakes or misunderstand
the employee's performance.
Insufficient information: If the evaluator does not have access to
sufficient information about the employee's performance, they may make
an inaccurate assessment.
Inconsistent standards: If different evaluators use different standards
or criteria to evaluate the same employee, it can lead to inconsistency in
the appraisal process.
Factors That
Can Distort Appraisal
30. Features of An
Effective Appraisal System
Lack of feedback: If the employee does not receive regular feedback on
their performance, it can be difficult for the evaluator to accurately assess
their performance.
Limited perspective: If the evaluator only has a limited perspective on the
employee's work, it can lead to an incomplete or inaccurate assessment of their
performance.
Poor communication: If there is poor communication between the
employee and the evaluator, it can lead to misunderstandings and a distorted
assessment of performance.
31. THANK YOU
F O R Y O U R E F F E C T I V E L I S T E N I N G