2. MEANING
• Performance Appraisal is the systematic evaluation of the performance of employees
and to understand the abilities of a person for further growth and development.
• Performance of an employee is assessed by the supervisor or manager, against
predefined standards, such as knowledge of the job, quality and quantity of output,
leadership abilities, attitude towards work, attendance, cooperation, judgment,
versatility, health, initiative and so forth.
3. Performance appraisal is generally done in systematic ways
which are as follows:
1. The supervisors measure the pay of employees and
compare it with targets and plans.
2. The supervisor analyses the factors behind work
performances of employees.
3. The employers are in position to guide the employees for
a better performance.
4. OBJECTIVES OF PERFORMANCE
APPRAISAL
1. To maintain records in order to determine compensation packages, wage structure,
salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right men on
job.
3. To maintain and assess the potential present in a person for further growth and
development.
4. To provide a feedback to employees regarding their performance and related status.
5. It serves as a basis for influencing working habits of the employees.
6. To review and retain the promotional and other training programmes.
5. NEED FOR PERFORMANCE APPRAISAL
1. Providing information about the performance ranks on which decision regarding
salary fixation, promotion, etc. are taken.
2. Review of the performance of the subordinates.
3. Providing information that helps to counsel the subordinates.
4. Getting information to diagnose deficiency in employees regarding skills, knowledge,
etc.
5. To prevent grievance.
6. PERFORMANCE APPRAISAL PROCESS
1. Establishing high standards of
performance
2. Communicating expectations towards all
employees
3. Measuring the real performance
4. Comparing performance with the
standards
5. Discussing with all employees
6. Corrective actions
7. FEATURES OF PERFORMANCE APPRAISAL
1. Systematic process of evaluation of an employee.
2. Analysis of the strengths and weaknesses of an
employee.
3. To find out how well an employee is performing
the job.
4. Appraisal is done periodically.
5. It is based on a definite plan.
6. Performance appraisal is different from job
evaluation.