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1. Performance appraisal is a process of systematically
evaluating performance and providing feedback upon
which performance adjustments can be made.
2. Performance appraisal is a system of review and
evaluation of an individuals performance.
 Performance Appraisal provides reassurance to employees
that they are contributing and doing the right things.
 Performance Appraisal creates awareness of the impact on
desired results such as customer satisfaction.
 Performance Appraisal reveals the adequacy of
performance in terms of quantity, quality, speed, timelines,
etc.
 Performance Appraisal provides means for recognizing of
the importance and value of performance of employees.
 Performance Appraisal provides opportunities for self
development of employees.
 Performance Appraisal provides for administrative
decisions and reward management of employees.
 Performance Appraisal is a critical tool for training and
development of employees.
 Performance Appraisal is a foundation of career
succession planning.
 Performance Appraisal is a basis for legally
defensible management actions.
 Performance Appraisal is a valuable source of
talent management
 Making Development Decisions
 Motivate and guide the employees towards purposeful
personal development of skills and competencies
 Providing feedback
 Making Administrative Decisions
 Support administrative decisions such as promotions,
transfers, demotions, terminations, pay increases, etc.
To be effective, a performance appraisal system must
possess the following essential ingredients:
Correlated with the organizations objectives and
strategy.
Cover assessment of performance as well as potential
for development.
Look after the needs of both the individual and the
organization.
 Help create energizing work environment.
 Link rewards to achievements.
 Generate information for career and succession
planning
 Suggesting appropriate person-job matching
T = Technical Phase
E = Extended Phase
A = Appraisal Phase
M = Maintenance Phase
 Defining Objectives of Performance Appraisal
 Defining Performance Expectations
 Designing Performance Appraisal System
 Implementing Performance Appraisal System
 Performance Appraisal Interview
 Post Performance Appraisal Actions
 PAST ORIENTED APPRAISAL METHODS:
 Essay appraisal
 Graphic rating scale appraisal
 Field review appraisal
 Forced-choice rating appraisal
 Critical incident appraisal
 Work-standards approach
 Ranking methods appraisal
 Halo Effect
 Horn Effect
 Central Tendency
 Strict Rating
 Lenient Rating
 Status Effect
 Spillover Effect
 Initial Impression
 Latest Behaviour
 Same as Me
 Different from Me
 Performance Factor Order
 Contrast Effect
 Sympathy Effect
 Time and resource constraint of managers
 Wide variation in standards and ratings
 Personal values and bias
 Lack of communication
 Limitation of performance appraisal technique
 Managerial resistance
 Negative feedback
 Aligning individual performance expectations with the
organization’s vision and values
 Measuring key results and competencies
 Appraising against clearly defined performance
expectations
 Working together to develop performance expectations
 Providing frequent and timely feedback

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Performance appraisal

  • 1.
  • 2. 1. Performance appraisal is a process of systematically evaluating performance and providing feedback upon which performance adjustments can be made. 2. Performance appraisal is a system of review and evaluation of an individuals performance.
  • 3.  Performance Appraisal provides reassurance to employees that they are contributing and doing the right things.  Performance Appraisal creates awareness of the impact on desired results such as customer satisfaction.  Performance Appraisal reveals the adequacy of performance in terms of quantity, quality, speed, timelines, etc.  Performance Appraisal provides means for recognizing of the importance and value of performance of employees.
  • 4.  Performance Appraisal provides opportunities for self development of employees.  Performance Appraisal provides for administrative decisions and reward management of employees.  Performance Appraisal is a critical tool for training and development of employees.  Performance Appraisal is a foundation of career succession planning.
  • 5.  Performance Appraisal is a basis for legally defensible management actions.  Performance Appraisal is a valuable source of talent management
  • 6.  Making Development Decisions  Motivate and guide the employees towards purposeful personal development of skills and competencies  Providing feedback  Making Administrative Decisions  Support administrative decisions such as promotions, transfers, demotions, terminations, pay increases, etc.
  • 7. To be effective, a performance appraisal system must possess the following essential ingredients: Correlated with the organizations objectives and strategy. Cover assessment of performance as well as potential for development. Look after the needs of both the individual and the organization.
  • 8.  Help create energizing work environment.  Link rewards to achievements.  Generate information for career and succession planning  Suggesting appropriate person-job matching
  • 9. T = Technical Phase E = Extended Phase A = Appraisal Phase M = Maintenance Phase
  • 10.  Defining Objectives of Performance Appraisal  Defining Performance Expectations  Designing Performance Appraisal System  Implementing Performance Appraisal System  Performance Appraisal Interview  Post Performance Appraisal Actions
  • 11.  PAST ORIENTED APPRAISAL METHODS:  Essay appraisal  Graphic rating scale appraisal  Field review appraisal  Forced-choice rating appraisal  Critical incident appraisal  Work-standards approach  Ranking methods appraisal
  • 12.  Halo Effect  Horn Effect  Central Tendency  Strict Rating  Lenient Rating  Status Effect  Spillover Effect  Initial Impression  Latest Behaviour  Same as Me  Different from Me  Performance Factor Order  Contrast Effect  Sympathy Effect
  • 13.  Time and resource constraint of managers  Wide variation in standards and ratings  Personal values and bias  Lack of communication  Limitation of performance appraisal technique  Managerial resistance  Negative feedback
  • 14.  Aligning individual performance expectations with the organization’s vision and values  Measuring key results and competencies  Appraising against clearly defined performance expectations  Working together to develop performance expectations  Providing frequent and timely feedback