Performance appraisal

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