Performance appraisal objectives include providing feedback to employees, facilitating promotion decisions, making rightsizing decisions, encouraging performance improvement, motivating superior performance, setting and measuring goals, counseling poor performers, determining compensation changes, encouraging coaching and mentoring, supporting manpower planning, determining individual and organizational training needs, validating hiring decisions, providing legal defensibility for personnel decisions, and improving overall organizational performance. The main objective is to measure and improve employee performance and increase their future value to the company.

1. OBJECTIVES OF PERFORMANCE APPRAISAL
Presented By
Sankalpa M.

2. Contents:
 Introduction
 Objectives of Performance Appraisal
i. Providing feedback
ii. Facilitating Promotion Decisions
iii. Rightsizing or Downsizing Decisions
iv. Encouraging Performance Improvement
v. Motivating Superior Performance
vi. Setting and Measuring Goals
vii. Counseling Poor Performers
viii. Determining Compensation Changes
ix. Encouraging Coaching and Mentoring
x. Supporting Manpower Planning
xi. Determining Individual Training and Development Needs
xii. Determining Organizational Training and Development Needs
xiii. Validating Hiring Decisions
xiv. Providing Legal Defensibility for Personnel Decisions
xv. Improving Overall Organizational Performance
 Additional objectives of Performance appraisal
 Summary and Conclusion
 References

3. Introduction:
• “Systematic, periodic and an impartial rating of an employee’s excellence in
the matters pertaining to his present job and his potential for a better job.“
- Flippo
• “Process of evaluating the performance of employees, sharing that
information with them and searching for ways to improve their performance’’.
-Dr. John W. Newstrom
• Step where the management - finds out how effective ; hiring and placing
employees
• Therefore ; process by which an employee’s contribution to the organization
during a specified period of time is assessed

4. • Business dictionary ; objective - a specific result that a person or system
aims to achieve within a time frame and with available resources
• In general, objectives are more specific and easier to measure than goals
• Basic tools that underlie - planning and strategic activities
• Basis for creating policy and evaluating performance
• Business objectives include minimizing expenses, expanding internationally or
making a profit

5. Objectives of Performance Appraisal:
• Main objective - measure and improve the performance of employees and
increase their future potential and value to the company
• Other objectives include

6. i. Providing feedback:
• Most common justification for an organization
• The individual learns exactly how well he/she did during the previous twelve
months and can then use that information to improve his/her performance
in the future

7. ii. Facilitating Promotion Decisions:
• Promotions are what everybody wants
• 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

8. iii. Rightsizing or Downsizing Decisions:
• Layoffs are what everybody wishes to avoid
• When economic realities force an organization to downsize; most talented
individuals are retained and poor performers who effects the productivity
of the organization are eliminated
• Eg: India's largest software services provider TCS axed 1,000 jobs in the
country due to non-performance by its employees. Jan 15, 2015, PTI

9. iv. Encouraging Performance Improvement:
• Where individuals need to improve their
performance
How can I improve if
I doesn’t know how
I’m doing right now?

10. v. Motivating Superior Performance:
• Helps them learn just what it is that the organization considers to be
‘‘superior.’’
• Since most people want to be seen as superior performers, to provides them
with a means to demonstrate that they actually are
• Finally, encourage employees to avoid being stigmatized as inferior
performers (or, often worse, as merely ‘‘average’’).

11. vi. Setting and Measuring Goals:
• Goal setting has consistently been demonstrated as a management process
that generates superior performance

12. vii. Counseling Poor Performers:
• Not everyone meets the organization’s standards
• To force managers to confront those whose performance is not meeting the
company’s expectations

13. viii. Determining Compensation Changes:
• Almost every organization believes in pay for performance
How can pay
decisions be made if
there is no measure
of performance?

14. ix. Encouraging Coaching and Mentoring:
• Managers are expected to be good coaches to their team members and
mentors to their protégés
• Identify the areas where coaching is necessary and encourages managers to
take an active coaching role

15. x. Supporting Manpower Planning:
• Well-managed organizations regularly assess their bench strength to make
sure that they have the talent in their ranks that they will need for the
future
• Companies need to determine who and where their most talented members
are
• Identify the departments that are rich with talent and the ones that are
suffering a talent drought

16. xi. Determining Individual Training and Development Needs:
• 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
• Increase chances of promotion and lower their odds of layoff

17. xii. Determining Organizational Training and Development Needs:
• To make good decisions about where the organization should concentrate
company-wide training efforts
xiii. Validating Hiring Decisions:
• To assess, performance of newly hired individuals; company learns whether it
is hiring the right people.
Is the company hiring
stars, or is it filling
itself with trolls?

18. xiv. Providing Legal Defensibility for Personnel Decisions:
• To greatly facilitates legal defensibility when a complaint about
discrimination is made
• Almost any personnel decision—termination, denial of a promotion, transfer
to another department—can be subjected to legal scrutiny
• If one of these is challenged, the company must be able to demonstrate that
the decision it made was not based on the individual’s race or handicap or any
other protected aspect
xv. Improving Overall Organizational Performance:
• To allow the organization to communicate performance expectations to every
member of the team and assess exactly how well each person is doing

19. Summary and Conclusion:
• Performance appraisal is an analysis of an employee’s recent successes and failures,
personal strengths and weaknesses, and his/her suitability for promotion or further
training
• Evaluated by the superior manager or supervisor
• Method of judging the quality of an employee in performing his job and a part of guiding
and managing career development
• It is also the judgment of an employee’s performance in a job based on considerations
other than productivity alone
• Performance appraisal objectives are an opportunity to regularly discuss results,
supervisor identifies strengths and weaknesses, fair and equitable format and basis for
salary or promotion recommendations.
• The benefits of objectives of performance appraisals include providing information
necessary for improving performance and motivating employees

20. References:
• http://www.businessdictionary.com/definition/objective.html
• http://www.managementstudyguide.com/performance-appraisal.htm
• https://www.slideshare.net/angel01021990/performance-appraisal-ppt-hrm
• http://www.whatishumanresource.com/objectives-of-performance-appraisal
• http://www.yourarticlelibrary.com/management/performance-appraisal-objectives-
methods-an-other-details/5415/

21. I THANK YOU