This document discusses performance ratings and developing a performance appraisal review system. It defines performance ratings as evaluating an employee's performance relative to a standard on a scale of less than, equal to, or greater than 100%. It also lists common rating errors. The document then defines performance appraisal as systematically evaluating employees' abilities for growth. Key elements of an effective performance appraisal system include aligning individual and organizational goals, measuring key results, providing regular feedback, and encouraging self-appraisals. Tips for implementation include selecting performance data, assigning appraisers, determining a rating philosophy, and creating review instruments.

1. M O H I T J I N D A L
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H R
IMPROVING QUALITY OF PERFORMANCE
RATINGS &
DEVELOPMENT OF PERFORMANCE APPRAISAL
REVIEW SYSTEM

2. PERFORMANCE RATINGS
 Performance rating is a part of work
measurement in which the manager observes the
employee's performance and records a value
representing that performance relative to the
manager's concept of standard performance.
 Standard performance is denoted as 100%. A
performance rating greater than 100% means the
employee's performance is more than standard, and
less than 100% means the employee's performance is
less than standard.

3.  A performance measurement uses indicators like
quality, quantity, timeliness, cost-effectiveness,
adherence to policy, professional appearance
 Common Rating Errors:
Halo Effect, Horn Effect, Central Tendency, Strict
Rating, Lenient Rating, Status Effect, Spillover
Effect, Initial Impression, Latest Behavior, Same as
me, Different from me, Performance Factor order,
Contrast, Sympathy Effect

4. PERFORMANCE APPRAISAL REVIEW SYSTEM
 Performance Appraisal is the systematic evaluation
of the performance of employees to understand the
abilities of a person for further growth and
development.

5. ELEMENTS OF GOOD PERFORMANCE
APPRAISAL SYSTEM
 Aligning Individual Performance Expectations With the
Organizations 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
 Conducting performance Appraisals as Scheduled
 Encouraging Employees to conduct Self Appraisal
 Scheduling training on the Appraisal process

6.  Few Tips:
 Select what performance data to collect
 Determine who conducts the appraisal
 Decide on a Rating Philosophy
 Compare with Standards of Performance
 Create Rating Instrument