What is performance appraisal?
• IDENTIFICATION :Means determining what areas
of work the manager should be examining when
measuring performance – essentially focusing on
performance that affects organizational success.
• MEASUREMENT: Entails making managerial
judgment of how good or bad employee
• MANAGEMENT: Appraisal should be more than a
postmortem examination of past events. It must
take a future oriented view of what workers can
do to realize their potential.
• It is a method of evaluating the behaviour of
employees in the work spot , normally
including both the quantitative and qualitative
aspects of job performance.
• It is a systematic and objectives ways of
evaluating both work related behaviour and
potential of employees.
• It is a process that involves determining and
communicating to an employee how he or she
is performing the job and ideally , establishing
a plan of improvement.
• It could be taken either for evaluating the
performance of employees or developing
• Evaluation :Telling the employee where he
stands and using decisions concerning pay,
• The developmental objectives focus on finding
individual and organizational strength and
• Developing healthy superior-subordinate
• Offering appropriate counseling to the employee
with a view to develop his potential in future.
• Training and development programmes : It can
serve as a guide for formulating a suitable
training and development programme
• Promotion decisions: It can serve as a useful basis
for job change or promotion.
• Personal development: It can help reveal the
causes of good and poor employee
• Compensation decisions: It can serve as a
basis for pay raises .
• Feedback : It enables the employee to know
how well he is doing on the job.
• It is a systematic process
• It tries to find out how well the employees
performing the job and tries to establish a plan
for further improvement.
• Performance appraisal may be formal or informal
• It is not limited to calling the fouls.
• It is not job evaluation.
• It is not a past oriented activity
PERFORMANCE APPRAISAL PROCESS
• Establish performance standards.
• Communicate the standards.
• Measure actual performance.
• Compare actual performance with standards
and discuss the appraisal.
• Taking corrective action , if necessary.
PERFORMANCE APPRAISAL METHODS
• Individual evaluation methods
• Multiple person evaluation methods
• Other methods