Performance appraisal


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Performance appraisal

  1. 1. By : Rishith P
  2. 2. Meaning :  Performance appraisal is a method of evaluating the behaviour of employees both in quantitative & qualitative aspects
  3. 3. Methods of Performance Appraisal Types Traditional Modern
  4. 4. Traditional Methods  Essay Appraisal Method  Ranking Method  Paired Method  Critical Incident Method  Checklist Method  Graphic Ratings Scale Method  Forced Distribution Method
  5. 5. Essay Appraisal Method  This form of appraisal, also known as “Free Form method” involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information  Here the rater is asked to express the strong as well as weak points of the employee’s behaviour
  6. 6.  The rater considers the following factors : - Job knowledge & Potential of the employee - Employee’s understanding of the company’s programs, policies, objectives, etc.. - Employee’s relations with co-workers & superiors - Employee’s general planning, organizing & controlling ability - Attitudes & Perceptions of the employee’s.  A major drawback of the method is the inseparability of the bias of the evaluator.
  7. 7. Ranking Method  This is relatively easy method of performance appraisal evaluation. Under this method, the ranking of an employee in a work group is done against that of another employee.  In this method employee’s are ranked according to their relative levels of performance.  Here evaluator is asked to rate employees from highest to lowest rank on some criteria.  A major drawback of the method is when a large number of employees are working, ranking of individuals becomes a time consuming issue.
  8. 8. Paired Comparison Method  Ranking becomes more reliable & easier under this method. Each worker is compared with all other employees in the group for every trait .  The number of decisions to be made can be determined with the help of the formulae n(n-2). EX: If 5 employees to be compared, fifteen comparisons are made. 5(5-2) = 15
  9. 9. Critical Incident Method  Under this method, the manager prepares lists of statements of every effective & ineffective behaviour of an employee. These critical incidents or events represent the outstanding or poor behaviour of employees in the job.  The manager maintains a logs on each employee, whereby he periodically records critical incidents of the employees.  At the end of the rating period, these recorded critical incidents are used in the evaluation of the employees performance
  10. 10. Check List Method  A checklist represents, in its simplest form, a set of objectives or descriptive statements about the employee & his behaviour.  The checklist contains a list of statements on the basis of which the rater describes the job performance of the employees.  If the rater believes strongly that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank
  11. 11. The following are some of the sample questions in the checklist : Is the employee really interested in the task assigned? Yes/No  Is he respected by his colleagues (co-workers) Yes/No  Does he give respect to his superiors? Yes/No  Does he follow instructions properly? Yes/No  Does he make mistakes frequently? Yes/No
  12. 12. Graphic Rating Scale  This is the very popular, traditional method of performance appraisal. Under this method, core traits of employee pertaining to his job are carefully defined like Attitude, Knowledge of Work, Managerial Skills, Team Work, Honesty, Regularity, Accountability, Interpersonal relationships, Creativity and Discipline etc.  These traits are allotted with numerical scale to tabulate the scores gained by employee by employer
  13. 13.  Each scale which range from high to low, from good to poor, from most to least effective etc..  Score vary form employee to employee depending up on his performance levels  This method is popular because it is simple and is easy to understand and use.  Companies like DELL, Maruthi Suzuki India Ltd and Airtel are using this graphic rating scale method to appraise performance of their employees.
  14. 14. Example of Graphic Rating Scales Method Performance Trait Excellent Good Attitude Knowledge of Work Managerial Skills Team Work Honesty Regularity Accountability Interpersonal relationships Creativity Discipline Average Fair Poor 5 5 5 5 5 5 5 5 4 4 4 4 4 4 4 4 3 3 3 3 3 3 3 3 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 5 5 4 4 3 3 2 2 1 1
  15. 15. Forced Distribution Method  It is a rating system used by companies to evaluate their employees. The system requires the managers to evaluate each individual, and rank them typically into one of three categories (excellent,average,poor).  Here an employee is judged on his own accomplishments. This is rewarding for an employee who values individual achievements over teamwork and team-based goals.  One of the first companies to use this system was General Electric, in 1980’s
  16. 16.  Their business included reward for the top performers, attempt to develop the middle category of employees and dismiss employees whose performance is ranked in the lowest category.