The document discusses performance appraisals. It notes that performance appraisals serve three main purposes: as a basis for rewards, identifying development needs, and validating other HR processes. It defines performance as doing a job effectively and efficiently with minimal disruptions. The appraisal process involves establishing standards, communicating expectations, measuring performance, comparing to standards, discussing with employees, and taking corrective action if needed. Performance is measured through personal observation, reports, and written evaluations. Factors like involvement, constructive attitudes, goal-setting, and job awareness are important for effective appraisals. Common appraisal methods include essays, checklists, rating scales, and management by objectives. The summary concludes by discussing factors that can distort app

1. PERFORMANCE APPRAISAL
Presentation
by
Prof.M.S.S.Varadan
Chairman
Om Consultants (India) Pvt. Ltd.
C O N S U L T A N T S
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2. WHY PERFORMANCE APPRAISAL?
Three purposes of performance
appraisal :
1. It can be used as a basis for reward
allocations
2. Appraisals can be used for identifying
areas where development efforts are
needed
3. Appraisal can be used as a criterion
against which selection devices and
development programs are validated
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3. DEFINING THE “PERFORMANCE” IN
PERFORMANCE APPRAISAL
• Satisfactory performance implies a
combination of things.
It means doing a job effectively and
efficiently, with a minimum degree of
employee-created disruptions.
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4. APPRAISAL PROCESS
1. Establish performance standards
2. Communicate performance expectations to
employees
3. Measure actual performance
4. Compare actual performance with standards
5. Discuss the appraisal with the employee
6. If necessary, initiate corrective action

5. FOUR MEASURES OF PERFORMANCE
1. Personal observation
2. Statistical reports
3. Oral reports
4. Written reports
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6. FOUR CRITERIA OF PERFORMANCE
APPRAISAL
1. Employees should be actively involved in
the evaluation and development process
2. Bosses need to enter performance
appraisals with a constructive and helpful
attitude
3. Realistic goals must be mutually set
4. Bosses must be aware, and have
knowledge of the employee’s job and
performance
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7. APPRAISAL METHOD
• Essay appraisal
• Critical incident appraisal
• Checklist
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8. • Graphic rating scale
Sample of Graphic Rating Scale Items and Format
Performance Factor Performance Rating
Quality of work is
the accuracy, skill, Consistently Occasionally Consistently Sometimes Consistently
and completeness unsatisfactory unsatisfactory satisfactory superior superior
of work
Quantity of work is
the volume of
work done in a
normal workday
Job knowledge is
information
pertinent to the
job that an
individual should
have for
satisfactory job
performance
Dependability is
following
directions and
company policies
without super-
vision

9. APPRAISAL METHOD
• Behaviorally anchored rating scales
• Management by objectives
• Uses of performance appraisals
– Training and development
– Promotion
– Planning
– Retention and discharge
– Validation
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10. FACTORS THAT CAN DISTORT APPRAISALS
• Leniency error
• Halo error
• Similarity error
• Central tendency
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11. IMPROVING PERFORMANCE APPRAISALS
• Behaviorally based measures
• Combine absolute and relative standards
• Ongoing feedback
• Multiple raters
• Selective ranking
• Trained appraisers
• Peer evaluations
• Postappraisal interview
• Rewards to accurate appraisers
• 3600 feedback
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