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1. INSTITUTE –University School
of Business
DEPARTMENT -Management
M.B.A
People Management: 20BAT611
Faculty Name : Dr. Apoorva Singh
(Assistant Professor)
UNIT-2; Chapter-7
Introduction to
Performance
Appraisal
DISCOVER . LEARN . EMPOWER

2. Course Objective
COB No. Title
COB1
To make the students understand the importance of human resources
as an asset and to sensitize the students to the various facets of
managing human resource in the real world.
COB2
To make students develop, implement and evaluate organizational
development strategies aimed at promoting organizational
effectiveness.

3. Course Outcome
CO No. Title Level
CO1
To understand the different concepts for workforce
management in contemporary organizations
Understand/
Remember
CO2
To apply the processes that can be used to make people
more productive and happy
Apply
CO3
To analyse performance management issues to find out
solutions to drive high performing teams Analyse
CO4
To evaluate the new compensation structures consistent
with the prevailing industry standards.
Evaluate
CO5
To design and formulate HR policies for acquisition,
development and retention of talent in today's changing
workplaces
Design/Crea
te

4. Introduction to Performance
Appraisal

5. The process by which an employee’s
contribution to the organization during a
specified period of time is assessed.
Lets employees know how well they
have performed in comparison with
the standards of the organization
Performance Feedback
Performance Appraisal

6. Strategic Importance
• Consistency between job behavior and
• Organizational strategy
• Organization values
• Performance Management as an
• Employee development tool
• Administrative tool

7. A Good Appraisal System
Criteria
• Validity
• Reliability
• Freedom from bias: errors
• Practicality

8. Recruitment
PA and other HRM Functions
Selection
Training &
Development
Compensation
Labor Relations
P
A

9. Reasons for Failure
Unclear
Language
Mgr not taking
PA seriously
Mgr not
prepared
No on-going
feedback
Mgr not
honest or
sincere
Ineffective
discussion
Lack
appraisal
skills
Mgr Lacks
Infor.
Insuff.
Rewards

10. SUPERIOR
CUSTOMERS
TEAM
SUBORDINATES
PEERS
SELF
Alternative Sources
of Appraisal

11. Training Appraisers
Leniency or
Strictness Error
Similar-to-Me
Error
Contrast Error
Error of Central
Tendency
Recency Error
Common
Appraisal Errors
to Address in
Training

12. Types of Performance to Measure
3 Types of Methods
• Trait based
• Behavior based
• Results based
Measurement Methods
• Objective
• Production
• Sales
• Performance Tests
• Subjective
• Comparative
Procedures
• Ranking
• Forced Distribution

13. Trait Methods
Graphic Rating
Scale
Mixed Standard
Scale
Essay
Forced-Choice
Common Trait
Methods of
Appraisal

14. Behavioral Methods
Critical Incidents
Behavioral
Checklist
Behaviorally
Anchored Rating
Scale (BARS)
Behavior
Observation
Scales
Common
Behavioral
Appraisal
Methods

15. Results-based Methods
• Used when
• It is not important how results are achieved
• There are many different ways to succeed
• Practicality
• Teamwork

16. PA Methods Vary upon Task Types
High Low
High Behavioral / Result
Ex: assembly workers
Result
Ex: sales
Low Behavioral
Ex: reporters
Extensive selection/
training
Ex: researchers
Knowledge of the transformation process
Reliability and Validity of PA Measurement

17. Contemporary Performance Appraisal
Management by objectives (MBO)
360-degree feedback
Self-managed teams

18. MBO Program
Step 1:
Org. goals
& metrics
Step 2:
Dpt. Goals
& metrics
Step 5:
Interim
review
Step 5b:
New inputs are then
provided
Step 5a:
Inappropriate
goals/metrics
deleted
Step 4:
Mutual
agreement
Step 3:
Sbt. proposes
goals & metrics
Step 3:
Spvr lists
goals & metrics
Step 7:
Review org.
performance
Step 6:
Final
review

19. Self-Managed Teams
Characteristics
• Focusing group result
• Larger Span of control
• More part-time/contract
workers
• More cross-functional workers
Challenges
• Measuring individual result 
Unfair & Hard
• Quality and commitment std. 
Diverse
• Measure cross-functional
performance  Tough

20. 360° Feedback

21. Relationships
Adaptability
Leadership
Communication
Personal
Development
Development
of Others
Production Task
Management
Example

22. Summary
• Performance appraisal or Performance evaluation is a
method of evaluating the behavior of employees in a
work place, normally including both the quantitative and
qualitative aspect of job performance.
• Performance here refers to the degree of
accomplishment of the tasks that makeup an individual‘
job.

23. REFERENCES
Text Books
 Dessler, G.2013. Human Resource Management. 15th Edition, Prentice-Hall, India,
ISBN:9780134235455.
Online Articles
• https://www.managementstudyguide.com/performance-appraisal.htm
• https://www.valamis.com/hub/performance-appraisal
23

24. Assessment Pattern
Components HT-1 HT-2 Assignment Surprise Test Business Quiz GD Forum Attendance Scaled
Marks
Max. Marks 10 10 6 4 4 4 2 40

25. THANK YOU
For queries you can reach me on
Email:
apoorva.e8931@cumail.in