This document discusses performance appraisal in three main sections: [1] It defines performance appraisal as a process for assessing an employee's performance on their job duties and their potential for future development. Key aspects include both quantitative and qualitative evaluations. [2] It describes the characteristics and purposes of performance appraisal, which include systematically assessing strengths and weaknesses, providing feedback, and aiding decision-making regarding promotion, training, and other personnel actions. [3] It outlines the steps for an effective performance appraisal process, from establishing performance standards to communicating them, measuring and comparing actual performance, discussing evaluations, and initiating corrective actions.

1. Sanchawa, Denis H
HUMAN RESOURCE
MANAGEMENT
FUNCTIONS
11/5/2012 PERFORMANCE APPRAISAL

2. Definitions
 Performance appraisal is the process of
assessing the performance or progress of an
employee, or a group of employees on the
given job, as well as his potential for future
development.
 Performance appraisal or Performance
evaluation is a method of evaluating the
behaviour of employees in a work place,
normally including both the quantitative and
qualitative aspect of job performance.
Sanchawa, Denis H 11/5/2012

3. Meaning and description
 Thus, performance appraisal comprises all
formal procedures used in organisations to
evaluate the contributions, personality, and
potential of individual employees. In other
words, performance appraisal includes the
comparison of performance scales of different
individuals holding similar areas of work
responsibilities and relate to determination of
worth of the scales for the achievement of
organisaton objective.
Sanchawa, Denis H 11/5/2012

4. Meaning and descriptions
 Performance appraisal is a systematic
evaluation of the employees performance at
work. Performance appraisal is a process of
evaluating an employees performance on a
job in terms of its requirement.
 It is a process of estimating or judging the
value, excellence, qualities of status of some
object, person or thing.
Sanchawa, Denis H 11/5/2012

5. Characteristics of performance
appraisal
 A Process : Performance appraisal is not a
one-act play. It is rather a process that
involves several acts or steps.
 Systematic Assessment : Performance
appraisal is a systematic assessment of an
employee‘s strengths and weakness in the
context of the given job.
 Main Objective : The main objective of it is to
know how well an employee is going for the
organisation and what needs to be improved in
him. Sanchawa, Denis H 11/5/2012

6. Characteristics----
 Scientific Evaluation : It is an objective, unbiased
and scientific evaluation through similar measure
and procedures for all employees in a formal
manner
 Periodic Evaluation :appraisal of an individual
employee is likely to occur at certain intervals
through out that person‘s history of employment
(say quarterly, six monthly, annually, etc.)
 Employee Feedback : Performance appraisal
system provides information to employees on how
well they are doing their jobs, and this feedback is
provided to them when it is relevant.
Sanchawa, Denis H 11/5/2012

7. Purpose of performance
appraisal
 Appraisal Procedure : It provides a common
and unified measure of performance appraisal
to the employees.
 Decision Making : Performance appraisal of
the employees helps in decision making by
the management.
 Work Performance Records : Performance
appraisal gives us a complete information in
the form of records regarding every employee.
Sanchawa, Denis H 11/5/2012

8. Purpose of performance
appraisal
 4. Employees Development : Performance
appraisal guides
 5. Enables Supervisors to be More Alert and
Competent :
 6. Merit Rating . It enables them to make more
careful analysis of personnel in the
organization.
 7.It improve employee employers relation.
Sanchawa, Denis H 11/5/2012

9. Uses of performance appraisal
 Helps in deciding promotion
 Helps in personnel actions such as demotion
,transfers and layoffs
 Helps in wage and salary administration
 Helps in training and development
 Helps in personnel research in the field of
personnel management.
 Helps in self evaluation
 Help in creating healthy competition because it
brings out the deficiencies and shortcomings of
the employees.
Sanchawa, Denis H 11/5/2012

10. Essentials for effective
performance appraisal system
 Mutual trust between supervisors and
employees
 Clear objectives
 Standardization
 Training
 Job relatedness
 Strength and weakness
 Feedback and participation
 Individual differences
 Post appraisal system
Sanchawa, Denis H 11/5/2012

11. Essentials----
 Post appraisal interview
 Review and appeal
Sanchawa, Denis H 11/5/2012

12. Steps for effective performance
appraisal
 Establishing performance standard
 Communicating performance standards to
employee
 Measuring actual performance
 Comparing actual standards with performance
 Discussing the appraisal with the employee
 Initiating corrective actions.
Sanchawa, Denis H 11/5/2012

13. Methods of performance
appraisal
 Traditional methods
Ranking method
Grading method
Man to man comparison method
Graphic rating scale
 Modern methods
Mbo
Assessment centre method
360 degree feedback and etc
Sanchawa, Denis H 11/5/2012

14. Assignment one(individual)
Performance appraisal is not merely for
appraisal but is for accomplishment and
improvement of performance. Discuss
Submission: Friday 5th October 2012 at 10:00
Am.
Sanchawa, Denis H 11/5/2012