Performance appraisal is the systematic evaluation of employee performance and abilities in order to understand their strengths and weaknesses for growth, development, and compensation decisions. It involves supervisors measuring employee performance against targets and plans, analyzing performance factors, and providing guidance for improvement. The objectives of performance appraisals include promotions, confirmations, training, compensation reviews, competency building, improving communication, and evaluating HR programs. Common appraisal methods include rating scales, checklists, forced choice, critical incidents, behavioral anchors, field reviews, tests and observations, records, essays, and cost accounting. Future-oriented methods include management by objectives, psychological assessments, assessment centers, and 360-degree feedback. Advantages are promotion decisions, determining compensation,

1. Performance Appraisal
Methods
By Muntajeeb Ali Baig

2. Meaning and Definition
 Performance Appraisal is the systematic evaluation of the
performance of employees and to understand the abilities of
a person for further growth and development. Performance
appraisal is generally done in systematic ways which are as
follows:
 The supervisors measure the pay of employees and compare
it with targets and plans.
 The supervisor analyses the factors behind work performances
of employees.
 The employers are in position to guide the employees for a
better performance.

3. Meaning and Definition
 Performance Appraisals is the assessment of individual’s
performance in a systematic way. It is a developmental tool
used for all round development of the employee and the
organization. The performance is measured against such
factors as job knowledge, quality and quantity of output,
initiative, leadership abilities, supervision, dependability, co-
operation, judgment, versatility and health.

4. Performance Appraisals and Job Analysis Relationship
Job Analysis Performance Standards Performance Appraisals
Describe the work and
personnel requirement
of a particular job.
Translate job
requirements into levels
of acceptable or
unacceptable
performance
Describe the job
relevant strengths and
weaknesses of each
individual.

5. Objectives of Performance Appraisals
 1. Promotions
 2. Confirmations
 3. Training and Development
 4. Compensation reviews
 5. Competency building
 6. Improve communication
 7. Evaluation of HR Programs
 8. Feedback & Grievances

6. TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS
 Past Oriented Methods
 1. Rating Scales:
 2. Checklist:
 3. Forced Choice Method:
 4. Forced Distribution Method:
 5. Critical Incidents Method:
 6. Behaviorally Anchored Rating Scales:

7. TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS
 7. Field Review Method:
 8. Performance Tests & Observations:
 9. Confidential Records:
 10. Essay Method:
 11. Cost Accounting Method:
 12. Comparative Evaluation Method

8. TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS
 Future Oriented Methods
 1. Management By Objectives:
 2. Psychological Appraisals:
 3. Assessment Centers:
 4. 360-Degree Feedback:

9. Advantages of Performance Appraisal
 Promotion:
 Compensation:
 Employees Development:
 Selection Validation:
 Communication:
 Motivation: