Performance Appraisal in Management

2. Performance Appraisal (PA) refers to all those
procedures that are used to evaluate the
personality
performance
potential of its group members

3. According to Newstrom, “It is the process of
evaluating the performance of employees, sharing
that information with them and searching for
ways to improve their performance’’.

5.  According to:
 Employee
concrete and tangible particulars about
their work
assessment of performance
 Aims at:
Personal development
work satisfaction
involvement in the organization.

6.  According to:
Organization
 measuring the efficiency
 maintaining organizational control.
 Aims at:
 mutual goals of the employees & the
organization.
 growth & development
 increase harmony & enhance effectiveness

7.  To review the performance of the employees.
 To judge the gap between the actual and the
desired performance.
 To help the management in exercising
organizational control.
 To diagnose the training and development
needs of the future.
 Provide information to assist in the HR
decisions like promotions, transfers etc.

8.  Provide clarity of the expectations and
responsibilities of the functions to be
performed by the employees.
 To judge the effectiveness of the other
human resource functions.
 To reduce the grievances of the employees.
 Helps to strengthen the relationship and
communication between superior –
subordinates and management –
employees.

9. Develop performance standards
Setting goals and objectives
Data collection
Performance appraisal interview
Future goals and objectives
Follow up
Rewarding performance

10.  Traditional Methods
1. Paired comparison
2. Graphic Rating scales
3. Forced choice Description method
4. Forced Distribution Method
5. Checks lists
6. Free essay method
7. Critical Incidents
8. Behaviorally Anchored Method
9. Field Review Method
10.Confidential Report
11.Ranking

11.  For several traits paired comparisons are made, tabulated
and then rank is assigned to each worker
 No. of comparisons is calculated by the formula: N(N-1)/2
 This method is not applicable when the group is large

12. The rating scale consist of several numerical
scales, each representing a job related
performance criterion such as dependability,
initiative, output, attendance, attitude, co-
operation and the like

13.  In the forced choice method the rater is forced to
select statements which are readymade
 The rater is asked to indicate which of the phrases is
the most and least descriptive of a particular worker
 Favorable qualities earn plus credit and unfavorable
ones earn the reverse

14.  To eliminate the element of bias from the
rater’s ratings, the evaluator is asked to
distribute the employees in some fixed
categories of ratings like on a normal
distribution curve.
 The rater chooses the appropriate fit for the
categories on his own discretion

15.  Checklist contains a list of statements on the basis of
which the rater describes the on job performance of the
employees
 Example:
 Is employee regular Y/N
 Is employee respected by subordinate Y/N
 Is employee helpful Y/N
 Does he follow instruction Y/N
 Does he keep the equipment in order Y/N

16.  The rater is asked to express the strong as well as weak points
of employee’s behavior
The rater considers the employee’s :
 Job knowledge and potential
 Understanding of company’s programs, policies, objectives
etc
 Relation with co-workers and supervisors
 Planning, organizing and controlling ability
 Attitude and perception

17.  Manager prepares lists of statements of very effective and
ineffective behavior of an employee
 These critical incidents represent the outstanding or poor
behavior of the employees
 The manager periodically records critical incidents of
employee’s behavior

18.  BARS represent a range of descriptive
statements of behavior varying from the least
to the most effective
 In this a rater is expected to indicate which
behavior on each scale best describes an
employee’s performance

20.  The appraiser goes to the field and obtains the
information about work performance of the employee
by way of questioning the said individual, his peer
group, and his superiors

21. Descriptive report
 Prepared by the employee’s immediate supervisor
 The report highlights the strengths and weaknesses
of employees
 Prepared in Government organizations
 Does not offer any feedback to the employee

22. The evaluator rates the employee from highest to lowest
on some overall criteria. In this “how” and “why” are not
questioned nor answered
Employee Rank
A 2
B 1
C 3
D 5
E 4

23.  Modern Methods
1. Assessment Center
2. Psychological Appraisals
3. 360o Feedback Method
4. Management by Objectives (MBO)

24.  An assessment centre is a central location
where managers may come
together to have their participation in job-
related exercises evaluated by
trained observers

25.  Evaluation is based on employee’s intellectual,
emotional, motivational and other related
characteristics
 It focuses on the future potential of an
employee
 past performance or the actual performance is
not taken into consideration

26.  It is a systematic collection and feedback of
performance data on an individual or group,
derived from a number of stakeholders
 Data is gathered and fed back to the individual
participant in a clear way designed to promote
understanding, acceptance and ultimately
behavior
 It makes the employee feel much more
accountable

27.  First step: MBO emphasizes collectively set
goals that are tangible, verifiable, and
measurable
 Second step: setting the performance standard
for the subordinates
 Third step: the actual level of goal attainment is
compared with the goals agreed upon
 Final step: involves establishing new goals and
possibly new strategies for goals not previously
achieved

28. Appraisee
 Reflection on areas of weakness and strengths
 Opportunity to raise issues / obstacles
 Focus on developing individual performance
 Better understanding of goals and
requirements
 Identify action plan for future development
 Indication for Salary increment / incentives

29.  If not done right, they can create a NEGATIVE
EXPERIENCE.
 Performance appraisals are very time
consuming and can be overwhelming to
managers with many employees.
 They are based on human assessment and are
subject to rater errors and biases.
 They can create a very stressful environment
for everyone involved.

30.  There is NO ONE PERFECT appraisal tool
 Compilation record of positive or negative
incidents are useful in justifying PA rating
 Appropriate communication skills used are
REALLY essential
 Constant evaluation and feedback should be
given to subordinate to enhance expectation on
performance and progress

31.  Bacal, R. (2012). A Performance Management Bias and Error
Glossary. Retrieved from http://performance-
appraisals.org/Bacalsappraisalarticles/articles/bias.htm)
 Chandran, A., & Frank, D. Z. (2004). Utilization of
Performance Appraisal Systems in Health Care
Organizations and Improvement Strategies for Supervisors.
The Health Care Manager, 23(1), 25-30.
 Dhami, R. 2010. Performance appraisal methods. Retrieved
from
http://www.humanresources.hrvinet.com/performance-
appraisal-methods/
 Finlay, K., & McLaren, S. (2009). Does appraisal enhance
learning, improve practice and encourage continuing
professional development? A survey of general
practitioner’s experiences of appraisal. Quality in Primary
Care, (17), 387-395.