Performance appraisal refers to evaluating employees' performance, personality, and potential. It is a systematic process that examines strengths and weaknesses through objective assessments against defined benchmarks. The document then discusses various methods of performance appraisal, including rating scales, critical incident reports, management by objectives, psychological evaluations, and 360-degree feedback, highlighting their advantages and disadvantages.

3.  Performance Appraisal (PA) refers to all
those procedures that are used to
evaluate the
personality, performance, potential, etc
of its group members.
 PA is an objective assessment of an
individual’s performance against well
defined benchmarks.

4.  It is a step by step process
 It examines the employee strengths and
weaknesses
 Scientific and objective study
 Ongoing and continuous process
 Secure information for making correct
decisions on employees

5.  Provide feedback about employees
 Provide database
 Diagnose the Strengths & Weaknesses of
individuals
 Provide coaching, counseling, career
planning to subordinates
 Develop positive relation and reduce
grievances
 Facilitates research in personnel
management

9.  Mutual trust
 Clear objectives
 Standardizations
 Training
 Job relatedness
 Documentation
 Feedback and participation
 Post appraisal review

10. Create a culture of excellence that
inspires every employee to improve
and lend himself or herself to be
assessed
Align organizational objectives to
individual aspirations
Clear growth paths for talented
individuals
Provide new challenges to rejuvenate
careers

11.  Empower employees to make decisions
without the fear of failing
 Debureaucratise the organisation
structure for easy flow of information

12.  Every Idea Gets An Ear
 All types of employees on the Google
campus are encouraged to contribute
business ideas. This inform Tech ideas to
non-tech ideas. Everyone at Google is
encouraged to listen, consider, and if it
makes sense implement new, fresh, and
innovative ideas. In fact, the Google
shuttle was created by an employee who
saw a need, researched it, presented it to
senior management and Google just
implemented it. includes engineers and
other employees raging

13.  Benefits Equal Productivity
 With the best benefits, generally comes
the best talent. When all things are equal
salary wise, potential employees will look
to benefits to make the final decision.
When Larry Page was creating the Google
vision, he put careful thought to the
benefits his employees would have and
what effect that would have on the
productivity of Google. The Google
benefits enable employees to focus on
work and innovation which has proven to
increase productivity.

15. Methods of Performance Appraisal
MBO Future
Oriented
Rating
Cost Scales
Accounting Checklist
Essay
Forced
Assessment
Appraisal
ACRS
Centers
Choice
360
Tests & Appraisal
Observations Methods
Forced
Distribution
Field Critical
Review Incident
BARS
Past
Psychological
Oriented
Appraisals

17. I.Past Orientation Method
Simplest and most popular technique
Consists of several numerical scales,
each representing job traits
Ranges from excellent to poor
Number of points may be linked to
salary increments

18.  Adaptability ( nearly every type of job )
 Relatively low cost
 Less time consuming
 No training required

19. 1. RATING SCALE

20. DISADVANTAGES
Raters biases influence
Numerical rating is unclear

21.  Checklist of statements on traits of
employees and job
 Sent to HR department
 Rater does only reporting

22. ADVANTAGES
 Economy
 Ease of administration
 Limited training of rater
 Objectivity

23. DISADVANTAGES
Raters Biases ( Halo Effect )
Misinterpretation
Improper use by HR
Department
Does not allow rater to give
relative ratings

24.  One issue which always raises a question
on the effectiveness of all the appraisal
methods is the leniency of the raters.

25.  The Forced Distribution method is an
attempt to do away with that problem.
 Here, the rater is forced to rate on all
points on the rating scale.
 There is an assumption that employee
performance level conforms to a normal
statistical distribution.

26. Example
 The following points may exist in a
rating scale-excellent, good, average,
below average and unsatisfactory and
the rater would be expected to distribute
his ratings on a percentage basis i.e.
excellent-10%, good-20%, average-40%,
below average-20% and unsatisfactory-
10%.

27.  The critical incidents method is based on
actual job behaviour.
 The method focuses on certain critical
behaviours of an employee that makes all
the difference between effective and non
effective performance of a job. Such
incidents are recorded by the superiors as
and when they occur

28.  BASED ON ACTUAL JOB BEHAVIOUR
 GIVING JOB RELATED FEEDBACK TO THE
RATEE IS EASY
 REDUCES BIAS, IF RATERS
RECORD INCIDENTS THOUGHOUT THE
RATING PERIOD
 MORE CHANCES FOR THE RATEE TO
IMPROVE AS THEY LEARN MORE
PRECISELY WHAT IS EXPECTED OF THEM

29. 1. INTRODUCTION
SET SCENE; INTRODUCE FACILITATORS, GROUP, PURPOSE AND GROUND RULES
2. FACT PHASE
EACH PARTCIPANT IN TURN TELLS HIS ROLE, PARTICIPATION IN EVENT, WHAT
HAPPENED AS THEY SAW IT AND FACTUAL INFORMATION (NOT TOO MUCH DETAIL)
3. THOUGHT PHASE
EACH PARTICIPANT TELLS THEIR FIRST THOUGHTS ABOUT THE INCIDENT

30. 4. FEELING PHASE
EACH PARTICIPANT TELLS WHAT FEELINGS WERE GENERATED BY THE EVENT, IMMEDIATE,
WITHIN THE 1ST DAY OR TWO AND NOW
5. REACTION PHASE
EACH PARTICIPANT SHARES WHAT REACTIONS THEY HAVE EXPERIENCED SINCE THE
EVENT, IMMEDIATE, WITHIN A DAY OR TWO AND NOW
6. STRATEGY PHASE
SHARING THEIR STRATEGIES FOR DEALING WITH REACTIONS AND DEMONSTRATING HOW
EXPERIENCE CAN HELP IN THE FUTURE
7. RE ENTRY PHASE
SUMMARY OF EVENTS, REACTIONS AND STRATEGIES, OPPORTUNITY FOR PARTICIPANTS TO
CLEAR UP MISUNDERSTANDINGS AND CONFIRM UNDERSTANDINGS

31.  NEGATIVE INCIDENTS MORE NOTICEABLE
THAN POSITIVE ONES
 THE RECORDING OF INCIDENTS IS AT TIMES
DONE INEFFICIENTLY
 OVERLY CLOSE SUPERVISION MAY RESULT
 IN AN ANNUAL PERFORMANCE REVIEW, THE
FEEDBACK MAY BE TOO MUCH AT ONE TIME

32.  Cost Accounting Method evaluates
performance from the monetary returns the
employee yields to his/her organisation.
 Performance of the employee is based on
the established relationship between cost
and benefit.
 Cost accounting method of evaluation has
vast potential as increasingly firms are
converting their training departments into
profit centers.

33.  The superiors rank their subordinates
in the order of their merit, starting
from the best to worst.

34.  Useful in deciding merit pay increases,
promotions, organisational rewards.
 Ease of administration and explanation.

35.  This method compares each employee with
all others in the group, one at a time. After
all the comparisons on the basis of the
overall comparisons, the employees are
given the final rankings.
 Pairedcomparison method helps make the
ranting method more precise. For every trait
(quality of work, quality etc), Pairs are made
and every subordinate is compared with
every other subordinate.

36.  MBO
 Psychological
appraisals
 Assessment centers

37. “ Management by Objectives (MBO) is a process
of agreeing upon objectives within an
organization so that management and
employees agree to the objectives, understand
what they are, and work hand-to-hand towards
the achievement of the set objectives.”
 An MBO, evaluates employee job performance in
terms of the extent to which the employee
achieved each of his or her goals during a
specified period of time
–Goals can be both objective and subjective
–Commonly used for managers and professionals

38.  •Set organizational goals
 •Defining performance target
 •Performance review
 •Feedback

39.  These appraisals involve assessment of
the intellectual abilities, emotional
stability, reason and analytical skills,
sociability, etc.
 These methods can be useful when
taking decisions about placement of
employees, development and training.
 Psychological appraisals focus on future
potential and not actual performance.

40.  An assessment centre is a central
location where managers come together
to have their participation in job related
exercises evaluation by trained
observers. Mostly used for executive
hiring, assessment centers are now
being used for evaluating or supervisory
potential.

41.  Cost effective only in large organizations.
 Assessment is strongly influenced by the
participant’s interpersonal skills
 Unhealthy sense of competition
 Demoralize employees

42.  The360 degree technique is understood
as systematic collection of performance
data on an individual or group, derived
from a number of stake holders.

43.  Analysis may be ineffective due to personal
biases
 Time Consuming
 Negative effect on the employee’s
performance

44. Performance appraisal is a method that encourages
high levels of employees’ performance. The
evaluation system helps to identify employees with
reward performance equitably and determine
employee’s need for training. Also, it provides a
competitive edge to an organization in the
following ways
 Improving performance
 Ensuring legal compliance
 Minimizing job dissatisfaction and turnover