The document discusses various methods of performance appraisal used to evaluate employees. It describes past-oriented methods like rating scales, checklist methods and forced choice methods. Future-oriented methods discussed include management by objectives, psychological appraisal, assessment centers, and 360-degree feedback. Key factors measured in performance appraisals are listed as job knowledge, quality and quantity of work, initiative, and dependability. The purposes of performance appraisal are identified as communication of performance, training and development, and determining effectiveness of HR programs.

1. PERFORMANCE
APPRAISAL AND
IT’S TYPES
- MS. PRIYANKA

2. PERFORMANCE APPRAISAL
 Objective assessment of an individual’s performance
in a systematic way.
Factors Measured in Performance Appraisal:
1) Job Knowledge
2) Quality and Quantity of output
3) Initiative
4) Leadership abilities
5) Supervision

3. 6) Dependability
7) Co-operation
8) Judgment
9) Versatility
10) Health etc.

4. Terms used for Performance Appraisal
 Performance Rating
 Employee Assessment
 Employee Performance Review
 Personnel Appraisal
 Performance Evaluation
 Employee Evaluation, and
 Merit Rating

5. Need For PA
 To effect promotions based on competence and
performance
 To confirm the services of probationary employees
on the completion of the probation period.
 Assessment of training and development needs of
employees
 To decide upon a pay raise (as in the unorganized
sector)

6.  Communicate employees about their current
performance status.
 Assist employees with constructive criticism and
guidance.
 Provides a format for dialogue between the
superior and the subordinate.
 Determines the effectiveness of HR programmes
(selections, training, transfers).

7. Process of PA:
Objectives of Performance
Appraisal
Informing Job Expectations
Design an Appraisal Program
Appraise Performance
Performance Interview
Archive Appraisal Data
Use Appraisal Data for
appropriate purposes
Feedback
Performance
Management

8. Methods of PA:
1) PAST ORIENTED METHODS
2) FUTURE ORIENTED METHODS
A) RATING SCALES:
• Consists of several numerical scales, each
representing a job-related performance criteria

9. • e.g. punctuality, dependability, initiative, co-
operation etc.
• Each Scale ranges from ‘best to worst’.
• Raters checks the appropriate performance level on
each criterion, then computes the employee’s total
numerical score.

10. B. Checklist Method:
 A checklist of statements on the traits of the employees
is prepared in ‘Yes’ or ‘No’ column. Depending upon the
number of ‘yes’ the total score is arrived at. When the
points are allotted to the checklist, the technique
becomes a ‘weighted checklist’.
 e.g. Does employee possess adequate knowledge
about the job?
 Response – Yes--------------No

11. Advantages:
 Low cost
 Easy to administer
 Little training required
 Standardized format
Disadvantages:
 Rater’s bias
 Improper HR weighs
 Discrete rating values only

12. C. Forced Choice Method:
 Rater is given series of statements about an employee
and is forced to select statements which are ready
made.
 The rater is forced to choose statement which
indicates most or least descriptive of the employee
arranged in blocks of two or more.
 E.g. Learns Fast…………………….Works Hard

13. Advantage:
No personal bias accommodated
Disadvantage:
Inaccurately framed or formed statements.

14. D. Forced Distribution Method

15. Advantage:
 Eliminates abnormality of performance
Disadvantage:
Normal distribution assumed
Unrealistic
Central tendency errors present

16. E. Critical Incident Method:
This approach focuses on certain critical
behavior's of an employee that make all the
difference between effective and non-effective
performance of a job.
Such incidents are recorded by the superiors as
and when they occur.

17. Advantages:
Actual job behaviors recorded
Ratings supported by descriptions
Easy feedback
Reduces bias
Subordinate improvement increases

18. Disadvantages:
 Overemphasis on negative incidents
 Forgetting incidents
 Strict supervision
 Too much feedback
 Negative perception on incidents

19. F. Behaviorally Anchored Rating
Scales(BARS):
 The scale represent a range of descriptive statements of
behavior varying from the least to the most effective.
 A rater is expected to indicate which behavior on each scale
best describes an employee’s performance.
Contd…….

21. Advantage:
 Overcoming rating errors
Disadvantage:
 Inherent distortions

22. G. Field Review Method
It is an appraisal by someone outside the assesse’s
own department, usually from corporate office or
HR department.
Advantage:
Unbiased evaluation for promotions to
managerial positions.
Contd…………………..

23. Disadvantages:
Unfamiliarity with work environment by
outsider.
Unavailable observation of actual work
behavior.

24. H. Performance Tests and Observations:
It is a Test of knowledge or skill.
Test may be of pen and paper variety or an
actual demonstration of skills.

25. Advantage:
 Formulated tests are focused to evaluate potential.
Disadvantage:
 High cost of test formulation and administration.

26. I. Confidential Records
Maintained mostly in government departments, though
its application in the industry is not ruled out.
A typical confidential record (ACR) shall have 14 items:
Attendance
Team work
Leadership
Self expression (written or oral)
Initiative

27. Reasoning ability (ability to understand new
material)
Technical ability (job knowledge)
Originality and resoucefulness
Area of work complimenting the person
Judgment
Integrity
 Responsibility, and
Indebtedness and memo served

28. Advantages:
High confidentiality and secrecy
Feedback to the employee in adverse entry
Disadvantages:
High subjectivity
Manipulated ratings

29. J. Essay Method:
The rater describes the employee within a number
of broad categories:
Overall impression of the employee
Promotability of the employee.
The jobs employee is able to qualify
Strength and weakness of the employee
Training and development assistance needed to
the employee

30. Advantage:
Gaps are filled with relevant and extra
information
Disadvantages:
Highly dependent on writing skills of rater
Forgetfulness of rater to record proper details

31. K. Cost Accounting
Evaluates performance from the monetary returns the
employee yields to his/her organization.
Advantages:
 A quantifiable evaluation
 Contribution to the organization identified
Disadvantages:
 A quantifiable evaluation
 Contribution to the organization identified

32. L. Comparative Evaluation Approaches
Compares one worker’s performance with
that of his/her co-workers.
The comparison is done by two methods:
1) Ranking Method
2) Paired-comparison Method

33. i) Ranking Method
Superior ranks subordinates based on merit, starting
from ‘best’ to the ‘worst’.
e.g. A is better than B, B is better than C.
ii) Paired – Comparison Method:
Employees are rated by pairs
e.g. A B C

34. 2. Future Oriented Methods:
A. Management By Objectives:
This method rates the objectives achieved by the
employee as stated by the management.
The process involves:
 Establishing goals and expected outcomes for employees
 Setting performance standards
 Evaluation of goals achieved
 Establishing new goals and strategies to achieve
unaccomplished goals

35. Advantages:
Appropriate for employees in managerial
positions
Disadvantages:
Not applicable in every work environment
Short term goals emphasized over long term
goals

36. B. Psychological appraisal
This technique assesses employees’ potential in
their future performance instead of the past
season.
In-depth interviews with discussions and
psychological tests are administered by
supervisors.
This appraisal technique focuses on the
emotional, motivational and intellectual aspects of
the employees that affect performance.

37. Advantage:
Identifying potentials of employees in totality.
Disadvantages:
Slow and costly process
Quality is dependent on the skills of
psychologists administering the process

38. C. Assessment Centers
• This choice of appraisal uses outsourced professional
appraisal assessors in a neutral environment.
• Job related exercises are administered and evaluated by
trained assessors to evaluate job performance.
Various characteristics that are professionally assessed
include:
Assertiveness
Communication ability
Power of persuasion
Planning and organizational skills

39. Self confidence
Stress level
Energy level
Decision making capability
Creativity
Administrative ability
Mental alertness

40. Advantages
Conducive assessing environment
Professional experienced assessors
Defines clear criteria for promotions

41. Disadvantages
Traveling and lodging costs
Psychologist fees
Interpersonal skills of employee being
assessed

42. D. 360-degree feedback
 This performance appraisal technique is systematic in
its collection of data on group performance where
specific groups of individuals are evaluated.
 These comprise team members, customers,
stakeholders, supervisors and peers.
 Anyone with useful information on improving an
employee’s productivity or job performance can be
enlisted as an appraiser.

43. Advantages:
Wide range of potential appraisers
Useful to give broader perspective feedback to
employees
Greater opportunities for self-development
Multi-source feedback which is helpful
Easy to measure inter-personal skills
Easy to develop team building skills

44. Disadvantages:
Intimidation from multi-sources feedback.
Unprofessional multiple raters who may gang
up on specific employees.
Untrained raters on balanced and objective
feedback

45. THANKYOU