This document discusses performance appraisals and provides information on various aspects of the performance appraisal process. It begins by defining performance appraisal and outlining some key factors that influence employee performance such as motivation and ability. It then describes different methods that can be used for performance appraisals, including traditional methods like graphic rating scales and forced choice descriptions, as well as modern methods like behavioral anchored rating scales. The document also discusses the purpose, objectives, elements, guidelines, and obstacles of effective performance appraisals.

1. PERFORMANCE APPRAISAL

2.  MOTIVATION
 ABILITY

3.  Understanding how others work.
 Some internal or external force to
influence human beings to continuous
high levels of productivity.
 Have an effect on outcomes such as
performance, turnover, and absenteeism.

4. A simplified model of job performance
MOTIVATION
 Benefits
 Job design
 Leadership style
 Recruitment and
selection
 Employee goals
and needs
ABILITY
 Responsibilities
 Education –
Basic/
advanced
 Skills/abilities
EMPLOYEE
PERFORMANCE
•Daily performance
•Attendance
•Punctuality
•Adherence to
Policies/procedures
•Absence of incidents/
errors/accidents
•Honesty
•Trustworthiness

5. Meaning
Performance appraisal is the step where the
management finds out how effective it has been at
hiring and placing employees .
A “Performance appraisal” is a process of evaluating an
employee’s performance of a job in terms of its
requirements.

6. Definitions
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’’.

7. DEFINITION
According to Flippo , a prominent personality in the field
of human resources, "performance appraisal is the
systematic, periodic and an impartial rating of an
employee’s excellence in the matters pertaining to his
present job and his potential for a better job."

8. Purpose
Empowerment
Relationship
Flexibility
Optimal
Performance
Recognitionand
Rewards
Morale

9. PURPOSES
 Review the performance of employees.
 To judge the gap between the actual and the desired
performance.
 Identify need of training program.
 Facilitate communication
 To take disciplinary action
 To diagnose the training and development needs of
the future.
 Provide opportunity to organization for growth
development.

10.  Provide a review of past work performance.
 Establish lines of communication.
 Create an opportunity to discuss professional
development of goals and objectives.
 Document employee performance.
 Document corrective action necessary to improve
work performance.
 It is the responsibility of supervisor and manager
to monitor, evaluate and guide employees.
NEED OF
PERFORMANCE EVALUATIONS

11. OBJECTIVES OF PERFORMANCE APPRAISAL

12. Objectives of Performance Appraisal
Employee Organization
Measuring the efficiency
Maintaining organizational
control.
Concrete and tangible
particulars about their work
Assessment of
performance.
Mutual goals of the
employees & the organization.
Growth & development
Increase harmony & enhance
effectiveness
 Personal development
 Work satisfaction
 Involvement in the
organization.
According to:
Aims at:

13. ELEMENTS OF PERFORMANCE
APPRAISAL
Setting
performance goals
and objectives
Determining key
competencies
Measurement of
performance
against the goals
and objectives
Measurement of
performance
against key
competencies,
Feedback
of results.
Amendment to
goals and
objectives

14. Setting
performance
standardsTaking corrective
standards
Discussing
results
Comparing
standards
Measuring
standards
Communicating
standards
Process

15. Guidelines for the writing of the
Employee Performance Report
 Establishing objectivity in written performance
evaluations by avoiding vague subjective terminology.
 Use specific job related terms and clearly define
meaning of comments.
 Avoid the use of personal “traits” such as integrity,
loyalty, honesty, initiative, etc. Measure employee
performance against the job specifications.

16. REWARDING PERFORMANCE
 Rewarding performance means
providing incentives to, and
recognition of, employees for their
performance and acknowledging
their contributions to the agency’s
mission.

17. 1. Outstanding ( Level 5): Eligible for an individual
cash award up to 5% of base pay ; Time –Off Award,
Additionally may be eligible for a salary increase of up
to 5% from the Human Resource Fund or as per
organization’s policy.
2. Exceeds Expectations (Level 4): Eligible for an
individual cash award up to 3 % of base pay; Time –Off
Award, non-momentary award (includes precious
material in spite of cash benefits) or other appropriate
equivalent recognition.

18. 3. Competent (Level 3): Eligible for awards such as non-
momentary, Time –off, or other appropriate equivalent
recognition, given for reasons
4. Minimally Successful (Level 2): Ineligible for any
performance recognition.
5. Unsatisfactory (Level 1): Ineligible for any performance
recognition.

19. OBSTACLES TO EFFECTIVE PERFORMANCE
APPRAISAL
 Lack of support from top
management.
 Performance appraisal demands too
efforts from supervisors in terms of
time, paperwork, and periodic
observation of subordinates’
performance.

20.  Supervisors lack skills in appraisal techniques.
 Performance appraisal is not perceived as
being productive.
 Evaluator biases and rating errors.
 Lack of clear, objective standards of
performance.
 Failure to communicate purpose.
 Lack of suitable appraisal tool.

21. 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. Group Appraisal
9. Field Review Method
10.Confidential Report
11.Ranking
1. Assessment Center
2. Appraisal by Results
or Management by
Objectives
3. Human Assets
Accounting
4. Behaviorally
Anchored Rating
scales
Traditional Methods Modern Methods
Methods of Performance Appraisal

22. As compared A B C
to
A + -
+
B - +
-
+ C + -
For the Trait “Quality of
work”
+ A - +
- B
- - +
C + +
As compared A B C
to
For the Trait “Creativity”
+
+
++
+
+
+
+ +
-
-
-
--
- -
- -
Person rated Person rated
Rankingemployees by pairedcomparisonMethod

23. Graphic or Linear Rating Scales
Attitude
No interest
In work:
consistent
complainer
Careless:
In-different
Instructions
Interested in
work:
Accepts
opinions &
advice of
others
Enthusiasti
c about job
&
fellow-
workers
Enthusiastic
opinions &
advice
sought by
others
Decisiveness
Take
decisions in
consultation
with others
Slow to
take
decisions
Take
decisions
after careful
consideration
Takes
decisions
promptly
Take
decisions
without
consultation
0 5 10 15 20
0 5 10 15 20

24. Criteria Rating
1.Regularity on the job Most Least
Forced choice method
•Always regular
•Inform in advance for delay
•Never regular
•Remain absent
•Neither regular nor irregular

25. No.
of
employees 10% 20% 40% 20% 10%
poor Below
average
average good Excellent
Force distribution curve
Forced distribution method

26. Staff Appraisal
Name . . . . . . . Job Title . . . . . . .
Department . . . . . . . . . . . . Date of Review . . . . . . .
Age . . . . . .. . Years in present job
Section I Appraisal Of Performance
Note to Appraiser
1. Appraisal must cover the period of the preceding 12 months
2. Consideration to every function & responsibility of the job
3. An objective factual assessment of an employee’s improvement or
deterioration
Section II Promotability & Potential
Promotability
1. Promotion now
2. Within 2 years
3. Within 5 years
4. Unlikely to qualify for promotion
Section III Career Development
Section IV Notes on Interview with employee
Section V Comments by Reviewing Authority
Specimenof StaffAssessment Form[DescriptiveEssayType]

27. Ex: A fire, sudden breakdown, accident
Workers Reaction scale
A Informed the supervisor immediately 5
B Become anxious on loss of output 4
C Tried to repair the machine 3
D Complained for poor maintenance 2
E Was not able to react for situation 1
Critical Incident method

28. Performance subordinate peers superior customer
Dimension (used to check the qualities)
Leadership ^ ^
Communication ^ ^
Interpersonal skills ^ ^
Decision making ^ ^ ^
Technical skills ^ ^ ^
Motivation ^ ^ ^
Fieldreview method

29. Group appraisal method

30. MBO Process
Set organizational goals
Defining performance target
Performance review
feedback

31. Performance Points Behavior
Extremely
good
7 Can expect trainee to make valuable suggestions
for increased sales and to have positive
relationships with customers all over the
country.
Good 6 Can expect to initiate creative ideas for improved
sales.
Above average 5 Can expect to keep in touch with the customers
throughout the year.
Average 4 Can manage, with difficulty, to deliver the goods
in time.
Below average 3 Can expect to unload the trucks when asked by
the supervisor.
Poor 2 Can expect to inform only a part of the
customers.
Extremely poor 1 Can expect to take extended coffee breaks &
roam around purposelessly.
Behavioral Anchored Rating Scales

32. 360 degree performance appraisal

33. Issues in appraisal system
Appraisal
Design
Whose performance?
Who are the raters?
What problems?
How to solve?
What to evaluate?
When to evaluate?
What methods?

34. EFFECTIVE MANAGEMENT OF
PERFORMANCE APPRAISAL
 The system should be simple, effective, efficient and
administratively feasible.
 The procedures and uses of the system should be
understood and agreed by management and the
employees being rated.
 Factors to be rated should be measurable and agreed on
by managers and subordinates.
 Raters should understand the purpose and nature of the
performance review.

35.  The process should be organized and used to manage
employees on a daily basis according to their needs.
 Praise or suggestions for improvement should be done
at the time of the event.
 Standards of performance should be set and modified
at the time of the event.
 Performance standards should be valid, reliable and
fair.
 Managers should be rewarded for good performance
evaluation skills.

36. Advantages
provide a record of
performance over a
period of time.
provide an
opportunity for a
manager to meet &
discuss performance
Provide the employee
with feedback about
their performance
Provide an
opportunity for an
employee to discuss
issues and to clarify
expectations
Can be motivational
with the support of a
good reward and
compensation

37. Benefit for the individual:
 Understanding about their role
 Improving understanding of their strengths and
weaknesses and developmental needs
 Identifying ways in which they can improve
performance
 Providing an opportunity to discuss and clarify
developmental and training needs
 An opportunity to discuss career direction and
prospects.

38. Benefit to the line/ manager/supervisor/team
leader:
 Opportunities :
 to hear and exchange views and opinions away from the
normal pressure of work
 to identify any potential difficulties or weaknesses
 to improve understanding of the resources available
 to plan and set objectives for the next period
 to think about and clarity their own role
 to plan for achieving improved performance
 to plan for further delegation and coaching
 to motivate members of the team

39. Benefits to the organization
 A structured means of identifying and
assessing potential
 Up-to-date information regarding the
expectations and aspirations of employees
 Information on which to base decisions about
promotions and motivation
 An opportunity to review succession planning

40.  Information about training needs which can act as a
basis for developing training plans
 Updating of employee records ( achievements, new
competencies, etc)
 Career counseling
 Communication of information

41. PERFORMANCE APPRAISAL FOR EMPLOYEES AT
DIFFERENT LEVELS
 For top level management
 Degree of organizational growth and expansion
 Extent of achievement of organizational goal
 Contribution towards the society
 Profitability and return on capital employed

42.  For middle level managers
 Performance of the departments or teams
 Co-ordination with other departments
 Optimal use of resources
 Costs Vs. revenues for a given period of time
 The communication with superiors and
subordinates

43. PERFORMANCE APPRAISAL IN
GOVERNMENT ORGANIZATIONS
 The most common method of Performance appraisal
that is used in most of the government organizations is
Confidential report (popularly known as CR) written
by the superior of the employees.

44.  Most of the objectives in government organizations are
unchallenging, unrealistic and not timely reviewed and
updated.
 It is difficult to measure the average performance of the
government employees.
 Unprofessional and unstructured approach towards the process.
 There is often a lot of bias and subjectivity involved in the
ratings given by the superiors.
 Lack of complete information on appraisal forms due to
expertise and relevant training; often, the appraisals are not
conducted on a regular basis.

45.  In government organizations, team appraisal is often
not possible.
 Other HR decisions like rewards, training or
promotions are not directly linked to the results of the
performance appraisal process.

46. ROLE OF ADMINISTRATOR
IN PERFORMANCE APPRAISAL
 Manage and supervise the work of others, directly and
through subordinate managers.
 Appraise performance.
 Counsel and train employees, directly and through
subordinate managers.
 Monitors smooth functioning of performance appraisal in
the department.

47.  Understand, interpret and apply laws, rules,
regulations and policies related to Performance
appraisal.
 Develop and implement disciplinary actions as
necessary.
 Collect, interpret and evaluate narrative and other data
pertaining to Performance appraisal.

48. If not done appropriately, can
be a negative experience.
very time consuming,
especially for a manager
subject to rater errors &
biases.
If not done right can be a
complete waste of time.
Can be stressful for all
involved
Disadvantages