Performance appraisal involves setting work standards, assessing employee performance against those standards, and providing feedback to help employees improve and inform career planning and compensation decisions. The process should be designed to limit rater biases, involve employees, use objective performance measures, and provide ongoing feedback to motivate employees and support their development goals. Common challenges include subjective evaluations, a lack of transparency, and failure to link appraisals to rewards or development opportunities.

2. A process of determining how well employees
do their jobs compared to a set of standards
to improve their performance effectiveness.
Appraisal involves:
 Setting work standards
 Assessing actual performance vs set standards
 Identifying conditions influencing performance
 Discussing with the employees and giving
feedback

3.  Play an integral role in the employer’s
performance management process.
 Help in planning for correcting deficiencies and
reinforce things done correctly.
 Useful for career planning in identifying employee
strengths and weaknesses.
 Affect the employer’s salary raise decisions.

4.  Evaluative/ administrative purpose
 Personnel decisions (promotion transfer, layoff, retention)
 Motivational decisions (rewards, grades, incentives)
 Developmental purpose
 Assessment of personal/professional competency and
potential
 Identification of development needs
 Training and development decisions

5.  Establish performance standards
 Mutually set measurable goals
 Measure actual performance
 Compare performance with standards
 Discuss the appraisal with employees
 Initiate development/ corrective actions

6. Topics for seminar
1. Graphic Rating Scale
2. Alternate Ranking
3. Paired comparison
4. Forced Distribution
5. Management By Objectives (MBO)
6. Behaviorally Anchored Rating Scale (BARS)

7. Boss
Peers
You
Rating
Customers Committee
Subordinates

8. Design decisions
 Decide the nature of the system (uniform or
differentiated; open or close; interactive or
one-way)
 Decide the purpose (evaluative,
development or both)
 Define the rater/ appraiser (single or
multiple)
 Define the appraisee (individual or group)

9. Develop measurement content
◦ Focus of appraisal and relative weights
 Person oriented (attributes and traits)
 Work oriented (job functions/ results)
◦ Aspects of performance value (quantity, quality, time,
cost, supervision need, customer satisfaction)
◦ Performance level anchors or measurement criteria
 Adjectival anchors (eg: satisfactory, poor)
 Behavioral anchors (eg: sends notice about meeting)
 Result oriented anchors (eg: number of customer complaints)

10. Design measurement process
 Types of measurement scale (ordinal/ranking;
rating/interval)
 Types of rating instruments
 Accounting for situational constraints for
performance
 Score computation methods (judgemental or
mathematical)

11. Administrative characteristics
 Frequency and timing
 Performance recording procedures
 Information collection and processing
procedures
 Confidentiality and access
 Methods of feedback

12.  Primacy and recency effect
 Halo and horn effect
 Central tendency
 Leniency/ strictness
 Non-performance factor
 Stereotyping
 Hostility
 Self-comparison/ compatibility

13.  Awareness of errors/ problems and their
likely effects
 Use of right appraisal tools
 Training of appraisers
 Use of diaries

14.  Use behaviour/ outcome based measures
 Monitor and documents performance records
 Provide on-going feedback
 Avoid perceptual errors
 Have both interactive (interview) and written (form)
structure
 Have multiple raters
 Involve the employee in the appraisal process
 Train appraisers

15.  Limited purpose (promotion-oriented) +lack of defined
goals
 Informal and subjective criteria
 Lack of transparency in evaluation
 Current performance-oriented (No consideration of
potentialities o the performer)
 Appraisal not as motivational tools
 Poor infrastructure (e.g., lack of job description, goal
setting, etc.)
 Lack of performance-based reward and development
system
 Unfavorable organizational or administrative culture
 Ritual practice