This document discusses performance appraisals. It defines performance appraisal as the process of evaluating how well employees perform their jobs and communicating that information to employees. The document outlines several objectives and benefits of performance appraisals. It also describes various performance appraisal methods like graphic rating scales, forced distribution, narratives, behavioral approaches, and 360 feedback. Finally, it notes some common problems that can occur with performance appraisals like halo effects, leniency, and recent effects.

1. Performance
Appraisal
Presentation By,
V.Gayathri
I MBA[GA]

2. What is Performance Appraisal
• It is the process by which organization evaluate
employee job performance.
• It is a process that involves determining and
communicating to an employee how he or she is
performing the job and ideally establishing a plan
of improvement.
• It is a systematic and objective way of evaluating
both work-related behaviour and potential of
employees.
04/04/13 2

3. Difference between PM and PA
Processes used to identify,
Processes used to identify,
encourage,
encourage,
measure,evaluate,
measure,evaluate,
improve, and reward
improve, and reward
employee performance.
employee performance.
The process of evaluatinghow
The process of evaluatinghow
well employees perform their
well employees perform their
jobs and then communicating
jobs and then communicating
that information to the
that information to the
employees.
employees.
04/04/13

4. Objectives
04/04/13 4

5. Benefits of Performance Appraisal
04/04/13 5

6. Who conducts appraisal?
04/04/13 6

7. 04/04/13 7

8. Appraisal Factors used in A.C.C. ltd
• Ability to take • Organising ability
decisions • Loyalty
• Leadership • Initiative
• Employee relation • Ability to
-ship communicate
• Delegation • Judgement
• Ability to run
meetings
04/04/13 8

9. 04/04/13 9

10. Performance Appraisal Process
04/04/13 10

11. Performance Appraisal Methods
04/04/13 11

12. Graphic Rating Scale
04/04/13 12

13. Category Rating Method(contd..)
• Checklists
– A performance appraisal tool that uses a list
of statements or work behaviors that are
checked by raters.
• Can be quantified by applying weights to
individual checklist items.
– Drawbacks
• Interpretation of item meanings by raters
• Weighting creates problems in appraisal
interpretation
04/04/13 13

14. Comparative methods
• Ranking
– A listing of all employees from highest to
lowest in performance.
– Drawbacks
• Does not show size of differences in
performance between employees
• Implies that lowest-ranked employees are
unsatisfactory performers.
• Becomes an unwieldy process if the group to be
ranked is large.
04/04/13 14

15. 04/04/13 15

16. Comparative methods(contd)
• Forced Distribution
– Performance appraisal method in which
ratings of employees are distributed along a
bell-shaped curve.
– Drawbacks
• Assumes a normal distribution of performance.
• Providing explanation for placement in a higher
or lower grouping can be difficult.
• Is not readily applicable to small groups of
employees.
04/04/13 16

17. 04/04/13 17

18. Narrative Methods
• Critical Incident
– Manager keeps a written record of
highly favorable and unfavorable
employee actions.
– Drawbacks
• Variations in how managers define a
“critical incident”
• Time involved in documenting
employee actions
• Most employee actions are not
observed and may become different
04/04/13 18
if observed

19. Narrative Methods(contd..)
• Essay
– Manager writes a short essay describing
an employee’s performance.
– Drawback
• Depends on the managers’ writing
skills and their ability to express
themselves.
04/04/13 19

20. Behavioral /Objective methods
• Behavioral Rating Approach
– Assesses employees’ behaviors instead of other
characteristics
– Consists of a series of scales created by:
• Identifying important job dimensions
• Creating statements describing a range of desired and
undesirable behaviors (anchors)
– Type of behavioral scale
• Behaviorally anchored rating scales (BARS)
04/04/13 20

21. 04/04/13 21

22. Behavioral /Objective methods
• Management by Objectives
– Specifying the performance goals that an
individual and his or her manager agree the
employee will to try to attain within an
appropriate length of time.
• Key MBO Ideas
– Employee involvement creates higher levels of
commitment and performance.
– Encourages employees to work effectively toward
achieving desired results.
– Performance measures should be measurable
04/04/13 22
and should define results.

23. 360 Feed Back System
• A system of collecting performance
information from multiple parties.
• Multiple parties include one’s subordinates
peers,supervisors and customers
• It is also used to design promotion and
reward.
04/04/13 23

24. Problems with Performance Appraisal
• First impressions
• Halo
• Horn Effect
• Leniency
• Stereotyping
• Recent Effect
04/04/13 24

25. 04/04/13 25