This document discusses performance appraisals, including their definition, purpose, advantages, methods, and potential biases. Performance appraisals are used to evaluate employees, provide feedback, determine training needs, and make decisions about compensation, promotion, and retention. They have advantages like employee development, motivation, and communication. Common methods include critical incident reports, weighted checklists, rating scales, management by objectives, and 360 degree feedback. Potential biases can come from first impressions, halo effects, central tendency ratings, and personal biases of the evaluator.

1. PERFORMANCE APPRAISAL
Presented By:- Sunil Pandey
MBA 1st year

2. DEFINITION
 Organization uses performance appraisals for Evaluation and
Developmental purposes to improve the human resources of an
organization by human resources of an organization.
 The process by which a manager or consultant examines and
evaluates an employee's work behavior by comparing it with
preset standards, documents the results of the comparison, and
uses the results to provide feedback to the employee to show
where improvements are needed and why.

3. DEFINITION
 Performance appraisals are employed to determine
who needs what training, and who will be promoted,
demoted, retained, or fired.

4. PURPOSE OF PMS
 To maintain records in order to determine compensation
packages, wage structure, salaries raises, etc.
 To identify the strengths and weaknesses of employees to place
right men on right job.
 To maintain and assess the potential present in a person for
further growth and development.

5. PURPOSE OF PMS
 To provide a feedback to employees regarding their performance
and related status.
 It serves as a basis for influencing working habits of the
employees.
 To review and retain the promotional and other training
programs.

6. ADVANTAGES OF PMS
 Promotion
 Compensation
 Employees Development
 Selection Validation
 Motivation

7. ADVANTAGES OF PMS
 Communication
 Through performance appraisal, the employers can
understand and accept skills of subordinates.
 The subordinates can also understand and create a trust and
confidence in superiors.
 It also helps in maintaining cordial and congenial labor
management relationship.
 It develops the spirit of work and boosts the morale of
employees.

8. METHODS OF PERFORMANCE APPRAISAL
Critical incident method: -
This format of performance appraisal is a method which is
involved identifying and describing specific incidents where
employees did something really well or that needs improving
during their performance period.
Weighted checklist method: -
performance appraisal is made under a method where the jobs
being evaluated based on descriptive statements about effective
and ineffective behavior on jobs.

9. METHODS OF PERFORMANCE APPRAISAL
Paired comparison analysis: -
This form of performance appraisal is a good way to make full use of
the methods of options. There will be a list of relevant options. Each
option is in comparison with the others in the list. The results will be
calculated and then such option with highest score will be mostly
chosen.
Graphic rating scales: -
This format is considered the oldest and most popular method to
assess the employee’s performance. In this style of performance
appraisal, the management just simply does checks on the
performance levels of their staff.

10. METHODS OF PERFORMANCE APPRAISAL
Essay Evaluation method: -
This style of performance appraisal, managers/ supervisors are
required to figure out the strong and weak points of staff’s
behaviors. Essay evaluation method is a non-quantitative
technique. It is often mixed with the method the graphic rating
scale.
Behaviorally anchored rating scales (BARs): -
This formatted performance appraisal is based on making rates on
behaviors or sets of indicators to determine the effectiveness or
ineffectiveness of working performance. The form is a mix of the
rating scale and critical incident techniques to assess performance
of the staff.

11. METHODS OF PERFORMANCE APPRAISAL
Performance ranking method: -
The performance appraisal of ranking is used to assess the working
performance of employees from the highest to lowest levels.
Managers will make comparisons of an employee with the others,
instead of making comparison of each employee with some certain
standards.
Management By Objectives (MBO) method: -
MBO is a method of performance appraisal in which managers or
employers set a list of objectives and make assessments on their
performance on a regular basis, and finally make rewards based on
the results achieved. This method mostly cares about the results
achieved (goals) but not to the way how employees can fulfill them.

12. 360 degree performance appraisal: -
The style of 360 degree performance appraisal is a method that
employees will give confidential and anonymous assessments on their
colleagues.
 360 degree concentrates on subjective areas, for example efficiencies of
teamwork, character, and leadership.
 360 degree supplies on the way others think about a specific staff.
 360 degree measures manners and capacities.
 360 degree improves such skills as listening, planning and goal-setting.

13. ADVANTAGES OF 360 APPRAISAL
 Offer a more comprehensive view towards the performance of
employees.
 Improve credibility of performance appraisal.
 Such colleague’s feedback will help strengthen self-development.
 Increases responsibilities of employees to their customers.
 The mix of ideas can give a more accurate assessment.
 Opinions gathered from lots of staff are sure to be more persuasive.

14. DISADVANTAGES
 Taking a lot of time, and being complex in administration.
 Extension of exchange feedback can cause troubles and tensions to
several staff.
 There is requirement for training and important effort in order to achieve
efficient working.
 It will be very hard to figure out the results.
 Feedback can be useless if it is not carefully and smoothly dealt.
 Can impose an environment of suspicion if the information is not openly
and honestly managed.

15. 360 DEGREE APPRAISAL HAS FOUR COMPONENTS
 Self appraisal
 Subordinate’s appraisal
 Peer appraisal.
 Superior’s appraisal

16. Behavioral Observation Scales: -
The method based on the scales of observation on behaviors is the
one in which important tasks that workers have performed during
their working time will be assessed on a regular basis.
Forced ranking (forced distribution): -
 This style of performance appraisal, employees are ranked in
terms of forced allocations.
 For instance, it is vital that the proportions be shared in the way
that 10 or 20 % will be the highest levels of performances, while
70 or 80% will be in the middle level and the rest will be in the
lowest one.

17. BIASNESS IN PERFORMANCE APPRAISAL
 First Impression (primacy effect)
 Halo Effect
 Horn Effect
 Central Tendency
 Personal Biases
 Spillover Effect
 Excessive Stiffness or Lenience