Performance appraisal (PA) is used to evaluate employee performance both qualitatively and quantitatively. PA provides information to assess performance, identify training needs, and make decisions regarding salary, promotion, and discipline. It involves self-assessment, supervisor ratings, feedback, and development planning. Common methods include graphic rating scales, essays, critical incidents, checklists, rankings, and behavioral observation scales. The goal of PA is to facilitate communication around work standards and improvement.

1. PERFORMANCE APPRAISAL

2. PA is the method of evaluating
the behaviour of the employees
in the workplace, normally
including both quantitative
and qualitative aspect of the
job.
 How the employee is
performing
 How the employee can develop
 What the superior can do to
make it happen
 How the job is going
What is Performance Appraisal

3. Performance Appraisal :
Performance Appraisal (PA) refers to
all those procedures that are used to
evaluate the personality, performance,
potential, of its group members

4. • Provide information about the performance ranks. Decision
regarding salary revision, confirmation, promotion and
demotions.
• Provide feedback about level of achievement and behaviour
of the subordinate.
• Provide information which helps to counsel the employees.
• Provide information to diagnose the deficiency of the
employees.
• Provide training and development needs of the employees.
WHY conduct a
Performance Appraisal

5. • The performance review must occur atleast
once in a year. Some companies review twice
in a year.
• However, as a part of Performance
Management, the performance review is a
continuing, ongoing activity.
WHEN to conduct a Performance
Appraisal

6. • Establish a more effective two way communication
• Set performance objectives
• Help improve current performance
• Assess past performance
• Provide feedback on performance
• Identify training & development needs
• Allocate rewards
• Identify staff with promotional possibilities
• Assist in career planning decisions
OBJECTIVES of Performance
Appraisal

7. Characteristics
• It is a step by step process
• It examine the employee strengths and
weaknesses
• Scientific and objective study
• Ongoing and continuous process
• Secure information for making correct decisions
on employees

8. • The Appraisee
• The Appraiser
• HR Department
WHO are involved in Performance
Appraisal

9. Steps in performance appraisal
Establishing job standards
Designing an appraisal programme
Appraise performance
Performance interview
Use appraisal data
For appropriate purpose

10. Process of PA
Setting
performance
standardsTaking corrective
standards
Discussing
results
Comparing
standards
Measuring
standards
Communicating
standards

11. Performance Appraisal Methods
• Individual Evaluation Methods
• Confidential report
• Essay evaluation
• Critical incidents
• Checklists
• Graphic rating scale
• Behaviorally anchored rating scale
• MBO

12. •Group Appraisal
• Ranking
• Paired comparison
• Forced distribution
• Performance tests Field review
technique
Performance Appraisal Methods

13. Performance Appraisal Methods
Traditional
methods
1. Confidential report
2. Essay evaluation
3. Critical incidents
4. Checklists
5. Graphic rating scale
6. Straight Ranking
7. Paired comparison
8. Forced distribution
9. Grading system
10. Field review technique
11. Nominations
12. Work samples

14. Performance Appraisal Methods
Modern methods
1. Assessment centre
2. Human resource accounting – costs &
contribution
3. Behaviorally anchored rating scale
4. MBO
5. 360º performance apparaisal

15. Traditional Methods of
Performance Appraisal.
• Graphic Rating Scales: This is the oldest and
most widely method used for performance
appraisal. The scales may specify five points,
so a factor such as job knowledge might be
rated 1 (poorly informed about work duties)
to 5 (has complete mastery of all phases of
the job).

16. Quantity of work: Volume of
work under normal
working conditions
Unsatisfac
tory
(1)
Fair
(2)
Satisfac
tory
(3)
Good
(4)
Out
Standin
g
(5)
Quality of work: Neatness,
thoroughness and
accuracy of work
Knowledge of job
A clear understanding of the
factors connected with
the job
Attitude: Exhibits
enthusiasm and
cooperativeness on the
job
Table: Typical Graphic Rating Scale
Employee Name................... Job title .................
Department ......................... Rate ...............
Data ..................................

17. Ranking Method
• This is one of the oldest and simplest
techniques of performance appraisal. In this
method, the appraiser ranks the employees
from the best to the poorest on the basis of
their overall performance. It is quite useful for
a comparative evaluation.

18. Performance Point
s
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 and
roam around purposelessly.

19. Paired Comparison Method
• A better technique of comparison than the
straight ranking method, this method
compares each employee with all others in
the group, one at a time. After all the
comparisons on the basis of the overall
comparisons, the employees are given the
final rankings.

20. Forced distribution method
• Forced ranking is a method of performance
appraisal to rank employee but in order of
forced distribution.

21. Checklist Method
• Another simple type of
individual evaluation
method is the checklist.
Is the employee really interested in the task assigned?
Yes/No
Is he respected by his colleagues (co-workers)
Yes/No
Does he give respect to his superiors?
Yes/No
Does he follow instructions properly?
Yes/No
Does he make mistakes frequently?
Yes/No

22. Critical Incidence Method
• Under this method, the manager prepares lists of statements
of very effective and ineffective behavior of an employee.
These critical incidents or events represent the outstanding
or poor behavior of employees on the job .
• July 20 – Mr. Paul patiently attended to the major
customers complaint. He is polite, prompt, enthusiastic in
solving the customers’problem.
On the other hand the bad critical incident may appear as
under:
• September 28– Mr. Paul stayed 45 minutes over on his
break during the busiest part of the day. He failed to answer
the store manager’s call thrice.

23. Essay Method
• This method asked managers / supervisors to
describe strengths and weaknesses of an
employee’s behavior.

24. Confidential Report
It is mostly used in government organizations.
It is a descriptive report prepared, generally at
the end of every year, by the employee’s
immediate superior. The report highlights the
strengths and weaknesses of the subordinate.

25. Modern Methods

26. MBO
A process whereby the superior and
subordinates of the organization jointly
identify its common objectives, define each
individual’s major areas of responsibility.
1. Establishment of Goals
2. Setting the performance standard
3. Actual level of job attainment is compared
with the goals agreed upon.
4. Establishing new goals and new strategies for
goals not previously attained.

27. PSYCHOLOGICAL APPRAISALS:
When psychologists are used for evaluations,
they asses an individual’s potential. The
appraisal consists of in-depth interviews,
psychological tests, discussions with
supervisors and a review of other evaluations.

28. Assessment Centre
• This not a technique of performance appraisal
by itself. In fact, this is a system or
organization where assessment of several
individual is done by experts by using various
techniques. These techniques used role
playing, case studies etc.

29. 360 DEGREE
FEEDBACK

30. What is 360 DF?
360 Degree Feedback is a multi - rater
feedback system where an individual is
assessed by a number of assessors
including his boss, direct reports,
colleagues, internal customers and
external customers

31. Internal
Customers
“Boss”
Peers
External
Customers
Team
Members
Self
Feedback
collected from
Using a specially
designed tool
Anonymously
What is 360 DF?

32. 1. Halo/horn effect –
employee’s extreme
competence in one area
“shines” over all others.
Conversely, employee
does poorly in one area
and this overshadows all
areas.
2. Bias – own prejudices
{race, national origin,
gender, appearance, etc.}
influence the appraisal
3. Comparison Rating –
contrasting one employee
with another
Common Problems Associated with
Conducting the Appraisal

33. 3. Central Tendency – rate everyone as average
4. Recency Effect – focusing on recent
performance instead of entire year
5. Personal Prejudice – If the rater dislikes one
group or employees, he may rate them at the
lower end.
6. Favoritism – evaluating friends or those who
don’t make waves, etc. more favorably than
others
Common Problems Associated with
Conducting the Appraisal