This document discusses performance appraisals, including definitions, objectives, processes, methods, and pitfalls. It defines performance appraisal as a formal assessment and rating of employees by managers, usually annually. The objectives are to set performance standards, evaluate performance, identify training needs, reward performance, and improve performance. Key methods discussed are management by objectives, 360-degree feedback, graphic rating scales, and behaviorally anchored rating scales. Pitfalls addressed include halo effects, leniency effects, and stereotyping.

1. Performance Appraisal Submitted by:-Shantanuroy RBS BANGALORE

2. CONCEPTEvaluating the performance of an employee and communicating the results of the evaluation for the purpose of rewarding or developing the employee

3. DEFINITION“performance appraisal is a formal assessment and rating of individuals by their managers at-usually-an annual review meeting”- Michael Armstrong

4. OBJECTIVES Setting performance standardsEvaluating employee performanceIdentifying training and developmental needsRewarding performanceImproving performance

5. Setting performancestandardsTaking correctivestandardsCommunicatingstandardsDiscussingresultsMeasuringstandardsComparing standardsPROCESS OF PERFORMANCE APPRAISAL

6. THE APPRAISAL PROCESS Determining performance standardsMeasuring performance of the employeesProviding regular feedback to employeesCommunicating results to employeesRewarding and developing employees

7. METHODS USED IN PERFORMANCE APPRAISAL PROCESSManagement by objectives 360- DEGREE FEED-BACK Graphic Rating Method Behaviorally Anchored Rating Scales (BARS)

8. MANAGEMENT BY OBJECTIVESClear and well defined goalsGoals set with the active participation of the employeesUsed for managers and professionalsIn alignment with organizational goals

9. 360- DEGREE FEED-BACKThe employees performance is evaluated by his supervisor, his peers, his internal/external customers, his internal/external suppliers and his subordinates

10. GRAPHIC RATING METHODIncludes numerical ranges and written descriptionRating quality and quantity of workDisadvantages are…Choice of employee behavior categoriesInterpretation of description

11. Graphic Rating ScaleEmployee name_________ Deptt_______Rater’s name ___________ Date________------------------------------------------------------------------------ Exc. Good Acceptable Fair Poor 5 4 3 2 1 _ DependabilityInitiativeOverall outputAttendanceAttitudeCooperation Total score Continuous Rating Scale

12. Behaviorally Anchored Rating Scales (BARS) Concentrate on behavioral traits demonstrated by the employees instead of actual performance

13. BARS( behaviorally Anchored rating scale)Step 1. Identify critical incidents Step 2. Select performance dimension Step 3. Retranslate the incidents Step 4. Assign scales to incidents Step 5. Develop final instrument

14. Pitfalls in performance appraisal Halo effect: Appraising based on single characteristic. Horn Effect : The raters bias is in the other direction, where one negative quality of the employee is being rated harshly. Leniency effect : Depending on rater’s own mental make-up at the time of appraisal , raters may be rated very leniently. Stringency effect : Depending on rater’s own mental make-up at the time of appraisal, raters may be rated very strictlyRecencyeffect : The rater gives greater weightage to recent occurrences than earlier performance.

15. Primacy effect ( First Impressions ) : The appraiser’s first impression of a candidate may colour his evaluation of all subdequent behavior.Central tendency effect : An Alternative to the leniency effect. Which occurs when appraisers rate all employees as average performers.Stereotyping : It is a mental picture that an individual holds about a person because of that person’s sex, age, religion, caste etc.,

16. USES OF PERFORMANCE APPRAISALTraining and development needsImproving organizational effectiveness Compensation managementTransfer and promotionsIdentifying competency and skills

17. THANKSTOALL