The document outlines the process and importance of performance appraisal, which assesses employee performance and potential for future development. It details objectives, methods, and procedures involved, emphasizing the need for clear standards, effective communication, and corrective actions to enhance employee performance. Additionally, it discusses potential problems and various traditional and modern appraisal methods, including 360-degree feedback and assessment centers.

1. By
N ARUNAGIRI
itsmearunin@gmail.com

2. MEANING
 Performance appraisal is the process of assessing the
performance and progress of an employee or of a group
of employee or a group of employees on a given job
and his potential for future development

3. DEFINITION
According to Flippo, “performance appraisal is the
systematic, periodic and an impartial rating of an
employee’s excellence in matters pertaining to his
present job and his potential for a better job.”
Performance Appraisal
 Performance Appraisal (PA) refers to all those
procedures that are used to evaluate the
 personality
 performance
 potential of its group members

4. OBJECTIVE OF PERFORMANCE APPRAISAL
 Provide a basis for promotion/ transfer/ termination:
 Identify those employees who deserve promotion
Or those who require lateral shift (transfer) or termination
 PA is used for career planning
 Enhance employees’ effectiveness by helping to identify
their strengths and weaknesses and
 Inform them about expected levels of performance
 To provide feedback to employees so that they come to
know where they are stand and can improve their job
performance

5. PROCESS OF PERFORMANCE APPRAISAL
SETTING
PERFORMANCE
STANDARDS
Communicating
the Standards
MEASURING
PERFORMANCE
COMPARING
STANDARDS
DISCUSSING
RESLUTS
TAKING
CORRECTIVE
ACTIONS

6. SETTING PERFORMANCE STANDARD
 Performance standards serve as benchmarks against
which performance is measured
 Standards should relate to the desired results of each
job
 The appraisal process beings with the setting up of
criteria to be used for apprising the performance of
employees
 The criteria should be clear, objective and in writing
 It should be discussed with the supervisors to ensure
that all the relevant factors have been included. Where
the output can be measured the criteria is clear.

7. COMMUNICATING THE STANDARDS
 Performance appraisal involves at least two parties, the
appraiser who does the appraisal and the appraise
whose performance is being evaluated
 The appraiser should prepare job descriptions clearly;
help appraisee set his goals and targets; analyze results
objectively; offer coaching and guidance to appraisee
whenever required and reward good results
 The appraisee should be very clear about what he is
doing and why

8. MEASURING PERFORMANCE
 Performance measures, to be helpful must be easy to
use, reliable and must report on the critical behaviors
that determine performance
 Performance measures may be objective or subjective
 Objective performance measures are indications of job
performance that can be verified by others and are
usually quantitative
 Subjective performance measures are ratings that are
based on the personal standards or opinions of those
doing the evaluation and are not verifiable by others

9. COMPARING STANDARDS
 Actual performance may be better than expected and
sometimes it may go off the track
 Whatever be the consequences, there is a way to
communicate and discuss the final outcome

10. DISCUSSING RESULTS
 The results of the appraisal are communicated to and
discussed with the employees. Along with the
deviations, the reasons behind are also analyzed and
discussed.
 Such discussion will enable an employee to know his
weakness and strengths
 Therefore, he will be motivated to improve himself

11. TAKING CORRECTIVE ACTIONS
 Through mutual discussions with employees, the steps
required to improve performance are identified and
initiated. Training, coaching, counseling, etc is
examples of corrective actions that help to improve
performance

12. PROBLEMS IN PERFORMANCE
APPRAISAL
ERRORS IN RATING
Halo effect
Stereotyping
Central tendency
Constant error
Personal bias
Spill over effect

13. PROBLEMS IN PERFORMACNE
APPRAISAL
 LACK OF RELIABILITY
 NCOMPETENCE
 Negative approach
 Multiple objectives
 Resistance
 Lack of knowledge

14. METHODS OF PEFORMANCE APRAISAL
METHODS OF
PERFORMANCE
APPRAISAL
TRADITIONAL
METHOD
MODERN
METHOD

15. TRADITIONAL METHOD
 CONFIDENTAIL REPORT
 FREE FORM OR EASSY
 STRAIGHT RANKING
 PAIRED COMPARISONS
 FORCED DISTRIBUTION
 GRAPHIC RATING SCALES
 CHECK LIST METHOD
 CRIRTICAL INCIDENTS
 GROUP APPRAISAL

16. MODERN METHOD
 ASSESSMENT CENTRE
 HUMAN RESOURCE ACCOUNTING
 BEHAVIOURALLY ANCHORED RATING SCALE
 APPRAISAL THROUGH MBO
 360 DEGREE APPRAISAL

17. CONFIDENTIAL REPORT
 Prepared at the end of the year
 Prepared by the employee’s immediate supervisor
 The report highlights the strengths and weaknesses of
employees
 Prepared in Government organizations
 Does not offer any feedback to the employee

18. FREE FORM OR ESSAY
 The rater is asked to express the strong as well as
weak points of employee’s behavior
 The rater considers the employee’s :
 Job knowledge and potential
 Understanding of company’s programs, policies,
objectives etc
 Relation with co-workers and supervisors
 Planning, organizing and controlling ability
 Attitude and perception

19. STRAIGHT RANKING /RANKING
METHOD
 The evaluator rates the employee from highest to lowest on
some overall criteria
PAIRED COMPARISONS
 Each worker is compared with all other employees in a
group
 For several traits paired comparisons are made,
tabulated and then rank is assigned to each worker
 This method is not applicable when the group is large

20. FORCED DISTRIBUTION
 The rater is asked to appraise the employee according to
predetermined distribution scale.
 Two criteria used for rating are: job performance and
promotion.
 A five point performance scale is also used without
mentioning any descriptive statements.
 The worker is placed between two extremes of “good”
and “bad” performance.

21. GRAPHIC RATING SCALES
 A form is used to evaluate the performance of the
employees
 A variety of traits may be used in this device, the most
common being quality and quantity of work
 Easy to understand and use.
 Permits statistical tabulation of scores of employees


22. CRITICAL INCIDENT TECHNIQUE
 Manager prepares lists of statements of very effective
and ineffective behavior of an employee
 These critical incidents represent the outstanding or
poor behavior of the employees
 The manager periodically records critical incidents of
employee’s behavior

23. MODERN METHOD
ASSESSMENT CENTRE METHOD
 An assessment center is a group of employees drawn from
different work units
 These employees work together on an assignment similar
to the one they would be handing when promoted.
 Evaluators observe and rank the performance of all the
participants.
 This group evaluates all employees both individually and
collectively by using simulation techniques like role
playing, business games and in basket exercise
 Employees are evaluated on job related characteristics
considered important for job success

24. 360 DEGREE PERFORMANCE APPRAISAL
employee peer
self
superior
subordinate

25. PERFORMANCE APPRAISAL
THROUGH MBO
 SET ORGANIZATION GOALS
 DEFINING PERFORMANCE TARGETS
 PERFORMANCE REVIEWS.
 FEED BACK

26. Mail me for more topic
itsmearunin@gmail.com