Performance appraisal is a systematic process of evaluating an employee's job performance and providing feedback to help them improve. It aims to ensure employees are contributing effectively, recognize good performance, identify training needs, and inform decisions around compensation, promotion and retention. An effective performance appraisal system is aligned with organizational objectives, assesses both past performance and future potential, and benefits both the individual employee and the organization.

2. 1. Performance appraisal is a process of systematically
evaluating performance and providing feedback upon
which performance adjustments can be made.
2. Performance appraisal is a system of review and
evaluation of an individuals performance.

3.  Performance Appraisal provides reassurance to employees
that they are contributing and doing the right things.
 Performance Appraisal creates awareness of the impact on
desired results such as customer satisfaction.
 Performance Appraisal reveals the adequacy of
performance in terms of quantity, quality, speed, timelines,
etc.
 Performance Appraisal provides means for recognizing of
the importance and value of performance of employees.

4.  Performance Appraisal provides opportunities for self
development of employees.
 Performance Appraisal provides for administrative
decisions and reward management of employees.
 Performance Appraisal is a critical tool for training and
development of employees.
 Performance Appraisal is a foundation of career
succession planning.

5.  Performance Appraisal is a basis for legally
defensible management actions.
 Performance Appraisal is a valuable source of
talent management

6.  Making Development Decisions
 Motivate and guide the employees towards purposeful
personal development of skills and competencies
 Providing feedback
 Making Administrative Decisions
 Support administrative decisions such as promotions,
transfers, demotions, terminations, pay increases, etc.

7. To be effective, a performance appraisal system must
possess the following essential ingredients:
Correlated with the organizations objectives and
strategy.
Cover assessment of performance as well as potential
for development.
Look after the needs of both the individual and the
organization.

8.  Help create energizing work environment.
 Link rewards to achievements.
 Generate information for career and succession
planning
 Suggesting appropriate person-job matching

9. T = Technical Phase
E = Extended Phase
A = Appraisal Phase
M = Maintenance Phase

10.  Defining Objectives of Performance Appraisal
 Defining Performance Expectations
 Designing Performance Appraisal System
 Implementing Performance Appraisal System
 Performance Appraisal Interview
 Post Performance Appraisal Actions

11.  PAST ORIENTED APPRAISAL METHODS:
 Essay appraisal
 Graphic rating scale appraisal
 Field review appraisal
 Forced-choice rating appraisal
 Critical incident appraisal
 Work-standards approach
 Ranking methods appraisal

12.  Halo Effect
 Horn Effect
 Central Tendency
 Strict Rating
 Lenient Rating
 Status Effect
 Spillover Effect
 Initial Impression
 Latest Behaviour
 Same as Me
 Different from Me
 Performance Factor Order
 Contrast Effect
 Sympathy Effect

13.  Time and resource constraint of managers
 Wide variation in standards and ratings
 Personal values and bias
 Lack of communication
 Limitation of performance appraisal technique
 Managerial resistance
 Negative feedback

14.  Aligning individual performance expectations with the
organization’s vision and values
 Measuring key results and competencies
 Appraising against clearly defined performance
expectations
 Working together to develop performance expectations
 Providing frequent and timely feedback