Performance appraisal is used to evaluate employee performance and behavior in the workplace. It provides information about performance, development needs, and feedback. There are traditional methods like graphic rating scales, rankings, and checklists as well as modern methods like management by objectives, psychological testing, and 360 degree feedback which collects input from bosses, peers, reports and customers. Effective performance appraisal aims to improve performance through communication but can be impacted by biases, comparisons, and other issues in the evaluation process.

1. HRM-8HRM-8
PERFORMANCE APPRAISALPERFORMANCE 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. • Provide information about the performance ranks.
Decision regarding salary revision, confirmation,
promotion and demotions.
• Provide feedback about level of achievement and
behavior 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

4. • 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

5. • 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

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

7. • Regularity of the
Attendance.
• Ability to work
individually or in group.
• Leadership skills.
• Initiative, Technical skills.
• Ability to grasp new things.
• Area of interest.
• Attitude.
• Job Knowledge.
Content of Performance Management
• Judgmental Skills.
• Area of improvement.
• Past Achievement.
• Honesty and sincerity.
• Innovativeness
• Cost & Time consciousness
• Communication

8. Traditional Methods ofTraditional Methods of
Performance Appraisal.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).

9. Quantity of work: Volume of work
under normal working
conditions
Unsatisfactory
(1)
Fair
(2)
Satisfacto
ry
(3)
Good
(4)
Out
Standi
ng
(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 ..................................

10. Ranking MethodRanking 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.

11. Performance Points 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.

13. Paired Comparison MethodPaired 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.

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

15. Checklist MethodChecklist 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

16. Critical Incidence MethodCritical 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.

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

18. Confidential ReportConfidential 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.

19. Modern Methods

20. Management By objectives(MBO)Management By objectives(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.

21. PSYCHOLOGICAL APPRAISALS: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.

22. Assessment CentreAssessment 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.

23. 360 DEGREE
FEEDBACK

24. 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

25. Internal
Customers
“Boss”
Peers
External
Customers
Team
Members
Self
Feedback
collected from
Using a specially
designed tool
Anonymously
360 Degree Appraisal360 Degree Appraisal

26. 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

27. 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