The document discusses performance appraisal methods in the context of BSNL management, highlighting its purpose in evaluating employee performance and potential for development. Seven criteria for assessment are outlined, alongside the concept of 360-degree feedback involving superiors, peers, subordinates, self, customers, and consultants. Additionally, it details a nine-step appraisal process and identifies common problems such as rating biases, including the halo effect and recency effect, which can distort evaluation outcomes.

1. PERFORMANCE APPRAISAL OF BSNL
Management Performance appraisal is a method of evaluating the evaluating the behavior
of employees Performance appraisal or merit rating is one of the oldest and most universal
practices of in the work spot, Normally including both the quantitative and qualitative aspects of
job performance.
Under performance appraisal, we evaluate not only the performance of a worker but also his
potential for development.
PURPOSE OF PERFORMANCE APPRAISAL
 To create and maintain a satisfactory level of performance.
 To provide information making decision for rewardingly of retrenchment etc.
 To guide the job changes with the help to continuous ranking.
 To contribute to the employee growth and development through training, self and
management development program.

2.  To facilitate for testing and validating selection tests, interview techniques through
comparing these scores with performance appraisal ranks.
 To facilitate fair and equitable compensation based on performance.
 To help the superiors to have proper understanding about their subordinates.
WHAT SHOULD BE RATED
The seven criteria for assessing performance are:
1. Quality: The degree to which the process or result of carrying out an activity approach
perfection.
2. Quantity: The amount produce expressed in monetary terms number of units, or number of
completed activity cycles.
3. Timeliness: The degree to which an activity or an result produced.
4. Cost effectiveness: The degree to which the use of the organizations resources (e.g. human,
monetary, technological, material) is maximized.
5. Need for supervision: The degree to which a job performer can carry out job function
without supervisory assistance.

3. 6. Interpersonal impact: The degree to which performer promotes feeling of self – esteem,
goodwill and cooperation among co- workers and sub-ordinates.
7. Training: Need for training of improving his skills knowledge.
OBJECTIVE OF PERFORMANCE APPRAISAL
 Generate adequate feedback and guidelines from the reporting officers to the employee.
 Contribution to the growth and development of the employee through helping in realistic
goal setting.
 Help identifying employees for the purpose of motivating, training and developing them.
 Generate significant relevant, free and valid information about employees thus good
performance appraisal and review system should primarily focus on employee development.

4. 360 DEGREE PERFORMANCE APPRAISAL
Typical appraisers are: supervisors, peers, subordinates employees themselves users of
service and consultants. Performance appraisal by all these parties is called” 360 DEGREE
PERFORMANCE APPRAISAL”.
1. Supervisors:
Supervisors include superiors of the employee other superiors having knowledge about
the work of the employee and department head or manager. General practices is that
immediate superiors appraise the performance, hitch in turn reviewed by the departmental
head /manager.
2. Peers:-
Peer appraisal may be reliable if the work group is stable over a reasonably long period
of time and perform tasks that require integration.
3. Subordinates:-
The concept of having superiors rated by
Sub-ordinates is being used in most organizations today especially in developed countries.
Such a novel method can be useful in other organizational settings too provided the
relationship between superiors and subordinates are coordinal.
4. Self-Appraisal:-
In individuals understand the objective they are expected to achieve and the standard by
which they are to be evaluated, they are to a great extend in the best position to appraise
their own performance.

5. 5. Service Customers:-
Employee performance in service organization relating to behaviors, promptness, speed
in doing the job and accuracy, can be better judged by the customers or users of services.
6. Consultants:-
Sometimes consultants may be engaged for appraisal when employees or employers not
trust supervisor and management does not trust the self-appraisal a peer appraisal or subordinate
appraisal.
Performance Appraisal is a Nine-Step Process:-
 At the First stage, performance standards are established based on job description and job
specification. The standard should be clear, objective and incorporate all the factors.
 The Second stage, is to inform these standards to all the employees including appraisers.

6.  The Third stage is following the instruction given for appraisal measurement of employee
performance by the appraisers through observations interview, records and reports.
 The Fourth stage is finding out the influence of various internal and external factors on
actual performance.
 The Fifth stage is comparing performance with that of other employee and previous
performance.
 The Sixth stage is comparing the actual performance with the standards and finding out
deviations.
 The Seventh stage is communicating, the actual performance of the employee and other
employees doing the same job and discuss with him the reasons for positive or negative
deviations from the preset standards as the case may be.
 The Eighth stage is suggesting necessary changes in standards, job analysis internal and
external environment.
 The Ninth stage is follow up performance appraisal report. This stage includes guiding,
counseling,coaching and directing the employee or making arrangements for the training
and development of the employee.

7. PROBLEMS OF PERFORMANCE APPRAISAL
The major problem in performance appraisal :-
Rating Biases:
The problem subjective measure (is that rating which is not verifiable by
others) has the opportunity for biases include:-
a) Halo effect
b) The error of central tendency
c) The leniency and strictness biases
d) Personal prejudice
e) The Recency effect
Halo Effect:
It is the tendency of the raters to defend excessively on the rating of one trait or
behavioral consideration in rating all other traits or behavioral consideration. One way
of minimizing the halo effect is appraising all the employee by one trait before going to
rate basis of another trait.
The Error Central Tendency:
Some raters follow play safe policy in-rating-by-rating all the employee on the
middle point of the rating scale and they avoid rating the people at both the extremes of
the scale. They fallow play safe policy because of -- answerability to management or
lack of knowledge about the job and person he is rating or least interest in his job.

8. The leniency and Strictness:
The leniency bias crops when some raters have an tendency to be liberal in their
rating by assigning higher rates consistently such rating do not serve any
purpose,equally damaging one who is assigning consistently low rates.
Personal Prejudice :
If the rater dislike any employee or any group, he may rate them low,which may
distort the rating purpose & affect the career of the particular employee.
The Recency Effect:
The raters generally remember the recent actions of the employee at the time of
rating and rate on the basis of this recent action.
1) Favorable or unfavorable rather than on the whole activities.
2) Failure of the superior in conducting performance appraisal and post performance
appraisal interview.
3) Most part of the appraisal is based on subjectivity.
4) Less reliability and validity of the performance appraisal technique.
5) Negative ratings affect interpersonal relations system.