This document discusses performance appraisals and answers 8 questions about them. It explains that performance appraisals are used to evaluate an employee's job performance against quality, quantity, cost, and time metrics, typically by a manager or supervisor. They are used in many organizations and industries for purposes like determining raises, bonuses, promotions, training needs, and obtaining feedback. The document also outlines different methods for conducting performance appraisals, such as behavior observation scales, as well as advantages like goals/motivation and disadvantages like potential biases.

2. In this presentation Performance
Appraisal will be explained to you
by answering 8 simple questions.
They’re: What is it?
 Where its used?
 Why its used?
 Process of PA.
 Different methods of PA’s?
 What are the features?
 What are its Advantages & Disadvantages?
 Conclusion.

3. o
 It is a method by which the Job Performance of an
Employee is evaluated (generally in terms of quality,
quantity, cost & time) typically by the corresponding
manager or supervisor.
 In simple words it’s the process of evaluating the extent
to which people are doing their assigned work
Satisfactorily.
 Its also known as Employee Appraisal, Performance
Review or (career) Development Discussion.

4. o
 PA’s are used in schools and colleges which are usually
filled by students or parents regarding the university or
teachers.
 PA’s are used in the field of business. E.g.: Bakeries,
Cafes, Shops, etc.
 PA’s are used in Hotels and Restaurants to rate their
food or the service that they have provided.
 PA’s are used in huge companies. E.g.: Infosys, Bosch,
Times of India, Tata, Accenture, etc.

5. o
 For Raises, Merit Pay, Bonuses, etc.
 For Personnel Decisions (e.g. Promotion, Transfer, Dismissal, etc.).
 For Identification of Training need (like in schools & colleges for
teachers.).
 For Research purposes (e.g. assessing the worth of selection tests.).
 For Feedbacks (so that they can make it much better.).

6. o
Observation
• Selective Attention
• Timing
• Structure
• Frequency
Storage
•
Memory
•
Encoding of Information (e.g., categorization)
•
Short vs. Long-term
Evaluation
• Retrieve Information
• Combine information
• Decision-making (judgment)

7. o
1st _____
2nd_____
3rd _____
Employee-1 _____ versus
Employee-2 _____
Employee-1 _____ versus
Employee-3 _____ etc.
NOTE : Both are difficult to use when there are large
number of subordinates in a company or industry.

8. •Unstructured (e.g.,
content, length).
•Affected by the writing
ability of supervisors
and time availability.





Excellent
Good
Average
Poor
Very Poor

9. Behavioral Methods (use of critical incidents;
examples of good and poor job behavior collected by
job experts over time)
Behavior Observation Scales (BOS)
• Rate the frequency in which critical incidents are
performed by employees
• Sum the ratings for a total “performance” score
1) Assists others in job duties.
_____ _____ _____ _____
Never
Usually
_____
Always
2) Cleans equipment after each use.
_____ _____ _____ _____ _____
Never
Usually
Always

10. 1)
Leniency (positive bias)
X
_____ _____ _____ _____
Very
Average
Poor
2)
Severity (negative bias)
X
_____
Very
Poor
3)
_____
Excellent
_____
_____ _____ _____
Average
Excellent
Central Tendency (midpoint)
_____
Very
Poor
X
_____
_____ _____ _____
Average
Excellent
All lead to a
restriction in
the range of
performance
scores

11. 1) Production Data (e.g., sales volume, units produced)
• When observation occurs (timing), and how data is collected
• Fairness and relevancy issue
• Potential limited variability
• Limitations regarding supervisory personnel
2) Personnel Data
• Absenteeism (excused versus unexcused)
• Tardiness
• Accidents (fault issue)

12. There are 5 steps for this process:1) Generate critical incidents (examples of good and poor job
performance)
2) Place Critical Incidents Into performance dimensions (e.g.,
Responsibility, Initiative, Safety)
3) Retranslation Step (do step # 2 again with a separate group of job
experts. Discard incidents where disagreement exists as to which
dimension in which they belong)
4) Calculate the mean and standard deviation of each critical incident
(discard those with a large standard deviation)
5) Place critical incidents on a vertical scale

13. o
•
•
•
•
•
•
•
•
Goals.
Motivation & Coaching.
Monitoring Performance.
The Role of the Leaders.
Clarify Job Expectations.
Review & Update Job Skills.
Review Accomplishments & Goals.
Final Steps & Rewards.

14. o
i.
ii.
iii.
iv.
v.
vi.
vii.
Performance Based Conversations with Employees.
Targeted Staff Development.
Encouragement to staff.
Rewards staff for a Job Well Done!
Under-Performers Identified & Eliminated.
Documented History of Employees Performance.
Allows for Employee Growth.

15. •
•
•
•
Time Consuming- It can take hours to write a Departments PA.
Discouragement- If the process is not a pleasant experience, it has a
potential to discourage the staff.
Inconsistent Message- If a manager doesn’t keep notes & accurate
records of employee behavior, they may not
be successful in sending a consistent
message to the employee.
Biases- It is difficult to keep biases out of the PA process and it takes
a very structured, objective process and a mature manager to
remain unbiased through the process.

16. o
Organizations need some means of ensuring performance standards
are being achieved and objectives are being met. They also need to
plan for the future by setting organizational objectives. These should
be achieved through personal objectives agreed at the appraisal.
This is vital for all employees in order to maintain a competitive
position, and it is important that the method for doing this is
successful. All the material in the ‘Skills of Appraisal and
Performance Review’ resource is dedicated to that end. However,
underlying the methods, practices and techniques there must be
crucial managerial thoughts, attitudes and activities.
Therefore PA’s are very vital in the Modern Competitive World.