Performance appraisal is a systematic evaluation of an employee's job performance by their supervisor to measure merit, compare performance to others, and determine an employee's worth. Several traditional methods for performance appraisal are described, including rating scales, essays, rankings, and checklists. The document also discusses sources of error in performance appraisals and modern alternative methods like management by objectives and customer feedback.

2. Performance Appraisal:
Is a systematic evaluation by the supervisor or some qualified
person of an individual worker’s performance. Performance
appraisal is used for measuring the merit or performance of an
Employee and comparing it with that of others in the same
group, the purpose of performance appraisal is to determine
an employee’s worth to the organization.
IT RATES THE MAN AND NOT THE JOB!

3. DIFFERENCE BETWEEN
PERFORMANCE APPRAISAL
AND JOB EVALUATION
1. Performance appraisal is concerned with comparative
merit of individual. While Job evaluation analysis the
job not take into account the individual abilities of the
job holder.
2. It considers the individual abilities while the Job
Evaluation considers the requirement of the job in
terms of job specification and job description.

4. 3. The purpose of performance appraisal is to take the
decisions regarding the pay, transfer, Promotion, etc.
while the purpose of job evaluation is to determine
the worth of the job.
4. Performance appraisal rates the man not the job but
job evaluation determines the relative worth of the
job.
5. Performance appraisal helps in making decision like
transfer or promotion while job evaluation helps in
making decisions regarding wage policy.

5. QUISITE FOR EFFECTIVE AND SUCCE
PERFORMANCE APPRAISAL
Documentation Effective- Continuous noting and documenting of
the performance.
Practical and Simple Format- the P. A. should be simple, clear, fair
and objective.
Communication Effective- the expected result should be
communicated.
Feedback- should be developmental and not judgmental
Personal Bias- Interpersonal relationships can influence the
evaluation.

7. RATING SCALE METHOD
-Is commonly used method for assessing the performance of the
employees and a well-known traditional method of performance
appraisal of employees.
1 2 3 4 5 6 7 8 9 10
EXTREMELY
POOR
EXCELLENT
EX. : Attitude of employee towards his superiors, colleagues and
customers:

8. ESSAY APPRAISAL METHOD:
-Also known as the “free form method” involves a description of
the performance of an employee by his superiors. The description
is an evaluation of the performance of any individual based on the
facts and often includes examples and evidence to support the
information.
While preparing the essay, the rater should consider the following:
 Job knowledge and potential of the employee.
 employee’s understanding of the company’s programs, policies,
objectives etc.
The employee’s relations
The employee’s general planning, organization, and controlling
ability
The attitude and perception of the employee, in general.

9. RANKING METHOD:
-Under the ranking method, the manager
compares an employee to other similar
employees,
rather than to a standard measurement. An
offshoot of ranking is the forced distribution
Method, which is similar to grading on a curve.

10. PAIRED COMPARISON:
-A better comparison method than the straight ranking
method. This method compares each
employee with all others in the group, one at a time.
After all comparison on the basis of the
overall comparisons, the employees are given the final
ranking

11. CRITICAL INCIDENTS METHOD:
~Developed by Flanagan and Burns.
The manager prepares lists of statements of very effective
and ineffective behavior of an employee. These critical
incidents or events represents the outstanding r poor
behavior of
the employee on the job. The manager maintains logs on
each employee.

12. EX.
July 20 – the sales clerk patiently attended to the customers
complaint. He is polite,
Prompt, enthusiastic in solving the customer’s problem.
On the other hand the bad critical incident may appear as under:
July 20 – the sales assistant stayed 45 minutes over on his break
during the busiest part of
the day. He failed to answer the store manager’s call thrice. He is
lazy, negligent and
uninterested in work

13. CONFIDENTIAL REPORT SYSTEM:
-A well known performance appraisal system mostly used
by the government organizations.
In this method, subordinate is observed by his superiors
regarding his performance in the job
and on his duties. Thereafter, the superior write
confidential report on his performance, mainly
On his behavior in the organization and conduct.

14. Key factors assessed in Confidential Report
writing:
Character and conduct of an employee
Absenteeism of an employee
Knowledge of an employee
His nature and quality of work
Punctuality
Unauthorized absenteeism
Behavior of the employee towards colleagues, superiors and with
public
Ability of supervision
His/Her integrity and honesty
Complaints against co-workers

15. CHECKLIST METHOD:
-The rater is given a check list of the description of the
behavior of the employee on the job.
EX.
Is the employee really interested in the task assigned?
YES/NO
Is he respected by his colleagues
YES/NO

16. GRAPHIC RATING SCALE:
This is a very popular traditional method of performance appraisal.
Under this method, core
Traits of employee pertaining to his job are carefully defined like
Attitude, Knowledge of Work, Management Skills, Team Workers,
Honesty, Regularity, Accountability, Interpersonal
Relationships, Creativity, Discipline, etc. These traits are allotted
with a numerical scale to
tabulate the scores gained by appraisee in the performance
assessment relating to his job by
Appraiser.

17. Performance trait Excellent Good Average Fair Poor
Attitude 5 4 3 2 1
Knowledge of Work 5 4 3 2 1
Management Skills 5 4 3 2 1
Teamwork 5 4 3 2 1
Honesty 5 4 3 2 1
Regularity 5 4 3 2 1
Accountability 5 4 3 2 1
Example:

18. FORCED DISTRIBUTION:
-Is a method of performance to rank employee but in order of forced
distribution.
The system requires the managers to evaluate each employee, and
rank them typically into one
of three categories (excellent, good, poor)

20. ASSESSMENT CENTRES:
An assessment center typically involves the use of methods
like social events, tests and
exercises, assignments being given to a group of employee to assess
their competencies to
Take higher responsibilities in the future.
The major competencies that are judged in assessment
centers are interpersonal skills,
Intellectual capability, planning, motivation, career orientation etc.
assessment centers are
also effective way to determine the training and development needs
of the targeted
employees.

21. BEHAVIORALLY ANCHORED RATING SCALES:
-Or “BARS”, is a relatively new technique which combines
the graphic rating scale and critical
incidents method. It consists of performance critical areas
of job performance or sets of
behavioral statements describing important job
performance qualities as good or bad. These
statements are developed from critical incidents.

22. PERFORMANCE POINTS BEHAVIOR
Extremely good 7 Can expect trainee to make valuable suggestions for
increased sales…
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 goods in time
Below average 3 Can expect to unload the trucks when asked by the
supervisor
Poor 2 Cab expect to inform only a part of the customers
Extremely poor 1 Can expect to take extended coffee breaks and roam
around purposelessly.
EXAMPLE OF BARS

23. HUMAN RESOURCE ACCOUNTING METH
Is a method to measure the effectiveness of personnel
management activities and the use of
people in an organization. HRA is the process of assigning,
budgeting, and reporting the cost
of human resources incurred in an organization, including
wages and salaries and training
expenses

24. MANAGEMENT BY OBJECTIVES:
“ management by objectives is a process whereby the superior
and subordinate managers of an organization jointly identify its
common goals, define each individuals major areas of
responsibility in terms of the results expected of him, and use
these measures as guide for
operating the unit and assessing the contribution of each of its
members.” –Dr. George S. Odiorne
Thus, MBO is a mutual goal-setting, measuring progress
towards the goals, taking action to
Assure goal attainment, feedback and participation.

25. ORGANIZATIONAL
OBJECTIVES
REVIEWED
EMPLOYEE
OBJECTIVE SET
PROGRESS
MONITORED
PERFORMANCE
EVALUATED
ACHIEVERS
REWARDED
The MBO Process!
ORGANIZATIONAL OBJECTIVES
REVIEWED
EMPLOYEES OBJECTIVES SET
PROGRESS MONITORED
PERFORMANCE EVALUATED
ACHIEVERS REWARDED

26. CUSTOMERS FEEDBACK METHOD:
Used especially for sales staff who deal with sales
activity in the organization. Under this
method of appraisal, customers feedback is directly
linked with employee performance. This
method of assessment could be unbiased and reliable
since customers who are outsiders may
give correct judgment about employee performance
than the insiders who are superiors.

28. 1. The Halo Error
This happens when one person rates another person on
several different dimensions and gives a similar rating
for each dimensions.
2. The Leniency Error
managers tend to give relatively high ratings to
virtually
everyone under their supervision.

29. 3. The Central Tendency Error:
SELF
MANAGER
PEERS
SUBORDINATES
OTHERS
Happens when managers lump everyone together around the average,
or middle category.
This gives an impression that there are no very good or very poor
performance.

30. 4. Strictness Errors
The direct opposite of Leniency Errors, which is where a manager
tends to give everyone low rating
0%

31. 5. Recency Errors
This occurs when a rater allows recent events to influence a
performance appraisal rating over earlier ones.
6. Personal Bias Error
Occurs when expectations and prejudices cause a rater to fail to
give the job holder complete respect.
Example is race or gender discrimination

32. www. About.com/Performance-appraisal
http: //live.surveyshack.com/The-5-Biggest-Performance-Apparaisal-Errors
http://managementation.com/difference-between-performance-appraisal-and-job
-evaluation
http://www.managementstudyguide.com/prerequisite-for-performance-management
-system.htm
http://www.whathumanresource.com/traditional-methods-of-performance-appraisal
http://www.whathumanresource.com/modern-methods-of-performance-appraisal