The document discusses performance appraisal in organizations. It outlines the key points to be covered in a lecture on performance appraisal, including the concept and objectives. Some of the main objectives listed are setting goals, evaluating employee performance, identifying training needs, and rewarding performance. The document also discusses the appraisal process, methods of appraisal like management by objectives, graphic rating scales, and balanced scorecards. It covers potential pitfalls in performance appraisals like halo effects, leniency effects, and issues around recent and past performance impacting ratings.

1. PERFORMANCE APPRAISAL.
Points to be discussed in the Lecture Sessions:
 Concept and objectives of Performance Appraisal.
The appraisal Process.
The Appraisers
Appraisal Methods and Interview.
Pitfalls in Performance Appraisal.
Uses of Performance Appraisal.

2. Performance appraisal
……is the process of evaluating the performance of an employee
and communicating the results of the evaluation to him for the
purpose of rewarding or developing the employee.
Purpose ----JUDGEMENT PURPOSE AND DEVELOPMENT
PURPOSE.

3. OBJECTIVE OF PERFORMANCE APPRAISAL
 Setting targets and goals as performance standards.
 Evaluating employee performance.
 Identifying training and developing needs.
 Rewarding performance
 Improving performance

4. Uses of Performance
appraisal.
 Training and Development.
 Improvement of Organizational effectiveness.
 Basis for compensation
management, transfers, promotion, career
planning activities etc.
 Helps in evaluating the existing plans

5. THE APPRAISAL PROCESS.
Determination
of standards.
Define work
Set measurable targets.
Perform
Assess against targets.
Feedback
Develop Action Plans.

6. Who appraises the performance?
 Self Appraisal.
Supervisors.
Peers.
Customers / Clients
Subordinates.

7. PERFORMANCE APPRAISAL METHODS
TRADITIONAL METHODS
TRADITIONAL METHODS
Unstructured method
Straight ranking method
Paired comparison Method’
Grading method
Graphic Rating method
 Forced Choice method
Critical incidents method
Field Review method
Confidential method
MODERN METHODS
BARS
MBO
HR Accounting Method
360 Degree appraisal.

8.  What are the methods of Performance Appraisal?.
Management by Objectives( MBO)/ Goal Setting.
Graphic Rating Method.
Checklist.
Work Standards approach.
Essay Appraisal.
Critical Incident Method.
Forced choice rating scale.
Point Allocation Method.
Ranking Methods.
Behaviorally Anchored Rating Scale BARS)
360 Degree PA.
Team Appraisals.
Balanced Scorecard.

9. MANAGEMENT BY OBJECTIVES (MBO)
The
main aspect of MBO are clear and well defined goals, a
definite time span to achieve the goals, an action plan and
finally , constructive feedback.






Quantifiable and measurable goals that are neither too easy nor
too difficult to achieve.
A well—laid out action plan providing for contingencies.
Employees who are suitably equipped and motivated to achieve
these goals.
Continuous and constructive feedback and guidance.
Objective evaluation of performance.
Identification of areas for improvement and corrective action.

10.  Graphic Rating Scale.
Sl no
Factor
1.
Skill
Excellent
V good
good
satisfactory
Poor
2.
Knowledge
Excellent
V good
good
satisfactory
Poor
3.
Rating.
Dependability No Direction
Minimum Direction
Frequent Direction
Centre counted on
Constant Direction.
 Sample Checklist of appraisal.
Sl no
Checklist
1.
Is he punctual?
2.
Are the orders promptly attended to?
3.
Is he helpful to other colleagues?
4.
Does he lose temper Often?
Yes
No

11.  WORK STANDARDS APPROACH.
Suitable in manufacturing scenario, where
the goals are predetermined work standards.
The work standard can be set on the basis
of average output of a typical employee in the
organization or by bench marking against the
work standards of a competitors in a similar
business.
Goals to be measured are very objective
and also quantifiable

12. Forced Choice Method.
Sample Statements for a salesman.
Slow but steady
Avoid risks
Meet customers with confidence.
Friendly and informal.

Plain speaking.
BARS
A typical BARS for Machine shop Inspector.
Grade
Poor
Points
1
Behaviour
Description.
Satisfactory
2
Good
3
V. GoodExcellent.
4
5

13. BALANCED SCORE CARDS.
FOUR PERSPECTIVES ARE TAKEN INTO CONSIDERATION
1.Organisational goal
2. Internal business
3.Customer
4. Financial perspectives

14. PITFALLS IN PERFORMANCE APPRAISAL
HALLO EFFECT: The rater consider only single
characteristic to judge rate's performance.
LENIENCY EFFECT: Raters have the intensity to rate high
and consider only the positive feed back to the
appraise.
STRINGENCY EFFECT: Opposite to leniency effect.

15. RECENCY EFFECT: The appraiser try to get influence by the recent
performance of the employee.
PRIMACY EFFECT: The performance of the appraise at the beginning
of the appraisal period dominates the evaluate.
CENTRAL TENDENCY EFFECT: Is the tendency of the appraiser to
rate individual in average of the performance scale.
STEREOTYPING: Judging someone based on the group he belongs to.
PERCEPTUAL SET: Tendency of the appraiser to have an expectation
of the performance level , which might distort the perception and
judgment of actual performance.
FUNDAMENTAL ATTRIBUTION ERROR: An employee’s performance
may be affected due to some external factors out side his control. The
appraiser sometimes undermine that factors and rates