This document discusses performance appraisal, which is a formal, systematic process for evaluating employee job performance and productivity. It defines performance appraisal, outlines its characteristics and purposes for both employees and organizations. The document also covers the principles, criteria, approaches, process, methods and guidelines for effective performance appraisal. The overall aim is to measure how well employees are performing their jobs and help them improve.

1. PERFORMANCE
APPRAISAL
Presented By:
Aruna Shastri
M. Sc. Nsg 2nd year

2. INTRODUCTION
Performance appraisal has been an important
activity of the managerial staffing. The other
name of performance appraisal is evaluation. It
is very important in every sphere of life, in
education, in administration. It refers to the
degree of accomplishment of the tasks that
make up an individual’s job and indicates how
well a personnel is fulfilling the job
requirements.

3. DEFINITION
• Performance appraisal is the systematic, periodic
and an impartial rating of an employee’s
excellence in the matters pertaining to his present
job and his potential for a better job.
- Flippo
• Performance appraisal is the systematic
description of an employee’s job relevant
strengths and weaknesses.
- Cascio Wayne

4. CHARACTERISTICS OF
PERFORMANCE APPRAISAL
• It is a formal systematic procedure involving
usually three steps: setting work standards,
assessing employee’s actual performance
against set standards, and provide feedback to
the employees to improve deficiencies.
• It is to find out how well the employee is
performing the job
• Employee knows that they are being evaluated

5. Contd….
• The focus of performance appraisal is
measuring and improving the actual
performance of the employee and also the
future potential of the employee
• It is a future oriented activity as it aims on
employee development
• It is both formal or informal; but formal is
more objective as well systematic

6. PURPOSES
Performance appraisal has various purposes:
• For Employees: Individual-based
• For Organization: Institutional-based
• Special uses

7. FOR EMPLOYEES: INDIVIDUAL-
BASED
• It is one of the criteria for promotion
• Job performance measurement
• Job improvement
• Helps to identify training needs and planning
for training programmes
• Helps in compensation administration
• Important tool for motivational force to the
employees

8. Contd….
• Basis for counseling
• Organizational control
• Feedback to employees
• Periodic review of progress
• Self-examination

9. FOR ORGANIZATIONAL:
INSTITUTIONAL-BASED
• Measurement of organizational objectives
• Measurement of work standards
• Information generation
• Reduces grievances of the employee
• Helps for manpower

10. SPECIAL USES
• Promotion decision
• Training and development programmes
• Evaluation of supervisors and managers
• Compensation decisions
• Performance feedback
• Personnel feedback

11. PRINCIPLES
• It must be based on objectives and behaviorally
oriented performance standards for the position
the person is holding.
• The objectives should be in behavioral term.
• The criteria should be well defined and should be
known to staff who will be appraised.
• The methods used for appraisal based on the
objectives, standards and criteria framed for
appraisal.
• It should be documented and discussed with the
employee.

12. CRITERIA CONSIDERED FOR
PERFORMANCE APPRAISAL
1) Determine what is to be appraised
2) Who are going to be appraised and by
whom?
3) Why to appraise?
4) When to appraise?
5) How to appraise?

13. APPROACHES TO
PERFORMANCE APPRAISAL
Basically 2 approaches:
A) Traditional approach:
• It is based on past performance.
• Main purpose is to determine and justify the
salary.
• This is to justify the organizational
performance as a whole by the past
performances of its employees.

14. Contd….
B) Modern approach:
• The purpose has been taken for the
development purpose, for taking the corrective
actions timely so that goals can be achieved
within time frame and also helps in re-
planning.
• It is more formal and structured.
• It is future oriented.

15. PERFORMANCE APPRAISAL
PROCESS
It includes following steps:
• Establish performance standards
• Communicate the standards
• Actual performance
• Measure actual performance
• Compare actual performance against standards
• Take corrective actions

16. Contd….
It includes following steps:
1) Establish performance standards:
Setting up of standards which serves as
benchmarks against which the performance is
measured.
2) Communicate the standards:
Performance appraisal involves appraiser and
appraisee. The appraisee should be informed and
the standards should be clearly explained.

17. Contd….
3) Measure actual performance:
After the standards are framed, communicated,
accepted, the actual performance should be
measured. It requires the use of selected methods
and ratings to evaluate the performance.
4) Compare actual performance against
standards and discuss the results:
Comparison can be done, and whatever the
results, are communicated and discussed with
appraisee.

18. Contd….
5) Taking corrective actions:
The last step is to take corrective actions, if
necessary. Immediate actions are to set the
things right back on track. The corrective steps
seeks to find out how and why performance
deviates.

19. METHODS OF PERFORMANCE
APPRAISAL
The performance appraisal methods may be
classified as:
• Individual evaluation methods
• Multiple person evaluation method
• Other methods

20. INDIVIDUAL EVALUATION
METHODS
• Confidential Reports: Mostly used in government
organizations. Old and traditional methods of
evaluating employees. A confidential report is a
descriptive report about the employee and generally
prepared at the end of every year by the immediate
superior.
• Essay Appraisal Method: Simplest method of rating an
employee. In this, the rater expresses in detail, the
employee’s strong and weak points. This method is
highly subjective and not free from bias.

21. Contd….
• Checklist: It is a set of descriptive statements
about the employees and their behaviors. The
rater has to tick “yes” or “no” for each statement.
• Graphic Rating Scale: Widely used performance
appraisal technique. The appraisee indicates along
a continuum quality and quantity of work of the
employee being assessed.

22. Contd….
• Critical Incident Technique: In this, the
appraisee rates on the basis of critical events or
takes a snapshot of the incidence and writes a
brief report about the incidence.
• Behaviorally Anchored Rating Scales
(BARS): BARS are systematically developed
checklists using critical incidents in
combination with graphic rating scales.

23. Contd….
• Forced Choice Method: This method developed
to reduce bias. This method makes use of several
sets of pair phrases, two of which may may be
positive and two negative and appraisee is asked
to indicate which of 4 phrases is the most and
least descriptive of a particular employee.
• Management By Objective Method (MBO): It is
participative goal setting, choosing course of
actions and decisions making process.

24. MULTI PERSON EVALUATION
METHODS
• Ranking Method: The relative position of each
employee is expressed in terms of numerical rank.
• Paired Comparison: In this, one employee is
compared with all other employees in the group
for only one trait at a time.
• Forced Distribution Method: The appraisee is
forced to evaluate the staff according to
predetermined distribution scale.

25. OTHER METHODS
• Assessment Centers: This is a system of
organization, where assessment of many
employees is done by various experts using
various techniques. Methods including role
playing, simulation exercises, etc.
• Group Appraisal Method: In this method, the
appraisal rating is done by number of
appraisers including immediate superiors.

26. Contd….
• Field Review Method: In this, employee is
evaluated by another person, not by immediate
superiors.
• 360-Degree Feedback Appraisal: Also known
as multi-rater feedback. The evaluation
feedback is taken from superiors, subordinates,
peer-groups or team members, clients and self
appraisal.

27. GUIDELINES FOR EFFECTIVE
PERFORMANCE APPRAISAL
• It should provide consistent, reliable and valid
information.
• The appraisal techniques should be based on job
description and job-analysis.
• The tools should be practicable.
• Appraisal forms, procedures, techniques, tools should
be standardized.
• Appraisers should be thorough and should be trained
for evaluation.
• Should begin with positive comments and always
reinforce the positive points.

28. Contd….
• The employee must know before the
evaluation on which parameters they are going
to be evaluated.
• The appraiser must document the expected
standards for nursing practice and job
responsibilities, past performance,
performance to be developed and
recommendations for future improvement.