This document discusses performance appraisals, including their purpose, process, and challenges. Performance appraisals are a collaborative process between employees and supervisors to plan performance, set goals, provide feedback, and discuss career development. They help facilitate communication, determine salary and promotions, and address performance issues. The performance review should occur at least annually and involve documenting performance against set standards, measuring actual performance, and making decisions. However, effective performance appraisals face challenges such as determining evaluation criteria, creating an objective rating system, rater competence, errors, and employee resistance.

2. A collaborative process between an
employee and his superior to plan the
performance and have periodic check
on ;
 How the job is going
 How the employee is performing
 How the employee can develop
 What the superior can do to make it happen
What is Performance
Appraisal

3. Why conduct a Performance
Appraisal
• Good human resources practice
• Facilitate communication between
supervisors and employees
• Provide a framework of goals and
standards from which to measure
performance

4. • Act as a forum for individual career
development issues
• Develop action and training plans to
address performance problems
• Serve as a tool to determine salary
increases
• Assure a formal time and place for all
these events to happen
Why conduct a Performance
Appraisal

5. When to conduct a
Performance Appraisal
• The performance review must occur atleast
once in a year
• However, as a part of Performance
Management, the performance review is a
continuing, ongoing activity

6. • Establish a more effective two way communication
• Set performance objectives
• Help improve current performance
• Assess past performance
• Provide feedback on performance
• Identify training & development needs
• Allocate rewards
• Identify staff with promotional possibilities
• Assist in career planning decisions

7. WHO are involved in
Performance Appraisal
• The Appraisee
• The Appraiser
• HR Department

8. Pre-requisites for Effective &
Successful Performance Appraisal
The essentials of an effective performance system are
as follows:
1. Documentation – means continuous noting and documenting
the performance.
2. Standards / Goals – the standards set should be clear, easy to
understand, achievable, motivating, time bound and
measurable.
3. Practical and simple format - The appraisal format should be
simple, clear, fair and objective.

9. .
4. Evaluation technique – An appropriate evaluation
technique should be selected; the appraisal system should be
performance based and uniform.
5. Communication – Communication is an indispensable part
of the Performance appraisal process. The desired behavior or
the expected results should be communicated to the
employees as well as the evaluators
6. Feedback – The purpose of the feedback should be
developmental rather than judgmental.

10. Process of Performance
Appraisal:
Establishing performance standards
Communicating the standards
Measuring the actual performance
Comparing the actual with the desired
performance
Discussing results
Decision making

11. Purpose Of Performance
Appraisal
Performance Appraisal is being practiced in 90% of the
organisations worldwide.
Typically, Performance Appraisal is aimed at:
To review the performance of the employees over a given
period of time.
To judge the gap between the actual and the desired
performance.
To help the management in exercising organizational control.

12. To diagnose the training and development needs of the
future.
Provide information to assist in the HR decisions like
promotions, transfers etc.
Provide clarity of the expectations and responsibilities of
the functions to be performed by the employees.
To judge the effectiveness of the other human resource
functions of the organization such as recruitment,
selection, training and development.

14. The most significant reasons of using Performance appraisal
are:
Making payroll and compensation decisions – 80%
Training and development needs – 71%
Identifying the gaps in desired and actual performance
and its cause – 76%
Deciding future goals and course of action – 42%
Promotions, demotions and transfers – 49%
Other purposes – 6% (including job analysis and providing
superior support, assistance and counseling)

15. Challenges Of Performance
Appraisal
The main Performance Appraisal challenges
involved in the performance appraisal process are:
Determining the evaluation criteria
Create a rating instrument
Lack of competence
Errors in rating and evaluation
Resistance