The document discusses the need for performance appraisals in organizations and their various uses. Performance appraisals are used for developmental purposes like providing feedback and identifying strengths and development needs, and for administrative decisions like determining salary, promotions, retention, and identifying poor performers. They are also used for organizational maintenance like HR planning, evaluating goal achievement, and reinforcing organizational needs. The document then describes traditional and modern methods of performance appraisal used in Indian organizations, such as ranking, MBO, graphic rating scales, critical incident, and 360/720 degree methods. It provides details on the graphic rating scale method and competency assessment for senior executives. Finally, it outlines the typical performance appraisal process followed in organizations.

1. Need of Performance Appraisal
General Need Specific Need
DevelopmentalUse Individual needs , Performance feedback
,Transfers and Placements , Strengthsand Development needs
Administrative Decisions/Uses
Salary ,Promotion, Retention / Termination , Recognition
Lay offs ,Poor Performers identification, Training and development
needs,
OrganizationalMaintenance
HR Planning ,Training Needs, Organizational Goal achievements ,
GoalIdentification , HR Systems Evaluation Reinforcement of
organizational needs
Documentation Validation Research , For HR Decisions ,Legal Requirements
1

2. METHODS OF PA IN INDIAN ORGANIZATIONS
Traditional Method Modern Method
Ranking Method
Management By Objectives
(MBO)
Graphic Rating Scales Behaviorally Anchored rating
Critical Incident Method Human Resource Accounting
Narrative Essays Assessment Centers
Check List Method 360 Degree
Forced Distribution 720 Degree
Confidential Report
System
2

3. Step-2: Identify Specific Performance
Appraisal Goals
Step-1:Establish Performance Criteria and
Standards
Step-4:Compare Actual Performance with
standards
Step-5:Appraise Performance
Step-6:Discuss the Appraisal with
Employee
Step-3:Measure Actual performance
Step-7:If necessary, Take corrective
actions
Performance Appraisal Process

4. Graphic rating scale
• Graphic rating scale which rates employees based on a rating scale that list a
number of traits and a range of performance that should be accomplished by the
individuals. Graphic rating scale uses the following basic five scales in rating the
employees.
• 1=Poor
• 2= Needs improvement
• 3= Meets expectations / Fit for job
• 4=Exceeds expectation
• 5 = Excellent
4

5. 5
Competency Assessment (Sr. Executive)
Part (A) – Competency Rating
Part (B) – Appraiser’s
feedback to Appraisee
Part (C) – Appraisee feedback
to Appraiser
1.Result Orientation
2. People Management
3. Problem Solving
4. Process Orientation
5. Communication
6. Continuous Learning
1. Strengths / An Achievement
worth highlighting
2. Area of Improvement
3. Training Required in Next year
1. Strengths / An Achievement
worth highlighting
2. Area of Improvement

6. Performance Appraisal process
6
HR distributes PA forms
to Head of Department
Managers
Head of Department
Managers share form to
team Managers
Team Managers share
form to individual
Employees.
Individual Employees fill
form based on work done
during a year & gives self
rating
Appraiser and the employee
together review work
performance and evaluate
Changes in PA form if
required (as form review
with Appraiser)
Appraiser gives rating to
employees based on
work done during a year
After Appraiser rating ,
Reviewer gives rating
Then Sign PA Form
shares to HR.
HR team evaluate form
based on company
standards.
Based on company standards,
company shares performance
review & annual rewards with
Employees.

7. Thank You…..
7