presentation on performance appraissal

1. SHRI VAISHNAV INSTITUTE OF
MANAGEMNT
SUBJECT: HUMAN RESOURCE MANAGEMENT
TOPIC: PERFORMANCE APPRASIAL & IT’S TYPES
PRESENTED TO: PRESENTED BY:
Dr. Prachi Nikam Anshika Neema
Akshita Nandecha
Avani Neema
MBA FT 2nd “A”

2. PERFORMANCE APPRAISAL
• A performance appraisal is the periodic assessment
of an employee’s job performance as measured by
the competency expectations set out by the
organization.
• A performance appraisal is also referred to as
performance evaluation, performance review or
employee appraisal. All companies use performance
appraisals to discover which employees have
contributed the most to the company’s growth,
review progress, and reward high-achieving workers.

3. The purpose of a performance
appraisal
Benefit for organization
• Employee assessments can make a difference in the
performance of an organization. They provide insight into
how employees are contributing and enable organizations
to:
• Identify where management can improve working
conditions in order to increase productivity and work
quality.
• Address behavioral issues before they impact departmental
productivity.
• Encourage employees to contribute more by recognizing
their talents and skills
• Support employees in skill and career development
• Improve strategic decision-making in situations that require
layoffs, succession planning, or filling open roles internally

4. Benefit for employee
• Performance appraisals are meant to provide a positive
outcome for employees. The insights gained from assessing
and discussing an employee’s performance can help:
• Recognize and acknowledge the achievements and
contributions made by an employee.
• Recognize the opportunity for promotion or bonus.
• Identify and support the need for additional training or
education to continue career development.
• Determine the specific areas where skills can be improved.
• Motivate an employee and help them feel involved and
invested in their career development.
• Open discussion to an employee’s long-term goals.

5. EXAMPLES
• 1. An appropriate appraisal example with mixed feedback
• “We can start the review by looking at how each project went for you this
quarter. Does that sound OK?
• First, every project you have worked on in the last four months has met the
expected deadline and were all within their budgets. I see one project here
was even early. They were all implemented successfully.
• Well done. You have succeeded in the criteria expected of a Project Manager
here at ABC Company.
• Let’s take a look at a few areas where you might be able to develop your
project management skills further.
• In Project A, B, and C, a few team members expressed that they were unsure
what to begin working on in the first few meetings and felt that they were
engaging in their tasks a bit late.
• When they tried to express this in later meetings, they felt there was
hostility towards them. For upcoming Projects D, E, and F, is there anything
that can be done to get team members up and running more quickly?
• Could more detailed task planning be completed prior to the project kick-
off?”

6. 2. An inappropriate negative appraisal example
• “Let’s talk about some of the problems.
• You are never proactive when it comes to the
start of a new project. Things are left too late
and there are often complaints.
• I have heard that your attitude has been less
than positive during project meetings.
• You seem to have things going on at home
right now, but they shouldn’t be intruding on
your work.”

7. 3. An appropriate appraisal example
for underperformers
• “I wanted to talk to you today about your performance during the last
quarter.
• Looking at the completed project schedules and project debriefs here, I see
that each of the five projects was kicked off late.
• Team members reported having trouble getting the resources and
information they needed to start and complete their tasks. Each project was
delivered a week or more late and had considerable budget creep.
• Project A was over by $7000. Project B was over by $9,000, for example.
These budget overages were not authorized.
• I think we really have potential to turn this around and I really want to see
you succeed.
• The role of Project Manager requires you to kick-off projects on-time, make
sure your team members have the resources they need, and it’s crucial that
any budget issues or delays are discussed with myself or the other Manager.
• For the upcoming projects this month, I’d like you to draft a project plan one
week prior to any project kick-off. We can go over it together and figure out
where the gaps might be.
• Did you have any suggestions on how you might be able to improve the
punctuality of your projects or effectiveness of how they are run?”

8. 4. The inflated appraisal example
• I don’t think we have too much to talk about
today as everything seems just fine.
• Your projects are always done on time and within
budget. I’m sure you made the right decisions
with your team to achieve all of that.
• You and I definitely think alike when it comes to
project management.
• Keep up the great work.”

9. Performance Appraisal Methods
TRADITIONAL METHODS
Rating scale
Confidential
report
Essay
evaluation
Critical
incident
method
Checklists
Forced choice
method
Behaviourally
anchored
rating scale
Ranking
Forced
distribution
method
Field review
technique

10. Performance Appraisal Methods
MODERN METHODS
Management by
objective
360Feedback
Method
Psychological
Appraisals
Assessment
Centre
Human resource
accounting

11. Rating scale
Rating scale: The rating scale consist of several
numerical scales, each representing a job
related performance criterion such as
dependability, initiative, output, attendance,
attitude, co-operation and the like

12. • Employee name_________ Dept_______
• Rater’s name ___________ Date________
• _______________________________________________________
_______________________
Exc. Good Acceptable Fair Poor
• ______________________5_______4________3__________2____
__1___________________
• Dependability
• Initiative
• Overall output
• Attendance
• Attitude
• Cooperation
• _______________________________________________________
____________________
• Total score

13. Confidential Report: Descriptive
Report
• Prepared by the employee’s immediate
supervisor
• The report highlights the strengths and
weaknesses of employees
• Prepared in Government organizations
• Does not offer any feedback to the employee

14. Critical Incident Technique
• Manager prepares lists of
statements of very effective
and ineffective behavior of an
employee
• These critical incidents
represent the outstanding or
poor behavior of the
employees
• The manager periodically
records critical incidents of
employee’s behavior
Example:
June 21 - Sales clerk patiently
attended to the customers
complaint. He is polite,
prompt, enthusiastic in
solving the customers’
problem
June 21 - The sales assistant
stayed 45 minutes beyond his
break during the busiest part
of the day. He failed to
answer store manager’s call
thrice. He is lazy, negligent,
stubborn and uninterested in
work

15. Essay Evaluation Method
The rater is asked to express the strong as well as
weak points of employee’s behavior
The rater considers the employee’s :
• Job knowledge and potential
• Understanding of company’s programs, policies,
objectives etc
• Relation with co-workers and supervisors
• Planning, organizing and controlling ability
• Attitude and perception

16. Checklist
• Checklist contains a list of statements on the basis of which the
rater describes the on job performance of the employees.
Is employee regular
• Y/N
• Is employee respected by subordinate
• Y/N
• Is employee helpful
• Y/N
• Does he follow instruction
• Y/N
• Does he keep the equipment in order
• Y/N

17. Behaviorally Anchored Rating Scale
(BARS)
• Behaviorally anchored rating scale (BARS)
appraisals measure an employee's
performance by comparing it to specific
behavioral examples. Businesses assign a
score to each example to aid in collecting
qualitative and quantitative data. This data
helps managers evaluate an employee's
performance against predetermined standards
for their position.

18. • Performance
• Extremely good
• Good
• Above average
• Average
• Below average
• Poor
• Extremely poor

19. Forced Choice Method:
• In the forced choice method the rater is forced
to select statements which are readymade
• The rater is asked to indicate which of the
phrases is the most and least descriptive of a
particular worker
• Favourable qualities earn plus credit and
unfavourable ones earn the reverse

20. • Regularity on the job
• Always regular
• Inform in advance for delay
• Never regular
• Remain absent

21. Ranking method:
• The evaluator rates the employee from
highest to lowest on some overall criteria. In
this “how” and “why” are not questioned nor
answered

22. Field Review Method
• The appraiser goes to the field and obtains the
information about work performance of the
employee by way of questioning the said
individual, his peer group, and his superiors.

23. Management by objective
• Management by objective (MBO) is an appraisal
method that involves both the manager and
employee working together to identify goals for
the employee. Following the establishment of a
goal, both parties discuss the employee's
progress towards achieving the said goals. When
the review period is over, the manager assesses
whether the employee met their goals and, in
some cases, provides incentives for doing so.

24. 360 Feedback Method
• It is a systematic collection and
feedback of performance data on
an individual or group, derived
from a number of stakeholders
• Data is gathered and fed back to
the individual participant in a
clear way designed to promote
understanding, acceptance and
ultimately behaviour
• It makes the employee feel much
more accountable

25. Assessment centre
• The assessment centre method allows employees
to understand how others perceive them. This
helps them understand the impact of their
performance. Pre-assessment, assessment and
post-assessment are the three stages involved in
the assessment centre method. During the
evaluation, the manager puts the person in role-
play scenarios and exercises to see how
successful they are in their current role.

26. OTHER METHODS
Self-appraisal
• A self-appraisal is when an employee reflects on
their own performance. They can identify their
strengths and weaknesses using this method.
They can also highlight their achievements with
the company, such as completing a large number
of sales in a particular month. This type of
appraisal usually entails filling out a form, and the
manager may choose to follow up with a one-on-
one meeting based on the written self-
assessment.

27. Peer reviews
• Peer reviews use coworkers as the evaluator
for a particular employee. This type of
performance evaluation can help determine
whether a person works well in a team and
contributes to their fair share of the workload.
The employee who reviews the individual is
usually someone who works closely with them
and is familiar with their abilities and attitude.

28. Customer or client reviews
• Customer or client reviews occur when those
who use a company's product or service
provide an evaluation. This gives the company
insight into how others perceive the employee
and their company. This type of evaluation can
aid in improving employee performance and
customer interactions.

29. Human resource accounting
• The human resource accounting method or
cost accounting method looks at the monetary
value an employee brings to a company. It also
considers how much it costs the company to
keep the employee on the payroll. Service
value and interpersonal relationships are two
factors that this type of appraisal considers
and lays emphasis on.

30. Benefits Of Performance Appraisals
• Helping with human resource decisions, such
as who to promote and whether to raise a
professional's salary
• Developing employee skills and performance
• Determining the organization's future goals
and objectives
• Increasing employee morale
• Rewarding top performers

31. New Trends in Performance Appraisal
• Time and again, it has been proven that
performance appraisal is directly proportional to a
positive performance outcome. Performance
appraisal encompasses promotions, training and
developments, feedback, grievances and much
more. If an organization genuinely cares about
employee growth and productivity, it is obvious
that they have certain performance appraisal
methods in place, and effective methods for that
matter. The key to powerful gauging of
performance is the fact that it is done within
constraints of time, technology, and budget.

32. 360-degree feedback
• The performance appraisal trend that has been picking
up due to the advent of new and improved HCM
platforms is the 360-degree feedback or otherwise
known as the multi-rater or multisource feedback.
World leaders like Google and Facebook advocate this
method of measurement. It’s a systemized and
sophisticated way of collecting reviews from various
stakeholders involved in an employee’s work lifecycle.
Considering the views from people of all cadre, the HR
team can form a holistic assessment for their
employees. According to Forbes, 89% of HR leaders
agree that ongoing peer feedback and check-ins are
key for successful outcomes.

33. Psychological Appraisal
• This is one of the most innovative methods to
measure employee conduct. It is intuitive and
focuses largely on personal factors of employees
that affect their performance such as their
emotions and intellect. It is a forward-looking
approach that gives higher importance to what
lies in the future than what has happened in the
past. Especially after the post pandemic era, this
method will serve exceptionally helpful in that it
will speak to the vulnerability factor of the
working class.

34. Behaviorally Anchored Rating Scale
(BARS) Method
• BARS method is based on mapping behavioral traits to
numerical ratings. It entails generation of critical
incidents, editing into a common format, removing any
redundancy and normalization. BARS is one of the
most effective of all the methods because it is efficient
both qualitatively and quantitatively. One of the
distinguishing factors about this method is that it also
takes into account the intangible traits of an employee
and maps it to a rating scale. Also, it removes bias to an
extremely large extent.

35. Checklist Method
• In this method, the employees’ performance is
evaluated based on a specific checklist that the HR
department has put together. It is a numerical way of
evaluating performance, in which, the score for
individual performance goals is summed up to get an
overall score that best describes the performance of
the employee. In short, the checklist method has
behavioral checkpoints. The key to an efficient
outcome in this method is creating an effective
checklist and assigning weights based on the
importance of factors. There are many fortune 500
companies that reply on this method for evaluating
their employees’ performance.

36. Management by Organization (MBO)
• One of the most sought-after and commonly
implemented methods, MBO, stresses on defining clear
goals and respective objectives by both employees and
their managers. These goals are measurable, tangible
and align with the goals of the organization as a whole.
It is a step-by-step process that, in a bird’s eye view,
entails implementation, meeting expectations,
measurement and attainment of the goals that had
been set up initially. Finally, a periodic review is done
so as to discuss the employees’ development.
•

37. Change in Performance Appraisal
Trends
• Not only has the pandemic changed the way
we work, but it has also altered the ways in
which we are recognized for our work. Here
are some performance appraisal trends to
watch out for in 2023:

38. 1. COVID-19 Costs to the Company
• If your company carried out many layoffs or
salary cuts during the pandemic, the need to
understand why this happened is crucial. Did
they lose big profile customers? Was the
industry heavily impacted by the pandemic
more so than others? If the company you
work for has an overall decrease in revenue
due to the pandemic, the chances of getting
an appraisal this year are low.

39. 2. Critical Contribution
• If your work has had a greater impact on the
company during the pandemic, then you have
higher chances of getting an appraisal. For
example, if you were among the salespeople
who were responsible for keeping up the
revenue of the company even during the
tough times, you have a stronger case to ask
for a salary revision

40. 3. Remote Working Considerations
• Employees working remotely have
experienced a number of new challenges both
in their mental and professional health. Being
away from the office and colleagues have
increased the gaps in communication and
forced everyone to adapt to new technologies.
Companies that measure their employees’
stress levels are set to increase from 16% to
53% by this year.

41. 4. Continuous Feedback Mechanisms
• Companies are focusing more on providing in-
the-moment feedback, rather than waiting till the
end of the year or just during the appraisal
season. According to a study by Better Works,
companies that provided continuous
performance management and feedback
outperformed their competitors by 24 percent.
This is evidence that companies are embracing
less formalized performance management and
appraisals. With a more agile approach,
companies can dynamically set goals, get
feedback, and improve productivity.