Performance appraisal (PA) is used to evaluate an employee's personality, performance, and potential. It involves establishing performance standards, measuring actual performance against those standards, providing feedback, and potentially taking corrective actions. PA provides benefits like improved performance, identification of training needs, and improved communication. Methods of PA include essays, checklists, rating scales, rankings, and 360-degree feedback from supervisors, peers, reports, customers, and self-evaluations. Key uses of PA include performance improvement, compensation adjustments, and identifying training and development needs.

3. OVERVIEW
 Introduction to HRM
 Definition of HRM
 Introduction to P.A.
 Definition of P.A.
 Objectives
 Process
 Contents of P.A.
 Methods
 Uses of P.A.

5. INTRODUCTION TO HRM
“Human Resource Management is a
process of bringing people and organizations
together so that goals of each are met.”

6. DEFINITION OF HRM
“It is the development of people and not
directing the things we build men and women, in
turn, they build the products required by us”.
-------- A.R. Appeley

8. PERFORMANCE APPRAISAL
Performance Appraisal (PA) refers to all those
procedures that are used to evaluate the
 personality
 performance
potential of its group members

9. DEFINITION OF PA
 FLIPPO:
“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."

10. OBJECTIVES OF PERFORMANCE APPRAISAL
Identify those employees who deserve promotion
PA is used for career planning
 If employees understand their roles well, they are
likely to be more effective on the job
Provide a basis for promotion/ transfer/
termination

11. OBJECTIVES OF PERFORMANCE APPRAISAL
Enhance employees’ effectiveness by helping to
identify their strengths and weaknesses and
Inform them about expected levels of performance
Develop inter-personal relationships

12. PROCESS OF PERFORMANCE APPRAISAL
Establish Performance Standards
Communicate the Standards
Measure Actual Performance
Taking Corrective Action
Compare Actual performance with
Standards and Discuss the Appraisal

13. CONTENTS OF PA
 Regularity of Attendance
 Integrity
 Area of interest
 Area of suitability
 Judgement skills
 Capability for assuming responsibility
 Level of acceptance by subordinates
 Honesty and sincerity
 Knowledge of systems & procedures

14. CONTENTS OF PA
 Initiative
 Technical skills
 Leadership qualities
 Ability to grasp new things
 Creative skills
 Originality and resourcefulness
 Self expression: written or oral
 Ability to work with others
 Quality of suggestions offered for improvement

15. BENEFITS OF PA ( FOR APPRAISEE )
 Clear understanding of his strengths and
weaknesses
 Increased motivation, job satisfaction,
and self-esteem
 Opportunity to discuss work problems
and how they can be overcome
 Improved working relationships with supervisors

16. BENEFITS OF PA (FOR THE MANAGEMENT )
 Identification of performers and non-performers and their development
towards better performance
 Opportunity to prepare employees for assuming higher responsibilities
 Identification of training and development needs
 Generation of ideas for improvements
 Opportunity to improve communication b/w the employees
and management

17. BENEFITS OF PA (FOR THE ORGANIZATION )
 Improved performance throughout the organization
 Creation of a culture of continuous improvement and
success
 Conveying the message that people
are valued

19. - INDIVIDUAL EVALUATION METHODS

20. ESSAY EVALUATION
 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

21. CHECKLIST
 A checklist is a set of objectives or descriptive
statements about the employee and his behavior..
 Example:
 Is the employee really interested in the task
assigned?
 Yes / No

22. GRAPHIC RATING SCALE
 A form is used to evaluate the performance of the
employees
 A variety of traits may be used in this device, the
most common being quality and quantity of work
 Easy to understand and use.
 Permits statistical tabulation of scores of
employees

23. - MULTIPLE PERSON EVALUATION METHODS

24. MULTIPLE PERSON EVALUATION METHODS
 Ranking method:
 The evaluator rates the employee from highest to
lowest on some overall criteria
 Paired comparison method:
 Each worker is compared with all other employees
in a group
 This method is not applicable
when the group is large

25. OTHER METHODS
Field
Assessment
Review
Centre
Technique
Group
HRA
Appraisal

26. 360O APPRAISAL SYSTEM
 A systematic collection and feedback of performance data
on an individual or group.
 Data is gathered and feed back to the individual participant.

27. APPRAISAL INTERVIEW AND FEEDBACK - LET THE
EMPLOYEE KNOW WHERE HE STANDS
 To help employees do a better job by clarifying
what is expected of them
 To plan opportunities for development and growth
 To strengthen the superior-subordinate working
relationship
 To provide an opportunity for employees to
express themselves on performance related issues

28. PARTICIPANTS
 Superiors
 Peers
 Direct Reports
 Customers
 Self

29. USES OF PERFORMANCE APPRAISAL
• Performance Improvement.
• Compensation Adjustments.
• Placement decisions.
• Training and development needs.
• Career planning and development.
• Deficiencies in staffing process.