1. Performance appraisal is used to systematically evaluate employee performance and potential. It provides feedback to employees and helps set goals. 2. An assessment center evaluates employees on emotional intelligence, decision-making, and interpersonal skills through group tasks. Employees are rated and compared to determine strengths and weaknesses for different roles. 3. Performance appraisal objectives include determining wage increases, transfers, promotions, and development needs. It aims to provide fair ratings based on objective performance and identify potential for higher responsibilities.

1. PERFORMANCE EVALUATION &
APPRAISAL

2. DEFINE PERFORMANCE APPRAISAL
Performance appraisal is the systematic evaluation of the individual with regard to
his or her performance on the job and his potential for development.
What?
1.Inherent capability of the person
2.Evaluation of the work assigned
How?
Inherent Capability
-How he does the work (Time)
-Quality of work
Evaluation of the work assigned
Target
Achievement
-Time
-Quality of Work
Why?
1.To know the actual job performance
2.To know the potential for development

3. Evaluation: (output)
1.Present performance
2.Potential performance
Present performance:
Easier to define if we set the tasks.
-Tasks
• Should be set very clearly
• Should be certain
Performance appraisal should be…….
-Systematic
-Periodic
-Impartial (make it objective)
Target setting:
-Define the objectives
-Define the tasks

4. ASSESSMENT CENTRE
Purpose: To observe one’s ability to work with others
-Tasks are given (jobs)
-Describe the job
-What kind of people will do that job
-Set the parameter in order to measure
 Emotional quotient (uncertainty)
 Decision making
 Interpersonal skills
Result:
- List out the group of managers weaknesses and strengths in a chart and compare it
and use it for suitable roles.
Employee 1 Employee 2 Employee 3
Capable Not capable Capable
Use him Train him Use him

5. Job role: Manager
Parameters:
1.Emotional quotient
2.Decision making
3.Interpersonal skills
Employee 1 Employee 2 Employee 3
Emotional quotient 8/10 5/10 2/10
Decision making 10/10 5/10 0/10
Interpersonal skills 0/10 10/10 7/20
Total 18/30 20/30 9/30
Employee 1
54%
Employee 2
33%
Employee 3
13%
Emotional quotient
1
67%
2
33%
3
0%
Decision making
1
0%
2
59%
3
41%
Interpersonal skills

6. Performance appraisal
Purpose: Application: Factors: Post appraisal
Purpose:
a) To determine the qualifications for
 Wage increase
 Transfer
 Promotions
 Layoff’s
 Potential development
b) To improve performance on the job and providing emotional security.
i.e.) A person who is not emotionally secure in whatever job he is doing,
he is not likely to perform well.
Application:
-We are going to give wage on a monthly basis.
Factors Rated: (Rating scales)
-Results Against
-Accomplishments Output Fixed target
-Performance

7. Post appraisal:
Different systems that can be followed
a) Secret evaluation – No feedback
b) Marks can be revealed – No discussion
c) Bilateral system – Discussion
General Appraisal Process:
- Objectives of performance appraisal
- Establish job expectations
- Design an appraisal program
- Appraise performance
- Performance interview
- Use appraisal data for appropriate purposes
Objectives of performance appraisal:
 At the beginning of the financial year set the performance objectives.
 Set the target.

8. E.g : Marketing department
Objective No 1:
Objective No 2:
At least 20% sales should be done on new products
Objectives:
The management has decided to introduce a new performance evaluation and
appraisal system.
The system shall have the following objectives.
It has been designed to give fair rating to meritorious people so that the rewards
can be on objective performances; it is also that given this system has been
designed to try and identify people who have got potential for being given higher
responsibilities.
Previous Year Present Year
5 Crore Min 10 % growth from the
previous year. ( 550 C)

9. Establish job expectations:
It is expected that our company will throw up enough managers from internal
sources so that our policy of promoting from within can be maintained and we do
not have to get people from outside.
Design an appraisal program:
Employee name:
Employee ID:
Department:
For the Financial period 1st April 2014 to 31st March 2015
- Appraisal has to be done once in a year
- Objective setting interview ( with the Immediate superior)
Use of appraisal data:
Remarks:
A B C D E
Excellent Very good Good Satisfactory Un-satisfactory
Performance on the past/present job Training & development needs

10. Typical Appraisal Process
1. Meeting with the boss for objective and target fixing ( Mutual agreement)
2. Review meeting with the boss on the progress of the performance and the
feedback is written down and signed by both (periodic Review)
3. At the end of the performance period the same process is done again an the final
rating for overall performance is given and mutually accepted.
4. In the event of dispute the superior rating prevails but it is sent up to the next
higher superior for review
5. Critical behavioral attributes which are considered essential for growth and higher
responsibilities are commented upon by the immediate superior, confidentially
and the appraisal is sent up to the next superior for his comments and overall
rating.
6. The next superior sends back the appraisal form to the immediate superior who
retains one copy and sends the original to the HR department.

11. Appraisal Feedback Meetings
1. Since the foundation of proper appraisal rests on the ability and maturity of each
of the two persons involved in the face to face interview both need to be trained
on how to conduct these interview, well.
2. HR department must conduct training programs with expert faculty to train both
the “gives of feedback” as well as the “receives of feedback”.
Rating Problems / Errors:
1.Leniency or Severity
2.Central (play safe) tendency
3.Halo error(Judged on only one good attribute)
4.Rater effect (favoritism, Stereotyping, hostility)
5.Primacy & decency effects (behavior early in the rating period or late in the rating
period)
6.Perceptual set (Perceptual beliefs held)
7.Spill over effect (Past rating affects current rating)
8.Status effect (Over rating people in higher level of jobs held in high esteem)