Annual performance reviews are a key component of employee development. The performance review is intended to be a fair and balanced assessment of an employee’s performance.

1. Performance Appraisal system
Presented by:
Abhishek Sharma
Abhishek Uboveja
Adusumilli pavan Kumar
Ankit Sharma
Akshay Baxi
Ankur Aggarwal

2. Performance Appraisal
“It is a systematic evaluation of an individual with respect to performance on the
job and individual’s Potential for development”

3. OBJECTIVES OF PERFORMANCE APPRAISAL

4. TRANSPARENCY
RETENTION COMMITMENT
DEVELOPMENT
PRODUCTIVITY

5. METHODS OF PERFORMANCE
APPRAISAL
Traditional method
1. Rating Scales
2. Forced choice
method
3. Critical incident
method
4. Behaviourally
Anchored Rating
Scales
5. Essay method
Modern methods
1. MBO
2. Psychological
Appraisals
3. 360 degree
feedback
4. Assessment
centres

6. Management by Objective
The MBO concept, as was conceived by Drucker, reflected a management philosophy
which values and utilizes employee’s contributions. Application of MBO in the field of
performance appraisal is a very recent thinking.
Psychological appraisal
directed to assess employees potential for future performance rather than the past one.
It is done in the form of in-depth interviews, psychological tests, and discussion with
supervisors and review of other evaluations

7. 360 degree Appraisal

8. Assessment centres
An assessment centre is a central location where managers may come together
to have their participation in job related exercises evaluated by trained observers.
It is more focused on observation of behaviours across a series of select exercises or
work samples. Assesses are requested to participate in in-basket exercises, work groups,
computer simulations, role playing and other similar activities which require same
attributes for successful performance in actual job.

9. Issues in appraisal system
Fairness
subjectivity
Biases and unreliability
Dissatisfaction among employees

10. Advantages
 Provide the employee with feedback about their performance
 Provide an opportunity for an employee to discuss
issues and to clarify expectations
 Can be motivational with the support of a good
reward and compensation
 Provide a record of performance over a period of time.
 Provide an opportunity for a manager to meet &
discuss performance

11. Disadvantages
If not done appropriately, can be a Negative
experience.
Very Time consuming, especially for a
manager
Subject to rater errors & biases.
If not done right can be a complete waste of time.
Can be stressful for all involved