2. TABLE OF CONTENTS
Performance Appraisal
Features of Performance Appraisal
Purpose of Performance Appraisal
Process of Performance Appraisal
Possible Errors
Performance Appraisal Methods
3. Performance Appraisal
Performance Appraisal is a regular review of an
employee’s job performance and contribution to
a company.
Company use performance appraisals to
determine which employees have contributed the
most to the company’s growth review progress
and reward high-achieving workers.
4. Features of Performance Appraisal
Organized
Process
Evaluating
Process
Periodic
Process
Futuristics
Identify
Employee
Potentiaties
Develop
Employee
5. Purpose of Performance Appraisal
Providing
feedback to
Employees and
Management
Facilitating
Promotion and
Downsizing
Motivating
Superior
Performance
Setting and
Measuring Goals
Determining
Compensation
Determining
Poor
Performance
Determining
Training and
Development
6. Process of Performance Appraisal
Establish
Performance
Standards With
Employees
Mutually Set
Measurable
Goals
Measure Actual
Performance
Compare
Actual
Performance
With Standards
Discuss
Appraisal with
Employee
Take Corrective
Actions
7. Possible Errors
First impression error.
Halo effect (Judging someone on the basis of one
characteristics).
Strictness or Leniency.
Sterotyping (Judging someone on basic of group
he or she belong).
Similar to me.
8. Performance Appraisal Methods
Traditional Methods of
Performance Appraisal
Rating Scales
Confidential Report
Paired Comparison Method
Checklist Method
Forced Choice Method
Essay Method
Performance Test and Observation
Forced Distribution Method
Field Review Method
Modern Methods of
Performance Appraisal
Assessment Centers
Human Resource Accounting
Behaviorally Anchored Rating
Scale (BARS)
Management by Objectives
360 Degree Feedback
Psychological Appraisals
Human-Asset Accounting Method
9. Traditional Methods of Performance
Appraisal
Ranking Scale: It is simplest and oddest method of Performance Appraisal in which
employees are rated from highest to the lowest or from the Best to the Worst. Example: 1 to
5.
Paired Comparison Method: Comparing employees in pairs to judge who is preferable for
the job. Example: A-B, A-C, A-D.
Grading Method: Employees are get the grades according to his/her performance.
Example: a) Outstanding: A+
b) Satisfactory: A
c) Not Satisfied: B,C,D,E
Forced Choice Method: Rater is forced to answer the ready-made statements as given.
Example: MCQ.
10. Traditional Methods of Performance Appraisal
Forced Distribution Method: Many companies is method
10%
20%
40%
20%
10%
Employes Performance
Poor Below Average Average Good Excellent
11. Traditional Methods of Performance Appraisal
Checklist Method: In this method, a series of statements in question and
answer in Yes or No form are prepared by Human Resource (HR)
Department of the Company.
Critical Incidents Methods: Methods of gathering facts.
A. Review Incident: Event/Office Party.
B. Collect Data: Collecting data from the incident point.
C. Determine Outcomes: Decide/The way a things comes out.
D. Evaluate Solution: Draw Conclusion.
12. Traditional Methods of Performance
Appraisal
Rating Scale Method: Most popular and simplest technique it is also
known as linear rating scale. Employees is rated against a list of traits or
behavior.
For Example: Employee Name: Ram Kumar
Department: Marketing
Job Title: Marketing Executive.
Performance
Level
Poor Good Excellent
Attendance
Sincerity
Behavior
Commuication
13. Traditional Methods of Performance Appraisal
Essay Method: It involves description of performance of an employee by
his/her supervisor it is also known as Free form method.
Free Review Method: Employees are not judged by his/her supervisor but is
can be monitored by another person usually from HR Department.
Confidential Report Method: Collect information of employees strength,
weakness, intelligence, attitude, characteristics etc. This method is mainly
used in Government Office.
14. Modern Methods of Performance Appraisal
Management by Objectives (MBO): It is a method where Managers and
Employees gather together to identify, plan, organize and communicate
companies objectives to focus.
Behaviorally Anchored Rating Scale (BARS): BARS is used to rate
performance and to bring both qualitative and quantitative data of the
employees.
Assessment Centers: Often used in selection procedure to test suitability of
the candidate. It consist several test to show whether a person is the right fit
for a position or not.
15. Modern Methods of Performance Appraisal
360 Degree Appraisal: Evaluate an employee using feedback collected
from the Direct Report, Peers (his/her colleagues), Customers, Supervisors
whom he/she interact in course of his/her job.
Human Resource Accounting: Analyses an employee performance through
the monetary benefits he/she yields to the employees.