Performance Appraisal

Performance Appraisal (PA) refers to all those



procedures that are used to evaluate the



• personality

• performance

• potential of its group members

•
 Objectives of Performance
Appraisal
 Data relating to performance assessment of employees are recorded, stored, and
used for several purposes. The main purposes of employee assessment are:


 1. To effect promotions based on competence and performance



 2. To confirm the services of probationary employees upon their completing the

probationary period satisfactorily.


 3. To assess the training and development needs of employees.



 4. To decide upon a pay raise where (as in the unorganized sector) regular pay scales
have not been fixed.


 5. To let the employees know where they stand insofar as their performance is
concerned and to assist them with constructive criticism and guidance for the
purpose of their development.


 6. To improve communication. Performance appraisal provides a format for dialogue

between the superior and the subordinate, and improves understanding of
personal goals and concerns. This can also have the effect of increasing the trust
between the rater and the rate.


 7. Finally, performance appraisal can be used to determine whether HR programmers

such as selection, training, and transfers have been effective or not.
Steps in performance
appraisal
Establishing job standards

Designing an appraisal programme

Appraise performance

Performance interview

Use appraisal data

For appropriate purpose
 Methods of Appraisal
Past-oriented Methods:
• Rating scales
•
• Checklists
•
• Forced choice method
•
• Critical incident method
•
• Field review method
•
• Performance tests and observations
•
• Annual confidential reports
•
• Essay method


• Cost accounting approach

•
• Comparative evaluation approach
•
 Future Oriented tests:
• Management by objective
•
• 360-Degree appraisal
•
• Psychological appraisals
•
• Assessment centers
•
 Who are Raters?
• Immediate Supervisor
• Subordinates
• Peers
• Clients/Customers
 What should be rated?
 One of the steps in designing an appraisal programme is to
determine the evaluation criteria .It is obvious that the
criteria should be related to the job. The six criteria for
assessing performance are:



1. Quality
2.
4. Quantity
5.
7. Timeliness


4. Cost of Effectiveness
5.
6. Need for supervision
7.


 6. Interpersonal impact
 Problems in performance
appraisal
1.Errors In rating
–Halo effects
–Stereotyping
–Central tendency
–Constant error
–Personal bias
–Spill over effect
 Problems in performance
appraisal (Cont’d)
2.Incompetence
3.Negative approach
4.Multiple objectives
5.Resistance
6.Lack of knowledge
Appraisal Interview and Feedback

– 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 by developing
mutual agreement of goals

– To provide an opportunity for employees to