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Performance appraisal is the process of assessing the performance and progress of an employee or of a group of employees on a given job and its potential for future development. Performance Appraisal focuses on the performance and future potential of an employee.

Objective of Performance Appraisal

To increase motivation and productivity To enhance transparency To retain top talent To increase commitment To develop employees

Performance Appraisal as a career development. Appraisal as Employee motivation mechanism

Approaches to Performance appraisal

Modern approach

Old approach

Challenges of performance Appraisal

Deciding the evaluation criteria Create a rating instrument Lack of competencies Error in evaluation Resistance Global trend in performance appraisal

Factors distorting appraisal

General Bias error Halo effect Relation Rating error Contrast and similarity errors Central Tendency errors Proximity error Rating inflation

Effective performance appraisal

Documentation Objectives & standards clarity Simple appraisal format Assessment method Communication Training of assessors Feedback Personal Bias Ongoing Feedback Reward to accurate appraisers

Process of Performance appraisal

Establishment of Performance standards Communication of Performance standards and expectation

Measurement of performance appraisal

Comparison of performance Appraisal feedback

Corrective, motivation development plan

Method of Performance Appraisal

Method of Performance appraisal
Traditional method Modern method

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