Performance Appraisal

Methods
 Contents
• Concept
• Objectives of Performance Appraisal
 Methods- Uses and Limitations
Definitions of Performance Appraisal
• Performance appraisal is a method of
evaluating the behavior of employees in the
workspot, normally including both the
quantitative and quality aspects of job
performance.
• Wendell French, “the formal, systematic
assessment of how well employees are
performing their jobs in relation to established
standards, and the communication of that
assessment to employees”
 Objectives
• Feedback to Employee
• Compensation Decisions
• Reckoner for Promotion / Demotion /Transfer
• Inputs for Personal Development
• Reduce Subjectivity
• Clarity for the Employee
• Improves Supervision
 Performance Appraisal Methods
• Broadly of two types: • Modern methods.
– Traditional Methods Behaviorally
(TM)
Anchored Rating
– Modern Methods (MM)
Scales.
MBO Technique.
Assessment center.
HRA.
Psychological app.
360 Degree.
 Behaviorally Anchored Rating Scales
(BARS)
• Rating scales are created using the following
approach –
– Identify Critical Incidents
– Select Performance Dimensions
– Retranslate Incidents
– Assign Scale Values
• Rate the employee on the scale
Management By Objectives (MBO)
• Substitutes good intentions
with a process where
everything is put in black &
white
• Process
– Define Role
– Define KRAs
– Indicators of Effectiveness
– Set SMART objectives
– Monitor
 Assessment Centre Method
• Following are the drawbacks of this method:
 Costly
 Impression of the employees
 Demoralize an employee
 Promotes Unhealthy competition
 Over emphasis on centre results
 Human resource Accounting
• Under HRA methods
techniques are:
 Probationary reviews
 Informal one to one
review discussions
 Counseling meetings
 Observation on the job
 Psychological Appraisals
• Psychological appraisals are
conducted to assess the
following features of the
employees:
 Intellectual abilities
 Emotional stability
 Reasoning & analytical
abilities
 Motivational responses
 Ability to foresee the future.
 360 Appraisal
• 3 levels of employees
rate the performance
– Superior
– Peers
– Subordinates
• Holistic view
• Rules out the bias of
any one person
 Conclusion
• Because many of the more conventional
performance appraisal methods have often
proved unpopular with those being appraised
and evaluators alike, 360 is gaining
popularity with many managers and
employees.