Performance Apprai

sal
 Definition
Performance Appraisal (PA) refers to all those pro
cedures 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 pur
poses. 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 probationar
y 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 n
ot been fixed.  
5. To let the employees know where they stand insofar as their performance is concerned an
d to assist them with constructive criticism and guidance for the purpose of their develop
ment.  
6. To improve communication. Performance appraisal provides a format for dialogue betwee
n the superior and the subordinate, and improves understanding of personal goals and co
ncerns. 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 a
s 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 eval
uation criteria .It is obvious that the criteria should be related to the job. Th
e six criteria for assessing performance are:

1. Quality

2. Quantity

3. Timeliness

4. Cost of Effectiveness

5. Need for supervision

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 (Con
t’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 expecte

d 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 express themselves

on performance related issues
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