About Performance appraisal
Definition Meaning Objectives

Process of Performance Appraisal Methods / Techniques of Performance Appraisal
Traditional Modern

Issues in Performance Appraisal Advantages of Performance Appraisal Disadvantages of Performance Appraisal

. “It is the process of evaluating the performance of employees. sharing that information with them and searching for ways to improve their performance’’.Definitions According to Newstrom.

A “Performance appraisal” is a process of evaluating an employee’s performance of a job in terms of its requirements.Meaning Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees . .


assessment of performance Aims at:  Personal development  work satisfaction  involvement in the organization. growth & development increase harmony & enhance effectiveness .Objectives of Performance Appraisal According to: Employee Organization concrete and tangible measuring the efficiency particulars about their maintaining work organizational control. mutual goals of the employees & the organization.

Process Setting performance Taking corrective standards standards Communicating standards Discussing results Comparing standards Measuring standards .

Behaviorally Anchored Rating scales . Human Asset Accounting 4. Graphic Rating scales 3. Assessment Center 2. Checks lists 6. Group Appraisal 9. Forced choice Description method 4. Free essay method 7. Forced Distribution Method 5.Confidential Report 11. Paired comparison 2. Critical Incidents 8.Methods of Performance Appraisal Traditional Methods Methods 1. Appraisal by Results or Management by Objectives 3. Field Review Method 10.Ranking Modern 1.

Ranking employees by paired comparison Method For the Trait “Quality of work” Person rated As compared to B C A B + C + + + C + + + + A For the Trait “Creativity” Person rated As compared to B C A + + + A - + + - + + - B + - + + - - + .

Graphic or Linear Rating Scales Attitude 0 20 No interest In work: consistent complaine r Careless: In-different Instructions 5 Interested in work: Accepts opinions & advice of others 5 Takes decisions promptly 10 Enthusiastic about job & fellowworkers 15 Enthusiastic opinions & advice sought by others Decisivenes s 0 20 Slow to take decisions Take decisions after careful consideration 10 Take decisions in consultation with others whose views he values 15 Take decisions without consultation .

Forced choice method Criteria 1.Regularity on the job •Always regular •Inform in advance for delay •Never regular •Remain absent •Neither regular nor irregular Most Rating Least .

of 20% 10% 20% 40% employee s poor Below average good average Force distribution curve 10% Excellent .Forced distribution method No.

. Department . . . . . .Consideration to every function & responsibility of the job 3.Specimen of Staff Assessment Form [Descriptive Essay Type] Staff Appraisal Name . . . Job Title . . . . . . . . . . . .Appraisal must cover the period of the preceding 12 months 2. .Within 5 years 4.An objective factual assessment of an employee’s improvement or deterioration Section II Promotability & Potential Promotability 1. . Years in present job Section I Appraisal Of Performance Note to Appraiser 1. . . Age . . . Date of Review .Within 2 years 3. . . . .Promotion now 2. .Unlikely to qualify for promotion Section III Career Development Section IV Section V Notes on Interview with employee Comments on & Endorsement by Reviewing . .. . . . .

accident Workers A B C D E Reaction Informed the supervisor immediately Become anxious on loss of output Tried to repair the machine Complained for poor maintenance Was happy to forced test scale 5 4 3 2 1 . sudden breakdown.Critical Incident method Ex: A fire.

Field review method Performance customer Dimension Leadership Communication Interpersonal skills Decision making Technical skills Motivation ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ subordinate peers superior ^ .

Group appraisal method .

MBO Process Set organizational goals Defining performance target Performance review feedback .

Good 6 Above average 5 Average 4 Below average 3 Poor 2 Extremely poor 1 . Can expect to unload the trucks when asked by the supervisor. Can expect to keep in touch with the customers throughout the year. Can expect to initiate creative ideas for improved sales. Can expect to take extended coffee breaks & roam around purposelessly. to deliver the goods in time. with difficulty. Can manage.Performance Points Behavioral Anchored Rating Scales Behavior Extremely good 7 Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country. Can expect to inform only a part of the customers.

360 degree performance appraisal .

Examples of 360 degree performance appraisal method These companies are using 360 Degree Performance Appraisal Method Wipro Infosys Reliance Industries Maruti Udyog HCL Technologies Wyeth Consumer Health (WCH) .

Issues in appraisal system Formal and informal What methods? Whose performance? When to evaluate? Appraisal Design Who are the raters? What to evaluate? What problems? How to solve? .

Con stan t che c indu k c emp es loye e to perf orm bette r .

Advantages .

Disadvantages .

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