You are on page 1of 15

Performance Appraisal Systems

CHAPTER - 5

Performance Appraisal

An objective assessment of an

individuals performance against well defined benchmarks.

Performance Appraisal

Job Analysis

Performance Standards

Performance Appraisal

Describes work Requirements

Job Requirements into acceptable & unacceptable performance

Describes Job related Strength & Weakness of individual

Objectives
Employee performance Feedback & guidance for

development. To assess training and development needs. Management decision like promotion, increments etc. Audit/ Evaluation of HR function. Career Planning & development based on potentialities.

Need of Assessment
Developmental Use Identification of Individual needs. Performance Feedback. Transfers & Job assignment Individual Strength & Weakness Salary Promotion Retention/ Retrenchment Rewards/ Recognition Identifying Poor performance HR Planning. Determining Training needs. Goal Achievement. Evaluation of HR Systems. Development needs. Managing Turnover

Administrative Use

Organisational Maintenance

Approaches to performance Appraisal


Casual Approach Unsystematic. Based on Criteria like seniority, personal relations. Traditional Approach Systematic Employee characteristic & Contribution. Behavioral Approach Systematic Mutual Goal Setting 360 Assessment

Performance Appraisal Process


Establish Performance Standards

Communicate Expectations to Employees

Measure Actual Performance

Compare Actual performance with Standards

Achieve Appraisal Data Corrective Action ( Appraise/ Manage Performance)

Things to ConsiderWhose performance to assess? Who are the Raters? Areas of Assessment. Methods of Evaluation

Methods Of Performance Appraisal


Traditional Methods

Rating Scale Checklist Comparative Evaluation Grading Forced Choice Description Method Forced Distribution Method. Critical Incident Behaviourly Anchored Rating Scales (BARS ) Essay Method Field Review Cost Accounting Method

Methods Of Performance Appraisal


Rating Scale

Methods Of Performance Appraisal


Forced Choice Description Method

Methods Of Performance Appraisal


Forced Distribution Method

Methods Of Performance Appraisal


Modern Methods MBO Assessment Centre Psychological Appraisals 360 appraisals.

Coping with the Appraisal Challenge


Create a culture of excellence.

Align organization objectives to individual.


Clear career/ growth plan for talented individual. New challenges to revive careers that have reached

the plateau stage. Career Planning. Employee Empowering. Teamwork. Remove bureaucracy/ organisation Restructuring

Problems of Appraisal
Halo Effect.

Leniency or Severity .
Central tendency. Similarity Error. Rater Error. Primacy and Recency Effects. Perceptual Set Performance Dimension order Spillover Effect Status Effect.