Performance Appraisal

Performance appraisal is a formal program

under which the contribution and potential of
people are evaluated.
Accordance to Dale S. Beach, performance
appraisal is a “ Systematic evaluation of the
individual with respect to his performance on
the job and his potential for development. “
 Performance Appraisal
Basically Performance appraisal is the “ process of
evaluating the employee’s performance on the
job in terms or requirement of the job.
Features of Performance appraisal
1. Performance appraisal is systematic . It is
undertaken periodically accordance to some
plan.
2. It is scientific evaluation of performance and
quality designed to minimized human bias and
prejuduce
Features of Performance appraisal
3. It is a continuous process in the sense that
it takes place on a regular basis. Appraisal is
usually conducted on yearly basis.
4. It involves measurement of both performance
on the present job and potential for
advancement to a higher job. Both the
personal qualities and job performance of the
employee are considered .
Features of Performance appraisal
5. Both operatives and have to appraised.
Managers are appraised on the basis of how
well they understand and carryout managerial
function .
6. Generally, the appraisal is done by the
individuals immediate superior in the
organization
 Objectives of Appraisal
1. To determined the effectiveness of employees on
their present jobs so as to decide their benefit
2. To identify the shortcoming of employees so as to
overcome them through systematic guideline and
training
3. To find out the potential for promotion and
advancement
4. To judge the effectiveness of selection and placement
5. To guide and motivate self –development of
personnel by providing information on how well they
are doing.
 Advantages of performance appraisal
1. It facilitates the correct placement of employees.
It enables the supervisors to identify the misfits
so that they may be assigned tasks best suited to
them
2. It helps in designing training programs . The
weakness of workers and their potential for
development programs are revealed. It helps in
spotting exceptional talent. The training and
development programs cab be designed
accordingly.
 Advantages of performance appraisal
3. Performance appraisal serves as the means to guide
employees in self development. The result of appraisal are
communicated the employees. The employees come to
know whether they stand and take appropriate steps to
improve their performance.

4. It puts a psychological pressure on employee to improve

performance on the job. When the employees are not
conscious that they are being appraised and their future
depends largely on such appraisal, they tend to adopt
acceptable behavior. In this way appraisal serves as a
control device
 Advantages of performance appraisal
5. Personal rating facilitate objective decisions on
promotion and transfer of employees. These also
provide a basis for incentive plans and
differentials.
6. Scientific appraisal helps to improve employee
relations. It develops a sense of confidence
among employees and prevents grievances
.Management can use the ratings to protect itself
against possible charges of discrimination and
favoritism,
 Advantages of performance appraisal
7. Accurate and up-to-date record of performance
of each can be maintained
Steps of Performance Appraisal
1. Job analysis
2. Performance Standard
3. Developing appraisal systems
4. Assessing performance
5. Performance review
6. Information
7. Setting a plan of action
 Who Should Do the Appraising ?
1. Immediate Supervisor
2. Subordinates
3. Peers
4. Self Appraisal
5. Clients
6. Committee
7. 360 Degree feedback