Training and Development

By
Prof S R SATHYANARAYANAN
Performance Appraisal
Performance management /performance appraisal is necessary to
understand each employee’s
• abilities,
• competencies and
• relative merit and worth for the organization.
Performance appraisal rates the employees in terms of their
performance.
Performance Appraisal
Performance appraisal, also known as employee appraisal, is a method
by which the job performance of an employee is evaluated
(generally in terms of quality, quantity, cost and time).
Why Performance Appraisal

Performance appraisal is a vehicle to

(1) Validate and refine organizational actions (e.g. selection, training);
and
(2) Provide feedback to employees with an eye on improving future
performance.
Performance Appraisal – Objectives
➢ Increase motivation to perform effectively
➢ Increase staff self-esteem
➢ Gain new insight into staff and supervisors
➢ Better clarify and define job functions and responsibilities
➢ Develop valuable communication among appraisal participants
➢ Encourage increased self-understanding among staff as well as insight
into the kind of development activities that are of value
➢ Distribute rewards on a fair and credible basis
➢ Clarify organizational goals so they can be more readily accepted
➢ Improve institutional/departmental manpower planning, test validation,
and development of training programs
Performance Appraisal Process
➢ Establishing performance standards
➢ Communicating the standards to employees
➢ Measuring actual performance
➢ Comparing the actual with standard performance
➢ Discuss the report with employees
➢ Taking corrective action
Methods of Performance Appraisal
(1) Absolute standards
(2) Relative standards
(3) Outcomes.
Evaluating Absolute Standards
(1)Critical Incident Methods
(2)Checklist Method
(3)Forced Choice Method
(4) Graphic Rating Scale
(5) Behaviorally Anchored Rating Scales
Relative Standards Methods
(1) Ranking Method
(2) Paired Comparison

Outcomes Methods
(1) Management by objectives (MBO)
(2) 360 Degree Performance Appraisal
Limitations Performance Appraisal
1. Leniency Error
2. Halo Error
3. Similarity Error
4. Central tendency
5. Inappropriate Substitutes