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Performance:-how effectively an employee carry out their job responsibility. Appraisal:- an act of assessing Performance appraisal:-it is the process of assessing the performance of an employee and to understand the abilities of a person for further growth and development.

periodic and an impartial rating of an employee’s excellence in matters pertaining to his present job and his potential for future job. .According to flippo “performance appraisal is the systematic.

Characteristics  Description of an employees job relevant strengths and weaknesses  Informal or formal  It is not job evaluation  Continuous process  Consistent in the sense that it tries to evaluate performances in the same manner using same approach .

Importance • Performance improvement • Compensation adjustment • Promotions • Transfers • Training and development needs • Effectiveness of selection process • Human resource planning .

Methods of performance appraisal Traditional methods Ranking method Paired comparison Graphic rating scale method Checklist method Critical incidents method Grading Forced choice description method Essay method Field review Group appraisal Modern methods  Behaviourally anchored rating scales Assessment centres 360-degree apraisal Management by objective .

Rank method It is a preparation of merit list. . The evaluator assigns ranks to each employee from best to poorest on the basis of overall performance. of employees  Oldest and simplest method Demerits:  Difficult when large number of person are to be rated  It tells us how a person stands in relation to the others in group but does not indicate how much better or worse he is than another.  Easy to develop for small no.

and the final ranking is determined by the number of the times that person is judged better than others  Formula to calculate the number of comparisons.  A chart is made of all possible pairs of employees for each trait(quality of work. and so on). quantity of work. each person is compared with other person taking only one at a time.Paired comparison  In this method.  The rater put a plus(+) sign against the person whom he considers the better of the two. N (N-1)/2  Here N is the number of persons to be compared. .

Paired comparison AS COMPARED T0 A A B C D E FINAL RANK 3 + + B C D E + + + - - + + + + + 2 1 4 5 - .

• The rater is given a printed form for each employee to be rated. job knowledge) • The rater records his judgment on the employee’s traits on the scale.Graphic Scale Method • It is a numerical scale indicating different degrees of a particular trait.quantity of work. poor average good excellent (1) (2) (3) (4) Quantity of work Quality of work Job knowledge attitude . quality of work. • The form contains several characteristics(intelligence.

Merits: It improves the ability of the superior as an observer.Critical Incidents Method  The supervisor keeps a written record of critical events and how different employees behaved during such events  The rating of an employee depends on his positive/negative behaviors during these events. .  The supervisor may commit errors in recording behavior of different employees. Demerits: Time consuming to maintain a written record for each employee during every major event.  It provides an immense guidelines for counseling.

it is sent to HR department.Check-list method   1. In this method. Examples of the questions— Is he/she interested in the job? yes/no Is he/she regular on the job? yes/no Does he/she show uniform behavior to all? yes/no . When this checklist is completed. 2. These questions are prepared by HR department and are related of the appraise is concerned. then. the rater provides appraisal report by answering a series of questions related to appraise. 3. total scores are calculated which show the appraisal result of an employee.

 The actual performance of the employees is measured against these grades .Grading Method  Under this method. grades are assigned on the basis of certain categories of worth which are established in advance and carefully defined.

one may be favourable and the other pair may be unfavourable and the rater has to choose one out of each pair.Forced Choice Description Method  Under this method there are 2 pairs of statements in each group. .

Essay or Free Form Appraisal Method  In this method the evaluator writes a report expressing about the strong as well as weak points of the employee’s behavior.  While preparing the essay on the employee. the rater considers the following factors: Job knowledge Potential of the employee Relations with the co-workers and superiors Understanding of the organisational plans and policies .

Group Appraisal Method  Under this method. consisting of their supervisor and other supervisors who have some knowledge of their performance. . employees are rated by a group of evaluators.

.Field Review Method  In this method the rater goes to the work field and take interviews of the supervisors to evaluate and rate their respective subordinates.

Modern Methods of Performance Appraisal .

 It is an employee appraisal system where raters distinguish between successful and unsuccessful job performance by collecting and listing critical job factors.Behaviorally Anchored Rating Scales (BARS)  This method combines the benefit of traditional rating scales and critical incident method. .

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

assignments being given to a group of employees to assess their competencies.  Generally. .Assessment Centre Method  In this method tests and exercises. employees are given an assignment similar to the job they would be expected to perform if promoted.

360 Degree Performance Method  It is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources i. by superiors.e. . subordinates. peers. and self appraisal.

define each individual’s major areas of responsibility in terms of the results expected of him. and use these measures as guides for operating the unit and assessing the contribution of each of its members.” .Management by Objectives (MBO)  “Management by objectives is a process whereby the superior and subordinate managers of an organisation jointly identify its common goals.

. measuring progress towards the goals. taking action to assure goal attainment and feedback.  MBO is a method of mutual goal-setting.Contd…….

But in modern methods they place more emphasis on the evaluation of work results i.e job achievements. evaluators lay emphasis on the rating of the individual’s personality traits. Results oriented appraisals are tend to be more worthwhile.Conclusion  In traditional methods. .

C.Prasad .Ajay Kr.Gupta  Human resource management by Dr. Singal  Human resource managemant by L.M.B.Reference  Human resource management by Dr.