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BY SPRIHA GOYAL DIVYA KERKETTA

Meaning
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.

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

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. Easy to develop for small no. 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.

Paired comparison
In this method, each person is compared with other person

taking only one at a time. A chart is made of all possible pairs of employees for each trait(quality of work, quantity of work, and so on). The rater put a plus(+) sign against the person whom he considers the better of the two, 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.

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

Graphic Scale Method


It is a numerical scale indicating different degrees of a particular trait. The rater is given a printed form for each employee to be rated.

The form contains several characteristics(intelligence,quantity of work,

quality of work, job knowledge) The rater records his judgment on the employees traits on the scale. poor average good excellent (1) (2) (3) (4) Quantity of work Quality of work Job knowledge attitude

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. Merits: It improves the ability of the superior as an observer. It provides an immense guidelines for counseling. Demerits: Time consuming to maintain a written record for each employee during every major event. The supervisor may commit errors in recording behavior of different employees.

Check-list method

1. 2. 3.

In this method, the rater provides appraisal report by answering a series of questions related to appraise. These questions are prepared by HR department and are related of the appraise is concerned. When this checklist is completed, it is sent to HR department, then, total scores are calculated which show the appraisal result of an employee. 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

Grading Method
Under this method, grades are assigned on the

basis of certain categories of worth which are established in advance and carefully defined. The actual performance of the employees is measured against these grades

Forced Choice Description Method


Under this method there are 2 pairs of statements in

each group, one may be favourable and the other pair may be unfavourable and the rater has to choose one out of each pair.

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 employees 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, employees are rated by a group

of evaluators, consisting of their supervisor and other supervisors who have some knowledge of their performance.

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

Behaviorally Anchored Rating Scales (BARS)


This method combines the benefit of traditional

rating scales and critical incident method. It is an employee appraisal system where raters distinguish between successful and unsuccessful job performance by collecting and listing critical job factors.

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. Can expect to initiate creative ideas for improved sales. Can expect to keep in touch with the customers throughout the year. Can manage, with difficulty, to deliver the goods in time.

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.


Can expect to inform only a part of the customers. Can expect to take extended coffee breaks and roam around purposelessly.

Assessment Centre Method


In this method tests and exercises, assignments

being given to a group of employees to assess their competencies. Generally, 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.e. by superiors, peers, subordinates, and self appraisal.

Management by Objectives (MBO)


Management by objectives is a process whereby

the superior and subordinate managers of an organisation jointly identify its common goals, define each individuals 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.

Contd.
MBO is a method of mutual goal-setting, measuring

progress towards the goals, taking action to assure goal attainment and feedback.

Conclusion
In traditional methods, evaluators lay emphasis on

the rating of the individuals personality traits. But in modern methods they place more emphasis on the evaluation of work results i.e job achievements. Results oriented appraisals are tend to be more worthwhile.

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