Performance Management & Appraisal

BANSARI DAVE
UWSB

Definition
Performance
Performance Appraisal
Appraisal is
is an
an objective
objective
assessment
assessment of
of an
an individuals
individuals
performance
performance against
against well
well defined
defined
benchmark.
benchmark.
-- K.
K. Ashwathapa
Ashwathapa

What do we mean?
The other terms used for performance appraisal
are: performance rating, employee assessment,
employee
performance
review,
personnel
appraisal, performance evaluation, employee
evaluation & merit rating.
Job analysis sets out requirements, which are
translated into performance standards, which in
turn form the basis for performance appraisal.

The Process of Performance Evaluation

Objectives of PA

Design an appraisal
programme

Performance
Management

Appraise
performance
Performance
Interview
Archive Appraisal
Data
Use Appraisal Data
for appropriate
purpose

Feedback

Establish Job
Expectation

Performance Evaluation Methods

MBO

Rating scale
Checklists

Essay
Forced Choice

ACRS

Forced
Distribution

Tests &
Observation
Field Review
BARS

Critical
Incident
Comparative
Evaluation

Psychological
appraisal

360 Degree
Appraisal

Assessment
Centers

Cost
Accounting

Future
Oriented

Past Oriented

Rating scales method

A scale that lists a number of traits and a range of
performance for each. The employee is then rated by
identifying the score that best describes his or her level
of performance for each trait.

Checklist method
A checklist of statements on the traits of the employee
and his or her job is prepared in two columns viz. a
Yes column and a No column.

Forced choice method

The rater is given a series of statements about an
employees. These statements are arranged in blocks of two
or more, and the rater indicates which statement is most or
least descriptive of the employees.

Forced Distribution Method

Similar to grading on
percentages of ratees
performance categories.

a curve; predetermined
are placed in various

Annual Confidential Report (ACR)

In this method blind faith is placed in the superiors
objective evaluation of a subordinates performance.

Critical Incident Method

Keeping a record of uncommonly good or undesirable
examples of an employees work-related behavior and
reviewing it with the employee at predetermined times.

Essay method
All or part of the written appraisal may be in narrative
form. Here, the persons supervisor is responsible for
providing an assessment of the employees past
performance and required areas of improvement.

Behaviorally Anchored Rating Scales

BARS are said to be behaviorally anchored as the scales
represent a range of descriptive statements of behavior
varying from the least to the most effective

Field Review method

The field review method is an appraisal by someone
outside the assessees own department, usually from
corporate office or the HR department.

Performance tests & observations

Employee assessment may be based upon a test of
knowledge or skills.

Coast accounting method

It evaluates performance from the monetary returns the
employee yields to his/her organization.

Comparative evaluation approaches

The comparative evaluation approaches compare one
workers performance with his/her co-workers.

Management By Objectives (MBO)

A comprehensive and formal organization wide goalsetting and appraisal program requiring:
1. Setting of organizations goals.
2. Setting of departmental goals.
3. Discussion of departmental goals.
4. Defining expected results (setting individual goals).
5. Conducting periodic performance reviews.
6. Providing performance feedback.

Psychological appraisals
It focuses on future potential and not actual
performance. Industrial psychologists are employed for
conducting the appraisal

An assessment centers
It is a central location where managers may come
together to have their participation in job-related
exercises evaluated by trained observers. Mostly used
for executive hiring, assessment centers are now being
used for evaluating executive or supervisory potential.

360-Degree feedback
The 360 degree technique is understood as systematic
collection of performance data on an individual or
group, derived from a number of stakeholders.

Thank You