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PERFORMANCE

APPRAISAL
BY :KARAN
DALVI

Objectives

Opportunity to Regularly Discuss


Results

Supervisor Identifies Strengths and


Weaknesses

Fair and Equitable Format

Basis for Salary/Promotion


Recommendations

Performance Appraisal:
Uses
Performance improvement
Compensation adjustments

Identify deficiencies in
staffing process

Placement decisions

Detect informational
inaccuracies

Training & Development


needs

Diagnose job design errors

Career planning &


development

Avoidance of discrimination
External challenges

Methods of Performance Appraisal


Several methods and techniques are used for evaluating
employee performance. These may be classified into broad categories.

Performance Appraisal
Traditional Methods

Modern Methods

1.

Confidential Report

1.

Assessment Centre

2.

Free Form or Essay

2.

3.

Straight Ranking

Human Resource
Accounting

4.

Paired Comparisons

3.

5.

Forced Distribution

Behaviorally
Anchored rating
Scales

6.

Graphic rating Scales

4.

7.

Checklist Method

Appraisal through
MBO

8.

Critical Incidents

9.

Group Appraisal

10. Field

Review

TRADITIONAL METHOD
1. Confidential Report
This is a traditional form of appraisal used in
most government organization. A confidential report
is a report prepared by the employees immediate
superior. It cover the strengths and weaknesses,
main achievements and failure, personality and
behavior of the employee. It is descriptive appraisal
used for promotion and transfers of employees.

2. Free Form or essay Method


Under this method, the evaluator writes a short
essay on the employees performance on the basis of
overall impression. The description is expected to be
as factual and concrete as possible. An essay can
provide a good deal of information about the
employee especially if the evaluator is asked to give
examples of each one of his judgments.

3. Straight Ranking Method


In this method technique, the evaluator assigns
relative ranks to all the employees in the same work unit
doing the same job. Employees are ranked from the best
to the poorest on the basis of overall performance. The
wholeman is compared with the whole man without
analyzing performance. The relative position of an
employee is reflected in his numerical rank.
Employee
Rank
A
2
B
1
C
5
D
4
E
3
Straight ranking is one of the oldest and simplest
methods. It is time saving and a comparative evaluation
technique of appraisal.

4. Paired Comparisons Method


This is a modified from of man to man ranking.
Herein, each employee is compared will all the others in
pairs one at a time. The number of times an employee is
judged better then the others determines his rank.
Comparison is made on the basis of overall performance.

5. Forced Distribution Method


In this technique, the rater is required to distribute
his rating in the form of a normal frequency distribution.
The purpose is to eliminate the raters basis of central
tendency. Here also ranking technique is used. This
method is highly simple to understand and easy to apply

45
40
35

No. of
employee

30
25
20
15
10
5
0
Poor

Below Average Average

Good

Excellent

6. Graphic Rating Scales


It is a numerical scale indicating different degrees of a
particular trait. The rate is given a printed from for each
employee to bee rated. The form contains several
characteristics relating to the personality and performance of
employees. Intelligence, quality of work , leadership skills,
judgment, etc. are some of these characteristics. The rater
records his judgment on the employees trait on the scale.
The numerical points given to an employee are added up to
find out his overall performance a standing in the group.

7. Checklist Method
A checklist is a list of statements that describe
characteristics and performance of employee on the job. The
ratter checks to indicate if the behavior of an employee is
positive or negative to each statement. The performance of an
employee is rated on the basis of number of positive checks.

There are three types of checklist.


1.Simpale Checklist
2. Forced Choice Block
3. Weighted Checklist

Simple Checklist
1.
2.
3.
4.
5.

Is the employee regular on the job


Is
the
employee
respected
by
his
subordinates
Is the employee always willing to help his
peers
Does the employee follow instruction properly
Dose the employee keep the equipment in
order

Yes/No
Yes/No
Yes/No
Yes/No
Yes/No

Forced Choice Block


1.

Regularity on the job

Most

(a) Always regular


(b)
Informs
in
absence/delay
(c) Newer regular

Least

advance

for

(d) Remains absent without prior notice


(e) Neither regular nor irregular

Weighted Checklist
Traits
1. Attendance

Weight
s
0.5

1. Knowledge of the job

1.0

1. Quantity of work

1.0

1. Quality of work

1.5

1. Dependability

1.5

1. Interpersonal relation

2.0

1. Organization loyalty

1.5

1. Leadership potential

1.5

Performance
Ratings

8. Critical Incidents Method


In this method the supervisor keeps a written record
of critical events and how different employee behaved
during such events. The rating of an employee depends
on his positive/negative behavior during these events.
Worker

Reaction

Score

Informed the supervisor immediately

Became anxious of loss of output

Tried to repair the machine

Complained of poor maintenance

Was happy to get forced rest

9. Group Appraisal Method


Under this method, a group of evaluators assesses
employees. This group consists of the immediate supervisor
of the employee, other supervisor having close contact with
employees work, head of the department and a personnel
expert. The group determines the standers of performance
for the job , measures actual performance of an employee,
analyses the causes of poor performance and offers
suggestions for improvement in future.

10. Field Review Method

In this method, a training officer from the


personal department interviews line supervisors to
evaluate
their
respective
subordinates.
The
interviewer prepares in advance the questions to be
asked. By answering these questions a supervisor
gives his opinions about the level of performance of
his subordinate, the subordinates work progress, his
strengths and weaknesses, promotion potential, etc.

Modern Methods

1. Assessment Centre
Method
An assessment

centre is a group of
employees drawn from different work units. These
employees work together on an assignment similar to
the one they would be handling when promoted.
Evaluates observe and rank the performance of all the
participants. Experienced managers with proven ability
serve as evaluators. This group evaluaters all
employees both individually and collectively by using
simulation techniques like role playing, business games
and in basket exercises. Employees are evaluated on
job related characteristics considered important for job
success. The evaluators observe and evaluate
employees as they perform jobs.

2.Human Resource Accounting Method

Human resources are a valuable asset of


any organisation. This asset can be valued in terms of money.
When competent, and well-trained employees leave an
organisation the human asset is decreased and vice versa.
Under this method performance is judged in terms of costs and
contribution of employees. Costs of human resources consist
of expenditure on
human resource planning, recruitment,
selection, induction, training, compensation, etc. Contribution
of human resources is the money value of labour productivity
or value added by human resources is the money value of
labour productivity or value added by human resources.

3.

Behavioral Anchored Rating Scales

Performance Point

Extremely

good

Behavior

Can expect trainee to make valuable


suggestions for increased sales and to have
positive relationships with customers all

Good
Above
average
Average
Below
average
Poor
Extremely
poor

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.
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 &
roam around purposelessly.

4.Appraisal by Results or MBO


The concept of management by objectives(MBO) was
developed by Peter Drucker in 1954. He called it management
by objectives and self control. Since then MBO has became
an effective and operational technique of performance
appraisal and a powerful philosophy of managing. It is also
known as Work Planning and Review or Goal setting approach
to appraisal.

Management by objectives has been defined as


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 results expected of him and use these
measures as guides for operating the unit and assessing
the contribution of each of its members In other
words.MBO involves appraisal of performance against
clear, time bound and mutually agreed job goals.

Issues in appraisal system


Formal and informal
What methods?

When to evaluate?

What to evaluate?

Whose performance?

Appraisal
Design

Who are the raters?

What problems?
How to solve?

Advantages
provide a record of
performance over a
period of time.
Can be motivational
with the support of a
good reward and
compensation
Provide an
opportunity for an
employee to discuss
issues and to clarify
expectations

provide an
opportunity for a
manager to meet &
discuss performance

Provide the employee


with feedback about
their performance

Disadvantages
If not done appropriately, can
be a negative experience.
very time consuming,
especially for a manager
subject to rater errors &
biases.
If not done right can be a
complete waste of time.
Can be stressful for all
involved

Conclusion
Because

many of the more conventional performance


appraisalmethodshaveoftenprovedunpopularwiththo
se beingappraised and evaluators a like, 360 is gaining
popularity withmany managers and employees.
It offers a new way of addressing the performance issue.
Whenusedwithconsiderationanddiscipline,feedback
recipients will feel that they're being treated fairly.
Inaddition,supervisorswillfeelthereliefofnolonger
carrying the full burden of assessing subordinate
performance.
Thecombinedeffectoftheseoutcomesshouldresultin
increasedmotivation, which inturn improves
performance.