Performance appraisal

Under the Supervision of: Deepti Lele

Presented By: Anil Kumar Prateek Mathur Rajesh Swain Sandeep Malaiya Vikas Gupta

y Systematically managing all the people in an

organization, for innovation, goal focus, productivity and satisfaction--it is a goal- congruent win - win plan.
y Armstrong and Baron define performance management

as a

³strategic and integrated approach to delivering sustained success to organizations by improving performance of people who work in them and by developing the capabilities of teams and individual contributors

Traditional Method

Modern Method

Tradition method/Past oriented approach
y Traditionally, performance appraisal has been used as just a method

for determining and justifying the salaries of the employees. Than it began to be used a tool for determining rewards (a rise in the pay) and punishments (a cut in the pay) for the past performance of the employees. This approach was a past oriented approach which focused only on the past performance of the employees i.e. during a past specified period of time. This approach did not consider the developmental aspects of the employee performance i.e. his training and development needs or career developmental possibilities. The primary concern of the traditional approach is to judge the performance of the organization as a whole by the past performances of its employees Therefore, this approach is also called as the overall approach.

Traditional Methods of performance appraisal
y Graphics Rating Scales y Ranking Method y Forced Distribution Method y Paired Comparison Method y Check list Method y Critical Incident Method y Field Review y Behaviorally Anchored Rating Scales y Confidential Record/Reports y Forced Choice Method y Essay Method y Group Appraisal Method

Graphic Rating scales
y A scale that lists a number of traits and a range of performance for each that is used to identify the score that best describes an employee s level of performance for each trait.

Check List Method

Checklist describing behaviour of the employees on job. Contains a list of statements on the basis of which the rater describes job performance . Checks if behaviour is positive or negative to each statement Employee performance rated on the number of positive checks. Negative checks are not considered

Critical Incident Method
y Continuous appraisal method y Supervisor continuously records in a specially

designed notebook.
y Rating on basis of critical events. y Includes both negative and positive points.

Examples of Critical Incidents for an Assistant Plant Manager




An example of a good critical incident of a sales assistant is the following: July 20 The sales clerk patiently attended to the customers complaint. He is polite, prompt, enthusiastic in solving the customers problem. On the other hand the bad critical incident may appear as under:
y July 20

The sales assistant stayed 45 minutes over on his break during

the busiest part of the day. He failed to answer the store manager s call thrice. He is lazy, negligent, stubborn and uninterested in work.
y ITC Classic finance, Voltas, VST Industries etc follows this method.

Group Appraisal Method
y The group consists of immediate supervisor of the employee who act

as the co-ordinate for the group activities.
y y y

Other supervisors who have close contact with the employee s work. Manager or head of the departments. Group appraises the performance of the employee, compares the actual performance with standards, find out the deviations.


Suggests ways for improvement of performance, prepares action plan.

Kinetic Honda, Birla VXL, and Blue Star follows this method.

Paired Comparison Method
Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better employee of the pair.

Note: + means ³better than.´ í means ³worse than.´ For each chart, add up the number of 1¶s in each column to get the highest-ranked employee.

Ranking Method
Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked

Forced Choice Method
y Performance appraisal method in which rater is forced

to select statements which are readymade.
y Drawbacks
y y

The statements may not be properly framed. The statements may not be precisely descriptive of the ratee s traits.

Forced Distribution Method
The rater is asked to appraise the employee according to predetermined distribution scale. The worker is placed between two extremes of good and bad performance. The rater has to distribute his ratings in a pattern to confirm to normal frequency distribution

Confidential Records
Descri tive re rt f t e year l yee s i ts t e stre e iate s t sa ervis r ea esses f

y Pre are at t e e y Pre are y T e re

yt ee rt i li


l yees ver e t r a izati
ac to t e e

y Pre are i


y Does ot offer a y fee

Essay Method
y Supervisor write a description of the employee s

performance. y Format emphasizes employees overall performance based on strengths and weaknesses of employee performance rather than specific job dimension. y Often used along with other types of appraisals, notably graphic rating scales. y They provide an opportunity for supervisors to describe aspects of performance not thoroughly covered by an appraisal questionnaire.

Field Review Method
y The appraiser goes to the field and obtains

the information about work performance of the employee by way of questioning the said individual, his peer group, and his superiors

Queries ?

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