PERFORMANCE

APPRAISAL - 2
Systematic, periodic review and
analysis of a person’s performance
on a job.
Defining expectations for performance and
measuring, evaluating and recording
performance relative to those expectations
and providing feedback about the
performance to the individual concerned.
• Is an organization necessity
• Is based on well defined, objectives criteria.
• Is based on careful job analysis
• Uses only job related criteria
• Is supported by adequate studies
• Is applied by trained, qualified raters
• Should not be discriminatory.
 Objectives of performance appraisal
• To bring out strengths and weakness
• Performance improvement
• Compensation adjustment
• Placement decisions
• Performance based training and development
• Career development
• Promotions and transfers
• Improving communication
• Introspection and self-evaluation
• Understanding rules better and becoming more effective
• Improving relationships
• Creating a positive and healthy climate
Who should assess performance
appraisal?
• The immediate superior
• The peer
• The sub-ordinate
• Self assessment
• The customer/vendor
Traditional performance appraisal
methods
• Ranking method
• Paired comparison method
• Scaling method
• Forced choice method
• Forced distribution method
• Field review method
• Critical incident method
• Peer ranking method
• Check list method
Modern methods of performance appraisal

• BARS
• BOS
• MBO
• 360 degree PERFORMANCE APPRAISAL
• Assessment centres
BEHAVIOR ANCHORED
RATING SCALES (BARS)
 BARS require superiors to evaluate
subordinates on a set of dimensions of
work behaviour that have been carefully
correlated to the specific job being
performed by the person being
evaluated.
Each response along the dimensions of a
BARS is labeled, or “anchored,” with
examples of specific job behaviour
corresponding to good performance,
average performance, poor performance.
Ability to communicate and gain co-
operation among departments
 •Reports are clear and well organized
EXCELLENT •Speaks & writes clearly and precisely
•Continually communicate to all departments
PERFORMANCE •Foresees conflicts between the departments
1 •Handles the conflicts with initiative

•Uses language very well in conveying

his ideas
•He makes few mistakes in oral &
VERY GOOD written communication
PERFORMANCE •He informs & co-operates with other
departments
2
•Reduces misunderstanding between
departments when they arise
 •Conveys the necessary information
Good performance to all departments
•He never tries to prevent
3 misunderstandings

Average •He is not clear in communicating

performance information
4
•Leaves out essential information
while communicating
Poor performance •Does not know how to handle
misunderstanding
5 •Misunderstanding arise due to lack
of communication
 Very poor
performance
•Creates misunderstanding between
6 departments
•Depends on others for solving conflicts
between the departments

Unacceptable
performance
7 •Refuses to communicate with department
•Does not co-operate with department
•Refuses to settle misunderstandings
 Relevance
• Errors in rating are minimized
• It is reliable,valid and meaningful
• Acceptance by the supervisor and the
employees
• There is minimum supervision
 Difficulties
• It is time consuming and expensive
• It involves a lot of work
• BARS concentrate only on physical
observable behaviour
• BARS cannot cover every area of
behaviour
 BEHAVIOURAL
OBSERVATION SCALES
(BOS)
 BOS was developed by Latham and
associates in the year 1979. BOS uses
‘Critical Incident Technique’ and
‘Summated Rating Scale’ to identify a
series of behaviours covering the domain
of the job.
Over coming resistance to change.
• Describes the details of the change to subordinates
Always (5) Often (4) Occasionally (3) Seldom (2) Never
(1)
• Explains why the change is necessary
Always (5) Often (4) Occasionally (3) Seldom (2) Never (1)
• Discusses how the change will affect the employee
Always (5) Often (4) Occasionally (3) Seldom (2) Never (1)
• Asks the employee for help in making the change work
Always (5) Often (4) Occasionally (3) Seldom (2) Never (1)
• If necessary,specifies the date for a follow-up meeting to
respond to the employee’s concerns
Always (5) Often (4) Occasionally (3) Seldom (2) Never (1)
 Relevance

 Valid and reliable

 Generates high level of employee acceptance
 Provides employees with useful feedback
 It helps in designing training and development activities
 focuses on actual observer able behaviour rather than
on expected behaviour
 Occurrence of errors is less when compared to BARS
 Difficulties
 It is difficult to apply to BOS on jobs whose
primary components may not be physically
observable
 Expert skill is needed to frame BOS
Management by objectives
MBO is result-based method
of performance appraisal.
A Process in which managers set specific
and measurable goals with each individual
employee on a regular basis. The
employee is then responsible for achieving
his or her goals within a certain time.
Individuals are evaluated on the basis of what
they accomplish and not how they get the job
done.
 Steps in MBO
 Each individual meets his superior and discusses
the plans for the coming performance period.
 They jointly agree on certain specific performance
goals
 A congenial environment is created for achieving
those goals.
 The individual must have abilities and skill to
achieve those goals.
 Actual performance is measured against those
goals
 Goals can be revised when there are difficulties.
360 DEGREE PERFORMANCE
APPRAISAL
A systematic collection and feedback of
performance data of an individual or a
group from a number of stake holders.
• Multi rater feedback
• All round feedback
• 360 degree feedback
• 360 degree appraisal
• Peer appraisal
• Upward feedback
 Characteristics

• Measures behaviors and competencies

• confidently assessed by themselves, their
boss, their staff, team members, internal/
external customers, suppliers, family and
friends
• Raters judge what they perceive as behavior
not the intentions behind it.
• The feedback is useful for development
appraisals, team building, validation of training,
organization development and remuneration.
• Presents feedback in a powerful way and can
impact on the quantity and quality of
performance
• Results are a mixture of strengths and
weaknesses
• Is not a quick process.
• Concentrates on performance and developing
receptive attitudes
 Pitfalls
• May not be the same after receiving the feedback
• Feel humiliated when the whole organization keep pointing
out to him.
• A person who gets feedback may spread, negatively to
people whom he feels are responsible for it
• Persons with low emotional intelligence may not take it
positively.
• Given feedback on their faults and they don’t know where
they start correcting them.
• Heavy dose of feedback can be painful
• A supporting environment in which people can change
should be created
• Be sensitive to the needs of people who are likely to receive
negative feedback.