PERFORMANCE APPRAISAL

• Performance Appraisal is the systematic

evaluation of the performance of employees and
to understand the abilities of a person for further
growth and development.
Purpose Of Performance Appraisal

• Compensation
• Personnel Decisions
• Training
• Research
PROCESS OF PERFORMANCE APPRAISAL

• DEVELOPING PERFORMANCE STATANDS

• COMMUNICATING THE STANDARDS
• MEASURING PERFORMANCE
• COMPARING STANDARDS
• DISCUSSING RESULTS
• TAKING CORRECTIVE ACTIONS
Traditional Appraisal Methods

• Rating Scales
• Essay
• Management by Objectives
• Check Lists by Key Words
• Forced Choice Statements
• Ranking of Employees
Modern Appraisal Method

• Immediate Supervisor • Evaluation Teams

• Higher Management • Customers
• Self-Appraisals • “360° Appraisals”
• Peers (Co-Workers)
Supervisor Appraisal

• Performance appraisal done by

an employee’s manager and
often reviewed by a manager one
level higher.
Self-Appraisal

• Performance appraisal done by the

employee being evaluated, generally on
an appraisal form completed by the
employee prior to the performance
review.
 Subordinate Appraisal

• Performance appraisal of a superior by an

employee, which is more appropriate for
developmental than for administrative
purposes.
 Peer Appraisal

• Performance appraisal done by one’s

fellow employees, generally on forms
that are complied into a single profile for
use in the performance interview
conducted by the employee’s manager.
Team Appraisal

• Performance appraisal, based

on TQM concepts, that
recognizes team
accomplishment rather than
individual performance.
The 360º Appraisal Interview
Supervisor

Other Other
Superiors Superiors

Individual
Peers Staff Customers
Self-Assessment

Teams Teams

Sub-Ordinates
SOURCES OF APPRAISAL
SUPERIOR:
Supervisors are likely to see many of the day to day tasks
completed by employees and know how the employees outcomes relate to
overall organizational objectives. Supervisors may not be aware of how
employees interact with one another

SUB-ORDINATE:
Subordinates tend to closely monitor their supervisors behavior, making them a good
candidate for rating supervisor performance but they may not see the supervisors day to day
tasks that do not directly involve the subordinate and would not be able to speak to these
behaviors
Peers:

Pees are well-equipped to rate other team members performance since

they would work closely with them on a daily basis. They would also witness
typical performance as opposed to maximum performance that might occur if an
employee knows a manager is watching.

Self:
Being able to rate once self (along with at least one another resource)
can help to reduce defensiveness or another negative reactions to negative
feedback from someone else because this gives the individual more voice in the
process about how he or she perceived the performance level.
 Problems In Appraisal System

Poorly Trained Managers:

It is important that training is provided to introduce the
philosophy of performance appraisal at the organization. Training
should take place regularly as a refresher both for new and veteran
managers.

Inconsistent Ratings:
Inter-rater reliability is generally very low between
managers at any organization. what one manager considers to be
“acceptable” performance, another may consider “not meeting
expectations.
Lack of Outcome-Based Measures:
The best appraisal for both managers and employees to judge
performance based on measurable outcomes that are objective, level of sales,
safety records and evaluations from customers are all measurable ways of providing
employees performance.

Not Used For Performance Improvement:

The purpose of performance appraisal is not only to provide input to
employees about how they're doing, but also to provide the organization with an
indication of areas of employee strength and opportunity for improvement.
ADVANTAGES
 FEEDBACKS
 MOTIVATION
 PERFORMANCE DOCUMENTS
 STRUCTURE FOR DISCUSSION
DISADAVANTEGES
BIASNESS
STRESSFUL ENVIRONMENT
 TIME CONSUMING
An Ideal Performance Appraisal
1. It should provide feedback instead of
criticism
2. It should be for the Personal Development
of both the Employee & the Employer
3. It should serve as a Learning Experience
4. It’s an Investment in the Employees
5. An opportunity to give and receive
Feedbacks
7. It sets the tone for S.M.A.R.T objectives
for the future
7. Evaluates Employee’s Behaviors at work
8.It should be a Two-Way Street
9. It gives you confidence to progress
10. Important for both the Employee and the
Employer