Performance Management and

Appraisal
Objectives of PA
Evaluation objectives include
 Provision of feedback to subordinates to

know where they stand

 Developing valid data for personnel

decisions concerning placement, pay,

promotion punishment etc
 …..Contd.
The developmental objectives include
 Diagnosing individual and organizational
strengths and weaknesses
 Counseling, coaching, career planning and
motivation of subordinates
 Developing positive superior-subordinate
relations
Concerns of employees
 Tell me what you expect from me
 Give me an opportunity to perform
 Let me know how well I am getting on
 Give me guidance where I need it
 Reward me according to my
contribution
 
Uses of PA
 Systematic efforts to tone up performance based on
performance results, appropriate feedback and corrective
actions
 Input for an array of personnel decisions such as placement,
transfer, promotion and reward
 To identify individuals with high potential
 To develop career and succession planning
 To analyze training and development needs
 To take decisions on termination
 Human resource planning
 For diagnosing individual and organizational problems
 To validate selection and recruitment tests and procedures
 
PA Responsibilities
HR Unit
 Designs and maintains formal system

 Establishes formal report system

 Makes sure reports are on time

 Trains rater
…..Contd.

Manager
 Actually rate performance of employees

 Makes formal reports

 Review appraisals with employees

Who does the Appraising
 Superior rating of subordinates
 Subordinate rating of superiors
 Peer ratings
 Multiple rating system
Methods for Appraising
Performance
 Graphic Rating scale
 Checklist
 Forced choice
 Comparative methods
 Written methods
 Critical incident
 Essays
 Field Review
Special Methods of PA
 BARS: Behaviorally Anchored Rating
Scales
 MBO: Management by Objectives
 Job Review and agreement
 Development of performance standards
 Guided objective setting
 Ongoing performance discussions
Drawbacks of PA system
 Rater errors
 Problem of varying standards
 Recency problem
 Rater bias
 Rater patterns
 Halo effect
Appraisal Feedback Interview
 Common Concern
 Reaction to PA
 Reactions of Managers
 Reactions of Appraised employee
Hints for the Appraisal
Interview
DO
 Prepare in advance
 Focus on performance and development
 Be specific about reasons for ratings
 Decide on specific steps to be taken for
improvement
 Consider your role in the subordinates
performance
 Reinforce the behavior you want
 Focus on the future performance
…..Contd.
Don’t
 Lecture the employee
 Mix performance appraisal and salary and
promotion issues
 Concentrate only on the negative
 Do all the talking
 Be over critical or harp on a failing
 Feel it is necessary that both of you agree on
everything
 Compare the employee to others.