Performance Appraisal :

Performance Appraisal (PA) refers to all

those procedures that are used to
evaluate the personality, performance,
potential of a Individual or a group.
 Relationship between job analysis and performance
appraisal:

Job analysis performance performance

standards appraisal

Describes work Translate job Describes the

& Personnel Into levels of Job relevant
To acceptable strengths and
Requirement
Or unacceptable weakness of
Of a particular
performance Each individual
job
 Characteristics
• It is a step by step process.
• It examine the employee strength
and weaknesses.
• Scientific and objective study
• Ongoing and continuous process
• Secure information for making
correct decisions on employees
 Needs and Objectives:

• Provide feedback about employees.

• Provide database.
• Diagnose the S & W of individuals
• Provide coaching, counseling, career planning
to subordinates.
• Develop positive relation and reduce
grievance.
• Facilitates research in personnel management.
 Appraisal Benefits

For Employees :
1. Direction
2. Feedback
3. Input
4. Motivation
 Appraisal Benefits

For Company :
1. Documentation
2. Employee Development
3. Feedback
4. Legal Protection
5. Motivation System
Steps in performance appraisal
Establishing job standards

Designing an appraisal programme

Appraise performance

Performance interview

Use appraisal data

For appropriate purpose
Process of PA :

Setting
performance
standards
Taking corrective Communicating
standards standards

Discussing Measuring
results standards

Comparing
standards
 What to evaluate? (Philip Model)

H Problem
Stars
children

Potential Social
Planned
separation citizen
L

L H
Performance
Essentials of an effective appraisal system
• Mutual trust
• Clear objectives
• Standardizations
• Training
• Job relatedness
• Documentation
• Feedback and participation
• Individual differences
• Post appraisal review
• Review and appeal
Performance Appraisal Methods

1. Individual Evaluation Methods

i. Confidential Report
ii. Essay Evaluation
iii. Critical Incidents
iv. Checklists
v. Graphic Rating Scale
vi. Behaviorally Anchored rating Scale
vii. MBO
 Critical Incident method
Ex: A fire, sudden breakdown, accident

Workers Reaction Scale

A informed the supervisor immediately 5

B Become anxious on loss of output 4
C tried to repair the machine 3
D Complained for poor maintenance 2
E was happy to forced test 1
 BARS( behaviorally Anchored rating scale)

Step 1. Identify critical incidents

Step 2. Select performance dimension

Step 3. Retranslate the incidents

Step 4. Assign scales to incidents

Step 5. Develop final instrument

 MBO Process

• Set organizational goals

• Defining performance target
• Performance review
• Feedback
 Performance Appraisal Methods

2. Group Appraisal
– Ranking
– Paired comparison
– Forced distribution
– Performance tests Field review technique
Problems in performance appraisal

1. Central Tendency Error

2. Contrast Error

3. False Attribution

4. Halo Effect

5. Leniency Error

6. Perceived Meaning
7. Recency Error

8. Severity Error

9. Stereotyping

10. Lack of Documentation

11. Inadequate Feedback

12. Poor Leadership Training

Essentials of an effective appraisal system

•Mutual trust
•Clear objectives
•Standardizations
•Training
•Job relatedness
•Documentation
•Feedback and participation
•Individual differences
•Post appraisal review
•Review and appeal