Performance Appraisal

Submitted by:-
Sneha Goyel
202010702010004
 Performance Appraisal is the systematic evaluation of
the performance of employees and to understand the
abilities of a person for further growth and
development. Performance appraisal is generally done
in systematic ways which are as follows:
The supervisors measure the pay of employees and
compare it with targets and plans.
The supervisor analyses the factors behind work
performances of employees.
The employers are in position to guide the employees
for a better performance.
 Meaning
A performance appraisal used in the organization is a
regular review of employees’ performance to verify
their contribution to the company. It is also known as
an annual review or performance evaluation. It
evaluates the skills, growth, achievement, or failure of
the employees. The performance appraisal is often
used to justify the decisions related to promotions, pay
hikes, bonuses, and termination of the employee.
 Definition
An employee performance appraisal system has
defined a process in which a predefined standard of
factors such as work knowledge, work performance,
work attitude, leadership quality, team player
behavior, consistency, decision-making abilities, and
skills is created and then actual performance, as well
as the personality of employee, is compared with these
expected standards by the organization.
Types of Performance Appraisal
Self-assessment: Here the employee themselves rate their job
performance and work behavior
Peer assessment: Under this assessment, the team members, co-
workers, and workgroup are responsible for the performance rating of
the employee.
360-degree performance appraisal: In this type of appraisal the
performance rating is collected from the employee, their immediate
supervisor, and peers.
Negotiated appraisal: In order to avoid the conflicts between
employee and their supervisors a new trend of appraisal is utilized. In
this type of performance appraisal, a mediator evaluates the
performance of the employee and puts focus on the good side of
performance rather than the criticism.
 Method of Performance Appraisal
Employee performance appraisal has two types of
methods namely traditional methods and modern
methods used by various organizations. The
traditional methods are quite simple and quick to
execute while the modern methods are more focused
on covering the overall well-being of the organization.
 Traditional Method of Performance
Appraisal
Rating Scales: In this scale, the factors such as attitude, initiative,
dependability, etc are quantified. A range of excellent to poor is provided
to the rater and based on the rating the performance of the employee is
calculated.
Checklist: A checklist form of performance appraisal consist of a column
of ‘Yes’ and ‘No’ for different employee traits. The rater has to put a tick
mark based on if the traits exist or do not exist in the employee.
Essay Method: Under this method, the detailed description of the
employee performance is written by the rater. The performance of an
employee, his relations with other Co-workers, requirements of training
and development programs, strengths and weaknesses of the employee,
etc. are some of the points that are included in the essay.
 Modern Method of Performance Appraisal
Assessment Centers: A series of exercises are conducted at the assessment
center of the company to actually evaluate the performance of the employee.
The employees are evaluated in terms of communication skills, mental
alertness, emotional intelligence, confidence, and administrative abilities.
360-Degree Feedback: It is particularly a 360-degree feedback method in
which the information about the performance of the employee is collected
from supervisors, peers, group members, and self-assessment. All the remarks
are considered to evaluate the overall work performance of the employee.
Psychological Appraisals: Psychologists are invited to the companies for the
performance appraisal of the employees. Here the performance is in the
context of the potential future performance.
 Objective of Performance Appraisal
The performance appraisal system maintains the
records which are used to determine the compensation
and wage structure of the employee.
It is very useful to determine the strengths and
weaknesses of the employees and helps to place the
right person at the right job.
It provides access to the potential in the person for
future growth and development.
 Continue…
It gives the necessary feedback regarding the
performance of the employee and their actual
contribution to the growth of the organization.
It guides the HR department about the training needs
of the employees.
It influences the working habits of the employees and
makes them work-oriented.
 Advantages of Performance Appraisal
It helps the supervisors to chalk out the promotion for
performing employees and dismiss the inefficient workers.
It helps the organization to decide the compensation of the
employee. Also, based on the performance and the additional
efforts put by the employee the extra benefits and allowances
can be decided using records of performance appraisal.
Special actions can be taken for the development of the
employees. The performance appraisal system will highlight the
weakness of the employee based on which the training program
arrangement can be carried out by the organization.
The performance appraisal further suggests the changes in the
selection process which will help to hire better employees.
 Disadvantage of Performance Appraisal
Performance appraisal totally depends on the factors
used for the evaluation of the performance. The use of
incorrect or irrelevant factors can lead to the failure of
performance appraisal.
Sometimes the vital factors responsible for the
performance are ignored during performance appraisal.
The factors like attitude, abilities, and initiative are very
vague and difficult to gauge.
Sometimes the managers who carry out the performance
appraisal are not qualified enough to properly assess the
abilities of the employees. Thus, it leads to irrelevant data
collection and failure of performance appraisal.