PERFORMANCE

APPRAISAL

Presented by,
AISHWARIYA KOORAVI
MBA 2ND YEAR
TKRIMS
DEFINATION
According to Dale S. Beach “performance appraisal is a systematic evaluation of
the individual with respect to his or her performance on the job and his or her
potential for development.
Performance appraisal from the employee point of view – “ A performance
appraisal is meant to help employees realize their strength and shortcomings and
receive a compensation accordingly.”
The term performance appraisal refers to the regular review of an employee’s job performance and overall
contribution to a company. It is also known as annual review, performance review or evaluation, or employee
appraisal, it evaluates an employee skills, achievements, and growth or lack of an employee in an
organization.
Companies uses performance appraisals to determine which employees have contributed the most to the
company’s growth, review progress, and reward high-achieving workers.
Performance appraisal are usually designed by human resources (HR) departments as a way for employees to
develop in their careers, as they provide individuals with their feedback on their job performance.
2
PURPOSE OF PERFORMANCE APPRAISAL

1 . P E R F O R M A N C E A P P R A I S A L H E L P S T H E M A N A G E M E N T
T O T A K E D E C I S I O N A B O U T T H E S A L A R Y I N C R E A S E O F
A N E M P L O Y E E .

2 . T H E C O N T I N U O U S E V A L U A T I O N O F A N E M P L O Y E E H E L P S
I N I M P R O V I N G T H E Q U A L I T Y O F A N E M P L O Y E E .

3 . T H E P E R F O R M A N C E A P P R A I S A L B R I N G S O U T T H E F A C I L I T I E S
A V A I L A B L E T O A N E M P L O Y E E , W H E N T H E M A N A G E M E N T I S P R E P A R E D
T O P R O V I D E A D E Q U A T E F A C I L I T I E S F O R E F F E C T I V E S P E R F O R M A N C E .

4 . T O P R O V I D E A D E Q U A T E F E E D B A C K T O E A C H P E R S O N O N H I D O R H E R P E R F O R M A N C E .

5 . T O A L L O W F O R E M P L O Y E E S E L F - D E V E L O P M E N T A N D T O A L L O C A T E R E W A R D .

3
CONCEPT OF PERFORMANCE APPRAISAL

1. AP P RAIS AL S HOUL D B E IN W RI TIN G AND CA RR IE D AT L EAS T ONCE A YEAR .

2. T H E P E R F O R M A N C E A P P R A I S A L I N F O R M AT I O N S H O U L D B E S H A R E D W I T H T H E E M P L O Y E E .
3. E M P L O Y E E S H O U L D H AV E T H E O P P O R T U N I T Y T O R E S P O N D I N W R I T I N G .
4. E M P L O Y E E S S H O U L D H AV E A M E C H A N I S M T O A P P E A L T H E R E S U LT S O F T H E A P P R A I S A L .
5. M A N A G E R S S H O U L D H AV E A D E Q U AT E O P P O R T U N I T I E S T O O B S E R V E T H E E M P L O Y E E .
6. ANECDOTAL NOTES ON THE EMPLOYEES PERF ORMANCE SHOULD BE KEPT DURING THE
E N T I R E E VA L U A T I O N P E R I O D .
7 . E VA L U AT O R S H O U L D B E T R A I N E D T O C A R R Y P U T T H E P E R F O R M A N C E A P P R A I S A L P R O C E S S .
8 . P E R F O R M A N C E A P P R A I S A L S H O U L D O N E M P L O Y E E B E H AV I O U R A N D R E S U LT S R AT H E R T H A N O N P E R S O N A L T R A I T S O R C H A R A C T E R S .

4
5
PERFORMANCE MANAGEMENT AND PERFORMANCE APPRAISAL
Performance Management
1. It is a continuous process that focuses
on aspects like planning, monitoring,
and evaluating employee
performance.
2. It defines company’s goals.
3. Setting realistic expectations for
managers and employee.
4. Establishing clear communication
between individuals and team work.
5. Defining a performance plan by
setting performance benchmark.
6. Shape individual training and
performance plans.
7. It is a behavioural approach which
identifies and measures behaviours to
evaluate employee.
6
Performance Appraisal
1. It is also known as performance
review by enhancing the productivity
of a company.
2. It is conducted in a systematic process
by measuring the employees
remuneration and other factors.
3. The factors responsible for the
performance of an employee are
assessed and evaluated.
4. keeping records to decide stipend
structure, bonuses.
5. Identifying and evaluating the
potential of an employee for further
growth and development.
6. Providing feedback and positive
impact in the working habits.
OBJECTIVES OF PERFORMANCE APPRAISAL

Promotion
Goal setting Feedbacks
s

Training and
development
Appraise Career
programs
performance planning

Productive Improves Design

work communicati appraisal
environment on program

7
OBJECTIVES
1 . GOA L SETTIN G I S AN ESSEN TI AL PRO CESS TO BU ILD A SU PERIO R PERFO RMA NCE APPRAI SAL SYSTEM, EMPLOY EE SHOU LD FO CUSES ON FEW SIGN IFICA NT GOA LS, THOSE GOA LS SHOULD BE “SMART”.
2 . E V E R Y E M P L O Y E E S E E K S T O C L I M B U P T H E C O R P O R AT E L A D D E R A N D F U R T H E R T H E I R C A R E E R D E V E L O P M E N T, I T I D E N T I F I E S T H E T O P P E R F O R M A N C E O F T H E T E A M W H I C H I N T U R N H E L P S E N S U R E T H AT T H E T O P P O S I T I O N S G E T F I L L E D B Y T H E M O S T D E S E RV I N G C A N D I D AT E S .
3 . T H E C O N S T R U C T I V E F E E D B A C K P L AY S A N E X T R E M E LY V I TA L R O L E I N E M P L O Y E E S D E V E L O P M E N T , T H E Q U A L I T Y A N D Q U A N T I TAT I V E F E E D B A C K G I V E N D R A S T I C A L LY I M P R O V E T H E P E R F O R M A N C E A P P R A I S A L P R O C E S S .
4 . A N E F F I C I E N T P E R F O R M A N C E R E V I E W W I L L H E L P Y O U D E T E R M I N E T H E N E E D F O R T R A I N I N G E M P L O Y E E S T O F U R T H E R T H E I R S K I L L S A N D C O M P E T E N C I E S , T H I S I N T U R N H E L P S T H E M A N A G E R S D E C I D E T H E T Y P E A N D A M O U N T O F T R A I N I N G R E Q U I R E D O N A C O M PA N Y- W I D E B A S I S .
5 . A N A P P R A I S A L P E R F O R M A N C E P R O V I D E S A G R E AT B A S E T O S TA R T W H I C H M A K E I T E A S I E R F O R M A N A G E R S T O C L E A R LY C O M M U N I C AT E T H E I R E X P E C T AT I O N S .
6 . A P ER F O R M A N CE A P P RA I S A L P R O C E S S H EL P S T O I N C R E A S E T H E P E R F O R M A N C E O F T H E EM P L O Y E E TO S E T T H E S TA N D A R D O F T H E P E R F O R M A N C E .
7 . W H E N T H E M A N A G E R S T A K E T I M E O U T T O A N A LY S E A N D D I S C U S S T H E E VA L U AT I O N P R O C E S S I T S E N D A N U N D E R L Y I N G M E S S A G E T O T H E E M P L O Y E E T H AT H E I S VA L U A B L E .
8 . E F F E C T I V E C O MM U N I CAT I O N B E T W E E N E M P L O Y E E S A N D E M P L O Y E R S I S V E RY I M P O RTA N T.
9 . E M P L O Y E E AT VA R I O U S L E V E L S O F O R G A N I Z AT I O N H AV E D I F F E R E N T R E S P O N S I B I L I T I E S A N D T A R G E T S

8
METHODS OF
PERFORMANC
E APPRAISAL

9
MODERN ME THOD
1. MANAGEMENT BY OBJECTIVES : M A N A G E R S A N D S T A F F W O R K T O G E T H E R T O I D E N T I F Y, P L A N , O R G A N I Z E , A N D C O M M U N I C A T E G O A L S I N T H I S S T R A T E G Y. T H E S M A R T ( C E R TA I N , M E A S U R A B L E , A C H I E V A B L E , R E A L I S T I C , A N D T I M E - S E N S I T I V E ) T E C H N I Q U E I S U S E D T O V A L I D A T E
OBJECTIVES FOR A SPECIFIC APPRAISAL PERIOD.

10
2 . 3 6 0 D E G R E E A P P R A I S A L : B U S I N E S S E S R E C O G N I Z E T H A T I N O R D E R T O K E E P M O T I V A T E D A N D E N G A G E D , E M P L O Y E E S W A N T H O N E S T A N D O B J E C T I V E F E E D B A C K O N T H E I R W O R K . A C O N S TA N T 3 6 0 - D E G R E E D I G I T A L F E E D B A C K S Y S T E M
PROVIDES THE EMPLOYEE WITH NEW FEEDBACK CHANNELS.

11
3.ASSEME NT C EN TER S: THE ASSESSMENT C ENTER METH OD'S EFFIC AC Y ALLOWS EMPLOYEES TO GAIN A C LEAR IMAGE OF THEIR OWN PERF ORMANC E AS WELL A S H OW OTH ERS SEE T HEM. TH ESE EXER CISES
C A N A L S O R E V E A L T H E I M PA C T O F O T H E R S ' P E R S P E C T I V E S O N T H E I R P E R F O R M A N C E . I T I S M U C H E A S I E R T O A S S E S S A N E M P L O Y E E ' S P R E S E N T P E R F O R M A N C E A S W E L L A S P R E D I C T F U T U R E P E R F O R M A N C E .

12
4 . B E H AV I O R A L LY A N C H O R E D R AT I N G S C A L E : B O T H T H E Q U A L I TAT I V E A N D Q U A N T I TAT I V E A S P E C T S O F A N E M P L O Y E E ' S P E R F O R M A N C E A R E E X A M I N E D I N T H I S M O D E R N T E C H N I Q U E O F
P E R F O R M A N C E A P P R A I S A L . B A R S E VA L U AT E S A N E M P L O Y E E ' S P E R F O R M A N C E A G A I N S T A S E T O F B E H AV I O R A L E X A M P L E S T H AT A R E R AT E D N U M E R I C A L LY

13
TRADITIONAL METHOD
1 . R A N K I N G M E T H O D : I T I S A W E L L - K N O W N C O N V E N T I O N A L M E T H O D O F E VA L U AT I N G P E R F O R M A N C E . A R AT I N G S C A L E I S C O N S T R U C T E D I N T H I S W AY T O E VA L U AT E A N E M P L O Y E E ' S P E R F O R M A N C E A G A I N S T S P E C I F I E D FA C T O R S . H I S AT T I T U D E , AT T E N D A N C E ,
P U N C T U A L I T Y, A N D I N T E R P E R S O N A L S K I L L S A R E F R E Q U E N T L Y A M O N G T H E S E C R I T E R I A .

14
2 . C H E C K L I S T M E T H O D : A C H E C K L I S T I S C R E AT E D U S I N G T H I S W AY. I T I S M A D E U P O F D E S C R I P T I V E W O R D S O N T H E E M P L O Y E E ' S B E H AV I O R . Y E S A N D N O , O R T R U E O R F A L S E , A R E T H E T W O P O S S I B I L I T I E S
F O R A N Y A S S E R T I O N . T H E R AT E R C A N S E L E C T O N E O F T W O O P T I O N S T H AT H E B E L I E V E S B E S T C H A R A C T E R I Z E S T H E E M P L O Y E E ' S B E H AV I O R .

15
3. CRITICAL INCIDENT METHOD : T H E C R I T IC A L E V E N T T E C H N IQ U E F O C U S ES O N C R U C IA L E M P LO Y E E B E H AV IO R S , S U C H A S AN E MP L O YE E ' S
R E A C T IO N TO A C E RTA IN S IT U AT IO N . A S A R E S U LT, T H I S T E C H N IQ U E E VA L U AT E S P E R F O R M A NC E A G A IN S T A LIS T O F E S S E N T IA L B E H AV I O R S .

16
4. ESSAY METHOD: I N TH I S ME T HO D, TH E R AT E R WR I T ES A D ES C RI PT I O N A B OU T THE B EH AV I O R A ND P E RFO RMA N CE O F THE E MP L OY E E . THE
D ES CR I P TI ON I NC L UD ES AL L RE L E VA N T I N FO R MAT I ON L I KE EM PL O Y EE S ATT I TU D E, J O B K NO WL E DG E, CU RR EN T P ER FOR MA NC E A ND P OTE NTI AL
F OR G RO WTH.

17
5. PAIRED COMPARISON METHOD : E MP L OY E ES A R E E VA LUATE D US ING T H IS MET H OD BA S E D ON A SIN GL E T R AIT. E A CH E MP L OY EE IS
C OMPA R ED TO OTH E RS ON A ON E-TO-ON E BA S IS , IN PA IR S , B A SE D ON T H IS T RA IT.

18
6. FIELD REVIEW METHOD: THIS METHOD IS BASED ON SUPERIORS' OPINION ON THE PERFORMANCE, BEHAVIOR AND
SKILLS OF THE EMPLOYEE. THE HR SPECIALIST ASKS SENIORS TO ANSWER QUESTIONS RELATED TO EMPLOYEE'S
EMPLOYMENT AND APPRAISES THE EMPLOYEE ON THE BASIS OF FEEDBACK RECEIVED FROM THE SUPERIORS

19
THANK YOU
Insert Image