PERFORMANCE APPRAISAL

Meaning
Performance evaluation or performance appraisal is the process of
assessing the performance and progress of an employee or of a group
of employees on a given job and his potential for future development.
It consists of all formal procedures used in, working organisations.
DEFINITION

Performance appraisal is the systematic, periodic and an impartial

rating of an employee's excellence in the matters pertaining to his
present job and his potential for a better job.

-Flippo
 CONTD..
Performance appraisal is the systematic evaluation of the individual
with regard to his or her performance on the job and his or her potential
for development.
-Beach DS
Performance appraisal is the systematic description of an employee's job
relevant strengths and weaknesses.

Cascio Wayne
CHARACTERISTICS OF PERFORMANCE APPRAISAL

It is the systematic examination of an employee's strengths and

weaknesses in terms of the job.
Performance appraisal is a scientific or objective study.
Formal procedures are used in this study.
It is an ongoing or continuous process.
The main purpose of performance appraisal in to secure information
necessary for making objective and correct decisions regarding
employees.
Objectives of performance appraisal:

Judgmental objectives -
To provide feedback to employees so that they come to know where they stand and can
improve their job performance.
Developmental objectives
To provide a valid database for personal decisions concerning placements, pay,
promotion, transfer, , punishment.
To diagnose the strengths and weaknesses
 To provide coaching, counselling career planning and motivation to subordinates.
To develop positive superior-sub-ordinate relations
To facilitate research in personal management.
To test the effectiveness of recruitment, selection, placement and induction
USES OF PERFORMANCE APPRAISAL

1. Basis for suitable personnel policies

2. For judging the effectiveness of recruitment
3. Assessment of Individual potentials
4. Individual development
5. Basis for planning: Performance appraisal facilitates human
resource planning, career
6. Boosts the morale
7. Motivate the employees
8. Develops confidence
THE PROCESS OF PERFORMANCE APPRAISAL
1. Establishing Performance Standards
2. Communicating The Standards
3. Measuring Performance
4. Comparing the actual with the standards
5.  Discussing the Appraisal
6. Taking Corrective Actions.
PROBLEMS IN PERFORMANCE APPRAISAL

I. Errors in rating
a. Halo effect
b. Stereotyping
c. Central tendency
d. Constant error
e. Personal bias
f. Spill over effect
 Cont..
II. Lack of Reliability
III. Incompetence
IV. Negative Approach
V. Multiple objectives
VI. Resistance
VII. Lack of Knowledge
ESSENTIALS OF AN EFFECTIVE
PERFORMANCE APPRAISAL SYSTEM
1. Mutual Trust.
2. Clear Objectives.
3. Standardization.
4. Training.
5. Job Relatedness.
6. Documentation.
7. Feedback and Participation.
8. Individual Differences.
9. Post Appraisal Interview.
10. Review and Appeal
Methods of Performance Appraisal
A. Traditional Methods
B. Modern Methods
Methods of Performance Appraisal
A. Traditional Methods
Confidential report
Free Form Or Essay Method
Straight Ranking method
Paired Comparison Method
Forced Distribution Method
Graphic Rating Scales
Checklist Method
Critical Incidents Method
Group Appraisal
Field Review Method
 Contd..
B. Modern Method
Assessment centre method
Human resource Accounting Method
Behaviourally anchored Rating Scales
 Identify critical incidents
 Select performance dimensions
 Retranslate the Incidents
 Assign scales to incidents
Appraisal by Result or MBO
Areas of appraisal
 Performance quality:
Mental abilities:
Supervisory quality
Personal qualities:
Capacity for further development:
TECHNIQUE
Narrative/ Essay technique
• Free form review
• Writes a paragraph outlining an employee’s strengths, weaknesses,
and potential.
• Write a Behavioral Statement
• Strengths versus Weaknesses
• Describe Selected Traits
• Evaluate Performance