What is Performance Appraisal
PA is the method of evaluating the behaviour of the employees in the workplace, normally including both quantitative and qualitative aspect of the job. 
How the employee is performing  How the employee can develop  What the superior can do to make it happen  How the job is going

WHY conduct a Performance Appraisal ‡ Provide information about the performance ranks. PBS KUMAR . confirmation. Decision regarding salary revision. ‡ Provide feedback about level of achievement and behaviour of the subordinate. promotion and demotions. ‡ Provide training and development needs of the employees. ‡ Provide information to diagnose the deficiency of the employees. ‡ Provide information which helps to counsel the employees.

ongoing activity. However. the performance review is a continuing. as a part of Performance Management.WHEN to conduct a Performance Appraisal The performance review must occur atleast once in a year. PBS KUMAR . Some companies review twice in a year.

OBJECTIVES of Performance Appraisal ‡ Establish a more effective two way communication ‡ Set performance objectives ‡ Help improve current performance ‡ Assess past performance ‡ Provide feedback on performance ‡ Identify training & development needs ‡ Allocate rewards ‡ Identify staff with promotional possibilities ‡ Assist in career planning decisions PBS KUMAR .

WHO are involved in Performance Appraisal The Appraisee The Appraiser HR Department PBS KUMAR .

‡ Job Knowledge. ‡ Attitude. ‡ Area of improvement. ‡ Ability to grasp new things. ‡ Area of interest. ‡ Leadership skills.Content of Performance Management ‡ Regularity of the Attendance. ‡ Past Achievement. ‡ Initiative. ‡ Honesty and sincerity. Technical skills. ‡ Innovativeness ‡ Cost & Time consciousness . ‡ Ability to work individually or in group. ‡ Communication PBS KUMAR ‡ Judgmental Skills.

The scales may specify five points. so a factor such as job knowledge might be rated 1 (poorly informed about work duties) to 5 (has complete mastery of all phases of the job). PBS KUMAR .Traditional Methods of Performance Appraisal. ‡ Graphic Rating Scales: This is the oldest and most widely method used for performance appraisal.

.................................................Table: Typical Graphic Rating Scale Employee Name......... Data ................. thoroughness and accuracy of work Knowledge of job A clear understanding of the factors connected with the job Unsatisfactory (1) Fair (2) Satisfacto ry (3) Good (4) Out Standi ng (5) Attitude: Exhibits enthusiasm and cooperativeness on the job PBS KUMAR ... Rate ................. Quantity of work: Volume of work under normal working conditions Quality of work: Neatness... Department ..... Job title .........

the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation. In this method.Ranking Method ‡ This is one of the oldest and simplest techniques of performance appraisal. PBS KUMAR .

Can expect to initiate creative ideas for improved sales. Good 6 Above average 5 Can expect to keep in touch with the customers throughout the year.Performance Extremely good Points 7 Behavior Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country. Can expect to inform only a part of the customers. to deliver the goods in time. PBS KUMAR . Poor Extremely poor 2 1 Can expect to take extended coffee breaks and roam around purposelessly. Can manage. Average 4 Below average 3 Can expect to unload the trucks when asked by the supervisor. with difficulty.

After all the comparisons on the basis of the overall comparisons. PBS KUMAR . this method compares each employee with all others in the group. the employees are given the final rankings.Paired Comparison Method ‡ A better technique of comparison than the straight ranking method. one at a time.

Forced distribution method ‡ Forced ranking is a method of performance appraisal to rank employee but in order of forced distribution. PBS KUMAR .

Checklist Method ‡ Another simple type of individual evaluation method is the checklist. Is the employee really interested in the task assigned? Is he respected by his colleagues (co-workers) Does he give respect to his superiors? Does he follow instructions properly? Does he make mistakes frequently? Yes/No Yes/No Yes/No Yes/No Yes/No PBS KUMAR .

On the other hand the bad critical incident may appear as under: ‡ September 28± Mr. ‡ July 20 ± Mr. enthusiastic in solving the customers¶ problem. the manager prepares lists of statements of very effective and ineffective behavior of an employee. These critical incidents or events represent the outstanding or poor behavior of employees on the job . PBS KUMAR . prompt. He is polite.Critical Incidence Method ‡ Under this method. Timmaji patiently attended to the major customers complaint. Timmaji stayed 45 minutes over on his break during the busiest part of the day. He failed to answer the store manager¶s call thrice.

Essay Method ‡ This method asked managers / supervisors to describe strengths and weaknesses of an employee¶s behavior. PBS KUMAR .

It is a descriptive report prepared. generally at the end of every year. PBS KUMAR .Confidential Report It is mostly used in government organizations. The report highlights the strengths and weaknesses of the subordinate. by the employee¶s immediate superior.

Modern Methods PBS KUMAR .

PBS KUMAR . define each individual¶s major areas of responsibility. Establishment of Goals Setting the performance standard Actual level of job attainment is compared with the goals agreed upon. 1. 4. 3.MBO A process whereby the superior and subordinates of the organization jointly identify its common objectives. Establishing new goals and new strategies for goals not previously attained. 2.

discussions with supervisors and a review of other evaluations. PBS KUMAR . they asses an individual¶s potential. The appraisal consists of in-depth interviews. psychological tests.PSYCHOLOGICAL APPRAISALS: When psychologists are used for evaluations.

Assessment Centre ‡ This not a technique of performance appraisal by itself. this is a system or organization where assessment of several individual is done by experts by using various techniques. In fact. PBS KUMAR . These techniques used role playing. case studies etc.


internal customers and external customers PBS KUMAR .rater feedback system where an individual is assessed by a number of assessors including his boss. colleagues.What is 360 DF? 360 Degree Feedback is a multi . direct reports.

What is 360 DF? Feedback collected from Using a specially designed tool Anonymously ³Boss´ Internal Customers Peers Self External Customers Team Members PBS KUMAR .

national origin. employee does poorly in one area and this overshadows all areas. gender. Bias ± own prejudices {race.} influence the appraisal ± 3. 2. Comparison Rating contrasting one employee with another PBS KUMAR . appearance.Common Problems Associated with Conducting the Appraisal 1. etc. Halo/horn effect ± employee¶s extreme competence in one area ³shines´ over all others. Conversely.

he may rate them at the lower end. etc.Common Problems Associated with Conducting the Appraisal 3. more favorably than others PBS KUMAR . Favoritism ± evaluating friends or those who don¶t make waves. Personal Prejudice ± If the rater dislikes one group or employees. Central Tendency ± rate everyone as average 4. Recency Effect ± focusing on performance instead of entire year recent 5. 6.