2. TABLE OF CONTENTS
Features of Performance Appraisal
Purpose of Performance Appraisal
Process of Performance Appraisal
Performance Appraisal Methods
3. Performance Appraisal
Performance Appraisal is a regular review of an
employee’s job performance and contribution to
Company use performance appraisals to
determine which employees have contributed the
most to the company’s growth review progress
and reward high-achieving workers.
4. Features of Performance Appraisal
5. Purpose of Performance Appraisal
6. Process of Performance Appraisal
7. Possible Errors
First impression error.
Halo effect (Judging someone on the basis of one
Strictness or Leniency.
Sterotyping (Judging someone on basic of group
he or she belong).
Similar to me.
8. Performance Appraisal Methods
Traditional Methods of
Paired Comparison Method
Forced Choice Method
Performance Test and Observation
Forced Distribution Method
Field Review Method
Modern Methods of
Human Resource Accounting
Behaviorally Anchored Rating
Management by Objectives
360 Degree Feedback
Human-Asset Accounting Method
9. Traditional Methods of Performance
Ranking Scale: It is simplest and oddest method of Performance Appraisal in which
employees are rated from highest to the lowest or from the Best to the Worst. Example: 1 to
Paired Comparison Method: Comparing employees in pairs to judge who is preferable for
the job. Example: A-B, A-C, A-D.
Grading Method: Employees are get the grades according to his/her performance.
Example: a) Outstanding: A+
b) Satisfactory: A
c) Not Satisfied: B,C,D,E
Forced Choice Method: Rater is forced to answer the ready-made statements as given.
10. Traditional Methods of Performance Appraisal
Forced Distribution Method: Many companies is method
Poor Below Average Average Good Excellent
11. Traditional Methods of Performance Appraisal
Checklist Method: In this method, a series of statements in question and
answer in Yes or No form are prepared by Human Resource (HR)
Department of the Company.
Critical Incidents Methods: Methods of gathering facts.
A. Review Incident: Event/Office Party.
B. Collect Data: Collecting data from the incident point.
C. Determine Outcomes: Decide/The way a things comes out.
D. Evaluate Solution: Draw Conclusion.
12. Traditional Methods of Performance
Rating Scale Method: Most popular and simplest technique it is also
known as linear rating scale. Employees is rated against a list of traits or
For Example: Employee Name: Ram Kumar
Job Title: Marketing Executive.
Poor Good Excellent
13. Traditional Methods of Performance Appraisal
Essay Method: It involves description of performance of an employee by
his/her supervisor it is also known as Free form method.
Free Review Method: Employees are not judged by his/her supervisor but is
can be monitored by another person usually from HR Department.
Confidential Report Method: Collect information of employees strength,
weakness, intelligence, attitude, characteristics etc. This method is mainly
used in Government Office.
14. Modern Methods of Performance Appraisal
Management by Objectives (MBO): It is a method where Managers and
Employees gather together to identify, plan, organize and communicate
companies objectives to focus.
Behaviorally Anchored Rating Scale (BARS): BARS is used to rate
performance and to bring both qualitative and quantitative data of the
Assessment Centers: Often used in selection procedure to test suitability of
the candidate. It consist several test to show whether a person is the right fit
for a position or not.
15. Modern Methods of Performance Appraisal
360 Degree Appraisal: Evaluate an employee using feedback collected
from the Direct Report, Peers (his/her colleagues), Customers, Supervisors
whom he/she interact in course of his/her job.
Human Resource Accounting: Analyses an employee performance through
the monetary benefits he/she yields to the employees.