Performance appraisal is an evaluation about the employee's job performance and contribution towards organizational goals. Modern HR has developed various techniques and systems to asses the performance appraisal methods. Performance Appraisal has become one of the important subject in the modern businesses and organization.

1. Performance Appraisal
Performance Appraisal is an overall evaluation of an employee’s performance throughout the
year and his/her contribution to the company’s goals and objectives. Performance appraisal is
one of the most important & vital assessments in any company which reveals that how the
employees are performing for the company. It will also bring a lot of feedback about their
work.
Based on performance appraisal there are multifaceted decisions that can be made by the
organization like a bonus scheme as well as termination decisions etc. Performance appraisal
seems to be done annually, quarterly.
The Human Resource department must ensure that performance appraisal has been done
systematically to assess employees' performance and their feedback. It normally asses that
whether employees are achieved the standard goals set by the organization to pursue the goals
and objectives. Performance Appraisal reports revealed which employee gave utmost service
and contribution to the organization’s cause so that he/she may get an incentive and bonus as
a reward from the organization.
Collection of Performance Appraisal Data is in various types and formats. But basically what
we do is to collect it in three types- objectives production, personnel, and judgemental
evaluation
Today’s modern world requires more strong human resources as well as strategic ability to
solve various problems more quickly than before. Apart from it. organizational culture is also
dependent on performance done by the employees. So performance appraisal is also
beneficial to help employees to engage in a healthy way of improving themselves to reach the
organizational goal as much as possible. It drives people from the inner force to develop
themselves more and more
The basic way to evaluate performance appraisal is-
1) Manager/Supervisor measures the remuneration of the employee and compares it with
his/her performance
2) Manager/supervisor also evaluate the reason or factors behind anyone’s bad performances
Performance Appraisal also reveals the need for training and development programs for those
employees who find some problems and obstructions during their jobs. The Organization is
also trying to find out the psychological dimension of every employee especially those who
did not perform exceptionally well.
The Organization aims to develop a better employee relationship based on this. The
psychological factors are naturally revealed after the performance appraisal report.
Types Of Performance Appraisal-
We have seen that performance appraisal is multi-dimensional. It can be done through
various types and methods. Every type of performance appraisal is not sometimes applicable
for anyone at a time. So it is up to the individual’s capability and nature depends which type
of performance appraisal reveals the true picture of his/her performance or results.

2. As we have seen throughout the organizational culture and its environment there are
multidimensional departments and the people who work there are from different religions,
cultural backgrounds so when the organization is likely to do performance appraisal then
there should be various methods and steps to attain a standard measurement.
So when we are talking about the various types and methods of performance appraisal – We
can easily segregate themselves into two ways- 1) Traditional Methods 2) Modern Methods
The Traditional method is basically what is being very simplistic and has been done from
many years back and so on whereas Modern Methods are newer and it has been applied to
cover all the organizational dimensions in nature.
1) Traditional Methods Of Performance Appraisal-
 Behaviourally Anchored Rating Scale- It is one of the finest traditional rating scales
in the performance management system. Here the behavior system is used as a
reference point. We have to note that in this rating system the grading methods are
generally used to assess someone’s behavior. It aims to create a value design for both
qualitative and quantitative objectives set by the organization.
Example-
A typical performance appraisal for a nurse’s patient care and treatment be like this-
a) 1- Never, 2- Very less, 3- Sometimes, 4- Very often, 5- Always
so, When a nurse got “3” that means she/he is quite well in her/his service towards the patient
whereas “5” is more superior to her/ his in this area.
 Checklist- Checklist is used in the way of “yes”/ “no” format. Here there are certain
lists of questions are given and those who review anyone’s performance have to mark
“yes”/ “no” in the datasheet.
Example-
A typical performance appraisal for a nurse should be like this here is-
Is the employee present regularly on the job- Yes/ No
 Critical Incident Method- Critical incident method is a set of behavior that has been
applied by an employee during a certain situation where he/she performed well or
they might perform better. The Supervisor is usually rated his/her performance by
assessing their records during any critical situation they faced in the evaluating period
The Critical incident method is helping to determine the KSA( Knowledge, skills, and
attitude) which is required to perform some specific task
Example- A nurse who spends more than three hours in his/her duty beyond any break on the
busiest day of the hospital whereas another nurse failed to show that responsibility and
attitude on that particular day.

3. Modern Methods- There are various modern methods of performance appraisal is being
used in today’s organizational culture. They are
 360 Degree Appraisal- 360-degree appraisal method is more all- rounding in nature.
Here the performance evaluation is being assessed or performance review is being
taken from all over the organizational staff like peers, supervisors, group members,
and sometimes even in a self-assessment way also.
External review such as customer or supplier is also included sometimes in this
appraisal. This appraisal is quite modern. After gathering all information from all over
the organizational staff, employee performance appraisal is being finally evaluated.
Example- A nurse’s performance appraisal by 360 methods is like that his/her performance
is being reviewed by other nurses, nursing superintendent, Chief Nursing Officer, Medical
officers, other departments colleagues, etc.
 Management By Objective- By the name itself, we can say that this method of
performance appraisal is being done in a way that is based on the targets achieved by
the employee. At the starting of the year, every organization sets a basic objective for
each employee at the end, by using this method company can evaluate the standard
and actual performance. An employees performance appraisal is being assessed by
this method to evaluate the performance done by him/her
Example- A Hospital set a target to the nursing superintendent to hire 20% Nurse from
employee reference in a single year. At the end of the year, hospital management evaluates it
by this method to assess his/her actual performance based on the standard objective set by the
hospital.
 Assessment Centre Method- Assessment Centre Method is one of the important
methods to assess someone’s performance. Here, a candidate can be seen that how
others observe him/her and the impact of their observation in his/her review. In this
method, employees have to take an active part in role-playing, an in-basket exercise,
formal or informal discussions, and other stimulative actions. It also helps the
organization and the employee to predict the future performance of the individual as
well.
Example- A Nurse is being observed by his/her other colleagues and they have to take part in
a role-playing exercise (I.e.- How to take care of a cancer patient in a critical situation in the
operation theatre), engage informal or informal discussions regarding various job-related
issues etc.
Advantage of Performance Appraisal-
 Organizations can easily decide on anyone’s retention or attrition based on their
performance
 Organization can predict the future outcome of the employee
 Performance Appraisal can also reveal if there is some requirement of changes in the
selection and recruitment procedure.
 The need for a training and development program for any employee is being revealed
after performance appraisal
 It also helps the organization to decide the compensation benefits of the employee.

4.  Individuals can also motivate themselves after the performance appraisal decisions
and results to develop their performance in the future.
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