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1. Performance Appraisal
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● What is Performance Appraisal?
● Meaning and Definition
● How Performance Appraisals Work
● Types of Employee Performance Appraisal in HRM
● Objectives
● Performance Appraisal Criticism
● Benefit of Performance Appraisal?
● Advantages and Disadvantages
● Different Methods

3. What is Performance Appraisal?
A performance assessment is a routine analysis of the job performance
of an employee to a company. Companies use performance reviews to
offer big-picture input on their jobs to workers and to explain salary
raises and promotions, as well as decisions on termination. At any given
time, they may be carried out but appear to be annual, semi-annual, or
quarterly.

4. Performance Appraisal Meaning
A performance appraisal used in the company is a routine examination
of the performance of employees to validate their contribution to the
business. It is also known as performance evaluation or annual review.
It assesses the employees' abilities, progress, success or loss.

5. Performance Appraisal Definition
Employee performance appraisal system has defined a process in which a
predefined standard of factors such as work knowledge, work
performance, work attitude, leadership quality, team player behavior,
consistency, decision-making abilities, and skills is created and then
actual performance, as well as the personality of an employee, is
compared with this expected standard by the organization.

6. Definition By Eminent Authors
● Dale S. Beach, "Performance appraisal is systematic evaluation of the
individual with respect to his or her performance on the job and his or
her potential for development".
● Randall S. Schuler, "Performance appraisal is a formal, structured
system of measuring and evaluating an employee's job, related
behaviour and outcomes to discover how and why the employee is
presently performing on the job and how the employee can perform
more effectively in the future so that the employee, organisation, and
society all benefit."

7. How Performance Appraisals Work
● Since corporations have a small pool of funds to award raises and
bonuses, performance reviews help decide how such funds will be
distributed.
● They could provide way for businesses to assess which workers have
committed the most to the success of the organization so that
businesses can pay their top-performing staff accordingly.

8. Types of Performance Appraisal in HRM
1. Self assessment: Individuals rate their job performance and behavior.
1. Peer assessment: An individual's work group rates his performance.
The four major type of performance appraisal are as follows-

9. 3. 360-degree performance appraisal: In this type of appraisal the
performance rating are collected from employee, their immediate supervisor
and peers.
4. Negotiated appraisal: In order to avoid the conflicts between employee
and their supervisors recent trend that uses a negotiator and aims to reduce
the adversarial aspect of performance reviews by encouraging the subject
to present its first assessment.
Types of Performance Appraisal in HRM

10. Performance Appraisal Criticism
● Deep mistrust of the appraisal may lead to problems between superiors
and subordinates or a circumstance in which workers simply tailor their
feedback to satisfy their boss.
● Performance appraisal may lead to unrealistic targets being followed that
weaken employees or allow them to participate in unethical activities.
Some employment analysts claim that the use of performance
assessments has contributed to a decline in the use of incentives based
on merit and performance.

11. Benefit of Performance Appraisal?
● Learning about areas of your business that could be improved.
● Identifying areas for further training.
● Improving performance and profitability.
● Increased job satisfaction and motivation.
● Better morale and teamwork.
● Surface – and resolve – any grievances.
● Improved planning for employee development.
● Fair assessment of pay increases.
● Identifying candidates for promotion/succession planning.

12. Advantages of Performance Appraisal
1. Performance evaluation is useful for measuring an employee's
weaknesses and strengths. This makes it easier to define areas/tasks in
which the employee is qualified. Basically, the procedure is useful for the
employees' true ability and desires to be established.
2. The process includes honoring & praising the contributions and success of
employees. It increases their confidence and trust.

13. Disadvantages of Performance Appraisal
● The method requires multiple steps and is a time-consuming operation.
● Sometimes the vital factors responsible for the performance are ignored
during performance appraisal.
● The factors like attitude, abilities and initiative are very vague and difficult
to gauge.
● Appraisals can often not be performed by qualified or skilled managers.
Due to the lack of the evaluator's expertise and experience, the
assessment process could not be carried out properly.

14. Employee performance appraisal has two types of methods used by various
organizations are :-
Different Methods of Employee Performance Appraisal
1. Traditional Methods
2. Modern Methods

15. ● Rating Scales
● Checklist
● Forced Choice Method
● Forced Distribution Method
● Critical Incidents Method
● Behaviourally Anchored Rating Scale
● Field Review Method
● Performance Tests and Observations
● Management by Objectives
● Psychological Appraisals
● Assessment Centers
● 360-Degree Feedback
● 720-Degree Feedback
Performance Appraisal Methods
Traditional methods Modern methods

16. Thank You
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