PPT presentation on Performance Appraisal, It's meaning, Importance, Limitations & Types .

2.  MEANING
 IMPORTANCE
 LIMITATIONS
 TYPES

3. It may be defined as assessment of an individuals
performance in a systematic way, the performance
being measured against factors such as job
knowledge,
 Quality and quantity of output,
 Leadership abilities,
 Supervision required,
 Dependability,versatility,co-operation etc.
According to Beach, “performance appraisal is the
systematic evaluation of the individual with regard to
his or her performance on the job and his potential for
development.

4.  To effect promotion on the basis of competence and
performance.
 To confirm the services of employees on probation.
 To assess the training and development needs of the
employees.
 To decide on the pay hike of employees
 To improve communication as it provides a platform to
subordinate and supervisor discuss the personal goals
and concerns
 To determine whether varios HR programs are effective.

5. 1. Performance appraisals are very time consuming and
can be overwhelming to managers with many
employees.
2. They are based on human assessment and are subject
to rater errors and biases.
3. Can be a waste of time if not done appropriately.
4. They can create a very stressful environment for
everyone involved.

6. METHODS OF PERFORMANCE
APPRAISAL
TRADTIONAL MODERN
METHODS METHODS

7.  Unstructured Method
 Rating Scale Method
 Essay Appraisal Method
 Ranking Method
 Critical Incident Method
 Confidential Report System
 Checklist Method
 Graphic Rating Scale Method

8. Under this method , the appraiser is required to write down his
impressions about the person being appraised in an unstructured way.
Sometimes the appraiser has to list his comments specifically on
qualities, abilities, attitude, aptitude and other personal traits of the
employees.

9. It is the most common method of assessing the performance. Under
this method a scale is created from 1 to 10. The components of this
method are traits like attitude, regularity, performance and
accountability, which will be rated on a scale of 10. In India, many
telecommunication industries are using this method to evaluate their
employees. Here the employees are assessed as per the nature of the
job or company. The number of points scored for all the traits are
finally added; employee who scores more is regarded as good
performer than the employee who has a descending score.

11. Under this, the manager compares the performance of employees with
other employees of the same rank or grade. A fixed percentage of
employees are kept in different performance categories like excellent,
average, below average, poor etc. This method is used when the
managers have to make decision as to which person is the best worker
for a given period, who has to be promoted, which employee is being
laid off etc. Under such circumstances the Ranking Method comes
handy to HR Managers in evaluating them correctly.
Employee Rank
Piyush B
Ashneer A
Anupam A

12. As the name suggests these are based on events or incidents. Here logs are
maintained for each employee to record the events or decisive incidents of
behaviour of employees. At the conclusion of the performance period these
events are collected to find out the rating of the employees. The main
drawback of this method is that the negative incidents are more obvious than
the positive ones. Sometimes the employees will not like such close
supervision by managers.
An example of a good critical incident of a sales assistant is the following:
July 20 : The sales clerk patiently attended to the customer complaint. He is
polite,prompt,enthusiastic in solving customers problems.

13. Confidential Report System: This method is very well known in government
organizations. Here the superiors will write a confidential report on the
subordinates with respect to his/her behaviour and duties in the organization.
This report will not be exposed to anyone, and finally will be referred the top
management. The main factors assessed here are:
(a). Temperament of the employee.
(b). Promptness of employee.
(c). Unlawful absenteeism.
(d). Truthfulness and sincerity.
(e). His/her behaviour with the public.

15. Graphic Rating Scale Method: It is a widely accepted conventional
technique of performance appraisal. Here the core traits of the
employees are cautiously defined. These traits are assigned numbers
on a scale of 5 to evaluate for a given appraisal period. The values of
each trait is added to find out the best performer during the period of
performance appraisal, the score will vary from person to person giving
the appraiser a clear picture as to who is the best performer.

16.  The BARS Method
 Human Resource Accounting Method
 MBO (Management by Objectives)
 360 degrees leadership assessment

17.  The BARS Method: This is called Behaviorally Anchored Rating
Scale which is comparatively a new one. It’s a combination of two
methods like graphical rating scale and critical incident method.
This method consists of a set of behavioral statements that
explains the performance of the resources towards a particular job
as good or bad. These statements are derived from critical
incidents or events. Under this method the definite behaviour is
compared with the preferred behaviour. The critical behaviour thus
obtained is given a numeric value based on which performance is
rated.