2. 2
Performance Appraisal
Performance Appraisal (PA) refers to all those
procedures that are used to evaluate the personality,
performance and potential of its group members.
Performance Appraisals are yearly or monthly
evaluations given to employees.
They evaluate the needs of the employee and
supervisor.
Performance Appraisal is the process by which
organizations evaluate employee job performance.
3.
4. 4
Steps in performance appraisal
Establishing job standards
Designing an appraisal programme
Appraise performance
Performance interview
Use appraisal data
For appropriate purpose
5. 5
Objective of Performance
Appraisal
To help better current performances
To help in development of the employee.
To determine training and development needs.
To give employee feedback and counsel them
To review performance for salary purposes.
6. 6
Process of Performance Appraisal
Setting
performance
standards
Taking corrective
standards
Discussing
results
Comparing
standards
Measuring
standards
Communicating
standards
7. 7
Issues in appraisal system
Appraisal Design?
Formal and informal
What methods?
When to evaluate?
What to evaluate?
Whose performance?
Who are the raters?
What problems?
How to solve?
9. 9
Benefits of Performance Appraisal
For the Appraisee
Better understanding of his role in the organization – what is
expected and what needs to be done to meet those expectation
Clear Understanding of his strengths & weaknesses to develop
himself into a better performer in future
Increased motivation, job satisfaction, and self – esteem
Opportunity to discuss work problems and how they can be
overcome
Opportunity to discuss aspirations and any guidance, support or
training needed to fulfill those aspirations
Improved working relationships with supervisors
10. 10
Benefits of Performance Appraisal
For the Management
Identification of performers and non-performers and their
development towards better performance
Opportunity to prepare employees for assuming higher
responsibilities
Opportunity to improve communication between the employees
and management
Identification of training and development needs
Generation of ideas for improvements
Better identification of potential and formulation of career plans
11. 11
Benefits of Performance Appraisal
For the Organization
Improved performance throughout the organization
Creation of a culture of continuous improvement and success
Conveying the message that people are valued
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Methods of Performance Appraisal
Multiple Person Evaluation Methods
Ranking
Paired comparison
Forced distribution
14. 14
Methods of Performance Appraisal
Other Methods
Group Appraisal
Field review technique
3600
Appraisal System
15. 15
Individual Evaluation Methods
Confidential Report
Descriptive report
Prepared at the end of the year
Prepared by the employee’s immediate supervisor
The report highlights the strengths and weaknesses of
employees
Prepared in Government organizations
Does not offer any feedback to the employee
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Individual Evaluation Methods
Essay Evaluation
– The rater is asked to express the strong as well as weak points of
employee’s behavior
– The rater considers the employee’s :
Job knowledge and potential
Understanding of company’s programs, policies, objectives etc
Relation with co-workers and supervisors
Planning, organizing and controlling ability
Attitude and perception
17. 17
Individual Evaluation Methods
Critical Incidence
Manager prepares lists of statements of very effective and
ineffective behavior of an employee
These critical incidents represent the outstanding or poor
behavior of the employees
The manager periodically records critical incidents of
employee’s behavior
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Checklist Method
Simple Checklist Method
Is employee regular Y/N
Is employee respected by subordinate Y/N
Is employee helpful Y/N
Does he follow instruction Y/N
Does he keep the equipment in order Y/N
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Checklist Method
Weighted Checklist Method
weights performance rating
(scale 1 to 5 )
Regularity 0.5
Loyalty 1.5
Willing to help 1.5
Quality of work 1.5
Relationship 2.0
20. 20
Checklist Method
Forced Choice Method
Criteria Rating
1.Regularity on the job Most Least
Always regular
Inform in advance for delay
Never regular
Remain absent
Neither regular nor irregular
21. 21
Individual Evaluation Methods
Graphic Rating Scale
A form is used to evaluate the performance of the employees
A variety of traits may be used in this device, the most common
being quality and quantity of work
Easy to understand and use.
Permits statistical tabulation of scores of employees
23. 23
Individual Evaluation Methods
Forced Choice Method
This method uses several sets of paired phrases, two of which
may be positive and two negative
The rater is asked to indicate which of the four phrases is the
most and least descriptive of a particular worker
Favorable qualities earn plus credit and unfavorable ones earn
the reverse
24. 24
Individual Evaluation Methods
Management by objectives (MBO)
MBO emphasizes collectively set goals that are tangible, verifiable, and
measurable
Focuses attention on goals rather than on methods
Concentrates on Key Result Areas (KRA)
Systematic and rational technique that allows management to attain
maximum results from available resources by focusing on achievable
goals
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Individual Evaluation Methods
Management by objectives (MBO) - Cont
• Key Element of MBO
Arranging organizational goals in a means-ends chain
Engaging in joint goal setting
This process has the following steps:
Identify KRAs
Define expected results
Assign specific responsibilities to employees
Define authority and responsibility relationship
Conducting periodic progress review
Conducting annual performance review
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Multiple Person Evaluation Methods
Ranking method
The evaluator rates the employee from highest to lowest on some overall
criteria
Paired comparison method
Each worker is compared with all other employees in a group
For several traits paired comparisons are made, tabulated and then rank
is assigned to each worker
This method is not applicable when the group is large
Forced Distribution Methods
The rater is asked to appraise the employee according to predetermined
distribution scale.
The worker is placed between two extremes of “good” and “bad” performance.
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Other Methods
Group Appraisal
Employee is appraised by a group of appraisers.
The group consists of :
Immediate supervisor of the employee
Other supervisors who have close contact with the
employee’s work.
Manager or head of the departments.
Consultants or Clients
28. 28
Other Methods
Field Review Technique
The appraiser goes to the field and obtains the information about
work performance of the employee by way of questioning the said
individual, his peer group, and his superiors
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Other Methods
3600
Appraisal System
360 Degree Performance : Combination of self, peer, supervisor, and subordinate
performance evaluation
It is a systematic collection and feedback of performance data on an
individual or group, derived from a number of stakeholders
Data is gathered and fed back to the individual participant in a clear way
designed to promote understanding, acceptance and ultimately behavior
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Appraisal Interview and Feedback - Let the
Employee Know Where He Stands
To help employees do a better job by clarifying what is expected
of them
To plan opportunities for development and growth
To strengthen the superior-subordinate working relationship by
developing mutual agreement of goals
To provide an opportunity for employees to express themselves
on performance related issues
