Performance appraisal

Performance appraisal is a method of evaluating the behavior

of employees in the work spot, normally including both the
quantitative and qualitative aspects of job performance.

A good performance appraisal system should have the following

objectives: 

 Help the employee to overcome his weaknesses, improve over his strengths, and
thus enable him to improve hisperformance and that of the department.
 Generate adequate feedback and guidance from the reporting officers to the
employee.
 Contribute to the growth and development of the employee through helping him in
realistic goal setting.
 Provide inputs to: (i) System of rewards comprising salary increments, appreciations,
additional responsibilities, promotions, etc., and (ii) salary administration.
 Help in creating a desirable culture and traditions in the organization.
 Help identifying employees for the purpose of motivating, training, and developing
them.
 Generate significant, relevant, free, and valid information about employees.

The process of Performance Appraisal System 

Establish' Performance Standards:

At the time of designing a job description, performance standards are

usually developed for the position. These standards should be clear
and objective to be understood and measured. These standards should
be discussed with the supervisors to find out which different factors
are to be incorporated, weights, and points to be given to each factor.
Then these point should be indicated on the Appraisal Form, for
appraising the performance of the employees. 

Communicate Performance Expectations to employees: 

The next step is to communicate these standards to the employees,

other wise the employees would find it difficult to guess what is
expected of them. 

Measure actual Performance: 
Four sources of information are frequently used to measure
actual performance: personal observation, statistical reports, oral
reports, and written reports.

Compare actual Performance with Standards: 

The employee is apprised and judged of his potential for growth and
advancement. Attempts are made to note deviations between
‘standard performance’ and ‘actual performance’. 

Discuss the Appraisal with the Employee:

At the next stage, the results of appraisal are discussed periodically

with the employees, where good points, weak points, and difficulties
are indicated and discussed so that performance is improved. 

Indicate Corrective Action: 

The final step is the initiation of corrective action when necessary.

Coaching and counseling may be done or special assignment and
projects may be set; persons may be deputed for formal training
courses, and decision-making responsibilities and authority may be
delegated to the subordinates. 

Techniques of Performance Appraisal System:

Traditional Methods.

1. Essay Appraisal.
2. Relative Appraisal Methods
o Straight Ranking Method.
o Paired Comparison Method.
o Man-to-Man Comparison Method.
3. Critical Incident.
4. Checklist
5. Graphic Rating scale
6. Forced Distribution Method