Performance

appraisal

Under the guidelines of---

Debahooti basu ma’m

Presented by-
Kanchan shakya
DEFINITION
 Performance appraisal, also
known as employee
appraisal, is a method by
which the job performance
of an employee is evaluated
(generally in terms of
quality, quantity, cost and
time). Performance appraisal
is a part of career
development


 Performance appraisals are

regular reviews of employee
performance within
organizations

 What is Performance Management?
 Systematically managing all the people in
an organization, for innovation, goal
focus, productivity and satisfaction--it is a
goal- congruent win - win plan.
 Armstrong and Baron define performance
management as a
 “strategic and integrated
approach to delivering sustained
success to organizations by improving
performance of people who work in them
and by developing the capabilities of
teams and individual contributors


Comparing Performance Appraisal and
Performance Management

 Performance appraisal
 Evaluating an employee’s current and/or past
performance relative to his or her
performance standards.



 Performance management
 The process employers use to make sure
employees are working toward organizational
goals.

Objectives Of Performance
appraisal
 review the performance .
 judge the gap between actual and the desired
performance.
 strengthen the relationship and communication between
superior – subordinates and management – employees.
 diagnose the strengths and weaknesses of the individuals so
as to identify the training and development needs of
the future.
 provide feedback to the employees regarding their past
performance.
 Provide clarity of the expectations
 reduce the grievances of the employees
C la ssro o m
Te a ch in g
A p p ra isa l
By
S tu d e n ts
P R O C ESS
 ESTABLISHING PERFORMANCE STANDARDS

 base to compare the actual performance

 Setting criteria to judge employees as successful or unsuccessful , degrees

of their contribution to the organizational goals and objectives.

 COMMUNICATING THE STANDARDS

 responsibility of management

 Helps them to understand their roles and to know what exactly is expected

from them.

 The standards should also be communicated to the appraisers

 MEASURING THE ACTUAL PERFORMANCE

 continuous process

 requires careful selection of the appropriate techniques of measurement.

 COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE
 Comparison tells deviations.
 Includes evaluating and analysis of data related to the employees’
performance.
DISCUSSING RESULTS
 Communicated and discussed on one-to-one basis.
 The focus is on communication and listening.
 The results, the problems and the possible solutions are discussed
 Purpose should be to solve problems faced and motivate employees to
perform better.
 DECISION MAKING
 Can be taken either to improve the performance of the employees,
 Take the required corrective actions,
 Related HR decisions like rewards,promotions, demotions, transfers etc
Essentials of an effective performance
system
 · Documentation
 · Standards / Goals
 · Practical and simple format
 · Evaluation technique
 · Communication
 · Feedback
 · Personal Bias

Pe rfo rm a n ce
C o n tra ct
 Methods of
performance
appraisal
Methods of performance appraisal
Graphics rating scale

 A scale that lists a number of traits and a range of

performance for each that is used to identify
the score that best describes an employee’s
level of performance for each trait.

G ra p h ic R a tin g S ca l
w ith S p a ce
fo r C o m m e n ts
Ranking method

 Ranking
employees
from best to
worst on a
particular
trait,
choosing
highest, then
lowest, until
all are
ranked
 Paired comparison method
 Ranking employees by making a chart of all possible pairs of the
employees for each trait and indicating which is the better
employee of the pair.


Note: + means “better than.” − means “worse than.” For each

chart, add up the number of 1’s in each column to get the
highest-ranked employee.
Forced distribution method

 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.
 The rater has to distribute his ratings in a pattern to confirm to
normal frequency distribution

Checklist method

 Checklist describing behaviour of the employees on

job.
 Contains a list of statements on the basis of which the
rater describes job performance .
 Checks if behaviour is positive or negetive to each
statement
 Employee performance rated on the number of positive
checks.
Critical incident method

 Continuous appraisal method

 Supervisor continuously records in a specially
designed notebook.
 Rating on basis of critical events.
 Includes both negative and positive points.



Examples of Critical Incidents for
an Assistant Plant Manager

positiv
e

negative

positiv
e
 Free form/essay appraisal
 Supervisor write a description of the employee’s performance.
 Format emphasizes employees overall performance based on
strengths and weaknesses of employee performance rather than
specific job dimension.
 Often used along with other types of appraisals, notably graphic
rating scales.
 They provide an opportunity for supervisors to describe aspects of
performance not thoroughly covered by an appraisal
Group appraisal
questionnaire.


 oT h e g ro u p co n sists o f
Im m e d ia te su p e rviso r o f th e e m p lo ye e
O th e r su p e rviso rs w h o h a ve clo se co n ta ct w ith th e
e m p lo ye e ’ s w o rk .
M a n a g e r o r h e a d o f th e d e p a rtm e n ts.
C o n su lta n ts o r C lie n ts
 Confidential reports
 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

Field re vie w te ch n iq u e


T h e a p p ra ise r g o e s to th e fie ld a n d o b ta in s th e in fo rm a tio n

a b o u t w o rk p e rfo rm a n ce o f th e e m p lo ye e b y w a y o f
q u e stio n in g th e sa id in d ivid u a l, h is p e e r g ro u p , a n d h is
su p e rio rs
Modern methods
 Behaviorally anchored rating scale (BARS)


 An appraisal method that uses quantified

scale with specific narrative examples of
good and poor performance.

E xa m p le o f a
B e h a vio ra lly
A n ch o re d
R a tin g S ca le
fo r th e
D im e n sio n
Salesmanship
Skill
Management by objective
 Involves setting specific measurable goals with each

employee and then periodically reviewing the

progress made.

1. Set the organization’s goals.

2. Set departmental goals.

3. Discuss departmental goals.

4. Define expected results (set individual goals).

5. Performance reviews.

6. Provide feedback
h r accounting
 Human resources -- Valuable assets.

 Find relative worth of these assets in the terms of money.

 Performance appraisal is judged in terms of cost and

contribution of the employees.

 Cost includes all expenses incurred on them like their

compensation, recruitment and selection costs,

induction and training costs etc

 Contribution includes the total value added (in monetary

terms).

 Difference will be the performance of the employees.

Assessment centers
 Use of methods like social/informal events, tests and
exercises, assignments being given to a group of
employees
 Assignment similar to the job expected.
 The trained evaluators observe and evaluate employees as
they perform the assigned jobs.
 The major competencies that are judged in assessment
centers are—
 interpersonal skills,
 intellectual capability,
 planning and organizing capabilities,
 motivation,
 career orientation etc.
 Assessment centers are also an effective way to determine
the training and development needs of the targeted
Psychological appraisal
It is conducted to assess employee potential by –


 In depth interviews

 Psychological tests

 Consultations and discussions with employee

 Discussion with superiors subordinates and peers

 Reviews of other evaluation

360 degree appraisal
 360-degree Appraisal is an assessment process used to

improve managerial effectiveness by providing the manager

with a more complete assessment of their effectiveness, and

their performance and development needs.

360 degree appraisal
Performance appraisal ---
“ a double edged sword ”
 Improves the work performance and employee
satisfaction, but…….


 Demotivate employees.
 Burdensome activity
 Create a sense of insecurity in the working
environment
 Element of bias in the appraisals can also worsen the
situation.

 Professor Kuvaas –
 "Performance
appraisals and other tools which involve feedback and
target management should be adapted to the
employee’s individual needs and characteristics.
Otherwise, there is a risk of harming the good
employees without being able to help the less good."
Problems in performance appraisal
 H a lo e ffe ct
 H o rn e ffe ct

 E rro r o f ce n tra l te n d e n cy ,

 Le n ie n cy a n d strictn e ss b ia se s

 Pe rso n a l p re ju d ice ,

 R e ce n cy e ffe ct

 Prim a cy e ffe ct / first im p re ssio n

 S te re o typ in g

 Po o r a p p ra isa l fo rm s 

 La ck o f ra te r p re p a re d n e ss

How to Avoid Appraisal Problems
 Understand the potential
problems, and solutions
 Use the right appraisal
tool. Each tool has its own
pros and cons.
 Train supervisors to reduce
rating errors such as halo,
leniency, and central
tendency.
 Have raters compile positive
and negative critical
incidents as they occur.

Global trends in performance
appraisal
 360 Degree Appraisal
 'multi-rater feedback‘
 feedback comes from all the sources


 Team Performance Appraisal

 "Teams have become commonplace in U.S. Companies".
 Most of the performance appraisal techniques are formulated with
individuals in mind
 how to separate the performance of the team from the performance of
the employees?
 measure both the individual and the team performance.
 team based objectives are also included in the individual performance
plans.



 Rank and Yank Strategy

"Up or out policy“
 performance appraisal model in which best-to-worst ranking methods
are used to identify and separate the poor performers from the good
performers.
 the action plans and the improvement opportunities of the poor
performers are discussed and they are given to improve their
performance in a given time period, after which the appropriate HR
decisions are taken
 Ford, Microsoft and Sun Microsystems.
Performance appraisal through
computers….

 There will be objective analysis of traits of both superior

and subordinate.
 Chance to subordinate to express his views even after
performance appraisal.
 It overcomes the communication barrier
 It removes the inherent weakness of the appraisal
system.ie subjective assessment of vague and
abstract performance target unclear guidelines for

appraisal.
Performance appraisal
through computers..
 :::Don't let
employees come
into the
Performance
Appraisal blindly or
leave blindly,
without a sense of
direction or
accomplishment!:::

Thank you…