HOW TO MAKE PERFORMANCE

APPRAISAL EFFECTIVE
PRESENTED BY :- SAKSHI JOSHI

PRESENTED BY :- MR. BHUWAN

ARYA
 I nde x
About Performance appraisal
Definition
Meaning
Objectives

Process of Performance Appraisal

Methods / Techniques of Performance Appraisal

Issues in Performance Appraisal

Essentials of an effective appraisal system

 de f I nI t I ons

According to Newstrom, “It is the process of evaluating

the performance of employees, sharing that
information with them and searching for ways to
improve their performance’’.
 MeanIng
Performance appraisal is the step where the
management finds out how effective it has been at
hiring and placing employees .

A “Performance appraisal” is a process of

evaluating an employee’s performance of a job in terms
of its requirements.
objectIves of PerforMance aPPraIsal
According to:
Employee Organization

concrete and tangible

particulars about their work measuring the efficiency
assessment of maintaining organizational

performance control.

Aims
at: mutual goals of the
Personal development
employees & the organization.
work satisfaction
growth & development
involvement in the
organization. increase harmony & enhance
effectiveness
 Pr oc e ss

Setting
performanc
Taking corrective e standards Communicatin
standards
g standards

Discussin Measurin
g g
results standards
Comparin
g
standards
advantages
dIsadvantages
Common Problems Associated with
Conducting the Appraisal

1.Halo/horn effect – employee’s extreme

competence in one area “shines” over all others.
Conversely, employee does poorly in one area and
this overshadows all areas.

2. Bias – own prejudices {race, national origin,

gender, appearance, etc.} influence the appraisal

3. Comparison Rating – contrasting one employee

with another
 CONT...

3. Central Tendency – rate everyone as average

4. Recency Effect – focusing on recent performance
instead of entire year

5. Personal Prejudice – If the rater dislikes one group

or employees, he may rate them at the lower end.

6. Favoritism – evaluating friends or those who don’t

make waves, etc. more favorably than others
Essentials of an effective appraisal
system
• Mutual trust
• Clear objectives
• Standardizations
• Training
• Documentation
• Feedback and participation
• Individual differences
• Post appraisal review
• Review and appeal
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•Reliability + validity
•Appraisal should be relevant
•Customization of appraisal forms
•Consensus of appraiser and appraisee
•Sensitive to ground realities
•Appraisee ‘s access to results
•Easy to operate
•Raters knowledge of appraisee