Prepared By: Madhumita Das MBA IV (A) Roll No.

: 5373610036

Introduction
A performance appraisal (PA) or performance evaluation is a systematic

and periodic process that assesses an individual employees job performance and productivity in relation to certain pre-established criteria and organizational objectives. Other aspects of individual employees are considered as well, such as organizational citizenship behavior, accomplishments, potential for future improvement, strengths and weaknesses, etc. To collect PA data, there are three main methods: objective production, personnel, and judgmental evaluation. Judgmental evaluations are the most commonly used with a large variety of evaluation methods. A PA is typically conducted annually. The interview could function as providing feedback to employees, counseling and developing employees, and conveying and discussing compensation, job status, or disciplinary decisions. PA is often included in performance management systems. Performance management systems are employed to manage and align" all of an organization's resources in order to achieve highest possible performance.

Applications of Performance Appraisal

A central reason for the utilization of performance

appraisals (PAs) is performance improvement (initially at the level of the individual employee, and ultimately at the level of the organization). Other reasons:
as a basis for employment decisions as criteria in research

to aid with communication

to establish personal objectives for training

Potential benefits of PA
Facilitation of communication
Enhancement of employee focus through promoting

trust Goal setting and desired performance reinforcement Performance improvement Determination of training needs

Who Conducts Performance Appraisals

Human resource management (HRM) conducts

performance management. Performance management systems are comprised of the activities and/or processes embraced by an organization in anticipation of improving employee performance, and therefore, organizational performance Consequently, performance management is conducted at the organizational level and the individual level.

When Performance Appraisals are Conducted

Performance appraisals (PAs) are conducted at least

annually, and annual employee performance reviews appear to be the standard in most American organizations. However, it has been acknowledged that appraisals conducted more frequently (more than once a year) may have positive implications for both the organization and employee.

Methods of Collecting Performance Appraisal Data

Objective production
The Happy-Productive Worker Hypothesis Personnel

Judgmental Evaluation
Peer and Self Assessments

Employee Reactions to Performance Appraisal

According to a meta-analysis of field studies, general

employee participation in his/her own appraisal process was positively correlated with employee reactions to the PA system. Researchers suggest that the study of employees reactions to PA is important because of two main reasons: employee reactions symbolizes a criterion of interest to practitioners of PAs and employee reactions have been associated through theory to determinants of appraisal acceptance and success.

Implications of Performance Appraisal

Legal: There are federal laws addressing fair

employment practices, and this also concerns performance appraisal (PA). Discrimination can occur within predictions of performance and evaluations of job behaviours. Cross Cultural: Performance appraisal is thought to be deeply rooted in the norms, values, and beliefs of a society Appraisal reflects attitudes towards motivation and performance (self) and relationships (eg peers, subordinates, supervisors, organization), all of which vary from one country to the next