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
Field 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…
