BY MANOJ KUMAR MANOJ MISHRA

CONTENTS
Concept of performance appraisal
Definition Trends in performance appraisal Traditional methods Modern methods Conclusion

Concept
Performance appraisal is a systematic and objective way of judging the relative worth or ability of an employee in performing his job.
It emphasises on two aspects:- Systematic Objective

Performance appraisal is an objective assessment of an

individuals performance against well defined benchmarks. Performance appraisal is the systematic evaluation of the individual with regard to his or her performance on the job and his potential for development. By. Dale Beach

Trends in performance appraisal

Items
Terminology Purpose

Earlier emphasis
Merit rating Determining qualifications for wage increase, transfer

Present emphasis
Employee appraisal/ performance appraisal Development of personnel, improved performance on the job and providing emotional security Technical, professional personnel Results, accomplishments

Application

Hourly-paid workers

Factors affected Heavy emphasis on personal attributes

Methods of performance appraisal

Traditional methods
Ranking method Paired comparison Grading Forced distribution method Forced choice method Checklist method Critical incidents method Graphic scale method Essay method Field review

Modern methods
Appraisal by results or objectives Behaviourally anchored rating scales Assessment centres 360-degree appraisal

Rank method
A person is ranked against others on the basis of certain traits

and characteristics. In this method, various persons are given ranks on the basis of their traits.

Paired comparison
It is designed to increase its value for use in the large groups. In this method, each person is compared with other person

taking only one at a time. A rater is provided with a bunch of slip each containing a pair of names. The rater put a tick mark against the person whom he considers the better of the two, and the final ranking is determined by the number of the times that person is judged better than others. It provides better comparison of persons This increase the work.

Grading Method

In this method, certain categories of abilities of performance are defined well in advance and persons are put in particular category depending on their traits and characteristics. Such categories may be definitional like outstanding, good, average poor, very poor, or may be in terms of letters like A,B,C,D, etc with A indicating the best and D indicating the worst.

Forced Distribution Method

In this method, the appraiser is forced to appraise the appraisees

according to the pattern of the normal curve. It is useful to rate job performance and promotability

Forced-choice Method
The forced-choice rating method contains a series of group of

statements and the rater checks how effectively the statement describes each individual being evaluated. The common method of forced choice contains two statements which may be positive or negative. Though both of them describe the characteristics of an employee, the rater is forced to tick only one which appears to be more descriptive. Out of these two statements, only one statement is considered for final analysis of the rating.

Check-list method

1. 2. 3.

In this method, the rater provides appraisal report by answering a series of questions related to appraisee. These questions are prepared by HR department and are related of the appraisee is concerned. When this checklist is completed, it is sent to HR department, then, total scores are calculated which show the appraisal result of an employee. Examples of the questions Is he/she interested in the job? yes/no Is he/she regular on the job? yes/no Does he/she show uniform behaviour to all? yes/no

Critical Incidents Method

It includes only critical incidents and behaviour associated with these incidents are taken for evaluation. This method involves three steps a) A test of noteworthy on the-job behaviour (good or bad) is prepared. b) A group of experts then assigns scale values to them depending on the degree of desirability for the job c) A checklist of incidents which define good or bad employees is prepared Basic idea behind this rating is to appraise the people who can do well in critical situations.

Graphic Scale Method

It is also known as linear rating scale. In this method, a printed appraisal form is used for each

appraisee. This form contains various employee characteristics and job performance Various characteristics include initiative, leadership, dependability, cooperativeness, enthusiasm, creative ability, analytical ability, decisiveness, emotional maturity etc Job performance includes quantity and quality of work performance, responsibility assumed, specific target achieved. The rating is done on the basis of scale which is in continuum.

Essay Method

The rater assesses the employees on certain parameters in his own words. Such parameters may be as follows I. Work performance in terms of quality, quantity and costs II. knowledge about the job III. Knowledge about organisational policies, procedures and rules IV. Employees characteristics and behaviour V. Employees strengths and weakness VI. Overall suitability of the employee VII. Employees potential and promotability VIII. Training and development needs of the employee

Field Review Method

An employee is appraised by another person, usually from HR department, and not by his direct superior The rater appraises the employee based on his records of output and other quantitative information such as absenteeism, late coming etc. It provides information to make comparison of employees from different locations and unit Limitations of method-1. An outsider is usually not familiar with the conditions in an employees work envirnoment which affect his work ability and work motivation to perform 2. The outsider does not have the opportunity to observe the employees behaviour or performance

Appraisal By Results or Objectives

The basic idea behind this appraisal is that the organisation is

concerned with achievement of objectives though the contributions of individual managers rather on the basis of traits. It draws its root from management by objectives

Management by Objective
It involves setting specific goals with each employee and then periodically reviewing the progress made
MBO consists of six steps
Set the organisational goal Set departmental goal Discuss departmental goal

Define expected results

Performance reviews Provide feedback

Steps involved in appraisal by results

It is joint process between superior and subordinate
The subordinate prepares plan for specific period of

time usually one year Through mutual consulation, both of them decide the evaluation criteria At the end of specific period, the superior makes a performance evaluation of subordinate Superior discusses the result of his evaluation with subordinate and suggest corrective actions

Evaluation of appraisal by results

Positive aspects It is advantageous when the management is conducive to MBO This approach is operational because appraisal is a part of superiors job
Limitations
It emphasizes on work achievement It put emphasis on present performance

Behaviourally Anchored Rating Scales(BARS)

BARS approach measures observable, critical behaviors' that are related to specific job dimensions
Various steps involved in developing BARS are as follows: Identification of performance measures Identification of critical behavior Retranslation of critical behavior Scaling of critical behaviour Development of BARS instrument

Evaluation of BARS method

1. 2.

3.

BARS method of appraisal is better method than traditional method in the following ways Employees behaviour are measured which gives better description of employee The people who are actually involved with the job, participate in determining the job dimensions and the development of scale. Such participation enhances the acceptance of the technique Because the evaluation is done in terms of specific behaviours, the rater can give objective feedback

Assessment Centers
An assessment centre is central location where managers come together and participate in a number of simulated exercises, and on the basis of which they are evaluated by the panel of raters The basic purpose of this method is to test candidates in a social situation, using number of assessors , variety of procedure

Objectives of the assessment centres:

To measure potential for first level supervision, upper

management positions and also higher level positions. To determine training and development needs of employees To select college level student for entry level position To make early determination of the potential To assist in implementing action goals

Process of assessment centre appraisal

Establishment goals for programmes Defining physical facilities Selecting exercises and participants Detailed job analysis Training of assessors

Defining dimensions to be assessed

Conducting of programmes

Evaluating participants Feedback and follow-up actions

Evaluation of Assessment Centre Method

Positive features:
The assessment is based on the direct observation of a relatively
large sample of the assesses behaviour which provides more accurate information about them The assessees behaviours are observed in simulated situation which is close to the actual workplace. Therefore, it is expected to give correct result The personal biases, mistaken impressions and false inferences are minimised

360-Degree Appraisal
360-degree appraisal is the process of systematically gathering data on a persons skill, abilities and behaviours from a variety of sources. In 360-degree appraisal, appraisal of an employee is done by 1. Appraisal by superior 2. Appraisal by peers 3. Appraisal by subordinates 4. Appraisal by clients 5. Appraisal by HR department

Evaluation of 360-degree appraisal

Positive aspects:
Greater self awareness of managers Reduced gap between self-assessment and colleagues assessment Teamwork thrives through peer group assessment

Inflexible employees are forced to initiate self-change.

Negative aspects:
The system may be utilised to humilitate personnel Response from colleagues may be biased Linking rewards to appraisal may turn to be unfair It ignores performance in terms of reaching goals

Conclusion
Performance appraisal is the assessment of an

employees actual performance, behavior on jobs and his or her potential for future performance. The main purpose of appraisal is to assess training needs, to effects promotions , and to give pay increases

References
Human resource management

L M Prasad Human resource management K Aswathappa

Thank you