PERFORMANCE

APPRAISAL

Ms. Mesbah sakhawat

Specialist NICU nurse ,specialized paediatric
nursing,register RN nurse
The children’s hospital & the University of child
health sciences
Lahore, Pakistan
 PERFORMANCE APPRAISAL

The process of interaction written documentation, formal interview, and

follow-up that occurs between manager and their employees in order to give
feedback, make decisions and cover fair employment practice law
PERFORMANCE APPRAISAL
DEFINITION BY EMINENT AUTHORS

Edwin B. Flippo “Performance appraisal is a systematic, periodic and

so far as humanly possible, an impartial rating of an employee's
excellence in matters pertaining to his present job and to his
potentialities for a better job.”
Gomej-Mejia “Performance Appraisal involves the identification,
measurement and management of human performance in organisation.”
Slabbert and Swanepoel “Performance appraisal is a formal and
systematic process by means of which the relevant strengths and
weaknesses of the employees are identified, measured, recorded and
developed.”
Beach “Performance appraisal evaluates systematically performance of
individual with regard to his or her performance on the job and his
potential for development.”
Spriegel “performance appraisal is the process of evaluating the
employee’s performance on the job in terms of requirements of the job.”
THE PURPOSE OF PERFORMANCE
APPRAISAL

Good performance appraisal have two general purposes

 Evaluation
 Feedback and development
PROCESS OF PERFORMANCE THE
APPRAISAL

Performance Appraisal Process includes

1. Day-to-day manager-employee interactions (coaching,
counseling, dealing with policy violation, and discipline).
2. Making notes about an employee's behavior
3. Completing the performance appraisal form
4. The formal appraisal interview
5. Follow-up sessions that may involve coaching and/or
discipline when needed
COMPONENTS OF
PERFORMANCE APPRAISAL

1. Trait and personal characteristics: System focus on personal traits

(quality) and characteristics, such as stability of ability to handle stress
2. Result-Oriented system: System in which employees are rated on result
or performance.
 Employees know in advance what is expected
 Objective are quantifiable and measurable
1. Behavioral criteria: System focus on what the employee actually does
Such as system gives new employees specific information on how they
are expected to behave and is less likely to lead to legal problems
4. Combining different types of criteria in which merged the various
types of appraisal system Such as personal characteristics and behavioral
specific criteria
COMMON MEASUREMENT ERRORS IN
PERFORMANCE APPRAISAL .

Measurement errors in performance appraisal

1. Leniency Errors.
Raters tend to give everyone relatively high ratings than deserved
2. Recency Errors
Rating others in a way that appraisers recall and give greater importance to
employee behaviors that have occurred near the end of the rating period
3. Halo errors
A tendency to rate an individual high or low on all factors due to the of a
high or low rating on some specific factor
 TYPES OF PERFORMANCE
APPRAISALS

Most performance appraisals are top-down, meaning supervisors evaluate

their staff with no input from the subject. But there are other types:
Self-assessment: Individuals rate their job performance and behavior.
Peer assessment: An individual's workgroup or coworkers rate their
performance.
360-degree feedback assessment: Includes input from an individual,
supervisor, and peers.
Negotiated appraisal: A newer trend that utilizes a mediator and attempts to
moderate the adversarial nature of performance evaluations by allowing the
subject to present first. Also focuses on what the individual is doing right
before any criticism is given. This structure tends to be useful during conflicts
between subordinates and supervisors.
What Are Performance Appraisals Used for?
Performance appraisals are used to review the job performance of
an employee over some period of time. These reviews are used to
highlight both strengths and weaknesses in order to improve future
performance.
When Should a Performance Appraisal Take Place?
Performance management is an ongoing process. Throughout the
year, managers are encouraged to engage with employees to
establish goals, note progress, and provide feedback. Formal
reviews or appraisals often take place on a yearly or quarterly
basis.
TRADITIONAL METHODS OF EMPLOYEE
PERFORMANCE APPRAISAL
Here is a list of different traditional methods which can be used for
employee performance appraisal:
Rating Scales: In this scale, the factors such as attitude, initiative,
dependability, etc are quantified. A range of excellent to poor is provided to
the rater and based on the rating the performance of the employee is
calculated.
Checklist: A checklist form of performance appraisal consist of a column
of ‘Yes’ and ‘No’ for different employee traits. The rater has to put a tick
mark based on if the traits exist or do not exist in the employee.
Forced Choice Method: In this method, different statements about the
performance of the employee are provided to the rater and he/she is forced
to answer the ready-made statements as true or false. Further evaluation of
performance is carried on by the Human Resource department based on
the answers of the rater.
Forced Distribution Method: In this method, it is assumed that the
performance of an employee conforms to a bell-shaped curve. Thus, the
rater has to put employees on provided points on the scale.
Critical Incidents Method: Here the critical behavior of the employee is
considered by the supervisor while evaluating the performance .
Behaviorally Anchored Rating Scale: Different statements which are
descriptive in nature are prepared about the behavior of the employee.
These behaviors are put on the scale points and the rater has to indicate
the points which explain the employee behavior in a more exact way.
Field Review Method: In this method, the reviewer of the performance is
generally someone outside the department. The people from the HR
department or corporate office do the performance evaluation of the
employee based on the records and interviews.
Performance Tests and Observations: This is a kind of oral test that is
conducted to test the skills and knowledge of the employees in their
respective fields. The employees sometimes receive a situation and are
asked to demonstrate their skills and then their performance is evaluated
based on that presentation.
Confidential Reports: Often the government departments follow this
method of performance evaluation. The employees are evaluated based on
the parameters such as leadership quality, teamwork, integrity, technical
ability, attendance, etc. The reviewer sends the confidential review to the
concerned authority about the performance of the employee.
Essay Method: Under this method, the detailed description of the
employee performance is written by the rater. The performance of an
employee, his relations with other
Co-workers, requirements of training and development programs,
strengths and weaknesses of the employee etc. are some of the points
that are included in the essay. The efficiency of this traditional method
of performance appraisal depends on the writing skills of the rater.
Cost Accounting Method: It is a simple method in which the
performance of the employee is linked with the monetary benefits of
the organization. The rater checks about the cost to the company to
keep the employee and the contribution of the employee in terms of
monetary business.
Comparative Evaluation Approaches: This approach includes a
comparison of the performance of co-workers with each other. It is of
two types namely the ranking method and paired comparison method.
It is a quite popular method of employee performance appraisal in the
corporate world.
MODERN METHODS OF EMPLOYEE
PERFORMANCE APPRAISAL

Here is a list of different modern methods which can be

used for employee performance appraisal:
Management by Objectives: In this method, the
performance of the employee is assessed based on the
targets achieved by him/her. The management at the
beginning of the financial year conveys the set goals to the
employees, at the end of the year the performance of the
employee is compared with the set goals and evaluated for
the appraisal.
Psychological Appraisals: Psychologists are invited to
the companies for the performance appraisal of the
employees. Here the performance is in the context of the
potential future performance. Psychological tests, in-depth
interviews, reviews, and discussions with the managers are
the methods used for the evaluation of the performance.
Assessment Centers: A series of exercises are conducted at
the assessment center of the company to actually evaluate
the performance of the employee. The exercises include
discussions, role-playing, computer simulations, and many
more. The employees are evaluated in terms of
communication skills, mental alertness, emotional
intelligence, confidence, and administrative abilities. The
rater observes the event and evaluates the performance of the
employee at the end.
360-Degree Feedback: It is particularly a
360-degree feedback method in which the information
about the performance of the employee is collected from
supervisors, peers, group members, and self-assessment. All
the remarks are considered to evaluate the overall work
performance of the employee.
720-Degree Feedback: In line with the 360-Degree
feedback system, here the feedback is collected from the
stakeholders within the company as well as the people linked
from outside the organization. The customers, suppliers,
investors, and other financial groups provide feedback about
the performance of the employee.
WHAT ARE THE OBJECTIVES OF EMPLOYEE
PERFORMANCE APPRAISAL?

The main objective of the employee performance appraisal is often

termed as a comparison of the standard performance set by the
organization with the actual performance of the employee. However,
there are some other important objectives served by the employee
performance appraisal system as given below-
The performance appraisal system maintains the records which are used
to determine the compensation and wage structure of the employee.
It is very useful to determine the strengths and weaknesses of the
employees and helps to place the right person at the right job.
It provides access to the potential in the person for future growth and
development
It gives the necessary feedback regarding the performance of the
employee and their actual contribution to the growth of the organization.
It guides the HR department about the training needs of the employees.
It influences the working habits of the employees and makes them
work-oriented.
ADVANTAGES OF PERFORMANCE
APPRAISAL
It helps the supervisors to chalk out the promotion for performing
employees and dismiss the inefficient workers.
It helps the organization to decide the compensation of the employee.
Also, based on the performance and the additional efforts put by the
employee the extra benefits and allowances can be decided using
records of performance appraisal.
Special actions can be taken for the development of the employees.
The performance appraisal system will highlight the weakness of the
employee based on which the training program arrangement can be
carried out by the organization.
The performance appraisal further suggests the changes in the
selection process which will help to hire better employees.
Performance review is an effective way to communicate the status of
the performance of the employee. It is a way to provide feedback
about how the employees are doing on their job.
The evaluation of the performance can act as a motivational tool. It
provides a picture of the efficiency of the employee and motivates the
individual to improve their performance.
DISADVANTAGES OF PERFORMANCE
APPRAISAL

Performance appraisal totally depends on the factors used for

the evaluation of the performance. The use of incorrect or
irrelevant factors can lead to the failure of performance
appraisal.
Sometimes the vital factors responsible for the performance
are ignored during performance appraisal.
The factors like attitude, abilities, and initiative are very
vague and difficult to gauge.
Sometimes the managers who carry out the performance
appraisal are not qualified enough to properly assess the
abilities of the employees. Thus, it leads to irrelevant data
collection and failure of performance appraisal.
BASIC STRATEGIES TO REDUCE
POTENTIAL APPRAISAL PROBLEMS:

1. Training raters to understand the evaluation process and recognize errors.

2. Ensuring that raters observe ratees on an ongoing basis.
3 Not having the rater evaluate too many ratees
4 Ensuring the clarity and adequacy of performance dimensions and
standards.
5 Avoiding terms that have different meanings for different rates:
REFERENCES
Sullivan,E.J.(2010).Effective Leadership and management in
nursing (9th ed).Julie leven Alexander. Canada
QUESTIONS