PERFORMANCE
APPRAISAL
Aneetha srikumar
Syllabus
• PerformanceAppraisal – Meaning and definition of
performance appraisal.
• Methods – Traditional method and modern method.
• Traditional
method – Ranking , paired comparison
method, grading , forced choice, checklist, critical
incident and essay method.
• Modern method – behavioural anchored rating scale
(BARS), Management by objectives (MBO), 360 degree
feedback.
• Benefits and limitations in performance appraisal .
What do you mean by performance Appraisal??
•A performance appraisal is a systematic and objective method of
judging the quality of an employee in performing his job and a
part of guiding and managing career development.
• It is the process to obtain, analyze, and record the information
about the relative worth of an employee to the organization.
• Performance appraisal is an analysis of an employee’s recent
successes and failures, personal strengths and weaknesses, and
his/her suitability for promotion or further training.
Why performance appraisal?
•Validation of selection criteria
•Training requirements.
•Employee improvement
•Pay , promotion and other personnel decisions
Definition of Performance apprasial
Performance appraisal, as defined by Edwin Flippo, is "the systematic,
periodic, and impartial rating of an employee's excellence in matters
pertaining to his present job and his potential for a better job".
Dale S. Beach defines it as "a systematic evaluation of the individual with
respect to his or her performance on the job and his or her potential for
development".
Armstrong and Baron – Performance management is both strategic and
integrated approach to delivering successful results in organizations by
improving the performance and developing capabilities of teams and
individuals.
Techniques of performance
appraisal
A. Traditional method .
B. Modern method.
Tradition methods
• Ranking order
• Paired comparison method
• Grading method
• Forced choice method
• Checklist method
• Critical incident method
• Essay method
Checklist method
•A checklist is a list of statements that describe the characteristics
and performance of employees on the job.
• Therater checks to indicated if the behavior of an employee is
positive or negative to each statement.
• The checklist method is least time consuming traditional method.
• It’s
a management tool that list different tasks and activities and
behaviors that need to be followed to achieve a systematic result.
• It
helps to ensure consistency and completeness in carrying out a
task.. “It is to do list”.
• Benefits– helps yo keep things organized, employee motivated ,
encourage task delegation, improve productivity, foster creativity,
contributes to fewer errors.
• Disadvantages – can draw focus to wrong things, time consuming.
Critical incident method
• Critical incident technique is used to collect data
using a set of procedures.
• In critical incident method the observer observes
critical human behaviors, skills used, incidents that
occur on the job.
• The participant is asked about his feeling and
perspectives of the Incident.
• The actions were taken during the situation, how
the activities altered the situation and what can be
done to better it.
Essay method
• Theessay method is still a commonly used appraisal method in a variety of
business models.
• Theessay method, sometimes known as the “free-form method,” is a
performance review system where a superior creates a written review of the
employee’s performance.
• These essays are meant to describe and record an employee’s strengths
and weaknesses in job performance, identifying problem areas and creating
a plan of action to remedy them.
• Essay method allows appraisers to place varied degrees of emphasis on
certain qualities, issues, or attributes that are appropriate.
• It
involves a description of the performance of an employee by his
superior which needs to be based on fact and often .
• Oneof the major drawbacks of the essay method is its highly subjective
nature--they are often subject to bias, and it can be difficult to separate the
assessment of the employee from the bias of the evaluator.
Modern method
•Behavioural anchored rating scale (BARS)
•Management by objective (MBO).
•360 degree feedback
Behavioural anchored rating scale
• It’s
a 60 year old concept, developed by Smith and
Kendal
• Measuring system which rates employees or trainees
according to their performance and specific
behavioural pattern.
• Performance is based on a Likert scale.
• It’s
a performance appraisal that provides a
description of each assessment along a continuum.
• It
often includes a numerical scale that runs from low
to high on a specific behaviour.
• Bars have to be customised to every different type of
job.
Management by objective
Concept was given by Peter F Drucker in 1954
in his book “Practice of management”.
•Define organizational goal.
•Define employees goal.
•Continuous monitor of performance .
•Performance evaluation.
•Provide feedback
•Provide reward/appraise.
360 degree feedback
• What??
• Why??
• How??
• Where ???
• Process
Performance Appraisal
Advantages Disadvantages
• Provides
a record of • Assessment may indulge in
performance over a period of human errors, inaccuracy
time. ( Subjective).
• Canbe motived – • Consumes time.
reward/compensation.
• Lack
of qualification, no depth
• Provides
an opportunity for knowledge.
manger to meet and discuss.
• It’s a stressful process .
• Provides an opportunity for
• Discouraging.
employee to meet and
discuss issues and get clarity • Negative experiences .
expectations .
• Spill over effect.
• Provides
feedback about their
performance
