Performance appraisal

It is defined as evaluating an employee’s current or past

performance relative to set standards.

It involves:

• setting work standards

• assessing the employee’s actual performance

relative to these standards

• providing feedback to the employee with the aim

of motivating that person to eliminate performance
deficiencies or to continue to perform above par
 Objectives of PA
 Providing basis for promotion/transfer/termination
 Enhancing employees’ effectiveness
 Identifying employees’ training and development needs
 Developing interpersonal relationship
 Aiding wage administration
 Improving communication
 Benefits of PA
 Set goals and standards.

 Detect and correct problems.

 Document accomplishments.

 Determine whether organizations are fulfilling their vision

and meeting their customer-focused strategic goals.

 Determine the effectiveness of your part of your

group/department/division/organization.
 Constraints of PA
 Leniency/severity

 Central tendency

 Halo/horn effect

 Primacy and recency effect

 Perceptual set
 Methods of PA

Past method

• Rating scales
• Forced distribution
• Critical incident
• Field review
• Essay method

Future oriented

• management by objectives
• assessment centers
 Process of PA
 Select performance factors (based on job description) to be
evaluated and set the standards to be achieved
 Set the performance review period
 Measure actual performance
 Compare performance with set standards and rate it with a
suitable scale
 Communicate the rating to the appraisee
 Reviewer
Self-assess,
Sup-assess, assess
Freeze
Mtx mgr comments,
Select reviewer

Appraisee
Finalize Input
Define/ Enter appraiser feedback: Biz-HR
by Sup, for
feedback on Satisfied Comments
Update/ freeze normali
behavior, Y/N
KRA zation
Delete promotion etc,
KRA by
appraise
and
appraiser
 Process Flow
Primary Supervisor / Matrix Manager/ Client
Appraisee Reviewer
Appraiser Manager

Start
Complete feedback
form and submit it to
Primary Supervisor
Define Own KRAs Freeze Appraisee’KRAs

Submit self
evaluation against Evaluate performance
KRAs and self against KRAs and refer
evaluation form to self feedback form , Martix
Primary Supervisor Manager and client
Manager evaluation.
Annual Appraisal provide
Rating
Review the evaluation/
discuss with Primary
Supervisor and make
changes if any

Face-to-face discussion
Appraisee and Primary
Supervisor
Set/Review KRA for Face-to-face discussion
next appraisal cycle Appraisee and
Reviewer
Biz HR will Share the
review comments with
Appraisee
Normalization Meeting
(Will be held only for
annual Appraisals)

End
 Work accomplished:
 Sorting of KRA data of H1 period, grouping the imperatives
according to the grade -wise and find out if there is any
pattern followed. Also note the differentiating factors
pertaining to each grade.

 To understand the MIS’s of automated appraisal system in

such a manner that various working analysis’s could be
provided using the data captured. The data for the MIS’s will
be available once the appraisal process is initiated..

 To generate a standard set of FAQ related to the appraisal

process which can prove beneficial to the appraiser as well as
the appraisee
Roles Imperatives Modified KRA

Accounts Customer related Receivables review

Financial related Cash flow statements, monthly/quarterly statements

Key business objectives Turn around time, productivity

Operational excellence Initiatives taken, compliance of subsidiaries, Turn around

time, productivity

Quality related Invoice maintenance, accuracy in excel, oracle, daily

accounts, PC Soft/SAP

Self development Initiatives taken, learning implied

Relationship related Knowledge sharing

Analyst Capability/practice building Organizational initiatives, conduct interviews

Customer related On time delivery, feedback

Learning related Mentoring, conduct UML training

Operational excellence Adopt best practices, peer review, schedule variance

People practices/management Share documents with team, freshers induction, team

support, participate in tech forum and training programs

Project management/execution Customer satisfaction, on time delivery

Quality related Rework, deliverables defects, peer review, process

compliance

Relationship related Induction of new joiners

Self development Domain knowledge enhancement

Thank you