Performance

Appraisal

Performance Appraisal
Performance Appraisal (PA) refers to all those
procedures that are used to evaluate the personality,
performance and potential of its group members.
Performance Appraisals are yearly or monthly
evaluations given to employees.
They evaluate the needs of the employee and
supervisor.
Performance Appraisal is the process by which
organizations evaluate employee job performance.
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Uses of Performance Appraisal

Raises, Merit Pay, Bonuses

Personnel Decisions (e.g.

promotion, transfer, dismissal)

Identification of Training needs

Research purposes (e.g.

assessing the worth of selection
tests

Steps in performance appraisal

Establishing job standards
Designing an appraisal programme
Appraise performance
Performance interview
Use appraisal data
For appropriate purpose
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Objective of Performance
Appraisal

To help better current performances

To help in development of the employee.
To determine training and development
needs.
To give employee feedback and counsel
them
To review performance for salary
purposes.
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Process of Performance Appraisal

Taking corrective
standards

Setting
performance
standards

Discussing
results

Communicating
standards

Measuring
standards
Comparing
standards
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Issues in appraisal system

Formal and informal
What methods?

Whose performance?

When to evaluate? Appraisal Design?

Who are the raters?

What problems?

What to evaluate?
How to solve?

Benefits of Performance
Appraisal
For the Appraisee
For the Management
For the Organization

Benefits of Performance Appraisal

Better understanding of his role in the organization what is
For expected
the Appraisee
and what needs to be done to meet those
expectation
Clear Understanding of his strengths & weaknesses to
develop himself into a better performer in future
Increased motivation, job satisfaction, and self esteem
Opportunity to discuss work problems and how they can be
overcome
Opportunity to discuss aspirations and any guidance,
support or training needed to fulfill those aspirations
Improved working relationships with supervisors
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Benefits of Performance Appraisal

Identification of performers and non-performers and their
For development
the Management
towards better performance
Opportunity to prepare employees for assuming higher
responsibilities
Opportunity to improve communication between the
employees and management
Identification of training and development needs
Generation of ideas for improvements
Better identification of potential and formulation of career
plans
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Benefits of Performance Appraisal

Improved performance throughout the organization
For Creation
the Organization
of a culture of continuous improvement and
success
Conveying the message that people are valued

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Methods of Performance
Appraisal
Individual Evaluation
Methods
Multiple Person
Evaluation Methods
Other Methods

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Methods of Performance Appraisal

Individual Evaluation Methods
Confidential report
Essay evaluation
Critical incidents
Checklist
Graphic rating scale
Behaviorally anchored rating scale (BARS)
Forced choice method
Management by Objective (MBO)

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Methods of Performance Appraisal

MultipleRanking
Person Evaluation Methods
Paired comparison
Forced distribution

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Methods of Performance Appraisal

Other Methods
Group Appraisal
Field review technique
3600 Appraisal System

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Individual Evaluation Methods

Confidential
Report
Descriptive report
Prepared at the end of the year
Prepared by the employees immediate supervisor
The report highlights the strengths and weaknesses of
employees
Prepared in Government organizations
Does not offer any feedback to the employee

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Individual Evaluation Methods

Essay
Evaluation
The
rater is asked to express the strong as well as
weak points of employees behavior
The rater considers the employees :
Job knowledge and potential
Understanding of companys programs, policies,
objectives etc
Relation with co-workers and supervisors
Planning, organizing and controlling ability
Attitude and perception

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Individual Evaluation Methods

Critical
Incidence
Manager prepares lists of statements of very effective
and ineffective behavior of an employee
These critical incidents represent the outstanding or
poor behavior of the employees
The manager periodically records critical incidents of
employees behavior

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Individual Evaluation Methods

Checklist Method
Simple checklist method
Weighted checklist method
Forced choice method

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Checklist Method

Simple Checklist Method

Is employee regular
Y/N
Is employee respected by subordinate Y/N

Is employee helpful
Y/N
Does he follow instruction
Y/N
Does he keep the equipment in order
Y/N

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Checklist Method
Weighted Checklist Method

weights

performance

Regularity
Loyalty
Willing to help
Quality of work
Relationship

rating
(scale 1 to 5 )

0.5
1.5
1.5
1.5
2.0
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Checklist Method
Forced Choice Method

Criteria

1.Regularity on the job

Rating
Most

Least

Always regular
Inform in advance for delay
Never regular
Remain absent
Neither regular nor irregular

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Individual Evaluation Methods

Graphic
Rating Scale
A form is used to evaluate the performance of the
employees
A variety of traits may be used in this device, the most
common being quality and quantity of work
Easy to understand and use.
Permits statistical tabulation of scores of employees

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Individual Evaluation Methods

Behaviorally Anchored Rating Scale (BARS)

Step 1.

Identify critical incidents

Step 2.

Select performance dimension

Step 3.

Retranslate the incidents

Step 4.

Assign scales to incidents

Step 5.

Develop final instrument

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Individual Evaluation Methods

ForcedThis
Choice
Method
method uses several sets of paired phrases, two
of which may be positive and two negative
The rater is asked to indicate which of the four phrases
is the most and least descriptive of a particular worker
Favorable qualities earn plus credit and unfavorable
ones earn the reverse

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Individual Evaluation Methods

Management
by objectives (MBO)
MBO emphasizes collectively set goals that are tangible,
verifiable, and measurable
Focuses attention on goals rather than on methods
Concentrates on Key Result Areas (KRA)
Systematic and rational technique that allows management
to attain maximum results from available resources by
focusing on achievable goals

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Individual Evaluation Methods

Management by objectives (MBO) - Cont
Key Element of MBO
Arranging organizational goals in a means-ends chain
Engaging in joint goal setting
This process has the following steps:
Identify KRAs
Define expected results
Assign specific responsibilities to employees
Define authority and responsibility relationship
Conducting periodic progress review
Conducting annual performance review
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Multiple Person Evaluation Methods

Ranking method

The evaluator rates the employee from highest to lowest on some

overall criteria
Paired comparison method

Each worker is compared with all other employees in a group

For several traits paired comparisons are made, tabulated and then
rank is assigned to each worker
This method is not applicable when the group is large
Forced Distribution Methods

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.

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Other Methods
Group Appraisal
Employee is appraised by a group of
appraisers.
The group consists of :
Immediate supervisor of the employee
Other supervisors who have close contact with the
employees work.
Manager or head of the departments.
Consultants or Clients
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Other Methods
Field Review Technique
The appraiser goes to the field and obtains the
information about work performance of the employee by
way of questioning the said individual, his peer group, and
his superiors

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Other Methods
360 0 360
Appraisal
System
Degree Performance : Combination of self, peer, supervisor, and
subordinate performance evaluation

It is a systematic collection and feedback of performance data

on an individual or group, derived from a number of
stakeholders
Data is gathered and fed back to the individual participant in a
clear way designed to promote understanding, acceptance and
ultimately behavior
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Appraisal
Interview
and job
Feedback
Let
To help employees
do a better
by clarifying-what
is
the Employee
Know
Where
He
Stands
expected of them
To plan opportunities for development and growth
To strengthen the superior-subordinate working
relationship by developing mutual agreement of goals
To provide an opportunity for employees to express
themselves on performance related issues

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Any
Questions??
?

THANK YOU
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