• Methods of gauging or assessing the quality of

work.
• Determine whether or not you will be promoted.
• Beneficial to the employee as to the company
itself.
• Serves you by enabling you to find the right job
and perform successfully in it.
• It is vital that the procedures used by the company
be as objective and systematic as possible, which is
another task of the personnel psychologist.
• The overall purpose of the performance appraisal is to provide
an accurate measure of how well a person is performing the job.

• Performance appraisal can fulfil a number of functions for both

management and employees.
• Selection devices must be correlated with some measure of job
success to establish their validity

• We can have no confidence in a selection technique until we can

compare a measure of the performance of successful and
unsuccessful workers on the job with scores on a test or on other
selection techniques.
• A careful evaluation of an employees performance may
uncover weaknesses or deficiencies in a specific job skill,
knowledge or psychological attitude, that once identified, may
be remedied through additional formal training.

• Performance appraisal can also be used as a means of

measuring the worth of a training program by determining how
much job performance may have improved after the training
has been completed.
• Performance appraisal is important to employees because it
tells them how they are doing.

• This factor knowledge of personal progress or performance

appears to be crucial to maintaining high morale.

• The result of a performance appraisal, communicated tactfully

and constructively to employees, can indicate to them how they
might alter behaviors or attitudes to improve their job efficiency
and value to the company.
• Most people feel, justifiably, that they should be rewarded for
above average or superior performance.

• In industry, the rewards are in tangible form of salary increases,

promotions in rank or transfers to a more desirable opportunity.

• Senior people should be given the first opportunity for

promotion, but they should be qualified for that promotion on
the basis of ability, not just length of service.
• In this critical time, a company will benefit by dismissing the
least competent of its employees and retaining as long as
possible those who have proven themselves to be better
workers.

• Such decisions should be made in terms of objective analyses of

actual job performance.
Production Jobs
1. Quantity of Output – the number of units assembled or
produced in a given period of time.
2. Quality of Output – assessed by inspection standards or the
number of faulty units produced.
3. Accidents – accident record of the worker.
4. Salary – earnings history of the worker, rate and frequency
of increases.
5. Absenteeism – number of days lost from work.
6. Rate of advancement – record of promotion.
1. Assessment of Supervisors – appraisal of level of proficiency.
2. Assessment of Peers – co-workers , judgments of performance
level.
3. Self-assessment – appraisal of one’s own performance level.

• The criteria used differ greatly for the two job categories.
Production jobs readily lend themselves to more objective
measures of performance and output, whereas nonproduction
jobs require more judgmental and qualitative assesments.
• A workers performance level is judged through the procedure
known as merit rating.

• Assessing them in terms of their intelligence, humor, personality,

agreeableness, and the like. Based on this informal judgments,
we decide whether to like or dislike these people.