Performance Appraisal is a systematic and impartial assessment of an employees performance on the assigned job with a view to discovering how

well or worse is the job being performed by him and also identifying his potential for further development

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Systematic process Impartial process Measure both the quantity and quality of an individuals job performance Concerned with measuring the potential of individuals for further development to transform them into better personnel.

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Quality degree to which the process or result of carrying out an activity approaches perfection Quantity the amount produced, expressed in monetary terms, number of units etc Cost effectiveness degree to which the use of the organisations resources is maximised

4. Need for Supervision degree to which a job performer can carry out a job function without supervisory assistance 5. Training Need for training for improving his skills & knowledge.

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Salary Increase Promotion Training and development Feedback Pressure on Employees

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Establishment of Performance Standards Communicate performance expectations to employees Measurement of Performance Personal observation, statistical Reports, Oral and written Reports Compare Actual Performance with standards Discuss the appraisal with the Employee Initiate corrective action

Traditional Methods emphasis on the rating of the individuals personality traits such as initiative, dependability, drive, responsibility, creativity, intelligence etc. Modern Methods emphasis on the evaluation of work results or job achievements

Ranking Method -Persons and their performances are compared as a whole by their most immediate superiors without regard to any specific and standard characteristics of comparison Ranking method is highly suitable when the number of employees to the appraised is limited and the intelligence, sincerity and honesty of the supervisor are beyond doubt.
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2. Paired Comparison Technique Each employee of the group is compared with the others one at a time. -results of comparisons are tabulated and the ranking order is created from the number of times a person is considered superior to others. -suitable when the number of employees preferably does not exceed 10.

3. Graphic Rating Scale several traits or standards of evaluation are decided against each of which performance of employees is appraised.

4. Forced Distribution Method All employees in a work-group are divided into 5 categories with a fixed percentage of total employees being placed in each category Categories Poor, Below Average, Average, Above average, Outstanding

5. Critical Incident Method Observing workers behaviour during an exceptional or critical situation

6. Checklist Method A series of questions concerning the subject employees and their behaviour is presented -evaluation is done by the experts in the personnel department.

7. Forced-choice Description Method Several pairs of statement about the job performance, behaviour and other characteristics of employees are given -given in the form of tetrads Tetrads is a group of four statements such that two statements are favourable and two unfavourable

Eg Tetrad 1 Is able to handle an emergency assignment Is definite in his goal Does not co-operate with fellow workers Is always late while reporting at work

8. Field Review Method Expert from the HR Department pays a visit to the sport where the employee is performing his job -observes the work performance and behaviour of the employee, interviews the supervisor

9. Descriptive Essays or Confidential Report Method Writing a descriptive essay by the supervisor on the work-performance, behaviour and qualities of a particular employee

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Appraisal by Results or Management by Objectives 3 foundations of MBO Goal setting, Feedback and participation

2. Assessment Centre Method Purpose of this method was to test candidates in a social situation using a number of assessors and a variety of procedure. Used in the case of promotion from the lower level to the supervisory level

3. 360 degree Performance Appraisal Performance information is collected all round an employee from his supervisors, subordinates, peers and internal and external customers Feedback is generally used for training and development rather than for pay increase.

4. Human Asset Accounting Method Refers to activity devoted to attaching money estimates to the value of a firms internal human organisation and its external customer goodwill. Not yet very popular

READING Human Resource Management C.B.Menoria & S.V.Gankar Principles of Management Koontz & Ramachandra Aryasri Principles and Practice of Management L.M.Prasad Principles and Practice of Management T.N.Chhabra