Definition.Methods,Individual Evaluation,Multiple Evaluation,Traditional Methods,Modern Methods,Factors Distorting Appraisal Process.

1. PERFORMANCE
APPRAISAL
Ms.Sadhana Banerji
Assistant Professor-NDIM

2. MEANING OF PERFORMANCE APPRAISAL
PERFORMANCE- It refers to the degree of accomplishment
of the tasks that make up an individuals job. it indicates how
well an individual is fulfilling the job requirement.
APPRAISAL- assessment, evaluation, judgment, review,
consideration
Act of evaluation of performance

3. ???????????IS PERFORMANCE APPRAISAL.
Basically it is systematic process involving 3
steps:
 Setting work standards
 Assessing employees actual performance
relative to these standards
 Offering feedback to the employee so that he
can eliminate deficiencies and improve
performance in the course of time.

4. Definition of performance appraisal
 Written assessments of employees carries out in a
systematic way at regular intervals.
 It is a process of evaluating an employee’s
performance and the qualifications of the employee
in terms of the requirements of the job for which
he/she is employed.

5. Features of Performance appraisal
It tries to find out how well the employee
is performing the job and tries to
establish a plan for further improvement.
It is carried out periodically. It is not one
shot deal.
It is not past oriented activity.
Performance appraisal is not job
evaluation.

6. OBJECTIVES OF PA
1.1. To improve the performance of theTo improve the performance of the organisationorganisation
2.2. To assess actual against expected performanceTo assess actual against expected performance
3.3. To assist subordinate to improve own performance.To assist subordinate to improve own performance.
4.4. To contribute to determining fair rewardsTo contribute to determining fair rewards
5.5. To identify employees suitable for promotionTo identify employees suitable for promotion
6.6. To contribute to development of individualsTo contribute to development of individuals

7. BENEFITS OF PERFORMANCE
APPRAISAL
 It provides a scientific basis for judging the
merits or worth of employees who will try to
improve their performance.
 It provides a sound basis for promotion ,
demotion, transfer or termination.
 It helps in distinguishing between efficient and
in efficient workers. In this way it actually
reveals the defects in the selection procedure.

8. BENEFITS OF PERFORMANCE
APPRAISAL TO THE MANAGER
 It helps the supervisors to evaluate the
performance and to know the potentials of their
subordinates systematically.
 It also help to assign work to individual for
which they are best suited.
 If the performance appraisal is done
scientifically and systematically ,it will prevent
employee grievance.

9. Uses of Performance AppraisalUses of Performance Appraisal
PerformancePerformance
AppraisalAppraisal
PerformancePerformance
AppraisalAppraisal
Giving PerformanceGiving Performance
FeedbackFeedback
Giving PerformanceGiving Performance
FeedbackFeedback
Administering WagesAdministering Wages
and Salariesand Salaries
Administering WagesAdministering Wages
and Salariesand Salaries
Identifying StrengthsIdentifying Strengths
and Weaknessesand Weaknesses
Identifying StrengthsIdentifying Strengths
and Weaknessesand Weaknesses

10. What to Evaluate?
Traits Measures
Are an assessment of what the employee is,
not what the employee actually does.
Behavior-based measures
Focus on what an employee does and what the
employee should do differently.
Results-based measures
Focus is on accomplishments or outcomes that
can be measured objectively.

11. How to Evaluate?
 Relative Assessment
 Employees are measured against other
employees and ranked on their distance
from the next higher to the next lower
performing employee.
 Absolute Measurement
 Employees are all measured strictly by
absolute performance requirements or
standards of their jobs.

12. The Appraisal Process
Establish
Performance
Standard 1.
Communicate the
Standard
2.
Measures actual
Performance
3.
Compare actual
performance with
Standards 4.
Taking corrective
Action, if necessary
5.

13. Performance appraisal methods
Appraisal
Methods

14. Performance appraisal
Individual evaluation
1. Confidential report
2. Essay evaluation
3. Critical incident
4. Checklist
5. Graphic rating scales
6. Forced choice method
7. MBO

15. Individual evaluation method)
1.FREE ESSAY
In this method the rater is asked to express
the strong as well as weak point of the
behavior.
It describes an employee's actions rather
than indicating an actual rating

16. Essay contd…
While preparing the essay on the employee
the rater considers the following factors:
a)Job knowledge
b)Employees understanding of the company’s
programmes, policies.
c)Employee relations with co –workers and
superiors.
d)The attitudes and the perceptions of the
employee.

18. 2.CRITICAL INCIDENT METHOD
 Critical incidents are behaviors that result in
good or poor job performance.
 Such incidents are recorded by the superiors.
 The rater plays the role of ‘Observer’ rather
than ‘Judge’.
 For e.g.
“I saw Mishra closing the steam line valve
at the instant the pipeline burst. We could
save a lot of lives due to the above factor.”

19. CHECKLIST
A check list represents in its simplest form ,a
set of objectives or descriptive statements
about the employee and his behavior.
 Checklists consist of groups of statements
that pertain to a given job.
For e.g.
I. is the employee really interested in the task?
Yes/No
II.Does he respects his superior? Yes/No

20. GRAPHIC RATING SCALE (GRS)
I. In this method a printed form is used to
evaluate the performance of an employee.
II. A variety of traits may be used in these types
of rating devices .
III. In a Graphic Rating Scale, the rater assesses
a rate on performance-related characteristics
and personality characteristics,
ie. factors like quantity of work, dependability, job
knowledge, cooperativeness, ability to lead,
interpersonal skills, etc. by using a rating scale.

23. Forced Choice Method
 A rating technique specially designed to
increase objectivity and to decrease biasing
factors in ratings.
 It comprises of the use of statements that are
grouped into sets according to certain
statistical properties.
 Rater is “forced” to select from each group of
statements a subset (usually 2) of those
statements which is most or least descriptive
of the employee.

24. For e.g..
Least Most
A Does not anticipate A
difficulties
B Grasps explanation B
easily and quickly
C Does not waste time C
D Very easy to talk to D

25. Multiple –person evaluation methods
1. Ranking
2. Paired Comparison
3. Forced Distribution

26. 1.Alternation ranking

27. 2.PAIRED COMPARISON:
For the trait “Creativity”
_+++EESHWAR
+_++DILIP
_++_CHARLES
____BHAVANA
__++ARUP
EESHWARDILIPCHARLESBHAVANAARUP

28. Forced distribution
One of the errors in rating is leniency i.e.
Clustering a large number of employees
around a high point on a rating scale.
This method compel the rater to
distribute the rates on all points on the
rating.
For e.g. the following distribution might be
assumed to exist – excellent 10%,good
20%,average 40%,below average 20%.

29. 3.Forced Distribution
0
5
10
15
20
25
30
Low Low-
avg
Avg High-
avg
High
Low
Low-avg
Avg
High-avg
High

31. MANAGEMENT BY OBJECTIVES
 The use of Management By Objectives was
first widely advocated in the 1950s by the
noted management theorist Peter Drucker.
 MBO requires the management to set specific
measurable goals with each employee.
 This technique emphasis anticipatively set
goals(that are agreed upon by the superior and
the employee).

32. MBO………(process)
1. Set the organizational goals
2. Set departmental goals
3. Discuss departmental goals
4. Define expected results
5. Performance reviews
6. Provide feedback

34. 360 Degree Appraisal
A 360 degree appraisal system collects
performance information from multiple
parties, that interact with the employee
on a routine basis.
Generate more accurate feedback by
gathering information from people about
an individual’s performance .
It was originally developed by TV Rao in
mid eighties at IIM ,A.

35. 18
360 DEGREES

36. Parties involved
1. Supervisors
2. Peers
3. Subordinates
4. customer

37. 360 Degree Appraisals
Supervisors
Peers Outsiders
Subordinates

38. Parties involved……
1. Supervisor –It includes supervisor of the
employee having knowledge about the work of
the employee. General practice is that
immediate superiors.
2. Peers-Peer rating may reliable in rating
behavior and manner of performance.
3. Subordinates-the concept of having superiors
rated by subordinated .
4. Customers- employee performance in terms of
behavior ,promptness ,speed in doing the job
can be better judged by customers.

39. Contd……..
Corporation like
GE, Reliance, Wipro,Infosys,SBI,Aditya Birla
Group are all using this tool to discover home
truth about their managers.
For e.g. If manager has 6 subordinates ,the
manager does not know which subordinates
said what ,the result are summarized and
averaged.
It may be possible one may criticize the boss for
standing too close to people ,another may
comment on boss’s aggressive tone.

40. Factors that can Distort Appraisals
1. First Impression
The appraisers first impression of a candidate
may color his evaluation of all subsequent
behavior.
2. Personal prejudice
if the rater dislikes any employee or any
group ,he may rate them at the lower end .
3. Halo effect: when one aspect of the
subordinate's performance affects the rater’s
evaluation of the other performance.

41. Factors that can Distort Appraisals
4. Central tendency:
Play safe policy in rating by rating all the
employees around the middle point of the
rating scale and they avoid rating the people
at both the extremes of the scale.
5 .The Leniency and Strictness:
6. The Recency effect:
The raters generally remember the recent
actions of the employee at the time of rating
and rate on the basis of these recent action.