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Performance Appraisal is a tool which is used to
evaluate the employees’ performance at the
It represents how successfully an
individual satisfies the job requirements
or the role he is playing in the
It is an organised, evaluative, periodic, and futuristic
IDENTIFYING STAFFING PROCESS’ DEFICIENCIES
FACILITATING PROMOTION AND DOWNSIZIG
DECISIONSSETTING AND MEASURING GOALS
SETTING AND MEASURING GOALS.
Setting up of the standards is the first step which will be
used to as the base to compare the actual performance of
employees. The standards set should be clear,
understandable and in measurable terms.
2. COMMUNICATING THE STANDARDS
Once set, it is the responsibility of the management to
communicate the standards to all employees of the
organisation. Standards should be clearly explained to the
3.MEASURING THE ACTUAL PERFORMANCE
The most difficult part of performance appraisal process is
measuring the actual performance of employees that is the
work done by the employees during specified period of time.
4.COMPARING ACTUAL PERFORMANCE WITH
The actual performance is compared with the desired or
standard performance .The comparison tells the deviations
in the performance of the employees from the standards set.
5.DISCUSSING RESULT [FEEDBACK]
The result of the appraisal is communicated and discussed
with the employees on one-to-one basis. Feedback in such a
way helpful to correct mistakes done by employees and help
them to motivate for better performance but not to
In Rating scale or Grading, certain categories of
abilities of performance are defined well in advance
and persons are put in particular category
depending on their traits and characteristics.
Each scale ranges from excellent to poor or 1 to 10.
Under this method, checklist of statements of traits of
employee in the form of Yes or No based questions is
Here the rater only does the reporting and HR
department does actual evaluation.
CRITICAL INCIDENT METHOD
In this method, the manager prepares list of
statements of very effective and ineffective behaviour
of an employee through critical incidents which occurs
on the job.
Supervisors as when they occur record such incidents
In this method, the rater assesses the employees on
certain parameters in detail like, work performance,
knowlegde about the job, strengths and weaknesses,
training needs, behavioural pattern,etc.
Advantages: Extremely useful in providing useful
information about employees for appraisal.
Disadvantages: Each rater may use their own style
and perception in describing a person which produces
difficulty in analysis. Memory power of raters.
FIELD REVIEW METHOD
In this method, employee is not appraised by his direct
superior but by another person, usually HR
The basic idea is that a person may take more objective
view in appraisal as he is not under pressure as the
superior of the employee may be.
It is the oldest and simplest formal systematic method
of performance appraisal in which employee is
compared with all others for the purpose of placing
order of worth. The employees are ranked from the
highest to the lowest or from the best to the worst.
In this method, each employee is compared with other
employees on one- on one basis, usually based on one trait
only and then the decision on whose performance is better is
The number of possible pairs for a given number of employees
is ascertained by the following formula: N (N-1)/2
Where N = the total number of employees to be evaluated
The forced-choice method is developed by J. P. Guilford. It
contains a series of groups of statements, and rater rates how
effectively a statement describes each individual being
evaluated. Common method of forced-choice method
contains two statements, both positive and negative.
FORCED DISTRIBUTION METHOD
This method of performance appraisal is based on the
assumption that employee’s job performance conforms
to the normal distribution curve i.e. a bell shaped
curve. Hence, the rater is compelled to put employees
on each point on the scale. It is seen that cluster of
employees is placed at the highest point on a rating
GRAPHIC RATING SCALE
The form lists traits (such as quality and reliability)
and a range of job performance characteristics (from
unsatisfactory to outstanding) for each trait. The
rating is done on the basis of points on the continuum.
The common practice is to follow five points scale.
BARS (Behaviourally Anchored
BARS are description of various degrees of behaviour
with regard to a specific performance dimension.
MBO(Management by Objective)
Peter F .Drucker propounded MBO in 1954. It requires the
manager to goals with each employee and then periodically
discuss his or her progress towards these goals.
They are mainly used for evaluating executive or
supervisory potential. By definition , an
assessment centre is central location where
managers come together to participate in well-
designed simulated exercises.
360 Degree Appraisal
Under this appraisal, performance information
such as employee’s skills, abilities and behaviours,
is collected “ all around ” an employee, i.e., from
his/her supervisors, subordinates, peers and even
customers and clients.
Human Resource Accounting
It is a sophisticated way to measure the
effectiveness of personnel management activities
and the use of people in an organization.
A job evaluation is a systematic way of
determining the value/worth of a job in relation
to other jobs in an organization . It tries to make
make a systematic comparison between jobs to
assess their relative worth for the purpose of
establishing a rational pay structure .
Job evaluation begins with job analysis and ends
at that point where the worth of a job is
ascertained for achieving pay equity between
PROCESS OF JOB EVALUATION
• Identification of jobs for evaluation
• Gathering the relevant data
• Determination of job ranking
• Selection of benchmark jobs
5 • Wages and salary surveys
• Review and feedback
Methods of job
Helps in wages and salary fixation
Helps in reducing grievances
Helps in recruitment and selection
Helps in analysis of company
Helps in wages and salary negotiations