Concept of Performance appraisal; characteristics and purpose; The process and methods; inadequacies

1. Performance Appraisal
Annual review, performance review/evaluation,
employee appraisal, a performance appraisal
Nirmala Roberts
India

2. Performance Appraisal
A regular review of an employee's job performance
and overall contribution to a company.
Evaluates - skills, achievements, and growth, or lack
thereof.

3. Performance Appraisal
“A systematic, periodic and so far as humanly
possible, an impartial rating of an employee's
excellence in matters pertaining to her/ his
present job and to his potentialities for a
better job.”
- Edwin B. Flippo

4. Characteristics of
Performance appraisal
�A uniform, objective, standardized performance
review – done periodically
�Involves formal evaluation and documentation of
how well the employee has performed the job
�Based on a systematically gathered information over
a time period
�It is NOT job evaluation
�Done in relation to job specification
�Is confidential

5. Purpose of Performance Appraisal
�Part of a company's performance management system
�Determine job competence & aspirations of employee
�Help improve the quality of service
�Provide and maintain data –
�On individual job performances
�For future job assignments, pay & compensation
�To place ✓ person at the ✓ job.
�To Justify the decisions related to promotions, pay hikes,
bonuses, termination

6. Purpose of Performance Appraisal
�Enhance staff- devt and motivate personnel
�Improve communication
�Encourage better relationship among employees
�Basis for changing/ modifying behaviour toward more
effective working habits
�Provide a platform for –
�Resolving problems with the workload, a teammate, or a
project
�Sharing grievances with the team members on their
performance/ progress

7. The Process….
�Creation (of a predefined standard of factors) -
work knowledge, work performance, work
attitude, leadership quality, team player behaviour,
consistency, decision-making abilities, and skills
�Comparison - of actual
performance, and personality
of employee, with the
expected standards

8. Performance Monitoring & Appraisal

9. Methods of Performance Appraisal
Traditional
Methods
Modern
Methods
Ranking Method
Paired Comparison
Grading Method
Forced Distribution Method
Checklist Method
Essay Method
MBO
360 degree Appraisal
Cost Accounting Method
Assessment Centers
Behaviourally anchored Rating
Scale
1
2
6
5
5
4
4
3 3
2
1

10. Individual SWOT analysis
S W
O
T

12. Writing an employee evaluation
�Review of the employee's job description.
�Get an account of and review the employee’s job
performance
�Highlight areas of improvement
�Compare strengths and weaknesses
�Recommend actionable goals
�Provide constructive feedback
�Welcome employee input

13. Performance Appraisal
comments
Overall Performance:
Rating 82%.
Comments: a) A disciplined and reliable worker.
Always available for team members. b) Well
organized and efficient. c)Takes efforts to self
educate on the latest d)Provides support, insights,
direction, and ideas to other team members
Goals Achieved:
Rating 70%
Comments: Was very efficient while working for the
goal attainment. As the set goal is higher, 70%
achievement is a significant performance. More can
be achieved by carefully planning the work process.
Improvement:
Rating 65%
Comments: The achievement is quite significant still
there is a lot of room for improvement. The
employee can be proactive in problem-solving and
boost the growth journey.

14. Inadequacies of appraisal systems
� Managers –
�Lack objectivity in performance appraisal
�Compare an employee to their co-workers
�Make arbitrary judgments– Due to inadequate information
about the subtleties of performance (attitude, initiative…)
�Incomparable ratings by different managers
�Rating on results rather than on behaviour - demotivating
�Inadequate managers and managers playing God
�Unwilling to do the appraisal – Lack of confidence, fear of
damaging self esteem; don’t want to do it straight forward

15. Inadequacies of appraisal systems
� Employee –
�Feel that performance reviews don't change anything
�Promotions and layoff decisions based on Inadequate data
leads to acrimonious debate.
�Frustration over delayed recognition of good performance
�Anger over delayed judgment for inadequacies long past.
�Neither manager nor employee really care about it

16. Questions….
�What is performance appraisal (PA)?
�Characteristics of PA
�Purpose of PA?
�Procedure of performing a PA?
�Writing a PA