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2. MEANING
Performance appraisal is the process of assessing the
performance and progress of an employee or of a group
of employee or a group of employees on a given job
and his potential for future development
3. DEFINITION
According to Flippo, “performance appraisal is the
systematic, periodic and an impartial rating of an
employee’s excellence in matters pertaining to his
present job and his potential for a better job.”
Performance Appraisal
Performance Appraisal (PA) refers to all those
procedures that are used to evaluate the
personality
performance
potential of its group members
4. OBJECTIVE OF PERFORMANCE APPRAISAL
Provide a basis for promotion/ transfer/ termination:
Identify those employees who deserve promotion
Or those who require lateral shift (transfer) or termination
PA is used for career planning
Enhance employees’ effectiveness by helping to identify
their strengths and weaknesses and
Inform them about expected levels of performance
To provide feedback to employees so that they come to
know where they are stand and can improve their job
performance
5. PROCESS OF PERFORMANCE APPRAISAL
SETTING
PERFORMANCE
STANDARDS
Communicating
the Standards
MEASURING
PERFORMANCE
COMPARING
STANDARDS
DISCUSSING
RESLUTS
TAKING
CORRECTIVE
ACTIONS
6. SETTING PERFORMANCE STANDARD
Performance standards serve as benchmarks against
which performance is measured
Standards should relate to the desired results of each
job
The appraisal process beings with the setting up of
criteria to be used for apprising the performance of
employees
The criteria should be clear, objective and in writing
It should be discussed with the supervisors to ensure
that all the relevant factors have been included. Where
the output can be measured the criteria is clear.
7. COMMUNICATING THE STANDARDS
Performance appraisal involves at least two parties, the
appraiser who does the appraisal and the appraise
whose performance is being evaluated
The appraiser should prepare job descriptions clearly;
help appraisee set his goals and targets; analyze results
objectively; offer coaching and guidance to appraisee
whenever required and reward good results
The appraisee should be very clear about what he is
doing and why
8. MEASURING PERFORMANCE
Performance measures, to be helpful must be easy to
use, reliable and must report on the critical behaviors
that determine performance
Performance measures may be objective or subjective
Objective performance measures are indications of job
performance that can be verified by others and are
usually quantitative
Subjective performance measures are ratings that are
based on the personal standards or opinions of those
doing the evaluation and are not verifiable by others
9. COMPARING STANDARDS
Actual performance may be better than expected and
sometimes it may go off the track
Whatever be the consequences, there is a way to
communicate and discuss the final outcome
10. DISCUSSING RESULTS
The results of the appraisal are communicated to and
discussed with the employees. Along with the
deviations, the reasons behind are also analyzed and
discussed.
Such discussion will enable an employee to know his
weakness and strengths
Therefore, he will be motivated to improve himself
11. TAKING CORRECTIVE ACTIONS
Through mutual discussions with employees, the steps
required to improve performance are identified and
initiated. Training, coaching, counseling, etc is
examples of corrective actions that help to improve
performance
13. PROBLEMS IN PERFORMACNE
APPRAISAL
LACK OF RELIABILITY
NCOMPETENCE
Negative approach
Multiple objectives
Resistance
Lack of knowledge
14. METHODS OF PEFORMANCE APRAISAL
METHODS OF
PERFORMANCE
APPRAISAL
TRADITIONAL
METHOD
MODERN
METHOD
15. TRADITIONAL METHOD
CONFIDENTAIL REPORT
FREE FORM OR EASSY
STRAIGHT RANKING
PAIRED COMPARISONS
FORCED DISTRIBUTION
GRAPHIC RATING SCALES
CHECK LIST METHOD
CRIRTICAL INCIDENTS
GROUP APPRAISAL
16. MODERN METHOD
ASSESSMENT CENTRE
HUMAN RESOURCE ACCOUNTING
BEHAVIOURALLY ANCHORED RATING SCALE
APPRAISAL THROUGH MBO
360 DEGREE APPRAISAL
17. CONFIDENTIAL REPORT
Prepared at the end of the year
Prepared by the employee’s immediate supervisor
The report highlights the strengths and weaknesses of
employees
Prepared in Government organizations
Does not offer any feedback to the employee
18. FREE FORM OR ESSAY
The rater is asked to express the strong as well as
weak points of employee’s behavior
The rater considers the employee’s :
Job knowledge and potential
Understanding of company’s programs, policies,
objectives etc
Relation with co-workers and supervisors
Planning, organizing and controlling ability
Attitude and perception
19. STRAIGHT RANKING /RANKING
METHOD
The evaluator rates the employee from highest to lowest on
some overall criteria
PAIRED COMPARISONS
Each worker is compared with all other employees in a
group
For several traits paired comparisons are made,
tabulated and then rank is assigned to each worker
This method is not applicable when the group is large
20. FORCED DISTRIBUTION
The rater is asked to appraise the employee according to
predetermined distribution scale.
Two criteria used for rating are: job performance and
promotion.
A five point performance scale is also used without
mentioning any descriptive statements.
The worker is placed between two extremes of “good”
and “bad” performance.
21. GRAPHIC RATING SCALES
A form is used to evaluate the performance of the
employees
A variety of traits may be used in this device, the most
common being quality and quantity of work
Easy to understand and use.
Permits statistical tabulation of scores of employees
22. CRITICAL INCIDENT TECHNIQUE
Manager prepares lists of statements of very effective
and ineffective behavior of an employee
These critical incidents represent the outstanding or
poor behavior of the employees
The manager periodically records critical incidents of
employee’s behavior
23. MODERN METHOD
ASSESSMENT CENTRE METHOD
An assessment center is a group of employees drawn from
different work units
These employees work together on an assignment similar
to the one they would be handing when promoted.
Evaluators observe and rank the performance of all the
participants.
This group evaluates all employees both individually and
collectively by using simulation techniques like role
playing, business games and in basket exercise
Employees are evaluated on job related characteristics
considered important for job success