1. Performance Management
and Appraisal

2. • Performance appraisal
means evaluating an
employee’s current
and/or past
performance relative
to his or her
performance
standards

3. • Performance management - process
through which companies insure that
employees are working toward
organizational goals
• It includes practices through which
the manager defines the employee’s
goals and work, develops the
employee’s capabilities, and evaluates
and rewards the person’s efforts

4. Defining the employee’s goals and work efforts
• Employee’s efforts should be goal-
directed
• Manager should appraise the
employee based on how that person
did with respect to achieving the
specific standards by which he
expected to be measured.

5. Defining the employee’s goals and work
efforts
• Manager should make sure that the
employee’s goals and performance
standards make sense in terms of the
company’s broader goals.

6. • Employees should always know ahead
of time how and on what basis you’re
going to appraise them
• Set measurable standards for each
expectation.

7. Effective goal-setting

8. Why Appraise Performance ?
1. Appraisals provide
important input on
which promotion
and salary raise
decisions can be
made

9. Who Should Do the Appraising?
• The supervisor is usually in the best
position to observe and evaluate
subordinate’s performance and is also
responsible for that person’s
performance

10. Who Else can Do the Appraising?
• Sole reliance on supervisors’ ratings
is not always advisable
• An immediate supervisor may be
biased for or against the employee

11. Rating committee
• Usually composed of the employee’s
immediate supervisor and three or
four other supervisors
• Can help cancel out problems such as
bias on the part of individual raters.

12. BASIC APPRAISAL METHODS
• Confidential Report(ACR)
• Direct ranking method(ranks)
• Grading method(grades)
• Graphic rating scale
• Paired Comparison Method
• Forced distribution method
• Critical Incident Method
• Check List method
• Group appraisal
• 360 degree
performance appraisal
• Assessment centre`s
• Human Resource
accounting
• MBO
• BARS

13. DirectRanking Method
• Ranking employees from best to
worst on a trait
• Alternates between highest and
lowest until all employees to be rated
have been addressed

14. Graphic rating scale
• Lists a number of traits and a range
of performance for each
• Supervisor rates each subordinate by
checking the score that best
describes the subordinate’s
performance for each trait

15. Paired Comparison Method
• Every subordinate to be rated is
paired with and compared to
every other subordinate on each
trait

16. Critical Incident Method
• Keeping a record of uncommonly good or
undesirable examples of an employee’s
work-related behavior and reviewing it with
the employee at predetermined times
• Helps ensure that the supervisor thinks
about the subordinate’s appraisal all during
the year
• Includes : refused to accept instructions
Helping the fellow employees
Performing difficult tasks

17. Behaviorally Anchored Rating Scale
• (BARS) is an appraisal method that
combines the benefits of narrative
critical incidents and quantitative
ratings by anchoring a quantified
scale with specific narrative examples
of good and poor performance

18. 360-Degree Feedback
• Performance information is
collected from supervisors,
subordinates, peers, and
internal/external customers
• With multiple ratees and
multiple raters, can be
paperwork nightmares

19. Management By Objectives (MBO)
• Requires the manager to
set specific measurable
goals with each employee
and then periodically
discuss progress toward
these goals

20. MBO
• Set the organization’s goals
• Set departmental goals
• Discuss departmental goals
• Define expected results
• Conduct performance reviews and
measure the results
• Provide feedback

21. APPRAISAL FEEDBACK INTERVIEW
• Supervisor and subordinate review
the appraisal and make plans to
remedy deficiencies and reinforce
strengths

22. APPRAISAL FEEDBACK INTERVIEW
• Supervisor and subordinate review
the appraisal and make plans to
remedy deficiencies and reinforce
strengths

23. Preparing for the Appraisal Interview
• First, give the subordinate at least a
week’s notice to review his or her
work, and to read over his or her job
description, analyze problems, and
compile questions and comments.

24. Essentials of effective appraisal
• Mutual trust and confidence
• Reliability
• Standardization
• Training to appraisers
• Specific objectives
• Feedback
• Post appraisal interview
• Review and appeals