2. Performance Appraisal Method Adopted
Topic By GACL
Presented by
Jay Visavadiya (11)
Jigar Chauhan. (12)
Manoj Sharma. (13)
Submitted to :- Mrs. Shikha.
3. A performance
appraisal
A performance appraisal, employee appraisal, performance review, or
(career) development discussion is a method by which the job
performance of an employee is evaluated (generally in terms of quality,
quantity, cost, and time) typically by the corresponding manager or
supervisor.
It is the process of obtaining, analyzing, and recording information about
the relative worth of an employee to the organization.
Performance appraisal is an analysis of an employee's recent successes
and failures, personal strengths and weaknesses, and suitability for
promotion or further training.
According to Michael Armstrong “Performance appraisal is a formal
assessment & rating of individual by their managers, usually at annual
review meeting.”
Performance can be defined as the degree of accomplishment of tasks by
an employee in his job.
In some organizations it is measure of the result achieved & target
4. The Appraisal
Process
ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the setting up of
the standards which will be used to as the base to compare the actual
performance of the employees.
COMMUNICATING THE STANDARDS
Once standards are set, it is the responsibility of the management to
communicate the standards to all the employees of the organization. The
employees should be informed and the standards should be clearly
explained to them.
MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the Performance appraisal process is measuring
the actual performance of the employees i.e. the work done by the
employees during the specified period of time. It is a continuous process
of monitoring the performance throughout the year
5. The Appraisal
Process
COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE
The actual performance is compared with the desired or the standard
performance. The comparison tells the deviations in the performance of
the employees from the standards set.
DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the
employees on one-to-one basis. The focus of this discussion is on
communication and listening. The results, the problems and the possible
solutions are discussed with the aim of problem solving and reaching
consensus.
DECISION MAKING
The last step of the process is to take decisions which can be taken either
to improve the performance of the employees, take the required corrective
actions, or the related HR decisions like rewards, promotions, demotions,
transfers etc.
6. Performance Appraisal Methods
A. Management by objective or goal setting.
B. Graphic rating scale.
C. Work standard approach.
D. Essay appraisal.
E. Critical incidence method.
F. Forced choice rating method.
G. Point allocation method.
H. Ranking method.
I. Check list.
J. Behavioral anchored rating scale.(BARS)
K. 360 degree performance appraisal.
L. Team appraisal.
M. Balanced scorecard method.
7. Performance Appraisal Methods
–1
MANAGEMENT BY OBJECTIVE (MBO)
The main aspect of MBO is clear & well defined goals, a definite time
span to achieve the goals, action plan & finally, timely & constructive
feedback. It is also called a goal setting approach; MBO is more
commonly used for managers & professionals.
GRAPHIC RATING SCALE
This method of appraisal requires the rater to rate the employee on
factors like quantity & quality of work, job knowledge, dependability,
punctuality, attendance etc. This method is also used for performance
appraisal of employees. They check their employees daily by using this
method.
WORK STANDARD APPROACH
This method of appraisal is more suitable in a manufacturing scenario,
where the goals are pre determined work standard. These work
standards can be set based on the average output of a typical employee
8. Performance Appraisal Methods
–2
ESSAY APPRAISAL
In the essay appraisal method, the appraiser prepares a document
describing the performance of the employees. Questions or guidelines
are provider to the appraiser based on which analyses & describes the
employees‟ performance.
CRITICAL INCIDENT METHOD
In this method of performance appraisal, the appraiser makes a note of
all the critical incident that reflect the performance & behavior of the
employee during the appraisal period. These are recoded as & when
they occur & can demonstrate either positive or negative traits or
performance.
FORCED CHOICE RATING METHOD
In this method the appraiser is required to assign ranks to different
attributes are all seemingly positive, but have different weights which
are unknown to the appraiser. Once the employees‟ attributes are
ranked the human resource department applies the weights & arrives at
9. Performance Appraisal Methods
–3
POINT ALLOCATION MATHOD
In this method of appraisal, the appraiser has to allocate points to
different members in his team. He has at disposal , a specific number of
points which he has to distribute among his team members, based on
their performance during the appraisal period.
RANKINNG METHOD
There are three commonly used methods of ranking namely alternation,
paired comparison & forced distribution. The first two methods are used
when there are only a few employees to be ranked, whereas forced
distribution method is used in large companies which have thousands of
employees.
CHECKLIST
In this method the rater has to respond „yes‟ or „no‟ to a set of questions
which assess the employee‟s performance & behavior. Normally
weights are attached to each of these questions based on which the
final appraisal score of the employee is calculated.
10. Performance Appraisal Methods
–4
BEHAVIOR ANCHORED RATING SYSTEM (BARS)
BARS concentrates on the behavioral traits demonstrated by the
employees instead of his actual performance. Some of the other
methods like graphic rating scale & checklist also measure the behavior
based on the assumption that desirable behavior result in effective
performance.
360 DEGREE PERFORMANCE APPRAISALS
A 360 degree appraisal system aims at a comprehensive & objective
appraisal of employee performance. In a 360 degree appraisal system
the employees‟ performance is evaluated by his supervisor, his peers,
his internal external customers, his internal external suppliers & his
subordinates. This system reduces the subjectivity of a traditional
supervisor appraisal.
TEAM APPRAISAL
In the new economy era, where team work is essential for any venture
to succeed, team appraisal has emerged as one of the best tool for the
11. Performance Appraisal Methods
–5
BALANCED SCORECARD
The balanced scorecard as a method of measuring performance
channelizes the efforts of people to achieve organizational goals. The
implementation of balanced scorecard involve formulating a strategy &
deciding what each employee needs to do to achieve the objectives
based on strategy.
12. Performance appraisal process at
GACL
PAR in respect of an employee is required to be assessed by levels
indicated below
□ By the reporting officer under whom employee is working.
□ By the reviewing officer.
□ The reporting officer for writing PAR of an employee of class III/IV and E-
0 level category will be the executive under whose control the employee
is working. The reviewing officer will be of one grade above the grade of
reviewing officer. The PAR‟s in respect of class III/IV employees duly
reviewed is maintained at Region/Institute/Headquarters group wise in
the concerned establishment section.
□ The performance appraisal of the executive up-to E-4 level i.e. manager
and equivalent would be reviewed by the functional head/GM/CGM not
less than E-7.
□ The performance appraisal reports of executives of E-5 level i.e. chief
manager and equivalent will be reviewed by the RD/ED/Nominee of the
13. Performance appraisal process at
GACL
□ The performance appraisal reports of executives of E-6 level i.e. Deputy
general manager and above will be submitted to concern functional
Director for final review and acceptance.
□ As regards E-7 and above all such reports which are received from
Regions/Institutes/Headquarters are maintained at Chairman-cum-
managing Director‟s office. The reviewing officer will be the officer to
whom the executive reports for his day to day work. Review of the PAR
will be done by the executives to whom the reporting officer is
responsible for his functions. Accepting authority will be the executive
higher than the reviewing officer at different levels depending upon the
nature of the grades as per delegation of powers in PAR rules.
14. Performance Appraisal Format
–1
1) Personal details of the individual being appraised.
2) Than appraisee is required to mention the tasks achieved in the
appraisal period including enabling and constraining factors. These
achievements are then rated by the individual itself and the appraiser.
3) Now appraiser conduct performance appraisal on the basis of Key
Result Areas and a certain weightage is assigned to each. Following
are the Key Result Areas:
1) Performance in respect to volume – 40.
2) Quality of output – 30.
3) Timeliness of jobs completed – 30.
The total of the score gained by the individual is noted and termed as
(P)
4) Potential of the candidate is appraised on the scale of 1 to 5 keeping
the existing role as well as future positions in perspective.
Scale 1 to 5 is given for (1-poor, 2-fair, 3-good, 4-very good, 5-
15. Performance Appraisal Format
–2
Potential is appraised on the basis of following traits:
Result oriented approach.
Willingness to accept challenges.
Diligence and reliability.
Initiative.
Professional competence.
Communication skills.
Commitment and dedication.
Personal conduct and discipline.
Leadership.
Inter personal relationship
Total of score gained by an individual in this section is again noted and
termed as (Q)
16. Performance Appraisal Format
–3
5) Total score(S) is calculated as : S = a * P + b * 2 * Q
Where a & b are weightages for performance and potentials. This
weightage is as per the level.
The grading system
Level a b
A+ 95 and above
E1 0.9 0.1
A 85 and above but less than 95
E2 0.8 0.2
A– 75 and above but less than 85
E3 0.7 0.3
B+ 65 and above but less than 75
E4 0.6 0.4
B 55 and above but less than 65
E5 0.5 0.5
C 45 and above but less than 55
E6 0.4 0.6
D less than 45
17. Performance Appraisal Format
–4
The final grade given by the accepting authority after detailed and due
consideration to the rating by the 1st and 2nd appraisers, will be the
decisive grade of the appraisee executive. In case this final rating is
different from those of the 1st and 2nd appraiser, adequate justification
must be mentioned by the accepting authority. There must be adequate
explanation by the 1st and 2nd appraisers and the accepting authority for
any grade assigned to the appraisee. In the absence of adequate
explanation the report will be considered incomplete and returned back to
the appraisers for confirming to the directives contained in the instructions.