Performance Appraisal

Presentation By,V.GayathriI MBA[GA]

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• It is the process by which organization evaluate employee job performance.

• It is a process that involves determining and communicating to an employee how he or she is performing the job and ideally establishing a plan of improvement.

• It is a systematic and objective way of evaluating both work-related behaviour and potential of employees.

What is Performance Appraisal

Difference between PM and PA

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Processes used to identify,encourage,

measure,evaluate, improve, and reward employee performance.

Processes used to identify,encourage,

measure,evaluate, improve, and reward employee performance.

The process of evaluatinghowwell employees perform their jobs and then communicating that information to the employees.

The process of evaluatinghowwell employees perform their jobs and then communicating that information to the employees.

Objectives

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Benefits of Performance Appraisal

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Who conducts appraisal?

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Appraisal Factors used in A.C.C. ltd

• Ability to take decisions

• Leadership

• Employee relation -ship

• Delegation

• Ability to run meetings

• Organising ability

• Loyalty

• Initiative

• Ability to communicate

• Judgement

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Performance Appraisal Process

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Performance Appraisal Methods

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Graphic Rating Scale

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Category Rating Method(contd..)

• Checklists– A performance appraisal tool that uses a list

of statements or work behaviors that are checked by raters.

• Can be quantified by applying weights to individual checklist items.

– Drawbacks• Interpretation of item meanings by raters• Weighting creates problems in appraisal

interpretation

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Comparative methods

• Ranking– A listing of all employees from highest to

lowest in performance.– Drawbacks

• Does not show size of differences in performance between employees

• Implies that lowest-ranked employees are unsatisfactory performers.

• Becomes an unwieldy process if the group to be ranked is large.

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Comparative methods(contd)

• Forced Distribution– Performance appraisal method in which

ratings of employees are distributed along a bell-shaped curve.

– Drawbacks• Assumes a normal distribution of performance.• Providing explanation for placement in a higher

or lower grouping can be difficult.• Is not readily applicable to small groups of

employees.

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Narrative Methods

• Critical Incident– Manager keeps a written record of highly

favorable and unfavorable employee actions.

– Drawbacks• Variations in how managers define a

“critical incident”• Time involved in documenting employee

actions• Most employee actions are not observed

and may become different if observed

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Narrative Methods(contd..)

• Essay– Manager writes a short essay describing

an employee’s performance.– Drawback

•Depends on the managers’ writing skills and their ability to express themselves.

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Behavioral /Objective methods

• Behavioral Rating Approach– Assesses employees’ behaviors instead of other

characteristics– Consists of a series of scales created by:

• Identifying important job dimensions• Creating statements describing a range of desired and

undesirable behaviors (anchors)– Type of behavioral scale

• Behaviorally anchored rating scales (BARS)

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Behavioral /Objective methods

• Management by Objectives– Specifying the performance goals that an individual and

his or her manager agree the employee will to try to attain within an appropriate length of time.

• Key MBO Ideas– Employee involvement creates higher levels of

commitment and performance.– Encourages employees to work effectively toward

achieving desired results.– Performance measures should be measurable and should

define results.

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360 Feed Back System

• A system of collecting performance information from multiple parties.

• Multiple parties include one’s subordinates peers,supervisors and customers

• It is also used to design promotion and reward.

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Problems with Performance Appraisal

• First impressions

• Halo

• Horn Effect

• Leniency

• Stereotyping

• Recent Effect

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