Performance Appraisal

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Performance Appraisal
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Definition

• Performance Appraisal is the systematic
  evaluation of the individual with respect to his
  or her potential for development.

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Relationship of Performance Appraisal and Job
Analysis

• Job Analysis Performance Performance
• Standards Appraisal
• Describes Translates Describes
• Work and Job requirement the job-relevant
• Personnel into levels strengths and
• requirement of acceptable/ weaknesses of
• of a job unacceptable each individual
• performance

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Objectives of Performance Appraisal

1. To effect promotions based on competence and
   performance.
2. To confirm the services of probationary employees
3. To assess the Training and Development needs of
   employees
4. To decide upon a pay rise
5. To let the employees know where they stand in
   their performance

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Objectives of Performance Appraisal (continued)

• 6. To improve Communication
• 7. To determine whether HR programs like
  Selection, Training and Transfers have been
  effective or not.

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Performance Appraisal process

1. Objectives of Performance Appraisal
2. Establish Job expectations
3. Design an Appraisal Program
4. Appraise Performance
5. Performance Interview
6. Use Appraisal data for appropriate purposes

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Past Oriented Performance Appraisal methods

• Rating Scales
• Checklists
• Forced Choice methods
• Forced Distribution methods
• Critical Incident method
• Behaviorally Anchored Scales
• Field Review method

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Past Oriented Performance Appraisal methods
(continued)

• 8. Performance tests and observations
• 9. Annual Confidential Reports
• 10. Essay Method
• 11. Cost Accounting Approach
• 12. Comparative evaluation Approach

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Future Oriented Performance Appraisal methods

1. Management by Objectives
2. 360-Degree Appraisal
3. Psychological Appraisals
4. Assessment Centers

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Challenges of Performance Appraisal

• Create a culture of excellence that inspires
  every employee to improve and lend himself to be
  assessed
• Align organizational objectives to individual
  aspirations
• Clear growth paths for talented individuals
• Provide new challenges to rejuvenate careers

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Challenges of Performance Appraisal (contd)

• Forge a partnership with people for managing
  their careers
• Empower employees to make decisions without the
  fear of failing
• Embed teamwork in all operational processes
• Debureaucratise the organizational structure for
  ease of flow of information

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Legal Issues associated with Performance Appraisal

1. Legally defensible appraisal procedures
2. Legally defensible appraisal content
3. Legally defensible documentation of appraisal
   results
4. Legally defensible raters