Performance Appraisal

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Performance Appraisal

• Presentation By,
• V.Gayathri
• I MBAGA

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What is Performance Appraisal

• 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.

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Difference between PM and PA
Processes used to identify, encourage,
measure,evaluate, improve, and reward employee
performance.
The process of evaluatinghow well employees
perform their jobs and then communicating that
information to the employees.
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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

• Organising ability
• Loyalty
• Initiative
• Ability to communicate
• Judgement

• Ability to take decisions
• Leadership
• Employee relation -ship
• Delegation
• Ability to run meetings

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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
  employees 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 ones 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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