Performance appraisal
Points to be discussed:
1. Introduction
2. Performance appraisal – meaning and
definition
3.Methods of performance appraisal
3.1.Traditional methods
3.2.Modern methods
4. Conclusion
MISSION OF AN ORGANIZATION
VISION & OBJECTIVES
HRM OBJECTIVES
STRATEGIES & POLICIES OF HRM
MANAGERIAL FUNCTIONS OF HRM
OPERATIVE FUNCTIONS OF HRM
EMPLOYMENT
HUMAN RESOURCES
DEVELOPMENT
COMPENSATION MANAGEMENT
EMPLOYEE RELATIONS
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ORGANIZA
TIONAL
DESIGN
JOB DESIGN
JOB ANALYSIS
“Performance appraisal is nothing but a rear
view mirror, which tells us what the
employee has achieved but cannot tell what
he can do in the future. For that performance
appraisal must be linked to a potential
appraisal”
Sadri and Sadri
Introduction
•Since organizations exist to achieve goals, the degree of
success that individual employees have in reaching their
individual goals is important in determining
organizational effectiveness.
Introduction
•The assessment of how successful employees have been
at meeting their individual goals, therefore, becomes a
critical part of HRM.
•This leads to performance appraisal
Meaning and definition
Performance appraisal refers to the
process of measuring and assessing
the level of performance of members of
an organization
Performance appraisal- meaning
•It is the process of evaluating
the performance of an
employee and communicating
the results of evaluation to him
for the purpose of rewarding or
developing the employees.
introduction
•Definition
“Performance
appraisal is a formal
assessment and rating of
individuals by their managers
at- usually - an annual review
meeting" (Michael Armstrong)
introduction
•To appraise – to fix a price for /
to value an object or thing
•Performance appraisal is
concerned with the process of
valuing an employee's worth to
an organization, with a view to
increasing it.
Performance appraisal methods(13)
•1.Traditional methods (9)
•2. Modern methods (4)
Traditional methods
7.Point allocation method
8. Ranking methods
9.Checklist
Modern methods
1. Behaviorally anchored rating
scale (BARS)
2. 360 degree performance
appraisal
3. Team appraisals
4. Balanced scorecard method
•Used to assess factors such as quality
of work, job knowledge, loyalty,
cooperation, honesty, integrity etc.
•The rater goes down the list of factors
and notes that point along the
continuum that best describes the
employees
Graphic rating scale
•Ex. On a scale of 1-5 rate the
employee.
5-excellent,
4-very good
3-good
2-adequate
1-inadequate
Graphic rating scale
•The communication skills of the
employee is--------
(1) (2) (3) (4) (5)
The job knowledge of the employee
is----------
(1) (2) (3) (4) (5)
Graphic rating scale
•Disadvantages(2)
1.Regarding the choice of employee
behavior categories- the important
ones might get missed out and the
irrelevant ones might get included
2.Different people interpret the written
descriptions in different ways leading
to confusion and loss of reliability
Essay appraisal
•The evaluator/appraiser prepares a
document describing the performance
of the employee, based on the
guidelines given to him.
•It is a narrative describing the
employee’s strengths, weaknesses,
potential, past performance, and
suggestions for improvement.
Advantages
•Appraiser can express all his views
on the employee's performance
without any constraints imposed
by the system
Disadvantages
•1.Appraiser may concentrate on a single
aspect or misses out an important
aspect of performance, the appraisal
will be incomplete (halo effect)
•2.It is difficult to compare the
performance of two employees based
on the description given by different
supervisors
Disadvantages
•3.If the appraiser does not
posses adequate writing skills,
the inadequate performance of
an employee can turn out to be
adequate, and excellent
performance can turn out to be
merely adequate
BARS-Steps(develop)
•1.determination of relevant job
dimensions by the manager and the
employee
•2.identification of behavioral anchors
by the manager and the employee for
each job dimension
•3.determination of the scale values,
and grouping of anchors for each
scale value
Advantages
•Both the manager and the
employees are actively involved
in the appraisal process
•This increase the relevance of
the system to each job and also
improves its acceptance by
employees
Disadvantage
•It is cumbersome and needs
considerable time and commitment
to develop
An Example
•Dimension: planning and organizing
•Scale value:
•Excellent-5
•Good-4
•Average-3
•Below average-2
•Unacceptable-1
Anchor
•Develops a comprehensive plan, documents
well, obtains approval and distributes to all
concerned
•Scale value:
•Excellent-5
•Good-4
•Average-3
•Below average-2
•Unacceptable-1
360 Degree performance
appraisal
•Aims at comprehensive and
objective appraisal
•Performance is evaluated by his
supervisor,peers,internal/external
customers, internal/external
suppliers, and also by his
subordinates. It also includes a
self appraisal.
Team appraisals
•The individual team members
evaluate their colleagues in the
team and provide feedback
•Helps in synergizing individual
efforts and taking group
performance to higher levels
•Ex. Digital equipment corporation