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• Performance appraisal is a
method of evaluating the
behavior of employees in the
work spot, normally including
both the quantitative and
qualitative aspects of job
performance
• The process of Performance
Appraisal helps the employee
and the management to know
the level of employee’s
performance compared to the
standard/pre-determined level
Some Important features of
Performance Appraisal
PA is a systematic
description of an employee’s
job-relevant strengths and
weaknesses
Scheme
• Performance appraisal
– Nature of
– Appraisal process
– Edward Deming on appraisal
– Challenges of appraisal
– Legal issues
• Job evaluation
– Job evaluation process
– Methods of evaluation
– Alternative to job evaluation
Learning Objectives
• Understand the nature of performance
evaluation
• Who is right?
Objectives of Appraisal
1. To effect promotions based on competence
and performance.
Performance Appraisal
Job-evaluation Process
Methods of Job Evaluatoin
• The basic purpose is to find out
how well the employee is
performing the job and to establish
a plan for improvement
• PA are arranged periodically
according to a definite plan
• PA is a continuous process
PURPOSE for Performance
Appraisal
• To Create and maintain a
satisfactory level of
performance
• To contribute to employee
growth and development
PURPOSE for Performance
Appraisal
• To help the superiors to have a
proper understanding about
their subordinates
Traditional Modern
Methods Methods
Methods of Performance Appraisal
Traditional Methods
1) Straight ranking method
2) Graphic rating scales
3) Paired comparison method
4) Grading
5) Forced choice distribution method
6) Checklist method
7) Critical incident method
8) Group appraisal method
9) Free form or Essay method
10) Confidential reports
Methods of Performance Appraisal
Modern Methods
Halo Effect
Error of Central tendency
Leniency and Strictness
Personal Prejudice
The Recency Effect