PERFORMANCE APPRAISAL

Important features of P.A. are

1) P.A. is the systematic description of an
employees
job
relevant
strategy
and
weaknesses.
2) The basic purpose is to find out how well the
employee is performing the job and establish a
plan of improvement.
3) Appraisals are arranged periodicals according to
a definite plan.
4) P.A. Refers to how well someone is doing the
assigned job.
5) P.A. is a continuous process in every large scale
orgn.

Need for P.A.

1) To provide information about the performance ranks
to
base decisions regarding salary fixation,
confirmation, promotion, transfer and demotion are
taken.
2) Provide feedback about level of achievement and
behaviour of a subordinate. This helps to review
performance and rectify perf. Deficiencies and set
new standard of work.
3) Provides
information which helps to counsel the
subordinate.
4) Provide information to diagnose
deficiency in
employees regarding skills, knowledge, determine
training and development needs prescribes means for
employee growth.
5) To prevent grievance and indiscipilinary activities.

Purpose of P.A.
1) To create and maintain satisfactory level of performance.
2) To develop employee by identifying training needs.
3) To have proper understanding for superior regarding
their subordinates.
4) To facilitate fair and equitable compensation based on
performance.
5) Validity selecting test and interview
techniques by
comparing their scores with P.A. ranks.
6) To provide information for making decisions regarding
lay-off, retrenchment etc.
7) To
ensure orgn. Effectiveness through correcting
employees for standard and improve performance and
suggesting techniques in employee behaviour.

360 P.A. Peer subordinates, superior and self rating

system of P.A.
1) Establish performance standards.
2) Communicate standards/expectations to employee.
3) Measure actual performance by following the instructions.
4) Adjust the actual performance due to the environmental
influence.
5) Compare the adjusted performance with the of other and
previus.
6) Compare the actual performance with standards and find
out deviations.
7) Communicate the actual performance to the employee
concerned.
8) Suggest changes in standards if necessary.
9) Follow-up part appraisal reports.

1)

2)

3)

4)

Superiors have knowledge about the work of the employee

and department head or Manager . The immediate superior
generally appraise the performance which in town is revised
by the departmental head/Manager.
Peer appraisal may be reliable if the work group is stable our
a reasonably long period of time and performs and task that
require interaction. However a little research has been done
on this till date it has been more applied to military
personnel.
Subordinates Such methods may be successful where the
relationship between superiors and subordintes are coordial.
However, fear of reprisal often completes a subordinate to
be dishonest in his rating.
Self- Appraisal If the person knows as to that he is expected
to achieve ad the standards required of them, then they are
in the best position to appraise their own performance.

 Methods

of P.A. :
1) Graphic Rating Scale G.R. Scale compares individual
performance to an absolute standard. Judgement
about performance are recorded on a scale.
The appraisers have printed for one for each
employee these forms contains no. of objective,
behaviour, qualities, quality of work, dependabity ,
initiative, attitude etc. in case
of workers, and
creative ability, leadership oral, motional stability
case of managerial pe

Rating Scale may be like 1-5

Ex.

Pref. Parameters :

Attribut
e

1. Attitu Interest
de
in work

Careless
to
instructi
ons

Interest in
work,
tasks
advice
from
others.

Enthusiast
ic about
job fellow
workers
and
company

Enthusi
astic
option
and
advice
sought
by
others.,

2. Job
Services
knowled gaps in
ge
knowled
ge

Satisfact
ion
knowled
ge

Well
informed
in all
matter of
job.

Has good
knowledg
e of all
aspects
and job

Excepti
onal
underst
anding
of jobs.

Ranking Method - Employees are ranked from best to

worst on some characteristics. The rates first finds the
employee with the highest performance and the employee
having the lowest performance. So, he puts the former as
the best and later as the poorest. Then the rater selects
the next higher and next lowest until all the employees in
that group are placed under some rank.
Disadvantage
(1) Are that the lowest performance in one group may be
the highest performance if he is placed in mother
group.
(2) Size of difference between performance is not well
defined. E.g. 2-3, 3-4. (difference in performance).
3. Paired Comparison The rates should the employees by
comparison one employee will all the other employees in
the group one at a time.
2.

Ex.
N(N-1)
2
4(3)
2
=6

A
B
C
D

B
.

C
.
.

D
.
.
.
-

AB
AC
AD
BC
BD
CD

Percentage of position evaluation is calculated for each

employee, thus a relative comparison gives an idea of
relative worthing of an employee.
Ex : If a department has two outstanding employees and 6
aveg. Employees, then these employees will get much
higher percentage of this comparison than the other six.
The no. of comparsions required is N(N-1)
= 2x12 = 6
2
2

4.

Forced Distribution Method The rater way rate his

employees at a higher or at lower and of the scale,
this method is developed to prevent the rates from
rating too higher or two how.

In this the rates after assigning

the pints to the
performance of each employees has to distribute his
relating in a pattern to confirm to normal frequency
distribution. This method eliminated central tendency and
leninmecy biases. In this assumption is taken that all
group of employees will have the same distribution of
excellent, avg. and poor performances. If one group a all
the employees who are excellent than it will be difficult to
decided who should be placed of a lower categories.
Checklist Methods :
Consists of a large no. of statements concerning an
employee behaviour. To each statement. Employee
performance is rated on the basis of this checks.
The words or statement may leave different meaning to
different rates.

Critical Incidental Method :

In this the Supervisor/Senior continuously records the
critical incidents of the employee performance or
behaviour. This methods may be employed as
documentation of the reason why an employee was
rated in a certain way.
Duting

Target

Critical
Incident

1.

Deposit
Mobilization

Rs.10 lac in
2006

Mobilized
Rs.12 Lacs

2.

Rs.1 lac
from Govt.
Deptt.

Not
mobilized.

I.

Modern Method (BARS)

1st Step - Collect critical incidents.
2nd Step - Identify performance Division
Ex. Tech. competence, paper work, customer
relation.
3rd Step - These critical incidents are assigned to definite
job
dimension.
4th Step - Assigning scale values to the incidents Each
incident is then rated on a one to nine scale.
5th Step - Producing the final instruments The final BARs
instrument consist of a series of vertical scale one for
each dimensions andused (measured) by the final
incident.

II. Assessment Centre First applied in Germany Army in

1930. This not a technique of P.A. by itself rather it is a
system , where assessment of individuals is done by
various experts by using various techniques, the
candidates are assessed by experts by applying in basket,
roles placing, case studies, stimulation exercise, T.A. etc.
HRA
Deals with the cost and contribution of human resources
to the organization. Employee performance Is measured
in terms of employee contribution to the organisation. If
cost is more than contribution then it can be taken
negatively, if the cost is less than the contribution of
contribution is more than it is positive. Performance is
measured in terms of 1%.

MBO
Mbos is a process whereby the superiors and subordinates
of an organisation jointly identify its common goals, define
each individuals major areas of responsibility in terms of
expected results.
Emphasis is on what must be accomplished rather than
how it is to be accomplished.
During appraisal the superior and subordinate update and
alter goals as necessary.

Psychological Appraisal are applied to assess the

potential of the employee. Evaluation for 1) intellectual
abilities 2) emotional stability 3) mobilization 4) analytical
ability 5) sociability 6) ability to force future. The have
application in 1) employee placement 2) Career- placing 3)
T&P.

Managerial Appraisal It is eerier to assess techn. And operative employees in

comparison to managerial personnel because managers
performance a cannot be measured in quantitative terms.
Kooutz has applied this to PO AC staffing etc.

Ex: Performing staffing function require performing a series of

activities like analysing jobs of his department, planning, for
HR, deciding upon interval and external recruitment, deciding
upon recruitment technique and so on. This each function and
sub-function of manager are elaborated into a series
of
activities.
A checklist is prepared with regards to the performance and
rating is done on a scale of 1-5 point scale like extremely poor,
perf. Neither proof nor fail pef, fair and extremely fair perf.