PERFORMANCE

APPRAISAL

Presented by: Sripriya.Dubey

II M.Sc F&N
 WHAT IS PERFORMANCE
APPRAISAL?
The process by which a manager or consultant

a. Examines and evaluates
an employees work behavior by
comparing it with preset standards
c. Feedback
Uses the results to provide positive
feedback to the employee to show
where improvements are needed and
why

b. Documents
the results of the comparison

Performance appraisals are employed to determine who needs what training, and who will be
promoted, demoted, retained, or fired.
 Aims of Performance Appraisal:
 To review the performance of the employees and give employee feedback.
 Identify employee training need
 Form a basis for personnel: salary increases, promotions, disciplinary actions,
bonuses, etc.
 Facilitate communication
 To judge the gap between the actual and the desired performance.
 To help the management in exercising organizational control.
 To judge the effectiveness of the other human resource functions.
 To reduce the grievances of the employees.
 Helps to strengthen the relationship and communication between superior –
subordinates and management – employees.
 How are performance objectives developed?
To ensure if all the objectives are met, it is necessary for
organizations to be:
Components of performance appraisal:
 Recommended components of performance
appraisal
• Quality of work
• Quantity of work
• Dependability
• Punctuality
• Communication skills
• Problem-solving skills
• Ability to work as part of a team
• Compliance with company procedures
• Progress made toward professional goals
 What should be avoided?

• Excessive criticism or negative comments

• Conversations about compensation and promotion
• Threats of disciplinary action for poor performance
• Focusing on the most recent or memorable activities as the
sole basis for appraisal
• Mentioning items that have not been previously discussed
with employees, either formally or verbally
• Providing feedback that cannot be supported by examples
• Placing emphasis on personality traits rather than job
performance
 Types of performance appraisal:
TRADITIONAL METHODS MODERN METHODS
Ranking method Management by objectives
Paired comparison Behavior assessment
Grading 360-degree appraisal
Forced distribution method Cost accounting method
Forced choice method
Checklist method
Critical incidents method
Graph scale method
Essay method
Confidential report
Advantages of performance appraisal:

• Helps the managers to properly identify the performance of employees in

a systematic manner and their areas of talent, where they are lacking.
• Helps to place the right employees for the perfect jobs depending on their
skills in particular areas.
• The managers can use this information to provide constructive criticism of
the way employees perform their work.
• An appraisal is also useful in determining the effectiveness and results of
training programs. This will give managers data on how to change and
evolve the training programs.
• It creates healthy competition among employees as they will try to
improve their performance and score better than their colleagues.
• Managers use appraisal programs to identify the grievances of employees
and act upon them.
 Disadvantages of performance appraisal:

• If the factors being used in the performance appraisal are incorrect or not
relevant, the appraisal will fail to provide any useful or effective data.

• Sometimes, equal weightage is not given to important factors when

performing an appraisal.

• Some objective factors are very vague and difficult to gauge like attitude
and initiative. There is no scientific method to measure these factors.

• Managers are sometimes not qualified enough to correctly assess the

employees and their abilities. Thus, these mistakes can be very
detrimental to the growth of the company.