Performance Appraisal: Meaning, Purpose, Essentials of effective Performance Appraisal system, Various Components of Performance Appraisal, Methods and

techniques of Performance Appraisal

Performance Appraisal
It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.

Objectives of Performance Appraisal

1. Promotions based on competence and performance. 2. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. 3. To asses the training and development needs of employees. 4. To decide upon pay rise where regular pay scales have not been fixed.

Objective of Performance Appraisal

5. To let the employee know where they stand and to assist them with constructive criticism and guidance for the purpose of their development 6. To improve communication and understanding between the superior and subordinate. 7. Finally, performance Appraisal can be used to determine whether HR programmes such as selection, training and transfers have been effective or not.

Relationship of Performance Appraisal and Job Analysis

Job Analysis Describe work and employees requirement of a particular job. Performance Standards Translate job requirements into levels of satisfactory or unsatisfactory performance. Performance Appraisal Describes the job relevant strengths and weaknesses of each individual.

How PA can contribute to firms competitive advantage

Improving Performance
Org. strategy and PA
(encouraging high level of PA evaluative system )

Making Correct decisions

Competitive Advantage
Consistency between Org. strategy & behaviour

Ensuring legal fulfillment

Minimizing job dissatisfaction

Performance Appraisal process

Objective of Performance Appraisal Establish Job expectations Design an Appraisal Programme Appraise Performance

Performance Interview
Use Appraisal Data for Appropriate Purposes

Performance Appraisal Process

Objective Correct or Improve performance Expectation In forming what is expected from employee Design Appraisal Helps in posing question which needs answers like Formal (official)v/s Informal (casual) Appraisal, whose performance should be rated (group, team, individual), Who are Raters, What should be rated (Quality, Quantity, Time, Cost effectiveness, Need For Supervision), When to Evaluate, What Methods to be opted.

P A Process
Appraise the Performance (evaluate or assess) Quantity, Quality and time of Output. Performance Interview Use the Appraisal Data HRP, Promotion, Remuneration, Training and Development etc.

Performance Appraisal Methods

90 Degree Only Supervisor is Evaluator. 180 Degree Superior and Peer Group 270 degree Superior, Peer and Subordinates 360 Degree Superior, Peer, Subordinates, and Clients 540 Degree - Superior, Peer, Subordinates, Clients and Self 720 Degree - Superior, Peer, Subordinates, Clients, Self and Family

Performance Appraisal Methods

Past Oriented Methods - : Rating Scales Excellent-GoodAcceptable-Fair-Poor Checklist Yes / No (Is employee interested in job?) Forced Choice Method Two Choices and no other option (The rater is forced to select statements which are readymade) Critical Incident Method this approach focuses on certain critical behaviours of an employee

Performance Appraisal Methods

Behaviourally Anchored Rating Scales On the basis of the behavioural criteria of the employee rating is being done by the superior. Field Review Method Some one outside the assessees own department, usually from corporate office or HR department.

Future Oriented Methods

360 Degree Appraisal Assessment Centers Psychological Counseling

Problems in Performance Appraisal

Leniency or Severity Central Tendency Halo Error Rater Effect Rating based on raters attitude towards ratee Primacy or Recency effects Perceptual Set Raters perception