Performance appraisal

Performance Appraisal

Presentation By,Aagam ShahMBA[ITBM]

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• It is the process by which organization evaluate employee job performance.

• It is a process that involves determining and communicating to an employee how he or she is performing the job and ideally establishing a plan of improvement.

• It is a systematic and objective way of evaluating both work-related behavior and potential of employees.

What is Performance Appraisal

Difference between PM and PA

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Processes used to identify,encourage, measure,evaluate, improve, and reward employee performance.

The process of evaluatinghowwell employees perform their jobs and then communicating that information to the employees.

Objectives

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Benefits of Performance Appraisal

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Who conducts appraisal?

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Appraisal Factors used in A.C.C. ltd

• Ability to take decisions

• Leadership• Employee relation -

ship• Delegation• Ability to run

meetings

• Organising ability• Loyalty• Initiative• Ability to

communicate• Judgement

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Performance Appraisal Process

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Performance Appraisal Methods

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Graphic Rating Scale

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Category Rating Method(contd..)

• Checklists– A performance appraisal tool that uses a list

of statements or work behaviors that are checked by raters.• Can be quantified by applying weights to individual

checklist items.– Drawbacks

• Interpretation of item meanings by raters• Weighting creates problems in appraisal

interpretation

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Comparative methods

• Ranking– A listing of all employees from highest to

lowest in performance.– Drawbacks

• Does not show size of differences in performance between employees

• Implies that lowest-ranked employees are unsatisfactory performers.

• Becomes an unwieldy process if the group to be ranked is large.

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Comparative methods(contd)

• Forced Distribution– Performance appraisal method in which

ratings of employees are distributed along a bell-shaped curve.

– Drawbacks• Assumes a normal distribution of performance.• Providing explanation for placement in a higher

or lower grouping can be difficult.• Is not readily applicable to small groups of

employees.

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Narrative Methods

• Critical Incident– Manager keeps a written record of

highly favorable and unfavorable employee actions.

– Drawbacks• Variations in how managers define a

“critical incident”• Time involved in documenting

employee actions• Most employee actions are not

observed and may become different if observed04/15/2023 18

Narrative Methods(contd..)

• Essay– Manager writes a short essay describing

an employee’s performance.– Drawback

• Depends on the managers’ writing skills and their ability to express themselves.

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Behavioral /Objective methods

• Behavioral Rating Approach– Assesses employees’ behaviors instead of other

characteristics– Consists of a series of scales created by:

• Identifying important job dimensions• Creating statements describing a range of desired and

undesirable behaviors (anchors)– Type of behavioral scale

• Behaviorally anchored rating scales (BARS)

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Behavioral /Objective methods

• Management by Objectives– Specifying the performance goals that an

individual and his or her manager agree the employee will to try to attain within an appropriate length of time.

• Key MBO Ideas– Employee involvement creates higher levels of

commitment and performance.– Encourages employees to work effectively toward

achieving desired results.– Performance measures should be measurable and

should define results.04/15/2023 22

360 Feed Back System

• A system of collecting performance information from multiple parties.

• Multiple parties include one’s subordinates peers,supervisors and customers

• It is also used to design promotion and reward.

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Problems with Performance Appraisal

• First impressions• Halo• Horn Effect• Leniency• Stereotyping• Recent Effect

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