Contents

Contents........................................................................ 1
PREFACE........................................................................2
I.

Definition......................................................................................... 3

II.

Objectives of Performance Appraisal...............................................3

III.

Advantages of Performance Appraisal..........................................3

IV.

The Purpose Of The Performance Appraisal..................................5

V.

Performance Appraisal Roles...........................................................5

VI.

Steps Performance appraisal........................................................6

VII.

Performance Appraisal Methods...................................................6

VIII.

Advantages and Disadvantages of Appraisal Tools.....................10

PREFACE
By delivering praise to Allah SWT, for all the gifts
given permission and his strength I can complete the
performance assessment papers. This paper was
presented primarily to participate in the selection of
teaching advanced human resource management
assistance.
This paper presents a discussion of performance
assessment in human resource management continued.
I really hope that with this paper can help the students
who are studying subjects continued management of
human resource management, thus helping to facilitate
them.
I am fully aware that this paper is far from perfect,
therefore, criticism and constructive suggestions will be
received
with
pleasure.

PERFORMANCE APPRAISAL
I.

Definition

Performance Appraisal is Evaluating an employees current

and/or past performance relative to his or her performance
standards.(Gary Dessler 2006:10)
Performance Appraisal is the systematic evaluation of the
performance of employees and to understand the abilities of a
person for further growth and development. Performance
appraisal is generally done in systematic ways which are as
follows:
1. The supervisors measure the pay of employees and
compare it with targets and plans.
2. The supervisor analyses
performances of employees.

the

factors

behind

work

3. The employers are in position to guide the employees for a

better performance.

II.

Objectives of Performance Appraisal

Performance Appraisal can be done with following objectives in

mind:
1. To maintain records in order to determine compensation
packages, wage structure, salaries raises, etc.
2. To identify the strengths and weaknesses of employees to
place right men on right job.
3. To maintain and assess the potential present in a person for
further growth and development.
4. To provide a feedback to employees regarding their
performance and related status.
5. To provide a feedback to employees regarding their
performance and related status.
6. It serves as a basis for influencing working habits of the
employees.

7. To review and retain the promotional and other training

programmes.

III.

Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the

company which can be justified by following advantages:
1. Promotion: Performance Appraisal helps the supervisors
to chalk out the promotion programmes for efficient
employees. In this regards, inefficient workers can be
dismissed or demoted in case.
2. Compensation: Performance Appraisal helps in chalking
out compensation packages for employees. Merit rating is
possible through performance appraisal. Performance
Appraisal tries to give worth to a performance.
Compensation packages which includes bonus, high salary
rates, extra benefits, allowances and pre-requisites are
dependent on performance appraisal. The criteria should
be merit rather than seniority.
3. Employees Development: The systematic procedure of
performance appraisal helps the supervisors to frame
training policies and programmes. It helps to analyse
strengths and weaknesses of employees so that new jobs
can be designed for efficient employees. It also helps in
framing future development programmes.
4. Selection Validation: Performance Appraisal helps the
supervisors to understand the validity and importance of
the selection procedure. The supervisors come to know the
validity and thereby the strengths and weaknesses of
selection procedure. Future changes in selection methods
can be made in this regard.
5. Communication:
For
an
organization,
effective
communication between employees and employers is very
important. Through performance appraisal, communication
can be sought for in the following ways:

a. Through performance appraisal, the employers can

understand and accept skills of subordinates.
b. The subordinates can also understand and create a
trust and confidence in superiors.
c. It also helps in maintaining cordial and congenial
labour management relationship.
d. It develops the spirit of work and boosts the morale
of employees.
6. Motivation: Performance appraisal serves as a motivation
tool. Through evaluating performance of employees, a
persons efficiency can be determined if the targets are
achieved. This very well motivates a person for better job
and helps him to improve his performance in the future.

IV.

The Purpose Of The Performance

Appraisal

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Strategic Purpose.
help organizations achieve business goals
Administrative purpose.
Organizations use performance assessment in
administrative decision, for example concerning salaries,
benefits and recognition programs

V.

Developmental purpose
as a basis to provide feedback in the form of the
development of knowledge and skills of employees

Performance Appraisal Roles

Supervisors
Usually do the actual appraising.
Must be familiar with basic appraisal techniques.
Must understand and avoid problems that can cripple
appraisals.
Must know how to conduct appraisals fairly.
HR department

VI.

Serves a policy-making and advisory role.

Provides advice and assistance regarding the
appraisal tool to use.
Prepares forms and procedures and insists that all
departments use them.
Responsible for training supervisors to improve their
appraisal skills.
Responsible for monitoring the system to ensure that
appraisal formats and criteria comply with EEO laws
and are up to date.

Steps Performance appraisal

Defining the job
Making sure that you and your subordinate agree on
his or her duties and job standards.
Appraising performance
Comparing your subordinates actual performance to
the standards that have been set; this usually
involves some type of rating form.
Providing feedback
Discussing the subordinates performance and
progress, and making plans for any development
required

VII.

Performance Appraisal Methods

Graphic rating scale
A scale that lists a number of traits and a range of
performance for each that is used to identify the score that
best describes an employees level of performance for each
trait.

Alternation ranking method

Ranking employees from best to worst on a particular trait,
choosing highest, then lowest, until all are ranked.

 Paired comparison method

Ranking employees by making a chart of all possible pairs
of the employees for each trait and indicating which is the
better employee of the pair.
Forced distribution method

 Similar to grading on a curve; predetermined

percentages of ratees are placed in various
performance categories.
Example:
15% high performers
20% high-average performers
30% average performers
20% low-average performers
15% low performers

Behaviorally anchored rating scale (BARS)

An appraisal method that uses quantified scale with
specific narrative examples of good and poor
performance.
Developing a BARS:
Generate critical incidents
Develop performance dimensions
Reallocate incidents
Scale the incidents
Develop a final instrument
Advantages of using a BARS

 A more accurate gauge

Clearer standards
Feedback
Independent dimensions
Consistency
Management by Objectives (MBO)

Involves
setting
specific

measurable goals with each employee and

periodically reviewing the progress made.
1. Set the organizations goals.
2. Set departmental goals.
3. Discuss departmental goals.
4. Define expected results (set individual goals).
5. Performance reviews.
6. Provide feedback.

VIII.

then

Advantages and Disadvantages of

Appraisal Tools

10

11