MADE BY:

PRIYANKA THUKRAL
MADHURI
PALLAVI
ROHIT BHARADWAJ
JATIN BANSAL
SUMIT SINGH

MEANING
A performance appraisal (PA), performance review,
performance evaluation, career development discussion, or
employee appraisal is a method by which the job performance
of an employee is evaluated.
Performance appraisals are a part of career development and
consist of regular reviews of employee performance within
organizations .

 A performance appraisal is a systematic and periodic

process that assesses an individual employees job
performance and productivity in relation to certain
pre-established criteria and organizational objectives.
Performance management systems are employed to
manage and align" all of an organization's resources
in order to achieve highest possible performance

CHARACTERISTICS OF EFECTIVE
PERFORMANCE APPRAISAL
Appraisal system to be effective should possess the following
characteristics:
1. Clear Objectives:
The objectives of performance appraisal should be clear, specific, timely
and open.
2. Reliable and Valid:
Appraisal system should provide consistent, reliable and valid
information and date. Appraisals should measure what they are supposed
to measure. For example, if the objective of appraisal is to show potential
of an employee for promotion, it should supply the date relating to
potentialities of the employee.

3. Standardisation:
The appraisal form, procedures and rules should be
standardised. There should be well-defined
performance criteria and standards. Employees
should be made fully aware of these standards as
appraisal decisions affect all employees of the
group.
4. Training:
Evaluators should be given training in procedures
and principles of appraisal. They should be
provided with knowledge and skills in designing
appraisals, conducting post appraisal interviews
and correcting rating errors.

5. Fob Relatedness:
The appraisal system should focus attention
on job-related behaviour and performance. It
should provide information on job related
activities and areas.
6. Mutual Trust:
Before introducing the appraisal system, a
climate of mutual trust, cooperation and
confidence should be created in the
organisation. Under the system, the
employees should be treated in a supportive
manner.

7. Feedback and Participation:

The ratings should be communicated to both the
employees and the raters. The appraisal r system
should be open and participative. The employees
should get information on their performance. The
system should involve employees in the goal
setting process.
8. Help Focus:
Appraisal should not judegemental. It should not be
purely control- oriented. The evaluator should also
play the role of coach and counsellor. He shouldhelp people reach their full potential. The overall
purpose of appraisals should be developmental.

9. Recognition of Differences:
Organisation differs in terms of work, size, resources, needs
and environment. Hence, the appraisal system must be
designed to meet the needs of particular organisation . It
should be specific and tailor - made for the particular
company.
10. Post Appraisal Interview:
An appraisal system is only as effective as the manager is iii
communications. Hence, an interview with the employee
should be arranged after appraising his performance. It will
help to know the difficulties of work and training needs of
employees. In interview, problem solving approach should
be adopted and counseling should be provided for
improving performance

ELEMENTS OF EFFECTIVE
PERFORMANCE APPRAISAL
1. Based on observed job-related behavior - Objective performance
criteria should be based on some form of observable behavior related to
the duties of the job. The criteria for evaluation is communicated to
employees and goals and objectives should be reached through
consultation between the manager and employee.
2. Conducted by trained superior -Persons conducting the appraisals,
usually immediate supervisors, are trained in how the system works and
how to deliver effective feedback on performance.
3. Based on written policy and guidance- Written guidelines for
administering the appraisal system should be up-to-date, communicated
to every employee assigned responsibility for conducting reviews and
used by raters without deviation. Any exception should be approved

4. Provide for employee feedback and inputEmployees who disagree with a rating should be
given an opportunity to challenge the rating and have
further explanation of how the rating was derived.
These broad guidelines provide the general
elements that can be applied to any number of
appraisal systems. Application of the guidelines can
be applied on a decentralized and flexible basis that
will allow various employee groups to adapt
performance appraisal to their own special need.

PURPOSE OF PERFORMANCE
APPRAISAL
1. EVALUATION:
To let employees know where they stand relative to
performance objectives and standards. An effective entails
the following:
Establishes performance standards that are measurable
performance standards.
Sets mutuallyacceptableand measurable performance
standards.
Provides continues feedback to employees about their
performance.
Accuratelymeasures performance.
Compares performance with performance standards.
Developsemployees where necessary or takecorrective
actionwhere appropriate

2. DEVELOPMENT

Assist in training and continued personal development of people. Developed employees

are more motivated commuted and competent to achieve their work roles and goals. They
can contribute effectively in improving the organization effectiveness.
Performance appraisal is a formal, structure system that compares employee
performance to established standards. Purpose of performance appraisal can be broadly
of two types -administrative purposes and developmental purpose.
Administrative Purposes: Administrative purpose includes:
Document human resource decision with regard to performance and its
related issues. Determine promotion of employees.
Determine transfer and change in job assignments.

Identify poor performance areas of employees.

Decide on layoffs. Meet legal requirements.
Evaluate the performance of training programmes.
Decide on salary and reward issues.
Decide retention or termination