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PERFORMANCE

APPRAISAL
By Ranjeet Reddy
INTRODUCTION
The process of HRD helps in acquiring and developing
skills to perform and present and future roles.
Performance appraisal helps the employees as well as
the management.
Performance appraisal is the basis for employee
development.
Performance appraisal indicates the level of desired
performance level, level of actual performance and the
gap between the two.
Why Performance Appraisal?
Strategic Management and Performance Appraisal.
Need and purpose of Performance Appraisal.
Who will appraise ?
Performance Analysis and development.
Methods of Performance Appraisal
Many techniques and methods for PA. Few important
are:
Trait methods
Behavior methods
Result methods
Trait methods:
Traits of employees like dependability, creativity,
leadership, etc. Designed based on JD & JS
 Graphic Rating Scale (linear/simple rating scale)
 Ranking Method
 Paired Comparison Method
 Checklist Method
a)Simple CLM
b)Weighted CLM
c)Forced CM
 Forced Distribution Method
 Essay or Free Form Appraisal
 Group Appraisal
Behavioral methods
Behavioral checklist method
Critical incident method
BARS
Collect critical incidents
identify performance dimensions
Assigning scale values to the incidents
Producing final instrument
Behavioral observational scales(BOS)
Satyam,infosys,dr.reddy’s labs
Maintains objectivity
Differntiates good performers
Provides feedback
Identify training needs
Assessment centre
Psychological appraisal
RESULT METHODS:

Less subjectivity
Less open to bias
Assign clear responsibility to employess
Freedom to employees
Empowering the employess
Contd….
Productivity measures
 balance scorecard
Human resource accounting
MBO
SYSTEM OF PERFORMANCE
APPRAISAL
1. Set standards of performance
2. Inform these set standards to employees
3. Measurement of performance
4. Environmental influence on performance
5. Comparing actual performance with that of
others’ and previous performance
SYSTEM OF PERFORMANCE
APPRAISAL
6. Compare actual with standards – reasons for
deviations
7. Communicate employee performance to him/her
8. Suggest changes in job analysis and standards
9. Follow up of performance appraisal report
POST APPRAISAL INTERVIEW
 Interview provides the feedback information
 Appraiser explains employee his rating
 Review standards & set new standards
 Let employee know where they stand
 Let employees do better job
 Strengthen superior-subordinate relationship
 Provide an opportunity for employees to express
themselves
APPRAISAL INTERVIEW PROCESS
1. Encourage for self assessment before interview
2. Invite participation
3. Express appreciation
4. Minimize criticism
5. Change behavior, not person
6. Focus on problem solving, not criticizing
APPRAISAL INTERVIEW PROCESS
7. Be supportive
8. Establish goals
9. Follow up – for improvement of performance

RELATING PERFORMANCE APPRAISAL TO


REWARDING
praise, increase autonomy, salary increase etc
APPRAISAL INTERVIEW PROCESS
7. Be supportive
8. Establish goals
9. Follow up – for improvement of performance

RELATING PERFORMANCE APPRAISAL TO


REWARDING
praise, increase autonomy, salary increase etc
Appraisal System to be effective should
possess following characteristics
1. Reliability and validity
2. Standardisation
3. Practical Viability
4. Legal sanction
5. Training and Appraisers
6. Open communication
7. Employee access to results
8. Due process
USE OF PERFORMANCE APPRAISAL
 Performance improvement
 Compensation adjustments
 Placement decisions
 Training and development needs
 Career planning and development
 Informational inaccuracies
 Job design errors
 Feedback to HR
PROBLEMS OF PERFORMANCE APPRAISAL
1. Rating biases
a. Halo effect
b. Error central tendency
c. Leniency & Strictness
d. Personal prejudice
e. Recency effect
2. Failure of supervisors
3. Superiors lack the tact of suggesting
4. Management emphasizes on punishment than
development of employee

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