PERFORMANCE APPRAISAL It is systematic evaluation of the

performance of each employee by his superior or some other person trained in the techniques of merit rating by using the same.

Is concerned with determining the differences among the employees working in the organisation.

PERFORMANCE APPRAISAL

Performance appraisal, also known as Employee appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time).

PA can also be named as:

Merit rating Behavioural assessment Employee evaluation Personnel review Employee appraisal Employee assessment

PERFORMANCE APPRAISAL

Performance appraisals of Employees are

necessary to understand each employee’s abilities, competencies and relative merit and worth for the organization.

Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees.

The aims of a performance appraisal are to: Give feedback on performance to employees. Identify employee training needs. Form a basis for personnel decisions: salary

increases, promotions, disciplinary actions, etc.

Provide the opportunity for organizational development.

Facilitate communication between employee and administration

Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements

Objectives of PA (Administrative)

Salary increase Promotion Training and Development Feedback Pressure on employees

Objectives of PA (Self - Improvement)

People come to know about “How am I doing?”“Where do I stand”

Develop the individual skills.

Percentage of the organisations using performance appraisal for the various purposes as shown in figure:

The latest Mantra followed by organizations

"get paid according to what you contribute“

Performance appraisal helps to rate the

performance of the employees and evaluate their contribution towards the organizational goals.

Process of PA

Step 1. Defining objectivesStep 2. Define appraisal standards.Step3. Designing appraisal ProgramsStep 4. Implement appraisal programsStep 5. Appraisal FeedbackStep 6. Post appraisal actions

Step 1. Defining objectives

Decide about the purpose for appraising performance whether it is:-

Reward providingAppraisal for trainingAppraisal for promotionsAppraisal for upgradation etc…

Step 2. Define appraisal standards

Seeking the answer of the following question:-

“What is to be expected from the employee?”

“What would be the targets need to be achieved from the employee within given time?”

Step3. Designing appraisal Programs

What methods

When toevaluate

What to evaluate

How tosolve

What problems

Who areraters

Whose Perfor--mance

FormalOr

informal

Appraisaldesign

Designing the program will reveal the answers of the following questions:-

Formal or informal? Types of personnel? Who are the raters? What problems encountered? How to solve the problems? What is to be evaluated? When to evaluate? What methods to be used?

Who can be raters?

Immediate supervisor Subordinates Clients Rating committees Self appraisal

Problems of rating that occur in appraisal are:

Leniency or severity- Subjective assessment Central tendency- rated near the

average or middle of the scale.the attitude of the rater is to play safe.

Halo effect- one aspect of performance affects the entire per.

Rater effect- based on rater’s attitude towards ratee.

Problems of rating that occur in appraisal are: Primacy or recency effects- influenced

by behaviour exhibited by the ratee during early stages of the review period (primacy) or near the end of the review period (recency)

Perceptual set- assessment is influenced by past held beliefs.

Spillover effect- allowing past performance appraisal ratings to unjustifiably influence current ratings.

Status effect- overrating(high level) / underrating(low level)

How to solve problems?

Provide training to the raters Remedial of the outside factors such

as union pressure Typical training programme

What should be rated? Quality Quantity Timeliness Cost effectiveness Need for supervision Interpersonal impact Community service

How often should an employee be assessed ?

General trend is to evaluate in Once in three months Once in six months Once in a year ( 70% of the organisation)

What methods to be implemented?

Traditional or past oriented methods rating scales checklists field review etc. Modern or future oriented methods MBO 360 appraisal system etc.

Step 4. Implement appraisal programs

After deciding the appraisal design, the appraisers conduct the appraisal and they may even conduct the Interview if provided in the system.

Step 5. Appraisal Feedback

“Most people want feedback as it reflects the their self perception.”

But managers put up a question..“Is it ethical for them to share their

honest perceptions of employee performance, at the risk hurting them?”

Step 6. Post appraisal actions

PA is not an end in itself but it is a means for improving long term performance of personnel by:-

Giving rewards Counselling Training Guidance

Feedback and performance

appraisal are mutually dependent:

Feedback tracks the individual’s developmental plan as set during the performance appraisal and supports the individuals developmental endeavour.

The performance appraisal periodically takes stock of feedback to assess work and developmental targets and objectives.

Feedback then progresses performance appraisal work and developmental targets and objectives and so it goes on.

Appraisal Interview and Feedback - Let the Employee Know Where He Stands

To help employees do a better job by clarifying what

is expected of them

To plan opportunities for development and growth

To strengthen the superior-subordinate working

relationship by developing mutual agreement of

goals

To provide an opportunity for employees to express

themselves on performance related issues