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Performance Appraisal PDF

The document discusses performance appraisal, which involves objectively assessing an individual employee's performance against defined benchmarks, reviewing past performance, setting goals for future performance, and developing employees. It outlines the objectives, concepts, process, significance, advantages, and factors to appraise in performance reviews, such as quantity and quality of output, job knowledge, and potential. Performance interviews allow supervisors and subordinates to discuss appraisal results and make plans to improve weaknesses and strengths.

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Bala Narendra Kiran
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99 views

Performance Appraisal PDF

The document discusses performance appraisal, which involves objectively assessing an individual employee's performance against defined benchmarks, reviewing past performance, setting goals for future performance, and developing employees. It outlines the objectives, concepts, process, significance, advantages, and factors to appraise in performance reviews, such as quantity and quality of output, job knowledge, and potential. Performance interviews allow supervisors and subordinates to discuss appraisal results and make plans to improve weaknesses and strengths.

Uploaded by

Bala Narendra Kiran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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PRESENTED BY

P B NARENDRA KIRAN M.B.A., M.PHIL., (PH.D.)

DEPARTMENT OF MANAGEMENT STUDIES, BITS VIZAG


INTRODUCTION

❖ Performance appraisal is an objective assessment/review of an

❖ individual’s performance against well defined benchmarks.

❖ Performance appraisal involves reviewing past performance, rewarding past performance, goal
setting for future performance and employee development.

❖ Performance Appraisals can be conducted by Supervisors, Peers, Customers, Subordinates


or the by the Individual employee himself.

❖ Performance Appraisal can be conducted once in three months, six months or once in a year
depending on the organizational policy.
OBJECTIVES

• To determine the effectiveness of employees


on their present jobs so as to decide their
benefits.

• To identify the shortcomings of employees so


as to overcome them through systematic
guidance and training.

• To find out their potential for promotion and


advancement.
CONCEPT OF PERFORMANCE APPRAISAL

Appraisal should be in writing and


carried at least once a year.

The performance appraisal information


should be shared with the employee.

Employee should have the opportunity


to respond in writing to the appraisal.
EMPLOYEES SHOULD HAVE A
MECHANISM TO APPEAL THE
RESULTS OF THE
PERFORMANCE APPRAISAL.

MANAGER SHOULD HAVE


ADEQUATE OPPORTUNITY TO
OBSERVE THE EMPLOYEES

SUBJECTIVE NOTES ON THE


EMPLOYEE‘S PERFORMANCE
SHOULD BE KEPT DURING THE
ENTIRE EVALUATION PERIOD.
EVALUATOR SHOULD BE TRAINED TO
CARRY OUT THE PERFORMANCE
APPRAISAL PROCESS

PERFORMANCE APPRAISAL SHOULD FOCUS


ON EMPLOYEE BEHAVIOUR AND RESULTS
RATHER THAN ON PERSONAL TRAITS OR
CHARACTERISTICS.
5. Reward/
1. Set Performance
Improvement
standards/expectations
plans

PROCESS
4. Conduct
2. Communicate Performance
Performance
assessment standards/expectations

3.
Observe/Track
Employee
performance
SIGNIFICANCE
• Allows for two way communication on goals and performance.
• Performance appraisal helps superiors to assess the work performance of
their subordinates.

• Helps in assessing the Training & Development needs of the


employees.

• It holds employee accountable for their job performance.


• Performance appraisal provides grounds for employees to correct their mistakes, and it
also provides proper guidance for employee development.

• Serves as a basis for rewarding employees for superior performance.


SIGNIFICANCE
• Performance appraisal helps to prepare pay structure/ compensation
decisions for each employee working in the organization.
• Promotions, Transfer, Layoff Decisions are determined by taking P.A into consideration.

• Performance appraisal helps to review the potentiality of employees so that their future
capability is ascertained and career planned.

• Provides management with decision making information on human resources.

• Builds stronger worker relationships and employee morale.

• In the long run, improves organizational productivity.


PERFORMANCE APPRAISAL Objectives of
PROCESS Performance Appraisal

Establish Job
Expectations
F
E
Design an Appraisal
E
Programme
D
B
Appraise Performance A
C
K
Performance Interview

PERFORMANCE Archive Appraisal Data


MANAGEMENT
Use Appraisal Data for
Appropriate Purposes
USE OF PERORMANCE APPRAISAL SYSTEM

Personnel
Decisions(
Identification
Raises, Merit e.g. Research
of training
Pay, Bonuses promotion, purposes
needs
transfer,
dismissal)
Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the company which can be justified
by following advantages:
• 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.
• 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.
• 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.
Advantages of Performance Appraisal

• 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.
• 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:
• Motivation: Performance appraisal serves as a motivation tool. Through evaluating
performance of employees, a person’s 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.
APPRAISE THE PERFORMANCE
This step is where the actual evaluation/Assessment of employee performance takes place.

Performance is assessed mainly on the following Parameters:

❑ Quantity of Output ❑ Job Knowledge

❑ Quality of Output ❑ Supervision/Leadership Abilities

❑ Timeliness of Output ❑ Versatility

❑ Presence at Work ❑ Health

❑ Cooperativeness ❑ Assessment should also include


one’s potential to perform not just
actual performance.
PERFORMANCE INTERVIEW
An interview in which the supervisor and subordinate review the appraisal and
make plans to remedy the deficiencies and reinforce strengths.

It has three goals:

❑ Change Undesirable Behaviour of underperforming employees.

❑ Maintain Desirable Behaviour of performing employees.

❑ Recognize Superior Performance Behaviours so that they will be continued.

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