Performance

Appraisal
S U B M I T T E D T O - : P R O F. N E H A D H AWA N

S U B M I T T E D B Y- : H A R V E E N K A U R
Contents

 M ea ni ng

 N eed

 Pr ocess

 M ethod
Meaning

 I t m a y b e d e fi n e d a s t h e a s s e s s m e n t o f a n

i n d i v i d u a l ’s p e r f o r m a n c e i n a s y s t e m a t i c w a y, t h e

performance being measured against factors such

as job knowledge,

 Quality and quantity of output

 Leadership abilities

 Supervision required

 D e p e n d a b i l i t y, v e r s a t i l i t y, c o - o p e r a t i o n e t c .

 It is the systematic evaluation of the

individual with respect to his or her

performance on the Job and his or her

potential for development.(Dale S.Beach,

1980)
Need Of Performance
Appraisal
To e f f e c t p r o m o t i o n s b a s e d o n c o m p e t e n c e a n d

performance.

To c o n f i r m t h e s e r v i c e s o f e m p l o y e e o n p r o b a t i o n .

To a s s e s s t h e t r a i n i n g a n d d e v e l o p m e n t n e e d o f t h e

employee.

To i m p r o v e c o m m u n i c a t i o n a s i t p r o v i d e a p l a t f o r m t o

subordinate and supervisor discuss the personal goals and

concerns .
PROCESS OF PERFORMANCE APPRAISAL
 METHODS OF PERFORMANCE APPRAISAL

TRADITIONAL METHOD MODERN METHOD

 3 6 0 -de gr e e a ppra is a l
 Critical incident method

 Graphic scale method

 Essay method

 Field review method

 C o n fi d e n t i a l r e p o r t
RANKING METHOD

 In this method, the employees are

ra n k e d b y t a k i n g t h e i r p e r f o r m a n c e

l e v e l s a n d o t h e r c h a ra c t e r i s t i c s i n t o

c o n s i d e ra t i o n .

 Ve r y u s e f u l t o d i v i d e a g o o d a n d a n

a v e ra g e p e r f o r m e r.

 Can be used easily for a small set of

employees.

 T h e ra n k i n g b e c o m e s d i ffi c u l t w h e n

large set of employees have similar

c h a ra c t e r i s t i c s .
GRADING METHOD

 I n t h i s m e t h o d , d i ff e r e n t g ra d e s a r e

given to the employees based on their

contribution to the organisation.

 G ra d e s m a y b e i n t h e f o r m o f

a l p h a b e t s ( A , B, C , D, E . .) o r i n w o r d s

l i k e e x c e l l e n t , g o o d , m o d e ra t e , b a d ,

very bad, worst.

 B a s e d o n t h e g ra d e s g i v e n

p r o m o t i o n s , h i k e s , t ra i n i n g , e t c . a r e

planned.
PAIRED METHOD

 In t h i s m e t h o d , t h e a p p ra i s e r

c o m p a r e s t w o e m p l oye e s a n d m a r k s

t h e b e t te r p e r fo r m e r. T h e p r o c e s s i s

c o n t i n u e d u n t i l a l l t h e e m p l oye e s a r e

compared with one another in this

m a n n e r.

 Af te r t h e e n t i r e p r o c e s s i s

c o m p l e te d , ra n k i n g i s g i ve n to a l l t h e

e m p l oye e s b a s e d o n t h e n u m b e r o f

t i m e s t h a t t h e e m p l oye e h a s b e e n

m a r ke d a s a b e t te r p e r fo r m e r.
 FORCED DISTRIBUTION
METHOD
 In this method, the appraiser has to

d i s t r i b u t e t h e e m p l o y e e s i n t o fi v e l e v e l s

like excellent, very good, average, ver y

b a d , w o r s t p e r fo r m e r s .

 The method is done by stack ranking the

e m p l o y e e s f r o m fi r s t t o l a s t o r c r e a t i n g

t h r e e t o fi v e g r o u p s a n d e va l u a t i n g e a c h

e m p l o y e e ’s s k i l l a n d p e r fo r m w i t h i n

those bounds. The result is typically bell

curve with a small percentage of low-

a n d h i g h - p e r fo r m i n g e m p l o y e e s a n d a

large population of middling employees.

employees are rated. The appraiser rates the

employees on each characteristics in the

form of points like 1,2,3,4,5,6,7 or in the

form of excellent or average or bad etc.

 Let us consider two characteristics like

e ffi c i e n c y a n d t r a i n i n g . I f a n e m p l o y e e

performs very well in the training sessions,

then that employee will be given the rating

as 6 or 7 on 7 point scale.

 If the same employee performs poorly on the

project related tasks, then that employee will

b e g i v e n 2 p o i n t s o r 1 p o i n t f o r e ffi c i e n c y.
CHECKLIST METHOD
 I n t h i s m e t h o d , a l l t h e c h a ra c t e r i s t i c s i n

t h e q u e s t i o n fo r m a r e w r i t t e n i n o r d e r

and two options yes or no is given to

t h e a p p ra i s e r fo r e v e r y q u e s t i o n . T h e

a p p ra i s e r h a s t o t i c k y e s i n t h e b ox

w h e n t h e g i v e n c h a ra c t e r i s t i c s i s fo u n d

and no when it is not.

 Al l t h e r e s p o n s e s a r e c o u n t e d , a n d a

fi n a l ra t i n g i s o b t a i n e d .

 It is time taking process and not

a c c u ra t e .
ESSAY METHOD

 I n t h i s m e t h o d , t h e a p p ra i s e r w r i t e s

a b o u t t h e c h a ra c t e r i s t i c s o f t h e

employee in his own words in the form of

a n e s s a y.

 With this, the storing and weak points

can be easily known.

 But the essay depends on the writing

s k i l l s o f t h e a p p ra i s e r. S o m e t i m e s , t h e r e

may be a chance of weak areas getting

more highlighted than the strong areas

o f a n e m p l o y e e . T h i s m a y d e m o t i va t e t h e

employees.
CRITICAL INCIDENT
METHOD
 In this me thod, the pe r for ma nce of

the e mploye e s dur ing cr itica l

incide nts is ta ke n into

cons ide ra tion,

 All the cr itica l ta s ks pe r for me d by

e a ch e mploye e a r e w r itte n a nd a r e

compa r e d w ith e a ch othe r by the

a ppra is a l te a m.
FIELD REVIEW METHOD

 In this me thod, the a ppra is e r ta ke s

the he lp of s ubor dina te a nd

s upe r vis or s to ra te a n e mploye e .

 T his me thod is mos tly us e d dur ing

the pr omotions a nd incr e me nts .

 It is a time - cons uming pr oce s s .

 C onfi de ntia l r e por t s ys te m is w e ll

know n me thod of pe r for ma nce

a ppra is a l s ys te m mos tly be ing us e d

by the G ove r nme nt or ga nis a tion a nd

in the India n j udicia r y. In this

me thod of a ppra is ing s ys te m,

s ubor dina te is obs e r ve d by his

s upe r ior s r e ga r ding his pe r for ma nce

in the j ob a n on his dutie s done .

MANAGEMENT BY
OBJECTIVES (MBO)

 T h i s m e t h o d w a s d e v e l o p e d b y Pe t e r

D r u c k e r. I n t h i s m e t h o d , c e r t a i n t a s k s

(objectives) based on their job role are

given to the employees and a team is

assigned to monitor the tasks.

 This will help the organisation to know the

skill gap of the employees.

 This will help the organisation to plan the

training modules.

 The setting objectives to determine the

true potential of the employees is a

d i ffi c u l t a n d t i m e - c o n s u m i n g t a s k s .
360-DEGREE APPRAISAL

 In this me thod, a n e mploye e is

a ppra is e d by the s upe r vis or, the

clie nts , the s ubor dina te , the

cus tome r, including the ms e lve s .

 T his w ill he lp the or ga nis a tion to

know a bout the s tr ong a nd w e a k

a r e a s of the e mploye e s .

 T he e mploye e s ca n f r e e ly e xpr e s s

the ir vie w s a nd s ugge s t a ny

cha nge s in the tra ining me thod.

and are asked to perform a few tasks individually

and few in teams.

 These tasks are mainly aimed to check the

teamwork, leadership qualities, and skill set of the

employees.

 The task are related to their job responsibilities.

 This method is used to decide whether an

employee is to be promoted or trained.

 The assessment centre method of performance

appraisal combines role plays, situational

judgment, tests, presentation, group activities,

interviews and other techniques to make critical

talent decisions.
BEHAVIOURALLY
ANCHORED RATING
SCALES (BARS)
 In t hi s met ho d , al l t he cr i t ical

i nci d ent ar e id ent i fi ed and ar e

d i v id ed i nto d i ff er ent g r o up s b as ed

o n t heir d ep ar t ment s .

 The emp l oyees ar e rated o n t heir

b ehav i o ur to war d s t he i ncid ent s

rat her t han o n t he t rai t s .

 This wil l enab l e t he o r g ani s at i o n to

k no w t he i nvo l vement o f t he

emp l oyees .
Thank you