Performance Appraisal is an objective assessment of an individuals performance against well defined benchmarks.

Performance Appraisal is a formal , structured system of measuring and evaluating an employees job related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee , organization and all benefit.

Providing basis for promotion, transfer and termination Enhancing employees effectiveness Identifying employees training and development needs Aiding in designing training and development programs Removing work alienation Removing discontent Developing interpersonal relationship Aiding wage administration Exercising control Improving communication

Objectives of appraisal Establish job expectations Design appraisal program (Formal V/s Informal

Appraisal, Whose performance is to be assessed, Who are the raters, What problems are encountered, How to solve the problems, What should be evaluated, When to evaluate & What methods of appraisal are to be used)

Select performance factors (based on Job Description) to be evaluated and set the standards to be achieved Set the performance review period and communicate the standards

Measure actual performance

Compare performance with set standards and rate it with a suitable scale

Communicate the rating to the appraise

Use the performance appraisal for the desired purpose

Self-Appraisal Supervisors Peers Customers/Clients Subordinates

 FOR THE APPRAISEE

Better understanding of his role in the organization Clear understanding of his strengths and weaknesses Increased motivation, job satisfaction and self esteem Opportunity to discuss work problems and how they can be overcome Discuss for aspirations, support or training needed to fulfill these aspirations Improved working relationships with the superiors

Identification

of performers and non- performers and their development for better performance Opportunity to prepare employees for assuming higher responsibilities Opportunity to improve communication between the employees and the management Identification of training and development needs Generation of ideas for improvements Better identification of potential and formulation of career plans

Improved performance throughout the organization Creation of a culture of continuous improvement and success Conveyance of message that people are valued

 Past-Oriented

Methods

Rating Scales Checklist Forced Choice Method Forced Distribution Method Critical Incidents Method Behaviorally Anchored Rating Scales Field Review Method

Performance Tests & Observations Confidential Records Essay Method Cost Accounting Method

Management By Objectives Psychological Appraisals Assessment Centers 360-Degree Feedback Team Appraisal

Halo effect Leniency effect Recency effect Primacy effect Central Tendency effect Culture ,Stereotyping Perceptual set Fundamental Attribution error

Both the Top Management & employees should take the responsibility and accept the fact, ways to rectify intentional errors Ratings should be quantifiable Use multi-rater feedback style, methods should have hidden weights

Third party should be used to rate the employees, training Appraisers to be able to give negative feedback

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WHAT SHOULD BE RATED Quality Quantity Timeliness Cost of effectiveness Need for supervision Interpersonal impact TIMING OF EVALUATION