Performance

Appraisal

Meaning
Performance appraisal is the process of measuring
an employees past or present performance
against the background of his expected role
performance. It also helps in evaluating an
employees performance of a job in the terms of
its requirements.
performance appraisal focuses on judging
the performance and future potential of the
employees.

Definitions of performance
appraisal
According to Edward Flippo performance appraisal
is the systemetic, periodic & an impartial rating of
an employees excellence in matters pertaining to
his present job and his potential for a better job.

Methods of performance
appraisal
Several methods and techniques are used for
evaluating employee performance. They may be
classified into two broad categories.
Traditional methods
Modern methods

Traditional methods
confidential

report: In most of the govt

departments & public enterprise, performance
appraisal is done through annual confidential report
. These reports differ from department to department and from
level to level.
Graphic scale method: According to this method, firstly traits
or qualities are decided on the basis of which performance is
measured. Then levels of performance and their marks are
decided.
Straight ranking method: According to this method, only
simple ranking like A,B,C or 1,2,3 is used means A for best B
for average and C for lower performance.

 Grading system method: Acc to this method, performance

is appraised on the basis of certain features like analytical

ability, job knowledge and co-operativeness.
A grade for outstanding
B grade for very good
C grade for satisfactory
D grade for average
E grade for below average
Check list method: under this method, a question paper is
prepared & then apply to each employee one by one.
performance appraisal is done in the form of check list.
I. Is the employee hard working
yes/no
II. Is he regular on work
yes/no
. Critical incident method: This method is adopted for
measurement of the performance of managers. performance
is measured on the basis of certain critical event. The
supervisor keep a record of critical incident & the
performance given by employees.

 Free essay method: under the free essay method,

supervisor write a report about employee which is based

on his performance. This method may suffer from personal
& human bias because of likings or dislikings of the
supervisor.
Field review method: under this method, an expert
from the personal department interviews line supervisiors
to evaluate their respective subordinates. The employees
are classified into three categories as outstanding,
satisfactory and unsatisfactory.
Forced distribution method: this method is based on
presumption that all employees can divided into five
categories i.e outstanding, above average, average, below
average and poor.
e.g
A
B
C
D
E
10% 5% 5% 50% 30%

Modern method
Assessment centre: under this method, an assessment

centre is created. Performance is evaluated on the basis of

work groups, role playing, group performance etc. It also
measures interpersonal skills, communication skills, ability o
plan, self confidence etc. it is time consuming and expensive
method.
Human resource accounting: under this method, cost of
the employee and contribution of employee to an organization
is calculated. If contribution is more then the cost, then it is
favourable. Otherwise it will be negative.
Behaviourally anchored rating scales: This method is
combination of critical incident and graphic method.
Performance is evaluated acc to critical incidents & given a
rating according to graphic scale.

 Management

by objectives: MBO refers to a

comprehensive, organization wise goal setting & appraisal
programme. under this method following step are taken.
Setting of org goals
Setting of departmental goals
Setting of individual goals by individual
Measurement of actual performance with target
Provide feedback
360 degree performance appraisal: According to this
method, employee performance is measured by collecting
information from those who are all round that employee
like-from supervisor, subordinate, co-employee etc.