Performance Appraisal

Introduction
Performance Appraisal is the process of measuring quantitatively and qualitatively an employees past or present performance against the background of his expected role performance. The evaluation of the performance and personality of each employee is done by his immediate superior or some other person trained in the techniques of merit rating.

Definition
According to Dale S. Beach Performance appraisal is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development.

Features
Systematic process consisting of a number of steps to be followed for evaluating an employees strengths and weakness. Ongoing and continuous process Seeks necessary information necessary for making objective and correct decisions on employees Formal or Informal

Objectives
Work related Assess the work of employees To improve efficiency To carry out job evaluation To help mgt. to fix employees in a proper way Career Development Objective To assess the strong and week points of the employees. To determine career potential To plan promotion , transfers, lay offs etc of the employees To plan career goals Communication Feed back to employees To clearly establish goals To provide coaching , councelling , career planning and motivation to employees Organisational Objectives Serve as a basis for promotion or demotion Serve as a basis for wage and salary administration Serve as a basis for T& D Serve as a basis for transfers and termination

Uses and Benefits

Helps supervisor to evaluate the performance of his employees systematically and periodically. Helps to guide the employees in the efficient performance of their jobs Salary increases and special increments Transfer and promotion of employees T & D needs and evaluating the effectiveness of existing training programmes Rewards ,Recognition and incentives Build Confidence among employees

Limitations
Hallo Error : is a tendency to evaluate a person on the basis of one trait or characteristic. Central Tendency : most commonly used error in merit rating . This error arises when the rater is not sure about the performance of a person, may not be well conversant with his worker may have less time at his disposal. He will evaluate the person as average.

 Similarity error : This error arises from the mental make up of an evaluator. Evaluator uses his own trait as a basis for assessing the employees . If the rater is aggressive then he will find this trait in subordinates. Leniency or Strictness : The evaluators have their own standard for evaluation . Rating depends upon lenient/strict. Miscellaneous Biases : Bias may exist based on the ground of sex ,race , religion , position etc. Psychological Blocks

Process of Performance Appraisal

Establishing Standards Communicating Standards to Employees Measuring Actual Performance Comparing Actual with standards Discussing Reports with employees

Taking Corrective Action

Methods
Check list Critical Incident Method Graphic Rating Scale Forced Choice Method Behaviorally Anchored Rating Scales Group Order Rating Individual Ranking Paired Comparison MBO 360 Degree Appraisal