PERFORMANCE APPRAISAL

Important features of P.A. are

1) P.A. is the systematic description of an
employees
job
relevant
strategy
and
weaknesses.
2) The basic purpose is to find out how well the
employee is performing the job and establish a
plan of improvement.
3) Appraisals are arranged periodicals according to
a definite plan.
4) P.A. Refers to how well someone is doing the
assigned job.
5) P.A. is a continuous process in every large scale
orgn.

Need for P.A.

1) To provide information about the performance ranks
to
base decisions regarding salary fixation,
confirmation, promotion, transfer and demotion are
taken.
2) Provide feedback about level of achievement and
behaviour of a subordinate. This helps to review
performance and rectify perf. Deficiencies and set
new standard of work.
3) Provides
information which helps to counsel the
subordinate.
4) Provide information to diagnose
deficiency in
employees regarding skills, knowledge, determine
training and development needs prescribes means for
employee growth.
5) To prevent grievance and indiscipilinary activities.

Purpose of P.A.
1) To create and maintain satisfactory level of performance.
2) To develop employee by identifying training needs.
3) To have proper understanding for superior regarding
their subordinates.
4) To facilitate fair and equitable compensation based on
performance.
5) Validity selecting test and interview
techniques by
comparing their scores with P.A. ranks.
6) To provide information for making decisions regarding
lay-off, retrenchment etc.
7) To
ensure orgn. Effectiveness through correcting
employees for standard and improve performance and
suggesting techniques in employee behaviour.

360 P.A. Peer subordinates, superior and self rating

system of P.A.
1) Establish performance standards.
2) Communicate standards/expectations to employee.
3) Measure actual performance by following the instructions.
4) Adjust the actual performance due to the environmental
influence.
5) Compare the adjusted performance with the of other and
previus.
6) Compare the actual performance with standards and find
out deviations.
7) Communicate the actual performance to the employee
concerned.
8) Suggest changes in standards if necessary.
9) Follow-up part appraisal reports.

1)

2)

3)

4)

Superiors have knowledge about the work of the employee

and department head or Manager . The immediate superior
generally appraise the performance which in town is revised
by the departmental head/Manager.
Peer appraisal may be reliable if the work group is stable our
a reasonably long period of time and performs and task that
require interaction. However a little research has been done
on this till date it has been more applied to military
personnel.
Subordinates Such methods may be successful where the
relationship between superiors and subordintes are coordial.
However, fear of reprisal often completes a subordinate to
be dishonest in his rating.
Self- Appraisal If the person knows as to that he is expected
to achieve ad the standards required of them, then they are
in the best position to appraise their own performance.

Methods of P.A. :
1.Graphic Rating Scale G.R. Scale
compares individual performance to an
absolute
standard.
Judgment
about
performance are recorded on a scale.
The appraisers have printed one form for
each employee, these forms contains no.
of objective, behavior, qualities, quality
of work, dependabity , initiative, attitude
etc. in case of workers, and creative
ability, leadership ability , emotional
stability etc for Managers.

Rating Scale may be like 1-5

Ex.

Performance Parameters :-

Attribute

1. Attitud Interest
e
in work

Careless
to
instructio
ns

Interest
in
work,
takes
advice
from
others.

Enthusiast
ic about
job, fellow
workers
and
company

Enthusiasti
c such that
advice
sought by
others .

2. Job
Serious
knowledg gaps in
e
knowledg
e

Satisfact
ory
knowledg
e

Well
informe
d in all
matter
of job.

Has good
knowledg
e of all
aspects
and job

Exceptional
understandi
ng of jobs.

Ranking Method - Employees are ranked from

best to worst on some characteristics. The rater first
finds the employee with the highest performance
and the employee having the lowest performance.
So, he puts the former as the best and later as the
poorest. Then the rater selects the next higher and
next lowest until all the employees in that group are
placed under some rank.
Disadvantages :(1) Are that the lowest performance in one group
may be the highest performance if he is placed in
mother group.
(2) Size of difference between performance is not well
defined. E.g. 2-3, 3-4. (difference in performance).
3. Paired Comparison The rater does the appraisal
by comparing one employee with all the other
employees in the group one at a time.
2.

Ex.
N(N-1)
2
4(3)
2
=6

A
B
C
D

B
.

C
.
.

D
.
.
.
-

AB
AC
AD
BC
BD
CD

Percentage of position evaluation is calculated for

each employee, thus a relative comparison gives
an idea of relative worth of an employee.
Ex : If a department has 2 outstanding employees
and 6 average employees, then these employees
will get much higher percentage of this
comparison than the other six.

4.

Forced Distribution Method The rater may

rate his employees at a higher or at lower end of
the scale, this method is developed to prevent
the raters from rating too higher or two low.

In this the raters after assigning the points to the

performance of each employees, has to distribute
his rating in a pattern to confirm to a normal
frequency distribution. This method eliminates
central tendency and leniency biases.
In this assumption is taken that all group of
employees will have the same distribution of
excellent, average and poor performers. If one
group has all the employees who are excellent
than it will be difficult to decided who should be
placed at a lower category.
5. Checklist Method :
Consists of a large no. of statements concerning
an employee behavior. To each statement.
Employee performance is rated on the basis of
this checks.
The words or statement may leave different

6. Critical Incidental Method :

In this the Supervisor / Senior continuously records
the critical incidents of the employee performance or
behavior. This method may be employed as
documentation of the reason why an employee was
rated in a certain way.
Duting

Target

Critical
Incident

1.

-Deposit
Mobilization

Rs.10 lakhs in
2014

Mobilized
Rs.12 Lakhs

2.

-Deposit
Mobilization

Rs.1 lakhs
from Govt.
Department.

Not mobilized.

Modern Method (BARS)

1st Step - Collect critical incidents.
2nd Step - Identify performance Division
Ex. Technical Competence, paper work, customer
relation etc.
3rd Step - These critical incidents are assigned to
definite job
dimension.
4th Step - Assigning scale values to the incidents Each
incident is then rated on a one to nine scale.
5th Step - Producing the final instruments The final
BARs
instrument consist of a series of vertical scale one for
each dimensions andused (measured) by the final
incident.

Assessment Centre First applied in German Army

in 1930. This not a technique of Performance
Appraisal by itself rather it is a system , where
assessment of individuals is done by various experts
by using various techniques, the candidates are
assessed by experts by applying in-basket method ,
roles playing , case studies, stimulation exercises,
Transactional Analysis etc.
Human Resource Accounting
Deals with the cost and
contribution of human
resources to the organization. Employee performance
is measured in terms of employee contribution to the
organization. If cost is more than contribution then it
can be taken negatively, if the cost is less than the
contribution of the employee than it is positive.
Performance is measured in terms of % .

MBO
MBO is a process whereby the superiors and
subordinates of an organization jointly identify its
common goals,define each individuals major areas of
responsibility in terms of expected results.
Emphasis is on what must be accomplished rather
than how it is to be accomplished.
During appraisal the superior and subordinate update
and alter goals as necessary and asses the contribution
in terms of what is achieved towards the attainment of
goals of the Organization.
Psychological Appraisal are applied to assess the
potential of the employee. Evaluation for 1) intellectual
abilities
2) emotional stability 3) mobilization 4)
analytical ability 5) sociability 6) ability to forsee future.
The have application in 1) employee placement 2)
Career- placing 3) Training and Placement.

Managerial Appraisal It is easier to assess Technical employees & operative

employees in comparison to Managerial personnel
because managers performance
cannot be
measured in quantitative terms.