PERFORMANCE

APPRAISAL
 PERFORMANCE APPRAISAL
• The business executive must be able
to appraise his own capabilities and
limitations honesty.
-J. Paul Getty
 INTRODUCTION
• The frequent, • In an organization
continuous and career, performance is
impartial appraisal by monitored and
an organization of the appraised periodically
performance of it's and the level of salary,
employees is vital not rank and responsibility
only for the growth of will depend on how
the organization but well you satisfy the
also for the growth of established criteria of
the individual job performance.
employees.
What is the Performance
Appraisal?
• Performance appraisals are methods of
gauging or assessing the quality of
work.
• Performance appraisals is as beneficial
to the employee as to the company
itself.
• Performance appraisals serves you by
enabling you to find the right job and
perform successfully in it.
 PURPOSES OF PERSONAL
APPRAISALS
The overall purpose of performance
appraisals is to provide an accurate measure of
how well a person is performing the job. On
the basis of the information, decisions will be
made affecting the future of the individual
employee.

Performance Appraisal can fulfill a number

of functions for both management and
employees.
 VALIDATION OF SELECTION
CRITERIA
Selection devices must be correlated with
some measure of job success to establish
their validity. Whether we are dealing with
psychological tests, application blanks, or
interviews, we cannot determine the
usefulness of a technique until we examine
the subsequent performance of the
workers who were hired on the basis of
that technique.
 TRAINING REQUIREMENTS
• A careful evaluation of an employee's
performance may uncover weaknesses or
deficiencies in a specific job skill, knowledge,
or psychological attitude that, once identified,
may be remedied through additional formal
training.
• Performance Appraisal can also be used as a
means of measuring the worth of a training
program by determing how much job
performance may have improved after the
training has been completed.
EMPLOYEE IMPROVEMENT
• Performance appraisal is important to
employees because it tells them how
they are doing. This factor--knowledge of
personal progress or performance--
appears to be crucial to maintaining high
morale. It is not sufficient for a
supervisor to made aware of the
strengths and weaknesses of individual
workers--the employees must be
appraised of them also.
PROMOTIONS, WAGES, AND
TRANSFER
• In industry, the rewards are in tangible
form of salary increases, promotions in
rank or transfers to a more desirable
opportunity. To maintain initiative and
morale, these changes in status must
not be based on personal bias or
prejudice, but on objective evaluation
of an employee's merit. Performance
appraisals are the basis for these career
decisions.
 REDUCTIONS IN FORCE
• An unfortunate, but seemingly ingrained,
aspect of our economic system is the periodic
recession, sometimes in a single industry and
sometimes over the entire economy. During this
times, it often becomes necessary to lay-off a
portion of the working force. In this critical
time, a company will benefit by dismissing the
least competent of it's employees and retaining
as long as possible those who have proven
themselves to be better workers. Such decisions
should be made in terms of objective analyses
of actual job performance.
OPPOSITION TO PERFORMANCE
APPRAISAL
• Labor unions have been the greatest source of
opposition to performance appraisals program.
The source of their resistance stems from their
understandable motivation to provide the
greatest degree of job security possible for their
members.
• Unions traditionally have been committed to the
principle of seniority as the determining factor in
welfare and status of the worker.
TECHNIQUES OF PERFORMANCE
APPRAISAL
• A number of techniques to measure
job performance have been
developed. In general, the specific
technique chosen varies with the type
of work.
• There are two categories of
performance measure: those for
PRODUCTION JOBS and those for
NON PRODUCTION JOBS.
PRODUCTION JOBS:
1. QUANTITY OF OUTPUT
- the number of units assembled or
produced in a given period of time.
2. QUALITY OF OUTPUT
- assessed by inspection standards or the
number of faulty units produced.
3. ACCIDENTS
- accident record of the worker.
4. SALARY
- earnings history of the worker, rate and
frequency of increase
5. ABSENTEEISM
- number of days lost from work
6. RATE OF ADVANCEMENT
- record of promotion.
Accidents, salary, absenteeism, and
advancement may also be used in assessing
performance on non production jobs.
NON PRODUCTION JOBS:
1. ASSESSMENT OF SUPERVISORS
- appraisal of level of proficiency.
2. ASSESMENT OF PEERS
- co-workers, judgements of
performance level.
3. SELF- ASSESSMENT
- appraisalof one's own performance
level.
The criteria used differ greatly for
the two job categories. Production
jobs readily lend themselves to more
objective measures of performance
and output,, whereas non
production jobs require more
judgemental and qualitative
assessments.
 PERFORMANCE APPRAISAL FOR
PRODUCTION JOBS
• The measurement of performance on
production jobs is relatively easy in
principle, it usually involves a simple
recording of the number of units
produced in a given period of time. This
measure of quantity is widely used in
industry, partly because records of
production are readily available.
JOB-RELATED PERSONAL DATA
• Items of personal data-absenteesim, earnings
history, accidents, rate of advancements are also
used in assessing performance. These factors are
considered primarily for production jobs, but
they are also used for some non production jobs.

• Job-related personal data have a definite use in

assessing the relative worth of employees to the
organization, but they do not substitute for
measures of performance appraisal.
PERFORMANCE APPRAISAL FOR
NON PRODUCTION JOBS
•A non production jobs is one in
which competence or efficiency
is measured in qualitative
terms because these
employees do not produce a
countable product, or one that
makes sense to count.
 MERIT-RATING
APPROACHES
• A worker's performance level is often judge
through the procedure known as merit rating.
• The process of judgement used in merit-rating is
more formal and specific, relevant criteria are
established to serve as standards for
comparison. The fallible human beings who are
the raters can still inject their own biases or
prejudices into the judgment process, but that is
not the fault of the technique. The merit rating
is designed to be an objective evaluation of
work performance compared with established
RATING TECHNIQUE
The most frequently used method
of performance appraisal is the
rating technique.
Ratings are a popular way of
evaluating performance for two
reasons: (1) they are relatively easy
to construct, and (2) they attempt
to be as objective as possible.
The rating technique usually has
the following characteristics:
1. A number of performance
dimensions are generated.
2. The dimensions are applicable to
a wide variety of jobs.
3. Absolute standards are
developed to represent different
rules of performance.
RATING SCALE ( CHECK ONE)
Unsatisfactory Questionable : satisfactory: Outstanding:
:Needs to Needs some Meets normal Substantially
improve Improvement Expectations exceeds
substantially normal
performance
Dimension
s
Quality of
work
Quantity
of work
Initiative
in work
Profitability to
next level
 RANKING SYSTEMS
• In ranking, each employee is compared
with all the others in the unit or section.
• Advantage of the ranking technique is it's
simplicity. No elaborate forms or
complicated instructions are required.
• The use of the ranking method to evaluate
employees makes it difficult to indicate
similarities in efficiency among workers.
PAIRED-COMPARISON
SYSTEMS
The paired-comparison technique
requires that each worker be compared
with every other worker in the work
unit. It is similar to the ranking
technique, and the result is a rank
ordering of workers but the
comparative judgements are more
rigorously controlled and systematic.
 FORCED-DISTRIBUTION
TECHNIQUE
• The firced-distribution technique, useful
with somewhat larger groups, rates
employees in terms of a predetermined
distribution of ratings. The supervisor must
rate the workers in certain proportions. In
other words, a fixed percentage of the
workers must be placed in each of several
categories. The standard distribution used
is as follows :
SUPERIOR 10%
BETTER THAN 20%
AVERAGE

AVERAGE 40%
BELOW AVERAGE 20%
POOR 10%
 FORCED-CHOICED
TECHNIQUE
A major difficulty with the rating techniques
discussed previously is that raters are fully
aware of whether they are giving good or poor
ratings to the employees. This awareness may
allow personal bias or favoritism to influence
the ratings. To eliminate this knowledge on the
part of the supervisor, the forced-choice
technique was developed. This approach
prevents raters from knowing how favorable or
unfavorable a rating they are giving an
employee.
 BEHAVIORALLY ANCHORED RATING
SCALES
• The behaviorally anchored rating
scales (BARS) approach attempts to
evaluate performance in terms of
specific behaviors that are critical to
success or failure on the job rather
than in terms of general traits or
attitudes such as aggressiveness,
ambitiousness, or diligence.