PERFORMANCE APPRAISAL: - TOOLS, CONFIDENTIAL REPORTS,

FORMATS, MANAGEMENT, INTERVIEWS.

Introduction: -

 The employee performance appraisal is a sensitive and important part of the management
process, requiring many skills.
 When accurate and appropriate appraisal assessments are performed, the outcome can be
very positive.
 It is a powerful tool to calibrate, refine and reward the performance of the employee. It
helps to analyze his achievements and evaluate his contribution towards the achievements
of the overall organizational goals.

Definition:-

 It is a periodic formal evaluation of how well the employee has performed his/her duties
during a specific time period.
Or
 It is the process of obtaining, analyzing and recording information about the relative
worth of an employee. The focus of the performance appraisal is measuring and
improving the actual performance of the employee and also the future potential of the
employee. Its aim is to measure what an employee does.
Or
 According to FLIPPO,”Performance appraisal is the systematic, periodic and an
impartial rating of an employee’s excellence in the matters pertaining to his present job
and his potential for a better job.”
Or
 It is a method by which the job performance of an employee is evaluated (generally in
terms of quality, quantity, cost, and time) typically by the corresponding manager or
supervisor.
 Aims / objectives / purposes:-

Generally, the aims of a performance appraisal are to:

 Give employee feedback on performance.

 Identify employee training needs.
 Form a basis for personnel decisions: salary increases, promotions, disciplinary actions,
bonuses, etc.
 Provide the opportunity for organizational diagnosis and development.
 Facilitate communication between employee and employer.
 To improve performance through counseling, coaching and development.
 To determine the job competence.i.e. To judge whether employees are performing at
acceptable level.
 To enhance staff development and motivate personnel towards higher achievement.
 To establish standards of job performance.
 To reach an understanding about the objectives of the job/ agency.
 To improve commitment and satisfaction.
 To provide documentation in case an employee sues for wrongful termination.
 To help organization determine if it is meeting its goals.

Pre- requisites for effective and successful performance appraisal:-

The essentials of an effective performance system are as follows:

1. Documentation: - Means continuous noting and documenting the performance. It also

helps the evaluators to give a proof and the basis of their ratings.
2. Standards / goals: - The standards set should be clear, easy to understand, achievable,
motivating, time bound and measurable.
 3. Practical and simple format: - The appraisal format should be simple, clear, fair and
objective. Long and complicated formats are time consuming, difficult to understand, and
do not elicit much useful information.
4. Evaluation technique: - An appropriate evaluation technique should be selected; the
appraisal system should be performance based and uniform. The criteria for evaluation
should be based on observable and measurable characteristics of the behaviors of the
employee.
5. Communication: - Communication is an indispensable part of the Performance
appraisal process. The desired behavior or the expected results should be communicated
to the employees as well as the evaluators. Communication also plays an important role
in the review or feedback meeting. Open communication system motivates the employees
to actively participate in the appraisal process.
6. Feedback: - The purpose of the feedback should be developmental rather than
judgmental. To maintain its utility, timely feedback should be provided to the employees
and the manner of giving feedback should be such that it should have a motivating effect
on the employees’ future performance.
7. Personal Bias: - Interpersonal relationships can influence the evaluation and the
decisions in the performance appraisal process. Therefore, the evaluators should be
trained to carry out the processes of appraisals without personal bias and effectively.

Challenges of performance appraisal:-

An organization comes across various problems and challenges of performance appraisal in order
to make a performance appraisal system effective and successful. The main performance
appraisal challenges involved in the performance appraisal process are:-

1. Determining the evaluation criteria :- Identification of the appraisal criteria is one of

the biggest problems faced by the top management. The performance data to be
considered for evaluation should be carefully selected. For the purpose of evaluation, the
criteria selected should be in quantifiable or measurable terms.
2. Create a rating instrument :- The purpose of the performance appraisal process is to
judge the performance of the employees rather than the employee. The focus of the
system should be on the development of the employees of the organization.
3. Lack of competence: - Top management should choose the raters or the evaluators
carefully. They should have the required expertise and the knowledge to decide the
criteria accurately. They should have the experience and the necessary training to carry
out the appraisal process objectively.
4. Errors in rating and evaluation :- Many errors based on the personal bias like
stereotyping , halo effect etc. may creep in the appraisal process. Therefore the rater
should exercise objectivity and fairness in evaluating and rating the performance of the
employees.
5. Resistance: - The appraisal process may face resistance from the employees and trade
unions for the fear of negative rating. Therefore, the employees should be communicated
and clearly explained the purpose as well the process of appraisal. The standards should
be clearly communicated and every employee should be made aware that what exactly is
expected from him/her.
PROCESS OF PERFORMANCE
APPRAISAL
Process of performance appraisal:-
PERFORMANCE APPRAISAL TOOLS / METHODS / TECHNIQUES :-

The various methods and techniques used for Performance appraisal can be categorized as the
following traditional and modern methods:
 Traditional methods of performance appraisal:-

 Essay appraisal method: - This traditional form of appraisal, also known as "Free Form
method" involves a description of the performance of an employee by his superior. The
description is an evaluation of the performance of any individual based on the facts and often
includes examples and evidences to support the information. A major drawback of the method is
the inseparability of the bias of the evaluator.
 Straight ranking method: - This is one of the oldest and simplest techniques of performance
appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the
basis of their overall performance. It is quite useful for a comparative evaluation.
 Paired comparison: - A better technique of comparison than the straight ranking method, this
method compares each employee with all others in the group, one at a time. After all the
comparisons on the basis of the overall comparisons, the employees are given the final rankings.
 Critical incidents methods: - In this method of Performance appraisal, the evaluator rates the
employee on the basis of critical events and how the employee behaved during those incidents. It
includes both negative and positive points. The drawback of this method is that the supervisor has
to note down the critical incidents and the employee behavior as and when they occur.
 Field review: - In this method, a senior member of the HR department or a training officer
discusses and interviews the supervisors to evaluate and rate their respective subordinates. A
major drawback of this method is that it is a very time consuming method. But this method helps
to reduce the superiors’ personal bias.
 Checklist method: - It is a method of recording whether a behavior is present or absent or
whether an action is taken or not. The advantage of checklist is the expectations of performance
are clearly identified in behavioral language of employee. The disadvantage is that it does not
indicate the degree or frequency with which a behavior occurs, and it is difficult to construct.
 Graphic rating scale: - In this method, an employee’s quality and quantity of work is assessed in
a graphic scale indicating different degrees of a particular trait. The factors taken into
consideration include both the personal characteristics and characteristics related to the on the job
performance of the employees. For example a trait like Job Knowledge may be judged on the
range of average, above average, outstanding or unsatisfactory.
 Peer review: - It is a process where monitoring and assessing work performance are carried out
 by peers rather than by supervisors.

Modern methods of Performance Appraisal :-

1) Management by objectives :-

The concept of ‘Management by Objectives’ (MBO) was first given by Peter Drucker in 1954. It can
be defined as a process whereby the employees and the superiors come together to identify common
goals, the employees set their goals to be achieved, the standards to be taken as the criteria for
measurement of their performance and contribution and deciding the course of action to be followed.

The essence of MBO is participative goal setting, choosing course of actions and decision making. An
important part of the MBO is the measurement and the comparison of the employee’s actual
performance with the standards set. Ideally, when employees themselves have been involved with the
goal setting and the choosing the course of action to be followed by them, they are more likely to fulfill
their responsibilities.

2) 360 degree performance appraisals :-

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal
where the feedback about the employees’ performance comes from all the sources that come in contact
with the employee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates,
team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and
can provide valuable insights and information or feedback regarding the "on-the-job" performance of
the employee.

360 degree appraisal has four integral components: Self appraisal

Superior’s appraisal

Subordinate’s appraisal
Peer appraisal
3) Human resource accounting method:-

Human resources are valuable assets for every organization. Human resource accounting method tries
to find the relative worth of these assets in the terms of money. In this method the Performance
appraisal of the employees is judged in terms of cost and contribution of the employees.

The cost of employees include all the expenses incurred on them like their compensation, recruitment
and selection costs, induction and training costs etc whereas their contribution includes the total value
added (in monetary terms). The difference between the cost and the contribution will be the
performance of the employees. Ideally, the contribution of the employees should be greater than the
cost incurred on them.
 PERSONNEL APPRAISAL FORM :- ( an e.g.)

Personnel assessment for staff nurses

Name of the personnel… Date…

Head nurse…………………………………….. Unit…

1 2 3 4 5
Personality trait appraisal
Dependability, trustworthiness.
Emotional stability, poise.
Adjustment to parents (consideration, tactfulness).
Adjustability to co-workers (co-operation, response
to correction and supervision).
Adjustability to work (self- reliance,
resourcefulness).
Quality of performance
Consideration to patient’s comfort and safety.
Technical competence and accuracy.
Ability to plan and organize patient care.
Application of nursing and scientific principles in
carrying out the procedures.
Economy of time, energy and materials.
Personal and professional growth
Use of learning opportunities.
Initiative and leadership.
Professional bearing and grooming.
Participation in the ward teachings and conferences.
Interest and responsibility for personal health.
Mental qualities
Clinical knowledge of the field.
Management of nursing care problems.
 Understanding of therapy and the nursing
procedures.
Alertness, sensitivity to patient‘s needs.
Accuracy, neatness and legibility in reporting and
recording.
Supervisory qualities
Use of teaching opportunities (informal teachings).
Planning and teaching (formal teachings).
Supervision of the performance of the subordinates.
Ability to observe and report.
Communication skill.

PLANNING THE APPRAISAL INTERVIEW :-

A performance appraisal interview is the first stage of the performance appraisal process and involves
the employee and his or her manager sitting face to face to discuss all aspects of the employee’s
performance and thrash out any differences in perception or evaluation. The performance appraisal
interview provides the employee with chance to defend himself or herself against poor evaluation by
the manager and also gives the manager a chance to explain what he or she thinks about the
employee’s performance.

Both the parties will be anxious before the interview; hence it is a emotionally charged event. The
manager can manage the interview in such a manner, that people will not be traumatized further, by
overcoming appraisal interview difficulties.

OVERCOMING APPRAISAL INTERVIEW DIFFICULTIES :-

Feedback, perhaps the greatest tool a manager has for changing behavior, must be given in an
appropriate manner. There is a greater chance that the performance appraisal will have a positive
outcome. If certain conditions are present before, during, and after the interview.
Before the interview :-

1. Make sure the employee knows the standard or a copy of appraisal form.
2. Select an appropriate time e.g. not during experience of a traumatic event.
3. Give 2 or 3 day advance notice.
4. Be personally prepared mentally and emotionally.
5. Hold the interview in a private quiet and comfortable place – uninterrupted.
6. Plan a seating arrangement that reflects collegiality rather than power.

During the interview :-

1. Greet the employee warmly, showing sincere interest.

2. Begin with a pleasant informal note.
3. Ask the client to comment on his/her progress since last appraisal.
4. Avoid surprises – coach and communicate informally on continual basis.
5. Use coaching techniques throughout .
6. When dealing with the employee who has several problems – donot overwhelm , select major
ones.
7. Conduct the conference in a participatory and non-directive manner --- solicit inputs.
8. Focus on performance and not on personal characteristics.
9. Avoid vague generalities either positive or negative e.g. your performance is fine.
10. When delivering performance feedback, be straight forward , state concerns directly.
11. Never threaten intimidate or use status in any manner. Donot threaten self- esteem.
12. Let him know, manager / organization are aware of his uniqueness , contributions.
13. Make efforts to ensure that there are no interruptions.
14. Use terms and language that are clearly understood, carry same meaning for both.
15. Mutually set goals for further growth and improvement , decide how to accomplish , evaluate
and what support is needed.
16. Plan on being available for employees to return , to discuss appraisal review further.
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After the interview :-

1. Both manager and employee need to sign the form --- means employee has read , does not mean
that employee is agreeing .
2. End with a pleasant note.
3. Document goals for further development with target dates for accomplishment review and support
needed.
4. If the interview reveals specific long term coaching needs, develop a method of follow up to ensure
such coaching take place.

Types of performance interviews :-

 Satisfactory – promotable: Discuss career plans and develop specific action plan.
 Satisfactory – non promotable: Maintain satisfactory performance.
 Unsatisfactory but correctable: Lay out an action plan.
 Unsatisfactory – uncorrectable: Skip the interview – tolerate him / dismiss.
 BIBLIOGRAPHY :-

 Basavanthappa B.T., “Nursing Administration” 1st edition, Jaypee publishers, page no. 428-
429.
 Finke man Anita W., “Leadership and management in nursing, 1st edition 2009, published by
Dorling Kindersley, page no. 357-363, 64.
 TNAI, “Nursing Administration and management’’1st edition 2007, published by Miss jaiwanti
P. dhaulta, page no. 260.
 Marquis Bessie L., Husto Carol J., “Leadership roles and management functions in nursing, 3rd
edition, published by Lippincott, page no. 414-431.
 Nancy sister, “Principles and practices of nursing and senior nursing procedures” 4th edition,
published by NR brothers, page no. 533-536.

 
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 MHR DAV INSTITUTE OF NURSING,

JALANDHAR

NURSING MANAGEMENT

TOPIC: PERFORMANCE APPRAISAL

SUBMITTED TO SUBMITTED BY

Respected Ms. Ravneet Kaur Meenakshi

Lecturer M.Sc (N) II Year
Mental Health (Psychiatric) Nursing Medical Surgical Nursing