Presented by:

2022/08/001 Shivam
2022/08/008 Sarthak Gaur
2022/08/059 Utkarsh Kalra
2022/08/064 Kush Garg
2022/08/067 Rishul Arora
➢A performance appraisal is a systematic and
periodic process of measuring an individual’s
work performance against the established
requirements of the job. It’s a subjective
evaluation of the employee’s strengths and
weaknesses, relative worth to the organization,
and future development potential.
➢Performance appraisals are also called
performance evaluations, performance reviews,
development discussions, or employee
appraisals.
▪ Individual evaluation methods are those techniques when the standards of performance are defined
individually, without references to other person(s).

1. Graphic rating scale is the oldest and still most used method of evaluation. In this case the rater is
presented with a set of traits and is asked to rate the employee on each of them. The ratings can be
numeric (from 1 to 5 for example) or alphabetic (such as outstanding, good, satisfactory, fair and
unsatisfactory).

2. Forced choice is the technique when the rater must choose from a set of descriptive statements about
an employee. The method was developed to substitute graphic rating scales, as graphic rating scales
permits to evaluate all the employees high.
▪ 3. Essay evaluation, in which the rater is asked to describe the strong and
weak aspects of the employee’s behavior. Usually, this method is used in
combination with other methods.

4. Critical incident technique, a method according to which the rater

maintains a log of behavioral incidents that represent either effective or
ineffective performance for each employee being rated. The advantage of
this method is that the results are less subjective, but this method needs
more time to use than the other techniques.

5. Checklists and Weighted Checklists. A checklist is a set of objectives

or descriptive statements. If the rater believes that the employee possesses
a trait listed, the rater checks the item; if not, the rater leaves it blank. A
rating score from the checklist equals the number of checks. The method
was further developed by giving weights (from excellent to poor) to
several objectives.
▪ 6. Behaviorally Anchored Rating Scales (BARS). The method was developed by
Smith and Kendall. The BARS approach relies on the use of critical incidents to serve
as anchor statements on a scale. A BARS rating form usually contains 6 to 10
specifically defined performance dimensions, each with 5 to 6 critical incident
anchors (both positive and negative). Employees prefer the using of this method
instead of others, as it seems that they become more committed, less tense and more
satisfied than in case using other methods.
7. Behavioral Observation Scales, developed by Latham and associates. Like BARS,
the BOS uses the critical incident technique to identify a series of behaviors that cover
the domain of the job. The major difference is that the rater should give under BOS
how often the ratee has been observed engaged in the specific behaviors identified in
the BOS.
Ranking method
▪ The evaluator is asked to rate employees from highest to lowest on some overall
criterion.
▪ The relative position of each employee is tested in terms of his numerical rank.
▪ It is easier to rank the best and the worst employee. However, it is not successful
while ranking average employees.
It is used when there are several subordinates to
be ranked.
▪ Under this method, employees are arranged into
pairs, and they are compared to each other.
▪ Each employee is compared with another, and
out of the two, the higher performer is given a
score of 1.
▪ Once all the pairs are compared, the scores are
added.
FORCED DISTRIBUTION METHOD

▪ Under this system, the rater is asked to appraise the employee according to a
predetermined distribution scale.
▪ The rater is asked to rate the employees in some fixed distribution of
categories, such as 10% in low, 20% on low average, 40% in average, 20%
in high average and 10% in high.
▪ The rater's bias is sought to be eliminated here because workers are not
placed at a higher or lower end of the scale
WHAT IS A PERFORMANCE APPRAISAL: THE TYPES
OF PERFORMANCE APPRAISALS
Performance appraisals can be broken down into four distinct
significant types:
• The 360-Degree Appraisal: The manager gathers information
on the employee’s performance, typically by questionnaire, from
supervisors, co-workers, group members, and self-assessment.
• Negotiated Appraisal: This type of appraisal uses a mediator to
help evaluate the employee’s performance, with a greater
emphasis on the better parts of the employee’s performance.
• Peer Assessment: The team members, workgroup, and co-workers
are responsible for rating the employee’s performance.
• Self-Assessment: The employees rate themselves in categories
such as work behavior, attitude, and job performance.
 HOW PERFORMANCE APPRAISALS WORK?
➢Human resources (HR) departments typically create performance
appraisals as a tool for employees to advance in their careers. They
give people feedback on how well they are doing in their jobs,
ensuring that they are managing and achieving the goals set for
them and assisting them if they fall short.
➢Performance evaluations assist in determining how to distribute a
company's limited budget for giving out incentives, such as raises and
bonuses. In addition, they give businesses a tool to identify the
workers who have made the most contributions to their expansion so
that they may appropriately reward their top performers.
➢Performance reviews also assist employees and their managers in
identifying areas for improvement and career advancement, as well
as in developing a strategy for the employee's development through
extra training and more responsibility.
WHAT IS A PERFORMANCE APPRAISAL: THE
METHODS OF PERFORMANCE APPRAISALS
Performance appraisals come in many forms. Managers and human resources staff responsible for these
appraisals need to choose the best methods based on the size of their organization and what sorts of
responsibilities the employees fulfill.

➢ 720-Degree feedback: You could say that this method doubles what you would get from the 360-
degree feedback! The 720-degree feedback method collects information not only from within the
organization but also from the outside, from customers, investors, suppliers, and other financial-related
groups.
➢ The Assessment Center Method: This method consists of exercises conducted at the company's
designated assessment center, including computer simulations, discussions, role-playing, and other
methods. Employees are evaluated based on communication skills, confidence, emotional intelligence,
mental alertness, and administrative abilities.