Performance Appraisal: This is the Process of Evaluating & Assessing the

Employee against Pre Set Standards.

12 Step Process.

a. Establish Performance Standards, Base on Job Specification

b. Communicate Standards/expectation with Employee as well as Evaluator

System of Performance Appraisal

1. Deciding upon the performance appraisal format, (Graphic Rating Scale,
Ranking Method, forced Distribution method…) format will base on
appraisal techniques. Measuring actual performance by the evaluators
through observation, interviews, records and reports

2. Frequency of appraisal (Annual or Simi Annual)

3. Adjust actual performance due to environmental influence. environmental

factors and particularly cultural factors affect the actual performance

4. Compare the adjusted performance with that of others and previous

5. Compare the actual performance with standards and find out deviations, if
any(Positive or Negative) Positive: Performance is Greater than Standard
Negative vice versa is negative

6. Feedback to the appraise

7. Suggest changes in job analysis and standards, if any

8. Consider the appraisal results for contract renewal and promotion

9. Plan for employee training and development

Problems of Performance Appraisal

 Content Bias

 Ineffective Raters

 The Recency Effect

 Distant Work Places: Foreign employees who work on projects can’t be directly
observed

 Appraisal Forms: Not Suitable Forms for PCN, TCN, Short term & Long Term
Employee

 Failure of the Superiors in Conducting Appraisal Interviews: Appraisal conducted due

to absence of & Lack of Knowledge about appraisal.

 Use of Performance Data

How to Make Performance Appraisal Effective
 Reliability and Validity

 Appraisal Should be Relevant

 Customization of Appraisal Forms

 Consensus of the Appraiser and Appraisee

 Open and Continuous Communication

 Sensitive to Ground Realities

 Appraisee’s Access to Results

 Easy to Operate

 Rater’s knowledge of the Appraisee