PERFORMANCE APPRAISAL

Surendra Sharma
Asisst. Professor
Amity University,
Gurgoan
INTRODUCTION
A continual and troublesome question facing nurse
managers today is why some employees perform better
than others.
Each employee is different in many respects. A
manager needs to ask how such differences influence
the behaviour and performance of the job
requirements. Ideally, the manager performs this
assessment when the new employee is hired. In reality,
however, many employees are placed in positions
without the managers having adequate knowledge of
their abilities and / or interests. This often results in
problems with employee performance, as well as
conflict between employees and managers.
MEANING
Performance appraisal means the systematic
evaluation of the performance of an expert or his
immediate superior.
Performance appraisal is a method of evaluating the
behavior of employees in the work spot, normally
including both the quantitative and qualitative aspects
of job performance.
 Performance here refers to the degree of
accomplishment of the tasks that make up an
individual's job. It indicates how well an individual is
fulfilling the job demands.
DEFINITION
Performance appraisal is a systematic, periodic and so
far as humanly possible, an impartial rating of an
employee‘s excellence in matters excellence in matters
pertaining to his present job and to his potentialities for
a better job‖
OBJECTIVES OF APPRAISAL
To determine the effectiveness of employees on their
present jobs so as to decide their benefits.
To identify the shortcomings of employees so as to
overcome them through systematic guidance and
training.
To find out their potential for promotion and
advancement.
 PURPOSES AND BENIFITS
To provide backup data for management decisions concerning
salary standards, merit increases, selection of qualified
individuals for hiring, promotion or transfer, and demotion or
termination of unsatisfactory employees.
To serve as a check on hiring and recruiting practices and as
validation of employment tests.
To motivate employees by providing feedback about their work.
To discover the aspirations of employees and to reconcile them
with the goals of the organisation,
To provide employees with recognition for accomplishments,
To improve communication between supervisor and employee,
and to reach an understanding on the objectives of the job.
PURPOSES AND BENIFITS
To help supervisors observe their subordinates more
closely, to so a better job, and to give supervisors a
stronger part to play in personnel management and
employee development,
To establish standards of job performance.
To improve organisational development by identifying
training and development needs to employees and
designing objectives for training programmes based on
those needs,
To mark candidates for supervisory and management
developments
To help the organisation determine if it is meeting its
IMPORTANCE
Performance appraisal helps the management to take decision about the
salary increase of an employee.
The continuous evaluation of an employee helps in improving the quality
of an employee in job performance.
The Performance appraisal brings out the facilities available to an
employee, when the management is prepared to provide adequate
facilities for effective performance.
It minimises the communication gap between the employer and
employee.
Promotion is given to an employee on the basis of performance appraisal.
The training needs of an employee can be identified through performance
appraisal.
The decision for discharging an employee from the job
is also taken on the basis of performance appraisal.
Performance appraisal is used to transfer a person who
is misfit for a job to the right placement.
The grievances of an employee are eliminated through
performance appraisal.
The job satisfaction of an employee increases morale.
This job satisfaction is achieved through performance
appraisal.
It helps to improve the employer and employee
relationship.
CONCEPT OF PERFORMANCE
APPRAISAL
The appraisal should be in writing and carried at least once a year.
 The performance appraisal information should be shared with the
employee.
The employee should have the opportunity to respond in writing to the
appraisal.
Employees should have a mechanism to appeal the results of the
performance appraisal.
The manager should have adequate opportunity to observe the employees
job performance during the course of the evaluation period.
Anecdotal notes on the employee‘s performance should be kept during the
entire evaluation period.
Evaluator should be trained to carry out the performance appraisal process.
As for as possible, the performance appraisal should focus on employee
behaviour and results rather than on personal traits or characteristics.
CHARECTERISTICS

The philosophy, purpose, and objectives of the

organisation are clearly stated so that performance
appraisal tools can be designed to reflect these.
The purposes of performance appraisal are identified,
communicated, and understood.
Job descriptions are written in such a manner that
standards of job performance can be identified for each
job.
The appraisal tool used is suited to the purposes for which
it will be utilised and is accompanied by clear instructions
for its use.
Evaluators are trained in the use of the tool.
The performance appraisal procedure is delineated,
communicated, and understood.
Plans for policing the appraisal procedure and
evaluation appraisal tools are developed and
implemented.
Performance appraisal has the full support of top
management.
Performance appraisal is considered to be fair and
productive by all who participate in it.
PRINCIPLES OF PERFORMANCE APPRAISAL

Single employee is rated by two ratters. Then, the

comparison is made to get accurate rating.
Continuous and personal observation of an employee is
essential to make effective performance appraisal.
The rating should be done by an immediate superior of
any subordinate in an organization.
A separate department may be created for effective
performance appraisal.
The rating is conveyed to the concerned employee. It helps in
several ways. The employee can understand the position
where he stands and where he should go.
The plus points of an employee should be recognised. At the
same time, the minus points should not be highlighted too
much, but they may be hinted to him.
The management should create confidence in the minds of
employees.
The standard for each job should be determined by the
management.
Separate printed forms should be used for performance
appraisal to each job according to the nature of the job.
KINDS OF PERFORMANCE
APPRAISAL

Ranking method
Paired Comparison Method
Forced distribution method
Grading
 Checklist
Forced choice method
Critical Incident method
Field review method
Essay evaluation
Ranking method

This method is very old and simple form of

performance appraisal. An employee is ranked one
against the other in the working group under this
method.
Example: if there are ten workers in the working
group, the most efficient worker is ranked as number
one and the least efficient worker is ranked as number
ten.
Paired Comparison Method

This method is a part of ranking method. Paired

comparison method has been developed to be used in a
big organization. Each employee is compared with
other employees taking only one at a time. The
evaluator compares two employees and puts a tick
mark against an employee whom he considers a better
employee.
Forced distribution method

method which forces the rater to distribute the ratings

of the overall performance of an employee is known as
forced distribution method. Group wise rating is done
under this method. This method is suitable to large
organisations
Example: a group of workers doing the same job
would fall into the same group as superior, at and
above average, below average and poor. The rator rates
15% of the workers as superior, 35% of the workers as
at and above average, 35% of workers as below
average and 15% of workers as poor.
Grading

Certain categories of abilities or performance of

employees are defined well in advance to fall in certain
grades under this method. Such grades are very good,
good, average, poor and very poor. Here the individual
traits and characteristics are identified.
Checklist

The appraisal of the ability of an employee through

getting answers for a number of questions is called the
method of check list. There are two columns provided
to each question as yes or no.
A model check list is given below.
A. Is the employee satisfied with the job? Yes No
B. Does he finish the job accurately? Yes No
 Critical Incident method

The performance appraisal of an employee is done on the basis of the

incidents occurred really to the concerned employee. Some incidents
occurred due to the inability of the employee, but the rating is done
on all the events occurred in a particular period. Some of the events
or incidents are given below.
a. Refused to co-operate with other employees
b. Unwilling to attend further training
c. Got angry over work or with subordinates
d. Suggested a change in the method of production
e. Suggested a procedure to improve the quality of goods
f. Suggestion of a method to avoid or minimize wastage, spoilage and
scrap.
g. Refused to obey orders
h. Refused to follow clear cut instructions
Field review method

An employee‘s performance is appraised through an

interview between the rator and the immediate superior
or superior of a concerned employee. The rator asks
the superiors questions about the performance of an
employee, the personnel department prepares a detail
report on the basis of this collected information. A
copy of this report is placed in the personnel file of the
concerned employee after getting approval from the
superior. The success of this type of appraisal method
is based on the competence of the interviewer.
Essay evaluation

With easy evaluation technique the nurse manager

is required to describe the employee‘s performance
over the entire evaluation period by writing a narrative
detailing the strength and weaknesses of the appraise.
If done correctly this approach can provide a good deal
of valuable data for discussion in the appraisal
interview.
 APPRAISAL INTERVIEW
Once the manager completes an accurate evaluation
of performance, he/she should arrange an appraisal
interview. The appraisal interview is the first step in
employee development.
1. They provide feedback to an employee which enables him
to improve his performance in future.
2. They help management to ascertain and assess the training
needs of individual employees.
3. They enable management to know the problems and
difficulties experienced by subordinates in discharging their
responsibilities and also their suggestions for removing
these difficulties.
Types of appraisal interview
Tell and sell interview

Tell and listen interview

Problem solving interview

Tell and sell interview

It is based on the assumption that employees have

some deficiencies but they need to be convinced about
these deficiencies. The purpose of this interview is
a. To let the employee to know how well he is doing.
b. To draw up a plan of improvement for him.
c. To gain the employees acceptance of the evaluation.
Tell and listen interview

The objective of this interview is to communicate the

evaluation to the employee and then listen
sympathetically to his reactions. It consists of two
parts The first part covers the strong and week points
of the employee‘s performance. The second part is
used to explore thoroughly the employee‘s feelings
about the evaluation.
Problem solving interview

In this interview the aim is not appraisal but development

of an employee. Therefore, the interviewer takes himself
out of his usual role as a judge and puts himself in the role
of a helper. He does not communicate the evaluation to the
employee. He does not communicate the evaluation to the
employee. He does not point out the areas of improvement;
rather he stimulates the employee into thinking about
improving his own performance. He does not supply
remedies or solutions but considers all ideas on job
improvement suggested by the employee. This he does by
skilful questions Example. Can you plan to deal with
emergencies?
LIMITATIONS OF PERFORMANCE
APPRAISAL
The following are the limitations of performance appraisal:
1. The performance appraisal methods are unreliable.
2. If an employee is well known to an employer, the
performance appraisal may not be correct.
3. The inability of supervision to appraise an employee does
not bring out the accurate performance appraisal.
4. Some qualities of an employee can not be easily appraised
through any performance appraisal method.
5. A supervisor may appraise an employee to be good to avoid
incurring his displeasure.
6. Uniform standards are not followed by the supervisors in
the performance appraisal.
THANK U