HRM-IR

Performance Appraisal
( With Case Studies )

Submitted By : Submitted To :
Abhishek Mohanpuria Asst. Professor
BBALLB B Dr. Shivani Sah
Table of Contents
1. Definition
2. Process
3. Methods
4. Case Studies
 Performance Appraisal : Definition

A performance appraisal is a regular review of an employee's job

performance and overall contribution to a company. Also known as an
annual review, performance review or evaluation, or employee appraisal, a
performance appraisal evaluates an employee’s skills, achievements, and
growth--or lack thereof. Companies use performance appraisals to give
employees big-picture feedback on their work and to justify pay increases
and bonuses, as well as termination decisions.
 Performance standards are set to ensure achievement of
departmental goals and objectives and the organization’s overall
Performance Appraisal strategy and objectives. Standards are based on the position,
rather than an individual.
Performance standards must be clearly communicated and
understood to be expectations. Performance standards assume
that an individual is competent, so initial and corrective training
should be factored into the performance management process.
Process
 Measuring Performance / Performance
Appraisal Methods

1. Management by
Objectives (MBO)
2. 360-Degree Feedback
360-degree feedback is a multidimensional performance appraisal method that evaluates an
employee using feedback collected from the employee’s circle of influence namely managers,
peers, customers, and direct reports. This method will not only eliminate bias in performance
reviews but also offer a clear understanding of an individual’s competence.

3. Assessment Centre Method

During the assessment, employees are asked to take part in social-simulation exercises
like in-basket exercises, informal discussions, fact-finding exercises, decision-making
problems, role-play, and other exercises that ensure success in a role.

4. Behaviorally Anchored Rating Scale (BARS)

(BARS) bring out both the qualitative and quantitative benefits in a performance
appraisal process. BARS compares employee performance with specific behavioral
examples that are anchored to numerical ratings.
 Contd.
Performance Appraisal
In this step of the appraisal process, actual performance is
compared to the performance standards. Documentation
should highlight actions and results.
Process

This is generally the step in the process that is the most

difficult for managers and employees alike. A key point to
keep in mind is that the manager’s ability to remain calm
and civil will have a significant impact on the employee’s
confidence, motivation and future performance.

The final step in the appraisal process is the discussion

and/or implementation of any next steps: a reward of
some sort—a raise, promotion or coveted development
opportunity—or corrective action—a performance plan or
termination.
Case Studies
 General Electric
1. GE involves a mobile app to enable frequent feedback. Called
PD@GE

2. the app provides a platform to define near-term goals for

employees.

3. Managers are expected to have frequent conversations, named

“touchpoints”, with their employees on how far they are from
their goals.
 Adobe
1. fall of 2012, Adobe had totally redesigned its performance management system to
eliminate the yearly performance review and replace it with a more frequent and
less formal "check-in" process.
2. Managers and employees meet for check-in discussions at least once a quarter. The
discussion isn’t scripted, and no paperwork is filled out, however every check-in
discussion covers three topics: expectations, feedback, and growth and
development.
3. Employees examine their current role and their desired career path and then receive
advice from managers on the knowledge, skills, and abilities they need to improve
in their current role and to move closer to the future they envision for themselves.
References
• https://courses.lumenlearning.com/wmopen-humanresourcesmgmt/chapter/
steps-in-the-appraisal-process/
• https://kissflow.com/hr/performance-management/employee-performance-a
ppraisal-method/
• https://www.investopedia.com/
• https://hiring.workopolis.com/article/ge-replaced-40-year-old-performance
-review-system/
• www.impraise.com/blog/how-ge-renews-performance-management-from-
stack-ranking-to-continuous-feedback#:~:text=The%20new
%20performance%20management%20at,near-term%20goals%20for
%20employees.&text=Feedback%20conversations%20are%20constructed
%20to,performance%20with%20the%20new%20system.
• https://www.forbes.com/sites/davidburkus/2016/06/01/how-adobe-scrappe