Performance Appraisal

Performance Appraisal is the systematic

evaluation of the employees’ performance
in the organization against well defined
benchmarks
Objectives of Performance Appraisal

Identify the To confirm the

strengths and services of
weaknesses of probationary
employees employees

Provide a feedback to
employees regarding
their performance
and related status.

To improve To make decisions

communication regarding
between superior promotional and
 Example for Benchmark & Performance Appraisal
It is difficult to evaluate an employee's
performance if you don't know what
standards you should use. 

Expected • Standard performance:

• Employee should meet quality standards 85% of the time.
performance/Benchmark:

(Under performer)

(Good performer)

(Outstanding performer)
 Who Evaluates Performance?
(Appraisers)

Supervisors

Customers Peers

Self Subordinates
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Methods of Performance Appraisal

Future – oriented
Past – oriented methods
methods
Past oriented methods of performance
Appraisal
 Rating Scales:   Performance Tests & Observations: 

 Checklist:    Confidential Records:

 Forced Choice Method:   Essay Method: 
 Forced Distribution Method:   Cost Accounting Method
 Critical Incidents Method:   Comparative Evaluation Method
 Behaviorally Anchored Rating Scales   Ranking Methods: 
 Field Review Method  Paired Comparison Methods:
Rating Scales: 
Checklist:  
Is employee regular Y/N
Is employee respected by subordinate Y/N
Is employee helpful Y/N
Does he follow instruction Y/N
Does he keep the equipment in order Y/N

weights performance rating

(scale 1 to 5 )
Regularity 0.5
Loyalty 1.5
Willing to help 1.5
Quality of work 1.5
Relationship 2.0
Forced Choice Method: 
Forced Distribution Method:
Critical Incidents Method: 
Behaviorally Anchored Rating Scales 
Field Review Method
(assessment is done by an outsider)
Performance Tests & Observations:

Confidential Records (attendance, technical ability, leadership,

initiative, punctuality, inter personal relations etc)

Essay Method (SWOT)

Comparative Evaluation Method
 Ranking Methods:

 
Comparative Evaluation Method
 Paired Comparison Method: No. of comparisons = N(N-1)/2

  
Future oriented methods of
performance Appraisal

360 degree method of Appraisal

Psychological Appraisal

Management by Objectives

Assessment Centres
360 Degree Method of Appraisal
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Psychological Appraisal
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Management by Objectives

 The concept of ‘Management by Objectives’

(MBO) was first given by Peter Drucker in 1954.
 Itcan 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
MBO

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 Human Resource accounting

•Human resource accounting is

COST measurement of the cost and

value of the people for an
organization.

•Human resource accounting helps

VALUE management to value its human

resource and use them with
discretion and wisdom

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Assessment center:

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 Assessment Centres
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