Performance

Appraisal
Presented By:
Rana Jubeily
 Table Of Contents

Introduction 01 Benefits of Performance Appraisals 05

Definition of Performance Appraisal 02 Appraisal Performance Methods

06

Features Or Characteristics Of
Performance Appraisal 03 Problems in Performance
Appraisal or Limitations 07

CONCLUSION AND
Objectives of Performance Appraisals 04 RECOMMENDATIONS 08
INTRODUCTION
Performance appraisal refers to the assessment of an employee’s actual
performance, behavior on the job, and his or her potential for future
performance. It is a process that involves evaluating employee
performance and productivity against a pre-determined set of objectives.
It also assists in evaluating employee's skills, areas of strength, and
weaknesses the results of the performance appraisal determine the
employees' wage fixation, increment, and promotion. Performance
appraisal is essential for all firms to increase employee productivity and
enhance their outcomes. A comprehensive performance management
system is needed to effectively nurture their employees and to get the
most out of them. The objectives of performance appraisal vary from
company to company and depending on the industry/company size, the
appraisal method also varies. A growing number of HR professionals report
that performance appraisal methods need to internalize and leverage
performance results. Each performance appraisal method has its own
strengths and weaknesses which might work perfectly for one organization
but might not be suitable for other organizations. Therefore, various
organizations use different methods to evaluate their employee
performance.
Numerous methods have been designed to appraise the performance
of an employee. Some are traditional methods, and some are modern
methods of appraisal. While traditional methods lay emphasis on the
rating of the individual’s personality traits, such as initiative, dependability,
drive, creativity, integrity, intelligence, leadership potential, etc.; the
modern methods, on the other hand, place more emphasis on the
evaluation of work results i.e., job achievements than the personal traits.
Organizational goals can be achieved
only when people put in their best
efforts.

How to ascertain whether an employee

has shown his or her best performance
on a given job?

Employee assessment is one of the

fundamental jobs of HRM.
 Definition of Performance Appraisal by Authors
"A continuous function and not merely an issue of formal report at particular points in
Dwivedi R. S. (1990) time. It is an ongoing responsibility of the supervisor to determine how effectively his
subordinates are performing different tasks allotted to them in their positions, to
identify and to correct their weak points and to recommend them on the basis of their
potentialities for promotions to higher positions in the organization ".

“Performance appraisal is a formal and systematic process by means of which the

Slabbert and Swanepoel relevant strengths and weaknesses of the employees are identified, measured, recorded
and developed.”

“Performance appraisal is a systematic, periodic and so far, as humanly possible, an

Edwin B. Flippo impartial rating of an employee's excellence in matters pertaining to his present job and
to his potentialities for a better job.”

“Performance appraisal is the process of evaluating the performance of employees,

Newstrom sharing that information with them, and searching for ways to secure information
necessary for making correct and objective decisions on employees.”
 Features Or Characteristics Of Performance Appraisal

Accurate,
Well-defined
Continuous Valid, and Scientific Less Time
Process Periodic performance
Reliable Data Evaluation Consuming
Criteria

1 2 3 4 5 6 7 8 9 10 11

Continuous
Clear Recognition of
Systematic Standardization Feedback and
Objectives Differences
Participation
 Objectives of Performance Appraisals

1 3 5 7
Identify
Evaluate Set Determine
Potential for
Employee Performance Compensation
Career
Performance Goals and Rewards
Growth

2 4 6
Identify
Support
Provide Training and
Performance
Feedback Development
Management
Needs
 Benefits of Performance Appraisals
Supporting
Organizational Goals

1
Pinpointing Problem Boosts Productivity/
Areas. 8 2 Enhanced Profitability

Evaluate the Providing a basis for

Organization 3 rewards and
Effectiveness of Hiring 7
Processes
Level recognition

Identifying Candidates 6 4
for Promotion Building Better Teams
5

Enhances the
Manager-Employee
Relationship
 Benefits of Performance Appraisals

Supporting Employee
Encourages Personal
Development 1 5 Growth.

Improving Employee Fosters Communication

Performance 2 6
Employee's
Level
Clarifies Career Path Positive Impact on Team
3 7
Morale

Potential for Financial

Benefits
4 8 Identifies Hidden Talent
 Every organization must decide what to
appraise before the program is approved.

Title 2

What is to Generally, the content to be apprised in

be determined based on job analysis.
Appraised?

The content to be apprised may be:

Behavior which measures Objectives that measure job-related results like

observable physical action, the amount of deposit mobilized and traits that are
measured in terms of personal characteristics
movements
observable in employee job activities.
 The appraiser may be any person who has the skill to apprise and thorough
Caption 1 about the job content, contents to be appraised, standards of
knowledge
contents and who observes the employee while performing a job.

Caption 2
The appraiser should be capable of determining what is
more important and what is relatively less important.
Who will be
appraised? Caption 3 prepare reports and make judgements
He should
without bias.

supervisors, peers, subordinates,

Caption4
Typical appraisers are employees themselves and users
of services and consultants.
 When to be
appraised?
H
a ls ow
a is e d ap ever
p r ct re co pr , s
a p du e R gu nd ai ys
al con r th he H e l s
rm e ve r t it m xam ar b ucte als tem
fo y b ne s o e e l on p a d ar at
n
I a he or r f y. th le sis on e ic
m w i s ge ar so ,e ,s a
r v a ss r a ver ay,
p e an ce nn y s f o
su m n e ua i x r
l ly
.
 Performance Appraisal Methods

Traditional Methods Modern Methods

Checklist Method
Management By Objectives (MBO) Method
Essay Method

Confidential Report Method

360 – Degree - Method
Graphics Rating Method

Alternate Rating Method

Cost Accounting Method
Paired Comparison Method

Critical Incidents Method Assessment Centers Method

Forced Choice Method

Behaviorally Anchored Rating Scale Method
Forced Distribution Method

Field Review Method

Traditional Methods of
Performance Appraisal

01
It is a simple and
straightforward
approach used by
organizations to
evaluate and assess
an employee's job
performance.
Checklist Method
02 03 04
It involves creating a Supervisors or The answers to
checklist or a list of managers then use these questions
specific criteria, this checklist to will be either yes
observe and evaluate and no type or
skills, or behaviors
an employee's multiple choice.
that are relevant to
performance based on The checklist
the job.
these predetermined might also contain
statements.
factors.

No Check List Yes No

1 Is he punctual?
2 Are the orders promptly attended to?
3 Is he in the habit of postponing work?
4 Is he helpful to other colleagues?
5 Does he lose his temper often?
-- --
Checklist Sample Template
Checklist Sample Template
Checklist Sample Template
 Pros Of Checklist Method

1 2 3 4 5

Objectivity Standardization Simplicity Focus on Key Feedback

Criteria
 Lack
of C
on t e
xt

1
Lim
ited
Deta
il 2

Ove
rem
p hasi
s on
Fact Quant
ors ifia b
le
3

Infle
x ibilit
y
4

Pote
n t ia l f
or B
i as
5
Cons Of Checklist Method

Diffi
culty
in Ran
ki ng
6

Re s o
urce
Int e ns i
ve
7
Essay Method
It is a traditional and
Also known as the subjective approach used by
narrative method or free- organizations to evaluate
form appraisal. their employees'
performance.
It involves written
descriptions and narratives
of an employee's strengths,
weaknesses, achievements,
and areas for
improvement.
While preparing the essay on the employee, the rater considers
the following factors:

Job knowledge and potential of the employee. 1

Employee's understanding of the company's

2
programs, policies, objectives, etc.

The employee's relations with co-workers and

3
superiors.

4 The employee's general planning, organizing

and controlling ability.
The attitudes and perceptions of the employee, 5
in general.
Essay Sample Template
 Pros Of Essay Method

1 2 3

Holistic
Detailed Customization. Evaluation
Feedback

4 5

Support for
Development
Promotions and
Focus
Raises.
 Cons Of Essay Method

Time- Lack of
Subjectivity Consuming. Standardization

Resistance Difficulty in
Negativity Bias Feedback May Tracking
Be Vague from
Employees Progress
 The Annual Confidential Report (ACR) Method

It is a traditional
and widely used
approach for confidential reports
performance will be kept
appraisal in confidential and will Confidential reports
various not be revealed to are the main criteria
organizations, It is a descriptive report anyone and finally for promoting or
especially in confidential reports transferring of any
prepared by the employee's
government and will be forwarded to employee mainly in
immediate superior. It is related to the
public sector the government
Superior writes the top management performance, ability,
institutions. sector.
confidential report on officials for taking and character of the
employee’s performance, decision against employee during that
mainly on his behavior in person on whom year, it highlights the
the organization and strengths and
confidential report has
weaknesses of the
conduct and over a specific made. subordinate.
period, typically a year.
Annual
Confidential
Report (ACR)
Sample
Template
Annual Confidential Report (ACR) Sample Template
 low in Delayed
1 credibility 6 corrective action

2 Subjectivity 7 Time-
Consuming
Cons of Annual
Confidential Report Lack of
3 Lack of Feedback 8 Timeliness
(ACR) Method

4 Recency Bias Conflict

9

Stress and
5 anxiety 10 Limited Scope
 Graphic Rating Scale Method
The form contains The employees are
several evaluated based on
It is one of the characteristics
It is a numerical various job The rater ticks the
oldest ,simplest relating to the
scale that performance criteria, category that best
and most personality and such that each describes the
indicates
popular performance of criterion is employee and
different employees -
performance categorically divided finally the score is
degrees of a Intelligence, quality
appraisal into poor, fairly totaled.
particular trait. of work, leadership poor, fairly good,
.technique
skills, Judgement, good, and excellent.
dedication, Also, these criteria
punctuality, carry a certain score
problem-solving weight.
ability, etc.

No FACTOR RATING (Degrees

1 Skill Excellent -- V. Good -- Good -- Satisfactory -- Poor --
2 Knowledge Excellent -- V. Good -- Good -- Satisfactory -- Poor --
3 Dependability No Direction -- Minimum Direction -- Centre counted on -- Frequent Direction -- Constant Direction --
4 ---
5 ---
Graphic Rating
Scale Sample
Template
 Pros Of Graphic Rating Scale Method

Simplicity 01

02 Cost-effective

Quantifying behaviors makes

the appraisal system easier 03
 Cons Of Graphic Rating Scale Method

Hard to know
Subjectivity employee strengths

1 3

2 4
Biases/ Potential Insufficient
for Halo Effect Feedback
 Ranking Method Scale Method

The ranking method is

primarily a comparative
method that can be In this method, ranks
useful if the company are given to
requires cost-cutting or employees based on
gives out awards such as their performance.
employee of the month,
quarter, or year.

There are different methods of ranking employees.

Alternate Paired
ranking Comparison
method Method
Alternate ranking method

The assessor selects the best and worst employees

based on certain trait/criterion and ranks them
accordingly.

First, all employees involved in ranking are listed.

Then based on the established trait/criterion,
assessor selects best employee and puts him/her at
the top of the ranking.

Later, assessor selects the employee whose performance

is least and ranks him/her as the last.

The employees who are assessed as second highest and

second last are added again to the rank list from top and
bottom. This alternating ranking of highest and lowest,
continues until all employees are ranked.
 Paired Comparison Method

In this method, each person in the group,

department, or team is compared with every
other person in the team/group/department.

The comparison is made on certain criteria and

finally, ranks are given. This method is
superior because it compares each person on
certain qualities and provides a ranking on that
basis.

If there are 5 employees A-E, A will be

compared individually to B, to C and similarly
to the remaining employees. If A is better than
B a “+” will be marked against his name, and if
he is not as good as C, a “- “will be marked.
 ‫بالنسبة لجودة العمل‬ ‫بالنسبة لالبتكار واالبداع‬
‫الموظفين الذين تم تقييمهم‬ ‫الموظفين الذين تم تقييمهم‬
‫مقارنة‬ ‫أ‬ ‫ب‬ ‫حـ‬ ‫د‬ ‫هـ‬ ‫مقارنة‬ ‫أ‬ ‫ب‬ ‫حـ‬ ‫د‬ ‫هـ‬
‫بـ‬ ‫أركان‬ ‫مريم‬ ‫شريف‬ ‫توفيق‬ ‫جمانة‬ ‫بـ‬ ‫أركان‬ ‫مريم‬ ‫شريف‬ ‫توفيق‬ ‫جمانة‬
‫أ‬ ‫أ‬
‫‪+‬‬ ‫‪+‬‬ ‫_‬ ‫_‬ ‫_‬ ‫_‬ ‫_‬ ‫_‬
‫أركان‬ ‫أركان‬
‫ب‬ ‫ب‬
‫_‬ ‫_‬ ‫_‬ ‫_‬ ‫‪+‬‬ ‫_‬ ‫‪+‬‬ ‫‪+‬‬
‫مريم‬ ‫مريم‬
‫حـ‬ ‫حـ‬
‫_‬ ‫‪+‬‬ ‫‪+‬‬ ‫_‬ ‫‪+‬‬ ‫‪+‬‬ ‫_‬ ‫‪+‬‬
‫شريف‬ ‫شريف‬
‫د‬ ‫د‬
‫‪+‬‬ ‫‪+‬‬ ‫_‬ ‫‪+‬‬ ‫‪+‬‬ ‫_‬ ‫‪+‬‬ ‫_‬
‫توفيق‬ ‫توفيق‬
‫هـ‬ ‫هـ‬
‫‪+‬‬ ‫‪+‬‬ ‫‪+‬‬ ‫_‬ ‫‪+‬‬ ‫_‬ ‫_‬ ‫‪+‬‬
‫جمانة‬ ‫جمانة‬
‫تسجل مريم هنا أعلى أداء‬ ‫يسجل أركان هنا أعلى أداء‬
 Thrive or
Identifies the Top Die
Performers

May Not Doesn't

Improve Unleash
Performance the Talent
Cons Of in People
Pros Of Ranking
Ranking Method
Method

High Stress Loses

Improves Forces Managers to and High Effectiveness
Productivity and Think About Their Turnover Over Time
Profitability Own Behavior
 The critical incident method is used to
evaluate the ability of employees to work
during such situations.

The supervisor keeps a written record of

critical events (good/ bad) and how
different employee depends upon their
positive/negative behaviors during these
events. whereby he periodically records
critical incidents of the workers behavior.

Critical Incident Method These critical incidents are identified after a

thorough study of the job and discussion
with the staff to allow improvements.

At the end of every assessment, the HR

manager or some experts evaluate the
behavior and score them, depending upon
which the best-scoring employees and poor-
scoring employees are identified.
Critical
Incident
Sample
Template
 Useful for
Development

Employee Focus on
Involvement Behavior
Pros Of
Critical
Incident
Method

Specific
Flexibility
Feedback
 Time-Consuming

Subjectivity

Negativity Bias Cons Of

Critical
Incident
Method
Emotional Impact

Lack of
Standardization

Forced It is one of the most
Choice systematic and reliable
approaches to evaluating
employees accurately.
Method
The primary purpose of
the forced choice method
is to correct the tendency
of a rater to give
consistently high or low
ratings to all the
employees.

This method makes use of several sets of The statement items are
pair phrases, two of which may be grounded in such a way
positive, and two negative and the rater is that the rater cannot easily
asked to indicate which of the four judge which statements
phrases is the most and least descriptive apply to the most effective
of a particular worker. employee.
Forced choice
Sample
Template
 Pros Of Forced Choice Method

Ease of Reduced Social

Objective Data Standardization Efficiency
Analysis Desirability Bias
 Lack of
Depth

Limited
Potential
Contextual
Guessing Information

Cons Of
Forced Choice
Method

Difficulty in
Response Creating
Bias Effective
Questions

Limited
Response
Options
 Forced Distribution Method
The forced distribution method is also called bell-curve rating or stacked ranking.

It ranks employees into predefined categories based on their relative performance.

It is often used to identify high-potential employees, reward top performers, and weed out low
performers.

It requires the supervisor to assess each employee based on certain pre-determined parameters, and
thereafter rank them into 3 or more categories. Most commonly, the employees fall into excellent, good,
or poor categories, which can be expanded by the organization to a 5-point scale as well.

This method typically chooses the normal distribution curve to represent the performance distribution.

A relatively large section of the workforce falls in the middle of the distribution.
Forced
Distribution
Sample
Template
 Pros Of Forced Distribution Method

Eliminates
Alignment Objective
Differentiation Central Motivation
with Goals Data
Tendency
 Focusing on Relative
Subjectivity Performance

Cons Of
Demotivation Forced Interpersonal
Conflicts
Distribution
Method

Unrealistic
Inflexibility
Expectations
 Field Review Method

This is an appraisal done by someone outside the employees’

own department usually from the corporate or HR department.

The HR department takes an interview with both employee and

or their superiors and asks a set of predetermined questions to
assess employees’ talents and abilities.

The human resources department conduct this type of

performance appraisal method to find or believe that a manager’s
review is biased or inflated.
Field
Review
Sample
Template
Pros Of Field Review Method

Useful for managerial level promotions,

when comparable information is needed

There isn’t much pressure on the appraisee

since their direct supervisor isn’t the evaluator.

This method removes the superior biasedness or

favoritism.
 Cons Of Field Review Method

Managers or superiors
Outsider is generally not
The rater might feel consider this process as a
familiar with employees' This method is also very
aggrieved in cases when necessary interference of
work environment, and time-consuming and more
employees try to clarify any the HR in the matters of
Observation of actual costly than other methods.
matter. their team and
behaviors is not possible.
department.

A short interview and An outsider is also not

An outsider who doesn’t
short-term observation of familiar with the
work continuously with the
employee performance employee’s day-to-day
employee does not know
cannot reflect the genuine working conditions that
how the employee works
assessment of performance would in turn drive his/her
on a daily basis.
appraisal. behaviors at work.
 Behaviorally Anchored Rating Scales (BARS) Method

It is a structured and
As a result, the
objective approach to
supervisor is in a
performance evaluation Under this method,
that focuses on the position to compare
the scale points are
observable behaviors and the employee’s actual
defined by critical
actions of employees rather behavior with the
(effective or
than their personal traits or behavior that has
ineffective)
characteristics, or been previously
behaviors of the
subjective impressions or determined to be
employee for getting
personal biases. more or less effective.
results.

It is a combination of They are designed to Performance is

critical incident and identify the critical evaluated by asking
areas of performance the rater to record
rating scale methods of
specific observable job
performance appraisal. for a job and to
behaviors of an
describe the more
employee and then to
effective and less compare these
effective job behavior observations with a
for getting results. “behaviorally anchored
rating scale”.
 Behaviorally Anchored Rating Scales (BARS) Sample Template
Job role: Nurse
Grade Poor Satisfactory Good Very Good Excellent
Points 1 2 3 4 5
Dealing Often impatient with Occasionally impatient with Never impatient with Never impatient with Never impatient with difficult
with difficult patients, difficult patients, rarely difficult patients, shows difficult patients, shows patients, shows sympathy in their
regularly needs other needs other nurses' help to sympathy in their sympathy in their interactions with patients and their
difficult
nurses' help to deal deal with these patients interactions interactions with patients, families, helps other nurses with
patients with these patients with patients helps other nurses with difficult patients, eases patients'
difficult patients fears

Job role: Teacher

Competence Unacceptable Marginal Satisfactory Exceptional
Points 0 1 2 3
Reflection on the Teaching practices to Describes own teaching Reflects on own teaching and Critically reflects on own teaching and
Relationship of student learning describe experiences and student processes student feedback to synthesizes conflicting student feedback to
specific teaching his own teaching feedback without understand and address areas for understand and address areas for
practices to experiences. identifying areas for improvement in student learning. improvement in student learning. Analyzes
Students' learning Does not reflect on improvement in student Articulates relationships between relationships between student learning and
teaching practice or learning. Does not student learning and teaching teaching practices, explores underlying
engage with student articulate relationships practices analyzes what factor(s) contributing to the problem (s) in
feedback. between student learning contributed to successes and student learning, and recognizes and
Do not question or and teaching practices or problems in student learning and questions own assumptions and thought
evaluate teaching and analyze factors articulates one or more tactics to processes. Articulates one or more novel
learning experience. contributing to outcomes address surface problem(s) in solutions to address the contributing factors
in student learning. student learning. and/or surface problem(s) in student
learning.
Pros Of Behaviorally Anchored Rating Scales (BARS) Method

Enhanced validity and

Clarity
reliability

Objectivity
1 2 6 Alignment
5

Flexibility
based on human
behavior
8 7 3 4

straightforward to use if
planned properly
Improved feedback
Cons Of Behaviorally Anchored Rating Scales (BARS) Method

Expensive and
Time-
Consuming 1 3 Limited scope

22
4
Complex. Potential for
subjectivity
Also known as management by planning or management by results.

A Strategic or managerial model in which employees and managers work together to set realistic and achievable organizational goals
for a specified period of time, to improve the performance of the organization.

During this time, managers evaluate the actual performance by comparing it against the defined objectives to see how far their
employees have performed

Employees get feedback on a daily basis rather than at the end of the work.

Managers can keep their employees motivated and committed to the work by rewarding them.

The most important part of MBO that makes it successful is monitoring and evaluating the progress against the objectives.

It helps the employee to grow their skills while increasing the performance of the organization.
MBO Sample Template
 Employee Name:
Bonus Period:
Gordon Daugherty
Q2 2013 MBO Sample Template
Bonus At Plan: $2,500
Oppty MBO

MBO# Category Description / Measurable Upside / Downside Potential Accomplishment Weighting Value $ Achieved $ Earned

Joint Work with engineering and product management teams from our If at least the engineering release is
Development
company and XYZ Corp. to complete a high-quality product offering that completed before the end of the
Project with ABC
Corporation
can be launched into the market during Q2 2013. The target for this quarter, 50% of this bonus is
bonus is both an engineering release and GA release of the joint product. eligible. enter narrative here
1 when period is over 40% $1,000 50% $500

‫ إلكمال عرض منتجات عالي مشروع تطوير مشترك‬XYZ Corp ‫اعمل مع فرق الهندسة وإدارة المنتجات من شركتنا وشركة‬ ‫إذا اكتمل اإلصدار الهندسي على األقل قبل نهاية‬
‫ الهدف من هذه المكافأة هو إصدار‬.2013 ‫الجودة يمكن طرحه في السوق خالل الربع الثاني من عام‬ .‫ من هذه المكافأة تكون مؤهلة‬%50 ‫ فإن‬،‫الربع‬
ABC ‫مع شركة‬
.‫ للمنتج المشترك‬GA ‫هندسي وإصدار‬

Work with marketing teams from our company and XYZ Corp to
Joint Product conduct a high-impact launch of the joint solution. The bonus for this Subjective criteria will be applied
Launch with ABC item will be paid based on the overall reach and awareness generated to determine pay-outs in the 50 -
Corporation from the marketing campaign as indicated by social media activity, press 125% range
pickup and inbound inquiries.
enter narrative here
2 when period is over 40% $1,000 125% $1,250

‫إطالق منتج مشترك مع‬ .‫ إلجراء إطالق عالي التأثير للحل المشترك‬XYZ Corp ‫سيتم تطبيق معايير ذاتية لتحديد الدفعات في نطاق اعمل مع فرق التسويق من شركتنا وشركة‬
ABC ‫شركة‬ ‫سيتم دفع المكافأة لهذا العنصر بناًء على مدى الوصول العام والوعي الناتج عن الحملة التسويقية كما هو‬ 125 - 50%
.‫موضح من خالل نشاط وسائل التواصل االجتماعي والصحافة واالستفسارات الواردة‬

Upside potential if a partnership

MOU is also signed by a XYZ
Get a pilot test going for an OEM or distribution relationship with XYZ.
Business company executive that describes
An executive sponsor at XYZ must be supportive of the pilot test and
Development the desired relationship and
must have communicated their objectives.
roles/responsibilities of each enter narrative here
3 party. when period is over 20% $500 100% $500

‫احتمال صعودي إذا تم أيًض ا توقيع مذكرة تفاهم‬

‫تطوير االعمال‬
‫ يجب أن يكون‬.XYZ ‫ احصل على اختبار تجريبي لعالقة تصنيع المعدات األصلية أو التوزيع مع‬XYZ ‫للشراكة من قبل مسؤول تنفيذي في شركة‬
.‫ داعًم ا لالختبار التجريبي ويجب أن يكون قد أبلغ عن أهدافه‬XYZ ‫المسؤوليات المطلوبة لكل الراعي التنفيذي في‬/‫تصف العالقة واألدوار‬
.‫طرف‬
 MBO
Process
 360-Degree Method
A 360-degree evaluation, also known as a multi-rater feedback assessment.

It is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources
that come in contact with the employee on his job. In other words, this method takes several different points of view into
account to get an overall picture of the employee’s strengths and weaknesses.

It involves gathering the anonymous views and opinions of peers, managers or supervisors, team members, and direct reports,
which are used to give well-rounded and constructive feedback about an employee. This type of appraisal may also take insights
from customers, suppliers/ vendors, or consultants –provided they work regularly with the employee being reviewed.
This type of evaluation process is used for developmental and performance appraisal purposes, aiming to help employees improve
their work skills and behavior toward better performance and productivity.
360 Degree
Examples
 Pros Of 360-Degree Method

Positive Work Environment 01 02 Boost Employees Morale

Helps to determine training needs 03 04 feedback is anonymous

A comprehensive view of
Self-Development of Employees 05 06 Employee performance

Provide A View on How Others

See Employees
07 08 Eliminates Biases

09 Fair and Accurate Reviews

 Cons Of 360-Degree Method

No way to
Time- monitor
Consuming anonymous
input

01 02
Bias and
Unfairness

Bias and
Internal
Conflicting
Feedback
Controversies 05
Unfairness

03 04 06
 Cost Accounting Method

It is a process of analyses an employee’s performance through the monetary benefits he/she

provides to the company.

The metrics are obtained by comparing the cost of retaining an employee (cost to
company) and the monetary benefits (contributions) an organization has ascertained
from that specific employee.

The cost of employees includes all the expenses incurred on them like their
compensation, recruitment and selection costs, induction, and training costs etc.
whereas their contribution includes the total value added (in monetary terms).

The difference between the cost and the contribution will be the
performance of the employees. Ideally, the contribution of the
employees should be greater than the cost incurred on them.
 Pros Of Cost Accounting Method

5
4 Budgeting and
Planning

3 Performance Evaluation

2 Decision Making

1
Pricing Strategy

Cost Control
 Cons Of Cost Accounting Method

01 Complexity

05 02
Limited Scope Costly

Subjectivity Time-consuming
04 03
 Assessment Centre Method
It is a multiple assessment of several individuals performed
simultaneously by a group of trained evaluators using a variety of
group and individual exercises, , all of which are aimed at giving
the employer a rounded profile of your competencies as well as
insight into your performance in the workplace.

It typically involves a series of structured exercises and activities

that simulate real job situations or tasks. These activities can
include role-playing, group discussions, presentations, in-basket
exercises, and more.

Trained assessors or observers evaluate participants based on

predetermined criteria and competencies relevant to the job or
role.
 Assessment Centre Method
Assessment days can take place at the employer’s offices or at a private
assessment centre. usually run four to eight hours over a period of one or two
days, although mass recruitment campaigns are sometimes a three-day
process.

The major competencies that are judged in assessment centres are

interpersonal skills, intellectual capability, planning and organizing
capabilities, motivation, career orientation etc.

An assessment center performance appraisal helps predict future behavior,

make better talent decisions, diagnose development needs, and groom
employees to expand their Key Responsibility Areas.

The method can be instrumental in identifying high-potential employees and

professional training needs to bridge the skills gaps, leadership development
and succession planning.
 Methods of Assessment Centres

1 2 3

Competency-Based Group Discussion Role Play

Interview

4 5

In Basket Exercise Case Study

No. 1: Introduction No. 3: Mailbox Exercise

No.2:Presentation No. 4: Group Discussion

 No. 5: Roleplay No. 6: Case Study

No. 7: Interview/self-assessment
 Pros Of Assessment Centre Method

Comprehensive Developmental
01 Assessment 02 Feedback

Identification of Motivation and

03 High-Potential 04 Engagement
Employees

Validity and Fairness and

05 Reliability 06 Objectivity
 Cons Of Assessment Centre Method

Stress and
01 Subjectivity 02 Anxiety

Limited Resource-
03 04 Intensive
Applicability

Resistance Potential for

05 from 06 Stereotyping
Employees
 Problems in Performance Appraisal or Limitations

01 03 Incompetence 05 Multiple 06 Resistance

Halo Effect Errors in
of rater objectives
rating from T.U

Stereotyping

Central Tendency Negative Lack of knowledge

Lack of
02 04 approach - 07 about how to rate,
reliability to punish inexperienced rater
Constant Error

Personal Bias
 CONCLUSION AND
RECOMMENDATIONS
There is conclusive evidence that performance appraisal is
significant on employee performance. However,
inadequacies in performance appraisals are related to
organization structure context while others are associated
with the processes. The study recommends the need to
examine the relationship between performance appraisal
and employee performance by incorporating both
organization structures and processes with the focus of
increasing employees’ commitment and performance. The
supervisors should discuss attainable goals with the
employees and there should be regular reviews. Timely
feedbacks should be discussed with the individual
employees. Those that achieve their targets should be
recognized to raise their satisfaction and poor performers
should be reproached. The gaps realized should be sealed
through training and development. Finally, we conclude
that there are many techniques that used for performance
appraisal. It is very difficult to say that which technique is
better than other technique because it depends upon the
type and size of organization. Each technique has its own
pros and cons.
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