Performance

Appraisal
 Meaning:
 Performance Appraisal is a process
supporting the use of human resource in an
organization. It is possibly management’s
most powerful tool in controlling performance
and productivity of human resources in the
organization. Used effectively, it can have
tremendous strategic potential for governing
employee behaviour and in turn,
organization’s direction through its dynamic
links to selection, training, career-path
planning and reward systems.
 Definitions

 Scott, Clothier and Spriegel:

“Performance Appraisal is the
process of evaluating the
employee’s performance on the
job in terms of requirements of
the job”.
 Definitions
 Yoder: “Performance Appraisal
refers to all formal procedures
used in working organizations to
evaluate personalities and
contributions and potential of
group members”.
 Definitions
 “Performance Appraisal is the
systematic, periodic and an
impartial rating on an
employee’s excellence in matters
pertaining to his present job and
to his potentialities for a better
job”.
 Performance Appraisal
vs. Job Evaluation
 Performance Appraisal identifies the
differences among the employees in
terms of their performance. But Job
Evaluation is the analysis of various
jobs to know the demands which the
normal performance of particular
jobs make on average performance
of the employees concerned.
 Performance Appraisal
vs. Job Evaluation
 The chief purpose of PA is to appraise the
performance of individuals to take
decisions like increase in pay, transfer,
promotion, training etc. It also provides
the employees with information regarding
their strong and weak points. But the
purpose of Job Evaluation is very limited
i.e. to determine the worth of the job on
the basis of demands made by it on the
average workers.
 Performance Appraisal
vs. Job Evaluation
 Performance Appraisal rates the man
and not the job as it is concerned
with assessing the abilities of the
individuals. Job Evaluation rates the
jobs in the organization that will be
fair and equitable. It is used as a
basis of wage structure in the
organization.
 Need, Importance and
Advantages of Performance
Appraisal
 Scientific basis for judging the merit
or worth of employees
 Sound basis for promotion,

demotion, transfer or termination of

employees.
 Helps in distinguishing between

efficient and inefficient workers.

 It reveals the defects in the selection

procedure
 Need, Importance and
Advantages of Performance
Appraisal
 Helps to know the potentials of the
subordinates systematically.
 Helps correct placements.

 It helps in constructively guiding the

employees.
 It prevents grievances and develops a

sense of confidence
 Protects the management against the

charges of discrimination.
 Essentials of Effective
Performance Appraisal
 The employees should be made
aware in terms of goals, targets and
behaviour
 Job-related

 Performance-based

 Uniform and non-variable

 Fair, just and equitable

 Appraisers should be honest, rational

and objective
 Essentials of Effective
Performance Appraisal
 Superiors should be well trained to
ensure uniformity, consistency and
reliability
 Reports should be examined

meticulously before taking any

positive or negative action.
 Intra and inter-departmental

consistency and uniformity should be

ensured.
 Essentials of Effective
Performance Appraisal

 There should be provision of appeals

against appraisals to ensure
confidence of the employees and
their associations/unions.
 Traditional methods of
Performance Appraisal
 Ranking Method
 Paired Comparison

 Graphic Scale method

 Forced Distribution Method

 Check-list Method

 Critical Incident Method

 Field Review Method