PERFORMANCE

APPRAISAL

BY :-

KARAN DALVI

Objectives

Opportunity to Regularly Discuss Results

Supervisor Identifies Strengths and

Weaknesses

Fair and Equitable Format

Basis for Salary/Promotion

Recommendations

Performance improvement

Compensation adjustments

Placement decisions

Training & Development needs

Career planning & development

Identify deficiencies in staffing process

Detect informational inaccuracies

Diagnose job design errors

Avoidance of discrimination

External challenges

Performance Appraisal: Uses

Methods of Performance AppraisalSeveral methods and techniques are used for evaluating employee

performance. These may be classified into broad categories.

Performance Appraisal

Modern MethodsTraditional Methods

1. Confidential Report

2. Free Form or Essay

3. Straight Ranking

4. Paired Comparisons

5. Forced Distribution

6. Graphic rating Scales

7. Checklist Method

8. Critical Incidents

9. Group Appraisal

10. Field Review

1. Assessment Centre

2. Human Resource

Accounting

3. Behaviorally Anchored

rating Scales

4. Appraisal through MBO

1. Confidential ReportThis is a traditional form of appraisal used in most

government organization. A confidential report is a report

prepared by the employee’s immediate superior. It cover the

strengths and weaknesses, main achievements and failure,

personality and behavior of the employee’. It is descriptive

appraisal used for promotion and transfers of employees.

2. Free Form or essay MethodUnder this method, the evaluator writes a short essay on

the employee’s performance on the basis of overall

impression. The description is expected to be as factual and

concrete as possible. An essay can provide a good deal of

information about the employee especially if the evaluator is

asked to give examples of each one of his judgments.

TRADITIONAL METHOD

3. Straight Ranking Method

In this method technique, the evaluator assigns relative

ranks to all the employees in the same work unit doing the same

job. Employees are ranked from the best to the poorest on the

basis of overall performance. The ‘wholeman is compared with

the whole man’ without analyzing performance. The relative

position of an employee is reflected in his numerical rank.

Employee Rank

A 2

B 1

C 5

D 4

E 3

Straight ranking is one of the oldest and simplest methods.

It is time saving and a comparative evaluation technique of

appraisal.

4. Paired Comparisons Method

This is a modified from of man to man ranking. Herein,each employee is compared will all the others in pairs one ata time. The number of times an employee is judged betterthen the others determines his rank. Comparison is made onthe basis of overall performance.

5. Forced Distribution Method

In this technique, the rater is required to distribute hisrating in the form of a normal frequency distribution. Thepurpose is to eliminate the rater’s basis of central tendency.Here also ranking technique is used. This method is highlysimple to understand and easy to apply

0

5

10

15

20

25

30

35

40

45

Poor BelowAverage

Average Good Excellent

No.

of

em

plo

yee

6. Graphic Rating Scales

It is a numerical scale indicating different degrees of a

particular trait. The rate is given a printed from for each

employee to bee rated. The form contains several

characteristics relating to the personality and performance of

employees. Intelligence, quality of work , leadership skills,

judgment, etc. are some of these characteristics. The rater

records his judgment on the employee’s trait on the scale.

The numerical points given to an employee are added up to

find out his overall performance a standing in the group.

7. Checklist Method

A checklist is a list of statements that describe

characteristics and performance of employee on the job. The

ratter checks to indicate if the behavior of an employee is

positive or negative to each statement. The performance of

an employee is rated on the basis of number of positive

checks.

There are three types of checklist.

1.Simpale Checklist

2. Forced Choice Block

3. Weighted Checklist

1. Is the employee regular on the job Yes/No

2. Is the employee respected by his subordinates Yes/No

3. Is the employee always willing to help his peers Yes/No

4. Does the employee follow instruction properly Yes/No

5. Dose the employee keep the equipment in order Yes/No

1. Regularity on the job Most Least

(a) Always regular √

(b) Informs in advance for absence/delay √

(c) Newer regular √

(d) Remains absent without prior notice √

(e) Neither regular nor irregular

Simple Checklist

Forced Choice Block

Traits Weights Performance Ratings

1. Attendance 0.5

1. Knowledge of the job 1.0

1. Quantity of work 1.0

1. Quality of work 1.5

1. Dependability 1.5

1. Interpersonal relation 2.0

1. Organization loyalty 1.5

1. Leadership potential 1.5

Weighted Checklist

8. Critical Incidents Method

In this method the supervisor keeps a written record ofcritical events and how different employee behaved duringsuch events. The rating of an employee depends on hispositive/negative behavior during these events.

9. Group Appraisal Method

Under this method, a group of evaluators assesses

employees. This group consists of the immediate supervisor

of the employee, other supervisor having close contact with

employee’s work, head of the department and a personnel

expert. The group determines the standers of performance for

the job , measures actual performance of an employee,

analyses the causes of poor performance and offers

suggestions for improvement in future.

10. Field Review MethodIn this method, a training officer from the personal

department interviews line supervisors to evaluate their

respective subordinates. The interviewer prepares in

advance the questions to be asked. By answering these

questions a supervisor gives his opinions about the level of

performance of his subordinate, the subordinate’s work

progress, his strengths and weaknesses, promotion potential,

etc.

Modern Methods

1. Assessment Centre Method

An assessment centre is a group of employees drawn

from different work units. These employees work together on

an assignment similar to the one they would be handling when

promoted. Evaluates observe and rank the performance of all

the participants. Experienced managers with proven ability

serve as evaluators. This group evaluaters all employees both

individually and collectively by using simulation techniques like

role playing, business games and in basket exercises.

Employees are evaluated on job related characteristics

considered important for job success. The evaluators observe

and evaluate employees as they perform jobs.

2.Human Resource Accounting

Method

Human resources are a valuable asset of

any organisation. This asset can be valued in terms of money.

When competent, and well-trained employees leave an

organisation the human asset is decreased and vice versa.

Under this method performance is judged in terms of costs and

contribution of employees. Costs of human resources consist of

expenditure on human resource planning, recruitment,

selection, induction, training, compensation, etc. Contribution

of human resources is the money value of labour productivity or

value added by human resources is the money value of labour

productivity or value added by human resources.

3. Behavioral Anchored Rating Scales

Performance Point Behavior

Extremely

good

7 Can expect trainee to make valuable

suggestions for increased sales and to have

positive relationships with customers all

over the country.

Good 6 Can expect to initiate creative ideas for

improved sales.

Above

average

5 Can expect to keep in touch with the

customers throughout the year.

Average 4 Can manage, with difficulty, to deliver the

goods in time.

Below

average

3 Can expect to unload the trucks when

asked by the supervisor.

Poor 2 Can expect to inform only a part of the

customers.

Extremely

poor

1 Can expect to take extended coffee breaks &

roam around purposelessly.

4.Appraisal by Results or MBO

The concept of management by objectives(MBO) was

developed by Peter Drucker in 1954. He called it management by

objectives and self control’. Since then MBO has became an

effective and operational technique of performance appraisal and

a powerful philosophy of managing. It is also known as Work

Planning and Review or Goal setting approach to appraisal.

Management by objectives has been defined as “a

process whereby the superior and subordinate managers of an

organisation jointly identify its common goals, define each

individual’s major areas of responsibility in terms of results

expected of him and use these measures as guides for operating

the unit and assessing the contribution of each of its members” In

other words.MBO involves appraisal of performance against clear,

time bound and mutually agreed job goals.

THANK YOU