1. PERFORMANCE APPRAISAL. Points to be discussed in the Lecture Sessions: Concept and objectives of Performance Appraisal.The appraisal Process. The Appraisers Appraisal Methods and Interview. Pitfalls in Performance Appraisal. Uses of Performance Appraisal.

2. Performance appraisal is the process of evaluating the performance of an employee and communicating the results of the evaluation to him for the purpose of rewarding or developing the employee.Purpose ----JUDGEMENT PURPOSE AND DEVELOPMENT PURPOSE. 3. OBJECTIVE OF PERFORMANCE APPRAISAL Setting targets and goals as performance standards. Evaluating employee performance. Identifying training and developing needs. Rewarding performance Improving performance 4. Uses of Performance appraisal. Training and Development. Improvement of Organizational effectiveness. Basis for compensationmanagement, transfers, promotion, career planning activities etc. Helps in evaluating the existing plans 5. THE APPRAISAL PROCESS. Determination of standards. Define work Set measurable targets.PerformAssess against targets.FeedbackDevelop Action Plans. 6. Who appraises the performance? Self Appraisal. Supervisors. Peers. Customers / ClientsSubordinates. 7. PERFORMANCE APPRAISAL METHODS TRADITIONAL METHODS TRADITIONAL METHODS Unstructured method Straight ranking method Paired comparison Method Grading method Graphic Rating method Forced Choice method Critical incidents method Field Review method Confidential methodMODERN METHODS BARS MBO HR Accounting Method 360 Degree appraisal. 8. What are the methods of Performance Appraisal?. Management by Objectives( MBO)/ Goal Setting. Graphic Rating Method. Checklist. Work Standards approach. Essay Appraisal. Critical Incident Method.Forced choice rating scale. Point Allocation Method. Ranking Methods. Behaviorally Anchored Rating Scale BARS) 360 Degree PA. Team Appraisals. Balanced Scorecard. 9. MANAGEMENT BY OBJECTIVES (MBO) Themain aspect of MBO are clear and well defined goals, a definite time span to achieve the goals, an action plan and finally , constructive feedback. Quantifiable and measurable goals that are neither too easy nor too difficult to achieve. A welllaid out action plan providing for contingencies. Employees who are suitably equipped and motivated to achieve these goals. Continuous and constructive feedback and guidance. Objective evaluation of performance. Identification of areas for improvement and corrective action. 10. Graphic Rating Scale. Sl noFactor1.SkillExcellentV goodgoodsatisfactoryPoor2.KnowledgeExcellentV goodgoodsatisfactoryPoor3.Rating.Dependability No DirectionMinimum DirectionFrequent DirectionCentre counted onConstant Direction. Sample Checklist of appraisal. Sl noChecklist1.Is he punctual?2.Are the orders promptly attended to?3.Is he helpful to other colleagues?4.Does he lose temper Often?YesNo 11. WORK STANDARDS APPROACH.Suitable in manufacturing scenario, where the goals are predetermined work standards. The work standard can be set on the basis of average output of a typical employee in the organization or by bench marking against the work standards of a competitors in a similar business.Goals to be measured are very objective and also quantifiable 12. Forced Choice Method. Sample Statements for a salesman. Slow but steady Avoid risks Meet customers with confidence. Friendly and informal.Plain speaking.BARS A typical BARS for Machine shop Inspector. GradePoorPoints1Behaviour Description.Satisfactory 2Good 3V. GoodExcellent. 45 13. BALANCED SCORE CARDS. FOUR PERSPECTIVES ARE TAKEN INTO CONSIDERATION1.Organisational goal 2. Internal business 3.Customer 4. Financial perspectives 14. PITFALLS IN PERFORMANCE APPRAISALHALLO EFFECT: The rater consider only single characteristic to judge rate's performance. LENIENCY EFFECT: Raters have the intensity to rate high and consider only the positive feed back to the appraise. STRINGENCY EFFECT: Opposite to leniency effect. 15. RECENCY EFFECT: The appraiser try to get influence by the recent performance of the employee. PRIMACY EFFECT: The performance of the appraise at the beginning of the appraisal period dominates the evaluate. CENTRAL TENDENCY EFFECT: Is the tendency of the appraiser to rate individual in average of the performance scale. STEREOTYPING: Judging someone based on the group he belongs to. PERCEPTUAL SET: Tendency of the appraiser to have an expectation of the performance level , which might distort the perception and judgment of actual performance. FUNDAMENTAL ATTRIBUTION ERROR: An employees performance may be affected due to some external factors out side his control. The appraiser sometimes undermine that factors and rates