PERFORMANCE

APPRAISAL

Human Resource Management

AMRENDRA KUMAR
 Definition…
PA is a formal, structured system of measuring
and evaluating an employees job related
behavior and outcomes to discover
• how and why the employee is presently
performing on the job and (performance)
• how the employee can perform more effectively
in the future so that the employee, organization
and society all benefit (potential).
 Relationship of PA and Job
Analysis
Performance Performance
Job Analysis
Standards Appraisal

Describes work Translate job Describes the

and personnel requirements into job-relevant
requirement of levels of strengths and
a particular job acceptable or weaknesses of
unacceptable each individual
performance
 Purposes of PA
General Purpose Specific Purpose

Developmental Issues Identification of individual needs

Performance Feedback
Determining Transfers and Job Assignments
Identification of Individual Strengths

Administrative Uses/ Salary

Decisions Promotion
Retention or Termination
Identification of poor performers
Organizational HR Planning
Maintenance/ Objectives Determining Organization Training Needs
Evaluation of Organizational Goal Achievement
Evaluation of HR systems

Documentation Criteria for Validation Research

Documentation for HR Decisions
Helping to Meet Legal Requirements
Performance Appraisal : A Competitive Advantage

Improving
Performance

Making
Strategy Correct
Decisions
Competitiv
e
Advantage
Ensuring
Legal
Values
Compliance
Minimizing
Dissatisfaction and
Turnover
 Objectives of
Performance
Appraisal

Establish Job
Expectations

Design an
Appraisal Program

Appraise
Performance

Performance
Interview

Use Appraisal Data for

Appropriate Purposes
 appraisal systems
Traditional Systems

Guiding Value Attribution to individual Attribution to system

Primary Goals Control, documentation Development, problem

solving

Leadership practices Directional, Evaluative Facilitative, coaching

Appraisal Frequency Occasional Frequent

Degree of formality High Low

Reward Practices Individual Orientation Group Orientation

 core value

ap-praise [uh-preyz]
to estimate the nature,
quality, importance; UP + RAISE
evaluate; judge
i m p r o v e !!!
(http://dictionary.reference.com/browse/appraise)
 designing an appraisal
program
Formal
Vs
Informal
What Whose
Methods Performa
? nce?

When To Apprais Who are

Evaluate al the
? Design Raters?

What To What
Evaluate Problems
? ?
How To
Solve?
problem in rating…
Performance appraisals are subjected
to inaccuracies & biases referred to
as ‘rating errors’. These errors
occur in rater’s observations,
judgment, & information processing,
and can effect assessment results.
 types of rating errors
 Leniency or Severity
 Central Tendency
 Halo Error
 Rater Effect
 Primacy & Recency Effects
 Perceptual Set
 Performance Dimension Order
 Spillover Effect
 Status Effect
 solving rater’s problem
best technique: TRAINING
improving accuracy lowering accuracy
 Rater has observed behavior  Rater tends to inflate ratings
 Is familiar with behavior  Only keeps administrative
 Aware of personal biases actions in mind
 Focuses on performance  Unable to express himself
clearly
 Higher level managers held
accountable for reviewing  Appraisal system fails to
things. support the rater
 Performance factors are  Unaware of causes of rating
clearly defined errors
 ……..  Factors poorly defined
 ……
 what should be rated?
 Quality (objective, quantifiable)

 Quantity (objective , quantifiable)

 Timeliness (objective , quantifiable)

 Cost Effectiveness (objective , quantifiable)

 Need for Supervision (subjective, judgmental)

 Interpersonal Impact (subjective, judgmental)

 methods of appraisal
Past-Oriented Method Future-Oriented Method

 Rating Scales
 Checklists  MBO
 Forced Choice  360 Degree Appraisal
 Forced Distribution
 Critical Incident
 Psychological Appraisals
 BARS (behaviorally anchored rating scale)  Assessment Centres
 Field Review
 Performance test/observations
 Annual confidential reports
 Comparative Evaluation
 Organizational
Strategy

Defenders Prospects Analyzer

(develop and
(develop) (acquire)
Acquire)
 challenges of performance
appraisal
 Create a culture of excellence inspiring employees to
improve and lend themselves to be assessed.
 Align organizational objectives to individual aspirations.
 Clear growth paths for talented individuals.
 Provide new challenges to rejuvenate careers that have
reached the Plateau stage.
 Forge a partnership with people for managing their
careers.
 Empower employees to make decisions without the fear of
failing.
 Embed teamwork
 De-bureaucratise