Performance Appraisal

Performance Appraisal Meaning and Definition

Definition: Performance appraisal is

Meaning: It is a regular assessment
used to verify the contribution of
employee’s performance to the
organization
defined as system which
communicate about the ideal
performance of the employee and
the actual performance of the
employee.

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Types of Employee Performance Appraisal

•Self assessment: Rating of the performance by employee themselves.

•Peer assessment: Peers act as a rater of the performance of the employee
•360-degree performance appraisal: All the stakeholders of the organization provides performance
review of the employee
•Negotiated appraisal: A mediator acts as a performance reviewer.

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Methods of Performance Appraisal
Traditional Methods Modern Methods
1. Rating Scales 1. Management by Objectives
2. Checklist 2. Psychological Appraisals
3. Forced Choice Method 3. Assessment Centers
4. Forced Distribution Method 4. 360-Degree Feedback
5. Critical Incidents Method 5. 720-Degree Feedback
6. Behaviorally Anchored Rating Scale
7. Field Review Method
8. Performance Tests and Observations
9. Confidential Reports
10. Essay Method
11. Cost Accounting Method
12. Comparative Evaluation Approaches
Objectives of Employee Performance Appraisal
Keep records Determine the
to decide strengths and
salary of weaknesses of Know about
employees the employees future growth
potential of
the employee

Objectives of Performance Appraisal

Provide
Inputs about Makes
feedback of
the training employees
employee
needs work oriented
performance

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 Advantages and Disadvantages of Performance
Appraisal

Advantages Disadvantages
• Helps in promotion and dismissal decisions • Many times the vital factors are ignored while

• Provide framework and information to decide compensation measuring the performance.

• Helps to decide the developmental programs for employees • Emotional and psychological factors are difficult to

• Guide the hiring process to make selection more accurate quantify.

• Effectively convey the performance status to employee • If the evaluation is carried out by less qualified person

• Motivates the employee to improve their performance then the process is of no use to the organization.
Thank You