Performance Appraisal

Performance Appraisal

Performance Appraisal Meaning and Definition

Meaning: It is a regular assessment used to verify the contribution of employee’s performance to the organization

Definition: Performance appraisal is 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 Self assessment: assessment: Rating Rating of of the the performance performance by by employee employee themselves. themselves.

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

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Methods of Performance Appraisal Traditional Methods 1. Rating Scales 2. Checklist 3. Forced Choice Method 4. Forced Distribution Method 5. Critical Incidents Method 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

Modern Methods 1. Management by Objectives 2. Psychological Appraisals 3. Assessment Centers 4. 360-Degree Feedback 5. 720-Degree Feedback

Objectives of Employee Performance Appraisal Keep records to decide salary of employees

Determine the strengths and weaknesses of the employees

Know about future growth potential of the employee

Objectives of Performance Appraisal

Provide feedback of employee performance

Inputs about the training needs

Makes employees work oriented

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Advantages and Disadvantages of Performance Appraisal Advantages

Disadvantages

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Helps in promotion and dismissal decisions

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Provide framework and information to decide compensation

measuring the performance.

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Helps to decide the developmental programs for employees

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Guide the hiring process to make selection more accurate

quantify.

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Effectively convey the performance status to employee

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Motivates the employee to improve their performance

then the process is of no use to the organization.

Many times the vital factors are ignored while Emotional and psychological factors are difficult to If the evaluation is carried out by less qualified person

Thank You

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