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4/29/12Performance appraisal &tools for

measuring performance

Muhammed safarNadira

NayanaNithil dasNadheem

nishab

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Performance appraisal

Performance appraisal is a widely usedtechnique to evaluate the people

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Meaning

Performance appraisal is a process ofassessing, summarizing and developing thework performance of an employee

Performance appraisal is the process ofevaluating the personal job performance andhis potential for development

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Definition

performance appraisal is a process ofevaluating an employees performance of a

job in terms of its requirements

Scot, Clothier and Spreigalo Performance appraisal is the systematic ,

periodic and so far as humanly possible, animpartial rating of an employees personality

traits and performance on the job and isdesigned to determine his contribution andrelative worth to the firm

Edwin B Flippo

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features

Performance review

review of potential and development needs

reward reviews

selection process review

Training review

Prevention of grievances

employee motivation

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OBJECTIVES

Work related objectives.

Career development objectives.

Communication.

Organizational objectives.

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LIMITATIONS

Hallo effect:The Hallo error or effect isa tendency to evaluate a person onthe basis of one trait of

characteristic. The appraiser judges aperson on the strength of a specifictrait and does not base his inferenceon his overall performance .

Central tendency: it is the mostcommonly found error in merit rating.

This error arises when the rater is not

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Leniency or Strictness : Theevaluators have their own value systemwhich acts as a standard for evaluation.

Similarity Error: This error arises fromthe mental make up of an evaluator. Theevaluator uses his own trait as a basis forassessing the employees

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Miscellaneous biases

Faulty assumptions

No definite standards

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Psychological blocks: managers considerappraisal as an extra burden, they try to

treat subordinates failure as their own ,dislike to communicate unfavorable reports to

subordinates

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Performanceappraisal process

Establishing standards

Communicating standards to employees

Measuring actual performance

Comparing actual with standards

Discussing reports with employees

Taking corrective actions

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Essentials of an effective appraisalsystem

Mutual Trust and Confidence

Reliability

Validity

Specific Objectives

Standardisation

Training to Appraisers

Feed Back

Individual Difference

Post Appraisal Interview

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METHODS OF PERFORMANCEAPPRAISAL

Traditional methods

Modern methods

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TRADITIONAL METHODS

Unstructured manner

Highly subjective in nature

Useful at lower levels

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METHODS

Ranking method

Paired comparison method

Grading method

Graphic Rating Scales

Check List method

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Critical incident appraisal

Field review method

Confidential report

Essay appraisal method

Group appraisal

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Modern methods

Assessment centre

Human resource accounting

Behaviorally anchored rating scales(BARS)

Management by objectives(MBO)

360 degree performance appraisal.

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