Performance Appraisal: Meaning, Features, Needs and MethodsPerformance appraisal is a method of evaluating the behaviour and performance of employees in the workplace. This includes appraisal of both qualitative and quantitative aspects of job performance.

Features of Performance Appraisal:1. Systematic process of evaluation of an employee.

2. Analysis of the strengths and weaknesses of an employee.

3. To find out how well an employee is performing the job.

4. Appraisal is done periodically.

5. It is based on a definite plan.

6. Performance appraisal is different from job evaluation.

7. Performance appraisal is a continuous process that is accepted by every organization.

Need for Performance Appraisal:There are certain requirements expected from the employees for which performance appraisal are conducted.

1. Providing information about the performance ranks on which decision regarding salary fixation, promotion, etc. are taken.

2. Review of the performance of the subordinates.

3. Providing information that helps to counsel the subordinates.

4. Getting information to diagnose deficiency in employees regarding skills, knowledge, etc.

5. To prevent grievance and in disciplinary activities.

Methods of Performance Appraisal:Trait Method:

1. Graphic rating scales

2. Ranking method

3. Parried comparison method

4. Forced distribution method

5. Checklist method

6. Essay method or free-form appraisal

7. Confidential reports

Behaviour Method:1. Behaviour checklist method

2. Critical incident method

3. Behaviour anchored rating scales (BARS)

4. Assessment centre

5. Psychological appraisal

Modern Method:The modem methods are based on accomplishments of an employee in order to have evaluation. The accomplishments include sales turnover, the number of customers served, as well as the relationship with the customers and dealers.

1. 360-degree appraisal:Any person having through knowledge about the job contents can appraise an employee. According to this method all parties related to an organization will be rating an employee. Thus, performance appraisal by supervisors,” peers, subordinates, customer employees themselves (self appraisal), other users of service, and consultants is known as 360-degree appraisal. 360-degree appraisal is a systematic assessment of an employee regarding his present job, organizational expectations and his potentialities for a better job.

2. Supervisor appraisal:While appraising the performance, supervisors include superiors of employee from the same department, departmental head or managers.

Usually, immediate superiors appraise the performance, which in turn is reviewed by the departmental head or manager.

3. Peer appraisal:Peer appraisal is experimental with military personnel so far. Peer Appraisal is a method of evaluating the employee performance by his co-employees rather than by his manager as they have sufficient opportunity to review the performance on a daily basis.

4. Subordinates appraisal:This is a novel method in which subordinates may be asked to evaluate the superiors. This rating is quite useful in identifying competent superiors.

5. Self-appraisal:If individuals understand the objectives, they are expected to achieve the standards by which they are to be evaluated, they are to a great extent in the best position to appraise their own performance. Since employees are interested in the self-development, they appraise systematically and may become highly motivated also.

6. Customer and other related parties:Employee performance a service organization relating to their behaviour, promptness, speed in doing the job, and accuracy can be judged by customers and suppliers (related parties to an organization).

7. Consultants:Consultants are trained raters who are appointed when employees/employers do not trust self-appraisal, or peer appraisal, or subordinate appraisal. Consultants observe the employees at work for a long period before rating.