Performance Appraisal

Performance Appraisal

Performance Appraisal Meaning and Definition

Meaning: It is a regular assessment Definition: Performance appraisal is
defined as system which
used to verify the contribution of communicate about the ideal
employee’s performance to the performance of the employee and
the actual performance of the
organization 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 Know about
to decide strengths and future growth
salary of weaknesses of potential of
employees the employees 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

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