Performance Management and

Appraisal

Topic - 7

If you cant measure it, you

cant fix it

Performance Appraisal
Performance Appraisal
Evaluating an employees current and/or past
performance relative to his or her performance
standards.

Performance Appraisal always involves Setting work standards, assessing performance, and
providing feedback to employees to motivate, correct,
and continue their performance.
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Performance Appraisal

Performance Management
Performance Management
The continuous process of identifying,
measuring, and developing the performance of
individuals and teams and aligning their
performance with the organizations goals.

An Introduction to Appraising
Performance
Why Appraise Performance?
1

Basis for pay and promotion decisions.

Plays an integral role in performance management.

Helps in correcting deficiencies and reinforcing good

performance.

Useful in career planning.

To identify employees training and development needs

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Performance Appraisal Roles

The HR Departments Role

Serves a policy-making and advisory role.

Provides advice and assistance regarding the
appraisal tool to use.
Trains supervisors to improve their appraisal skills.
Monitors the appraisal systems effectiveness and
compliance with EEO laws.

Effectively Appraising Performance

Steps in Appraising
Performance
1

Defining the job and performance criteria

Appraising performance

Providing feedback session

Performance Appraisal Methods

Appraisal Methodologies
1

Graphic rating scale

Alternation ranking

Paired comparison

Critical incident

Narrative forms

Forced Distribution
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Performance Appraisal Methods

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Performance Appraisal Methods

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Performance Appraisal Methods

Paired Comparison Method
The paired comparison
method helps make the
ranking method more
precise.
For every trait (quantity of
work, quality of work, and
so on), you pair and
compare every subordinate
with every other
subordinate.
In the paired comparison
method, you make a chart,
of all possible pairs of
employees for each trait.
Note: + means better than. - means worse than. For each12
chart, add up the
number of +s in each column to get the highest ranked employee.

Performance Appraisal Methods

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Performance Appraisal Methods

Narrative Form

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Performance Appraisal Methods

Forced Distribution

The system requires

the managers to evaluate
each individual, and
rank them typically into
few categories
(excellent, good, poor
etc).
With this method you
place predetermined
percentages of rates into
several performance
categories.
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Dealing with Performance

Appraisal Problems
Potential Rating
Scale Appraisal
Problems

Unclear
standard
s

Halo
effect

Central
tendency

Leniency
or
strictnes
s

Bias

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Recency
Effects

Who Should Do the Appraising?

Immediate
supervisor

Peers

Rating
committee

Self-rating

Potential
Appraisers

Subordinates

360-degree
feedback

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The Appraisal Interview

SatisfactoryPromotable

Types of
Appraisal
Interviews

SatisfactoryNot
Promotable
UnsatisfactoryCorrectable
Unsatisfactory
Uncorrectable

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