Performance Appraisal

By :
S.Inderpal Singh Shiledar,
Assistant Professor – HR & OB,
KBSCMR - Khandala.
Performance Appraisal

What ?
 Appraisal or evaluation of an employee’s
on the job performance.
 Appraising what ?
 The required skills & abilities to work.
 Knowledge of the job.
 Behavior at workplace (with seniors,
juniors & colleagues).
 Punctuality.
 Regularity.
 Discipline.
 Way of working.
 Knowledge of safety, HK.
 Role in various committees.
 Why ?
 To come to know that how he is worth to the
organization.
 What he is contributing.
 To provide him the necessary inputs.
 Increments, promotions, up gradation, rewards &
incentives.
 How ? And Who does it ?
 Every Company has its own way and
different formats of conducting the
performance appraisal.
 The immediate supervisor.
 Then the Head of the dept.
 HR Manager.
 Outcomes
 May be positive.
 May be negative.
 May be average.
 No changes in the employee.
 Other Uses
 Increments to unionized & non – union
employees.
 During collective bargaining.
 During bonus issue.
 Performance Appraisal
 Performance Appraisal or merit rating is
the mechanism to assess the contribution
of all human resources working at each
level of the organization during a specific
period of time.
 Performance Appraisal enables the
employees to know how he / she has
performed in comparison with the set
standards.
 Definition
 According to Flippo, “Performance
appraisal is the systematic, periodic & an
impartial rating of an employee’s
excellence in matters pertaining to his job
& his potential for a better job.
 Objectives / uses
 Feed back.
 Compensation decision.
 Data base for pay, transfer etc.
 Personal development.
 Identify Training needs & development
areas.
 Promotion decisions.
 Improves supervision.
 Concept of Performance Appraisal
 The process of mgt. which involves a
continuous judgment on the behaviour &
performance of staff.
 It is one of the way to review the performance
& potential of staff is through a system of
performance appraisal.
 It is imp. that members of the org. know
exactly what is expected of them, and the yard
sticks by which their performance & results will
be measured.
 Process of Performance Appraisal
 Job analysis, job description & job specification.
 Establishing the standards of performance.
 Communicating performance standards.
 Measuring actual performance. It may be objective,
which is related with the job performance (quality of
production, degree of training needed, accidents in a
given period, absenteeism, length of service) or
subjective, which is related with personal standards /
opinions of those doing the evaluation ( Ratings by
supervisors, knowledge about overall goals,
contribution to socio-cultural values of the govt.).
 Comparing actual performance with standards &
discussing the appraisal with employee.
 Initiating corrective actions.
 Methods / Techniques of P.A.
 Traditional Methods:
 Unstructured method scale – In this method the
appraiser has to describe his impressions about
the employee under appraisal in an unstructured
manner. The rater has to list his comments
specifically on qualities, abilities, attitude, aptitude
& other personal traits. This makes the method
subjective.
 Straight Ranking method – The evaluator assigns
relative ranks to all the employees in the same
work unit doing the same job. Employees are
ranked from their best to the poorest on the basis
of overall performance.
 Methods / Techniques of P.A.
 Traditional Methods:
 Paired comparison method – Ranking becomes
more reliable & easier under the paired
comparison method. Under this method,
employees of a group are compared with one
another at one time. If there is a group of five
employees A,B,C,D & E, then A’s performance is
compared with that of B’s, C’s, D’s, E’s, &
decision is taken as to whose performance is
better.
 Man to man comparison – The comparison is
made on the basis of overall performance. It was
used by American army during world war – II.
 Methods / Techniques of P.A.
 Traditional Methods:
 Grading method – Grade – A (Outstanding), B
(Very Good), C (Average), D (Poor).
 Graphic rating scale – Perhaps it is the most
commonly used method. The evaluator is asked
to rate employees on the basis of job related
characteristics & knowledge of the job. Evaluator
is given printed forms. Performance is evaluated
on the basis of these traits on a continuous scale.
 Methods / Techniques of P.A.
 Traditional Methods:
 Forced choice / forced distribution: This method
also uses a ranking format, but employees are
raked in groups. This technique requires the
manager to put certain percentages of
employees into predetermined categories. In
some situations, the forced distribution method
forces managers to categorize employees based
on distribution rules, not on their performance.
E.g: Even if all employees are above average,
the manager is forced to rate some employees as
“ not acceptable”.
 Methods / Techniques of P.A.
 Traditional Methods:
 Check list – (Yes / No) This provides the
evaluator statements about work related
behaviour of employees, where every statement
is given equal importance.
 Weighted checklist – Under this method the items
having significant importance for organizational
effectiveness are given weightage. Thus, in
weighted checklist, weights are assigned to
statements to indicate their relative importance.
 Free essay method.
 Confidential Report.
 Methods / Techniques of P.A.
 Modern methods:
 Behaviorally Anchored Rating Scale (BARS) – It
is designed to identify critical areas of
performance of a job. Under this method, the
behaviorally anchored ratings scales are outlined
to recognize the critical areas of effective &
ineffective performance behaviour for getting
results. The evaluator has to observe the
behaviour of the employee while performing the
job. He then compares these behavioral
observations with behaviorally anchored rating
scales.
 Methods / Techniques of P.A.
 Modern methods:
 Assessment center method – This is not a technique of
performance appraisal by itself. In fact, it is a system,
where assessment of several employees is done by
various experts by using various techniques.
 In this approach, individuals from various depts. are
brought together to spend two or three days working on an
individual or group assignment similar to the ones they
would be handling when promoted. Evaluators observe &
rank the performance of all the participants. Experienced
managers with proven abilities serve as evaluators. This
group evaluates all employees both individually &
collectively by using simulation techniques like role play,
business games & basket exercises. Assessments are
done generally to determine employee potential for
promotion.
 Assessment center method
 An assessment center generally measures
interpersonal skills, communication skills,
ability to plan & organize. Personal
interviews & projective tests are used to
assess work motivation, career orientation
& dependence on others. Paper & pencil
tests are used to measure intellectual
capacity.
 Methods / Techniques of P.A.
 Modern methods:
 Human Resource Accounting – HR is a valuable asset of
the org. This asset can be valued in terms of money.
When competent & well – trained employee leave the org,
the human asset is decreased & vice versa.
 Human Resource Accounting deals with cost of &
contribution of HR to Org. Cost of employee include –
manpower planning, recruitment, selection, induction,
placement, training, development, wages & benefits etc.
Employee contribution is the money value of employee
service which can be measured by labour productivity or
value added by human resources. Difference between
cost & contribution will reflect the performance of
employees. This method is still in transition stage.
 Methods / Techniques of P.A.
 Modern methods:
 Psychological Appraisals – Intellectual
abilities, emotional stability, reasoning &
analytical abilities, sociability, interpretation &
judgement skill, motivational response, ability
to foresee future.
 360 Degree feedback.
 Importance of P.A
 Appropriate wages, salaries, bonus.
 Promotions, transfers..
 Training needs & evaluation techniques.
 To promote effective communication
between supervisors & subordinates.
 To motivate employees by showing them
where they stand, and establishing a data
bank on appraisal for rendering assistance
in HR decisions.
 Employee Safety
 Safety organizations.
 Safety Committee & Safety Director.
 Top mgt. must approve & support.
 Supervisory personnel must be responsible for
safety.
 Safety must be given equal importance along with
other factors.
 Provision must be made for prompt action in the
elimination of mechanical & personal hazards.
 A definite safety programme must be developed to
educate the employees & to secure their active
cooperation.
 Safety must be included in all phases of planning,
purchasing, supervision & operations.
 Safety Engineering
 The adoption of proper engineering
procedures to minimise, & if possible,
eliminate work hazards. This is fundamental
to any organized safety program.
 Every care should be taken while designing
any product, machine or processes from
safety point of view.
 The most imp. function of safety engineering
is to eliminate the risks posed by the
operation of machines, by the processes of
manufacturing of various products & layout of
plants & equipments.
 Safety Education & Training

 For all the levels of management.

 It has dual goals – safety consciousness &
to build up favourable attitude towards
safety.
 Developing / training people for learning to
use safety equipments.
 Safety & Health
 Safety & health have great importance in
industrial development & productivity.
Therefore, utmost attention is needed to
ensure excellent safety & health standards.
 Unhealthy & unsafe working conditions are
the root cause of conflicts which is a big
challenge before the employers.
 Though danger of accidents exist in all walks
of life, it is more in industries where men &
machine work together.
 Safety & Management
 During pressures companies need to
maximise the production & in this process we
usually ignore safe practices. Hence, strict
compliance of safety rules & practices must be
ensured.
 While attending the job the 5 Es are imp:-
engineering, education, enforcement,
enthusiasm, examples.
 Safety programmes
 Safety manuals & procedures.
 Goals for achieving excellent safety standards.
 Anticipating Hazards & Dangers.
 Emergency plans for onsite & off site.
 Safety awareness programmes.
 Training & education.
 Safety objectives
 Excellent house keeping.
 Safety audits of equipments, operations &
employee skills.
 Safety guide organization
 Job safety analysis.
 Safe process & equipment design chart.
 Safety measures – guards & personal
protective equipment.
 Safety reports
 Accident report.
 Analysis of accidents – operation wise,
part of machinery, injured body part, age &
sex of the injured & skill wise.
 Accident prevention recommendations.
 Cost of accident.
 Safety controls
 Safety officer / Medical officer.
 Safety committee.
 Safety group.
 Safety monitors.
 Safety rounds.
 Safety meetings.
 Safety rewards & motivation.
 Involvement of union.

Thanks ………….