Scribd
Upload
5 views3 pages

Performance

Performance appraisal is a systematic evaluation of employee performance against set standards, influencing decisions on promotions, training, and rewards. It serves multiple purposes including validating selection criteria, identifying training needs, and determining bonuses or layoffs. Effective appraisals require clear processes and avoidance of biases to ensure fairness and accuracy.

Uploaded by

irumfazal10
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
5 views3 pages

Performance

Performance appraisal is a systematic evaluation of employee performance against set standards, influencing decisions on promotions, training, and rewards. It serves multiple purposes including validating selection criteria, identifying training needs, and determining bonuses or layoffs. Effective appraisals require clear processes and avoidance of biases to ensure fairness and accuracy.

Uploaded by

irumfazal10
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 3

Performance Appraisal

Performance appraisal is a systematic process where employee performance is measured and


evaluated against predefined standards. It is used to make decisions related to promotions,
training, and rewards.

Uses of Performance Appraisal

1. Validation of Selection Criteria


o Confirms whether the recruitment process hired the right people.
2. Training Need Identification
o Helps find skill gaps to design appropriate training programs.
3. Promotion / Wages / Demotion
o Based on performance, employees may be promoted, given raises, or even
demoted.
4. Bonuses / Benefits / Incentives
o High-performing employees can receive extra rewards.
5. Downsizing / Upsizing
o Used during layoffs or hiring expansions to decide who should stay or join.
6. Research / Evaluation
o HR can use performance data for organizational analysis and improvement.

Objective Performance Factors

These are measurable, numerical indicators of employee performance:

1. Gross Unit Produced – Total output by an employee.


2. Quantity of Product – Number of units completed.
3. Quality – Level of perfection or excellence in work.
4. Error Rate / Excellence Count – Mistakes made or high-quality outcomes delivered.
5. Customer Complaints – Number of complaints received.
6. Absenteeism – Number of days missed from work.
7. Workplace Accidents – Number of safety incidents or injuries.

Techniques of Performance Appraisal

1. Rating Scales – Employees rated on a scale (e.g., 1 to 5) for various traits.


2. Forced Distribution – Employees placed into categories (top 10%, average 70%, bottom
20%).
3. Ranking – Employees ranked from best to worst.
4. 360-Degree Feedback – Feedback from managers, peers, subordinates, and self.
5. Management by Objectives (MBO) – Performance is based on how well specific targets
were achieved.

Criterion Issues (Common Problems in Appraisal)

1. Prejudice/Bias – Personal likes or dislikes influencing the evaluation.


2. Halo Effect – One good quality affects rating in all areas (e.g., good communicator seen
as good in everything).
3. Central Tendency – Rater avoids extreme scores and gives everyone average ratings.
4. Recency Effect – Rater only remembers recent behavior instead of full review period.

✅ Conclusion
Performance appraisal is a vital HR tool that supports decision-making, improves employee
development, and ensures fair rewards. However, to be effective, it must avoid biases and use
a clear, fair process with valid techniques and measurable performance factors.

You might also like