Performance Appraisal
Human Resource Management
Presented To:
Dr. Abdul Latif
Presented By:
Arif Kamran 218
Shoaib Ahmad Khan 240
Sobia Saleem 241
Najam-ul-Hassan 232
M. Abbas 215
Ashiya Tariq 205
Performance Appraisal
o Performance appraisal, also known as employee appraisal, is a method
by which the job performance of an employee is evaluated (generally in
terms of quality, quantity, cost and time). Performance appraisal is a part
of career development.
OR
o "Performance appraisal is an organizational system comprising deliberate
processes for determining staff accomplishments to improve staff
effectiveness."
Performance Appraisal
• Performance appraisal can be viewed as the process of assessing and
recording staff performance for the purpose of making judgments about
staff that lead to decisions.
• Performance appraisal should also be viewed as a system of highly
interactive processes which involve personnel at all levels in differing
degrees in determining job expectations, writing job descriptions,
selecting relevant appraisal criteria, developing assessment tools and
procedures, and collecting interpreting, and reporting results.
Objectives of performance appraisal
o Objectives for performance appraisal policy can best be
understood in terms of potential benefits. identify the
following:
1. Increase motivation to perform effectively
2. Increase staff self-esteem
3. Gain new insight into staff and supervisors
4. Better clarify and define job functions and responsibilities
5. Develop valuable communication among appraisal participants
6. Encourage increased self-understanding among staff as well as insight
into the kind of development activities that are of value
7. Distribute rewards on a fair and credible basis
8. Clarify organizational goals so they can be more readily accepted
9. Improve institutional/departmental manpower planning, test validation,
and development of training programs
Appraisal System Attributes
• The performance appraisal system must possess the
attributes of clarity, openness, and fairness.
• While specific implementation of these attributes may vary,
the following should be represented in effective performance
appraisal:
1. Ongoing Review of Position and Performance
2. Job Descriptions
3. Participatory and Interactive Appraisal
4. Workable Formats that Avoid Systemic Bias
The Appraisal Process – Step 1
• Establish and communicate expectations for
performance.
– List three to five major responsibilities of each position.
– Focus the appraisal on these responsibilities.
– Be sure employees know and understand what is expected
of them.
– Employee are most likely to understand and be committed
to objectives they helped develop.
The Appraisal Process – Step 2
• Establish and communicate standards for measuring
performance.
– Each expectation should be measurable.
– A supervisor’s task includes deciding how to measure
employees’ performance and then making sure employees
know what will be measured.
The Appraisal Process – Step 3
• Observe and measure individual performance
against standards.
– A supervisor should continuously gather information
about each employee’s performance.
– When preparing a performance appraisal, a supervisor
compares this information with the standards for the
employee being appraised
The Appraisal Process – Step 4
• Reinforce performance or provide remedies.
– Point out to employees where they have performed well.
– Asking an employee to help solve a problem is often more
effective than the supervisor simply stating a remedy.
Types of appraising performance
• The most popular methods that are being
used as performance appraisal process are:
1. Graphic rating scale
2. Paired comparison Approach
3. 360 degree appraisal
4. Behaviorally Anchored Rating Scale (BARS)
5. Management by objectives (MBO)
Types of appraising performance
• Graphic rating scales:
– Most commonly used; relatively easy to use
– Rates the degree to which an employee has achieved various
characteristics
• Paired-comparison approach:
– Measures the relative performance of employees
in a group
– Appropriate to find one outstanding employee
in a group
– Drawbacks: possible harm to morale and teamwork, and
possible lawsuits
Types of appraising performance
• Behaviorally Anchored Rating Scales (BARS):
– Rate employee performance in several areas such
as work quantity and quality
– Drawbacks: can be tailored and less subjective
• 360 Feed Back:
• Checklist appraisal:
– Contains a series of questions about an
employee’s performance
– Drawbacks: can be difficult to prepare and a
supervisor has no way to adjust the
answers for any special circumstances that
affect performance
Management by Objectives (MBO)
• Involves setting specific measurable goals with
each employee and then periodically
reviewing the progress made.
1. Set the organization’s goals.
2. Set departmental goals.
3. Discuss departmental goals.
4. Define expected results (set individual goals).
5. Performance reviews.
6. Provide feedback.
© 2005 Prentice Hall Inc. All
9–16
rights reserved.
What to Measure in an Appraisal
• Do not label people with certain characteristics.
• Focus on behavior and results.
• When appraisals require supervisors to draw
conclusions about the employee’s personal
characteristics, try to base them on observations
about behavior and results.
– Record at least one specific example for each category
rated.
Qualities of Effective Performance
Appraisal Measures
• Objective
• Job-related
• Based on behaviors
• Within employee’s control
• Related to specific tasks
• Communicated to employees
EEOC Guidelines
• The behaviors and characteristics measured by a performance
appraisal should be related to the job and to succeeding on
the job.
• Appraisals should be based on the employee’s success in
carrying out the essential tasks of a particular job.
• The ratings in a performance appraisal should not be
discriminatory.
• An employee should know performance standards in
advance.
• Employees should be able to ask questions about their
ratings.
Performance Appraisals and Pay
Reviews
• Many organizations review an employee’s wage or
salary level at the time of the performance appraisal.
– Employees may focus on the issue of money, diminishing a
supervisor’s motivating and coaching opportunities.
• A supervisor who must review pay rates at
performance appraisal time should make an extra
effort to emphasize performance.
Potential problems in Appraising
Performance
• Different biases are the problem in Appraising
Performance
1.Halo effect
2.Central tendency
3.Leniency
4.Harshness Bias
5.Similarity bias
The Appraisal Interview
• Types of appraisal interviews
– Satisfactory—Promotable
– Satisfactory—Not promotable
– Unsatisfactory—Correctable
– Unsatisfactory—Uncorrectable
• How to conduct the appraisal interview
– Talk in terms of objective work data.
– Don’t get personal.
– Encourage the person to talk.
– Don’t tiptoe around.
© 2005 Prentice Hall Inc. All
9–23
rights reserved.
The Process of Conducting a
Performance Appraisal Interview
