Performance

Appraisal

Presented By:

Khushboo Arora

Shilpa Mittal

Tanuj
Anand

Akshit Sharma

Meaning of Performance
Appraisal
Performance Appraisal is the systematic evaluation
of the performance of employees and to understand
the abilities of a person for further growth and
development. Performance appraisal is generally
done in systematic ways which are as follows:
The supervisors measure the pay of employees and
compare it with targets and plans.
The supervisor analyses the factors behind work
performances of employees.
The employers are in position to guide the
employees for a better performance

Objectives of Performance Appraisal

To maintain records in order to determine

compensation packages, wage structure, salaries
raises, etc.
To identify the strengths and weaknesses of
employees to place right men on right job.
To maintain and assess the potential present in a
person for further growth and development.
To provide a feedback to employees regarding
their performance and related status.
It serves as a basis for influencing working habits
of the employees.
To review and retain the promotional and other
training programmes.

Advantages of Performance
Appraisal
Promotion:Performance Appraisal helps the
supervisors to chalk out the promotion programmes
for efficient employees. In this regards, inefficient
workers can be dismissed or demoted in case.
Compensation:Performance Appraisal helps in
chalking
out
compensation
packages
for
employees. Merit rating is possible through
performance appraisal. Performance Appraisal tries
to give worth to a performance. Compensation
packages which includes bonus, high salary rates,
extra benefits, allowances and pre-requisites are
dependent on performance appraisal. The criteria
should be merit rather than seniority.

Employees Development:The systematic procedure of

performance appraisal helps the supervisors to frame
training policies and programmes. It helps to analyse
strengths and weaknesses of employees so that new jobs
can be designed for efficient employees. It also helps in
framing future development programmes.
. Selection Validation:Performance Appraisal helps the
supervisors to understand the validity and importance of
the selection procedure. The supervisors come to know the
validity and thereby the strengths and weaknesses of
selection procedure. Future changes in selection methods
can be made in this regard.
Communication:For
an
organization,
effective
communication between employees and employers is very
important. Through performance appraisal, communication
can be sought for in the following ways:
Through performance appraisal, the employers can understand
and accept skills of subordinates.
The subordinates can also understand and create a trust and
confidence in superiors.
It also helps in maintaining cordial and congenial labour

All the above factors ensure effective

communication.
Motivation:Performance appraisal
serves as a motivation tool. Through
evaluating
performance
of
employees, a persons efficiency can
be determined if the targets are
achieved. This very well motivates a
person for better job and helps him
to improve his performance in the
future

Characteristics of performance
appraisal
1. The appraised is a systematic process involving three steps:
a) Setting up of work standards:
b) Assessing employees actual performance relative
to these
standards.
c) Offering feedback to the employee so that he can eliminate deficiencies
and improve performance in course of time.
2) It tries to find how well the employee is performing the job and tries to
establish a plan for further improvement.
3) The appraisal is carried out periodically, according to a definite plan. It
is certainly not a one shot deal.
4) performance appraisal is not a past-oriented activity, with the intention
of putting poor performers in a spot, rather it is a future oriented activity
showing employees where the things have gone wrong, how to set
everything in order , and deliver results using their potential in a proper
way.

5)Performance appraisal is not a job evaluation.

Performance appraisal refers to how well someone is
doing an assigned job. Job evaluation, on the other
hand, determines a job is worth to the organization and
therefore, what range of pay should be assigned to the
job.
6) Performance appraisal is not limited to calling the
fouls. It forces managers to become coaches rather than
judges. The appraisal provides an opportunity to
identify issues for discussion, eliminate any potential
problems, and set new goals for achieving high
performance.

7) Performance appraisal may be formal or

informal. The informal evaluation is more likely
to be subjective and influenced by personal
factors. Some employees are liked better than
others and have, for that reason only, better
chances of receiving various kinds of rewards
than others. The formal system is likely to be
more fair and objective, since it is carried out in
a systematic manner, using printed appraisal
forms.

Process of Performance
Appraisal
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.

Step 2
Establish
and
standards
for
performance.

communicate
measuring

Each
expectation
should
be
measurable.
A supervisors task includes deciding
how
to
measure
employees
performance and then making sure
employees know what will be measured.

Step 3
Observe and measure individual
performance against standards.
A supervisor should continuously
gather
information
about
each
employees performance.
When
preparing
a
performance
appraisal, a supervisor compares this
information with the standards for the
employee being appraised.

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.

Difference Between
performance management and
performance appraisal
Performance Management

Performance Appraisal

1.It is the process of identifying,

It is the process of
evaluating the
measuring, and developing the
employee performance.
performance of the human resource
in an organization.
2.It is about thepast, meaning how the
It, meanwhile, is focused on
employee performed in the immediate present and future.
past period being reviewed during the
appraisal process.
3.Typically once or twice per year
Ongoing or continuous
review.
Rigid structure/system
Flexible process

4. Not linked to business needs.

Linked to business

needs.
5.

6.
7
8.

Usually takes a quantitative approach.

quantitative and

Combines
qualitative

approaches.
Often linked to compensation.
compensation.
Operational.
Often uses ratings or rankings .
ratings.

Not usually linked to

Strategic.
Less likely to involve

Performance Appraisal Form of

TATA MOTORS

Performance appraisal system

of U.S
The strong individualistic nature of U.S culture is manifested
in PMSs as a conviction that employee ought to be evaluated
on their individual performance and contributions.
Performance evaluation in the U.S. is largely focused on the
performance of individual employees rather than the
performance of teams or work units. As a capitalist country,
workers in the US largely expect that their rewards will be a
direct result of their individual contributions.
Employees are evaluated on the basis of their highest
certification in Six Sigma (Black, Green, Yellow, etc.), or the
extent of application of Six Sigma Certifications in daily work
processes.

 For them, Six Sigma programs are a kind of elite ranking

terminology to define a hierarchy that kicks across all business
functions and levels. One key innovation of Six Sigma
implementation in American Companies involves the absolute
"professionalizing" of quality management functions that
employees will also have input into how their performance is
evaluated.
Key Factors impacting PM in the U.S. Whether used for
decision-making, employee development or both, three key
factors that are so pervasive that they impact essentially all
performance management systems in the U.S. are:
1. A focus on results
2. Implementation of automated human resource systems, and
3. A legal environment that allows challenges of employment
practices.

PERFORMANCE APPRAISAL
METHODS

CONFIDENTIAL REPORT
It is most likely used in government
organisation. It is a descriptive report
made at the end of the year , by the
employees immediate superior . The
report highlight the strength and weakness
of the employee. The report is not data
based . The impression of the superior
about the subordinate are merely recorded
here .It doesnot offer any feedback to the
appraisee .

ESSAY EVALUATION
METHOD
This technique is normally used with a
combination of the graphic rating scale
because the rater can elaborately
present the scale by substantiating an
explanation of its ratings .
While preparing the essay the rater
considers the following factors
a) Job knowledge and potential of the
employee

a) Employees understanding of the

companys programs , policies ,
objectives etc
b) The employee relationship with the
coworkers .

CRITICAL INCIDENT
TECHNIQUES
Under this method the manager
prepares a list of statements of every
effective and ineffective behaviour of
the employee. These critical
incidents or events represents the
outstanding or poor behaviour of the
employee on the job. At the end of
the rating period these recorded
incidents are used in the evaluation
of the employee behaviour .

 FOR EXAMPLE
1. July 20 the clerk patiently
attended customer complaint . He is
polite , prompt , in solving
customers problem.
2. July 20 the sales assistant stayed
45 minutes over on his break during
the busiest part of the day .

GRAPHIC RATING SCALE

This is a scale which ranges from
excellent to poor and the employees
performance is being evaluated on
that basis .
The rating scales can also be
adopted by including traits the the
company consider important for
effectiveness on the job .

MBO
MBO is a process where the
employees and the organisation both
participate in the goal setting
process and employees are given the
duties for which they can give their
best to achieve these goals .
MBO focusses on what must be
accomplished rather than how it is
accomplished .

CHECKLIST
UNDER THIS METHOD CHECKLIST OF
STATEMENTS OF TRAITS OF
EMPLOYEES IN THE FORM OF YES\ NO
IS PREPARED . THE RATER ONLY
DOES THE REPORTING OR CHECKING
AND THEN HR DEPARTEMENT DOES
ACTUAL APPRAISAL OF THE
EMPLOYEE .

BARS
BARS are designed to bring the
benefits of both qualitative and
quantitative data to the employees
appraisal process .
BARS compares an individual
performance against specific
example of beahviour that are
anchored to numerical ratings .
BARS are also known as behavioural
expectation scales .

360 DEGREE APPRAISAL

It is a system that collects information
from multiple parties including oness
subordinate , peers , supervisors ,
customers and self feedback .
Corporations like RELIANCE , SBI ,
INFOSYS etc all are using this tool to
discover truths about their
managers .

 It is a fact finding and self correction techniques , the

360 degree appraisal is also currently used to design
promotion and reward. A major advantage of this
system is that feedback comes from multiple
sources .
Managers and leaders within organizations use 360
feedback surveys to get a better understanding of
their strengths and weaknesses. The 360 feedback
system automatically tabulates the results and
presents them in a format that helps the feedback
recipient create a development plan. Individual
responses are always combined with responses from
other people in the same rater category (e.g. peer,
direct report) in order to preserve anonymity and to
give the employee a clear picture of his/her greatest
overall strengths and weaknesses.

E-Appraisal
E-Appraisal system is designed to
automate the organizations Appraisal
process. Currently there are 3
different appraisal forms for different
job grades depending on your
compans set up(eg. Green Form-NE;
Yellow form Executive; Whiteform
Manager & above) All staff appraisal
date will be store in the appraisal
system.

Features of E-appraisal
Easy for managers to refer &compare to last
years appraisal
Easy for HR to retrieve scores and manage
scores
Easy for HR Manager to recommend
adjustment base on appraisee score.
Easy to export staff appraisal score into
Excel spreadsheet.
Easy for managers to calculate as the
system auto-calculates the total score.

Benefits of E-Appraisal
Prevent loss or misplaced
documents
Reduce the loss of appraisal due to
paperwork complications
Save Storage space
All appraisal from the implementation
of
e-appraisal are stored
permanently in the
e-Appraisal
system.

 Retrieval made easier

Retrieval of appraisal for review is at a snap
of the fingers.
Summary View
Easy summary view of all personal
appraisals is made available.
Special views allow management to view
summary of all completed appraisals,
pending appraisals and categorized either
by department or by year.

E-Appraisal Process
HR to send a broadcast link to inform
Managers/staff that appraisal system
is ready.

Appraisee/appraiser to create form

(depending on policy)

 Save as draft
Invite Appraisee for discussion.

Name stamp/ Signature by Appraiser

Once signed,form cant be edited

 Form sent to Appraisee

Name stamp/ Signature by Appraisee

Form sent to Reviewer for Name

Stamp/ Signature

 HR to compile all forms.

Analytical Report

Process Flow
Appraise
Appraise

Immediate Supervisor

Self Appraisal
Identify the
& Employee
By Employee
Performance Gap
Login.

Managers

Mgrs will
Review the

HODV

Will verify
finalise Emp

Appraise rating
&
Will be able
to see their
final Appraisal Test

Score

THANK YOU