EVALUATING

PERFORMANCE
MANANGEMENT

PRESENTED BY:
NAMAN NANDA
SRIKANT SHARMA

IMPORTANCE OF PERFORMANCE
EVALUATION
Performance Feedback
Employee Training & Development Decisions
Promotions & Transfers
Layoff Decisions
Human Resource Planning

METHODS OF PERFORMANCE
EVALUATION
TRADITIONAL METHODS

MODERN METHODS

Graphic Scale

Critical Incident Method

360 Degree

Essay Appraisal Method

720 Degree

Management by Objectives

GRAPHIC RATING SCALE

PERFORMANCE
FACTORS

(I)
POOR

(II)
FAIRLY
POOR

(III)
FAIRLY
GOOD

(IV)
GOOD

(V)
EXCELLENT

QUALITY OF
WORK
QUANTITY OF
WORK

TEAMWORK
Most common & widely used method
The system can be done with numbers or letters, and it usually consists of a
range, running from poor to excellent.
The business can tailor the rating scale to reflect the skills necessary to perform
the duties of the jobs in the organization.
For example: the appraisal for a human resource worker may add more weight to
the rating for communication skills while an assembly workers review may focus
more on technical skills.

CRITICAL INCIDENT METHOD

For a critical incidents evaluation system to be effective, its important to keep
detailed records.
Critical Incidents of employees behaviour are recorded by the Manager.
A manager keeps an ongoing record of employees performance throughout
the year of, and then uses that information to fuel discussion during the
employee performance review. Business owners or managers can maintain
documentation for each employee in the company. The documentation
describes incidents or areas where the worker performed well or areas that
need improvement.
The method requires the manager to provide a detailed analysis of the
incident to help workers improve. Some managers use a rating system with
the critical incidents method to provide a rating for the workers performance
during the incident, such as a demonstration of teamwork or communication
skills.
For example, in a stressful situation where an employee out-shined and

ESSAY APPRAISAL/ FREE FORM

METHOD
This traditional method involves a description of the performance of an employee by his
superior. The description is an evaluation of the performance of any individual based on
the facts and often includes examples and evidences to support the information.
A major drawback of the method is the strong presence of biasness.
Under this method, the rater is asked to express the strong as well as weak points of the
employees behaviour.
While preparing the essay on the employee, the rater considers the following factors:
Job knowledge and potential of the employee
Employees understanding of the companys programmes, policies, objectives, etc.
The employees relations with co-workers and superiors
The employees general planning, organizing and controlling ability
The attitudes and perceptions of the employee, in general

MANAGEMENT BY OBJECTIVES
This is another simplistic evaluation system and is a
clear cut way to track progress. In an objective-based
evaluation, an employer and employee will agree
upon a specific goal for the employee to meet
coupled with a deadline. If the employee meets the
objective, then it speaks highly of them and vice
versa.
Workers and managers work together to create a list
of objectives for the worker to attain during the
review period.
The objectives must be specific, measurable,
attainable, realistic and time based to meet the
management by objectives criteria for goals and
objectives.

Define
Organisati
onal Goals
Define
Employe
e
Objectiv
es

Performa
nce
Appraisal

Providin
g
Feedbac
k
Performa
nce
Evaluatio
n

Regular
Performa
nce
Monitorin
g

360-DEGREE METHOD

Multi-Dimensional and Comprehensive

method for evaluating the performance.

A 360-degree appraisal works by

gathering
feedback
from
multiple
parties such as managers, co-workers,
customers and even vendors. The more
information you collect, the more
accurate
the
performance
review
becomes, and the more the picture
comes into focus.

Although this form of evaluation is

somewhat
laborious
and
timeconsuming when compared to the other
techniques.

Method have no biasness.

720 DEGREE METHOD