Performance Appraisal

November 1, 2009

Performance Appraisal is first used formally for the first time during the First World War.It  is the process of assessing the progress and performance of an employee or group of employees on a given job and his potential for future development.The Main purpose are:

1. It provides feedback to employees so that they can improve their job performance.

2. In order to identify the further training needs it is used to diagnose the strengths and weaknesses of individuals.

3. Used to develop positive superior-subordinate relations and thereby reduce grievances.

It is used to improve performance through appropriate feedback,working and counsel ling to employees.It follows the following steps-

1.Establishing Performance Standards

2.Communicating the Standards

3.Measuring Performance

4.Comparing the Actual with the Standards

5.Discussing the Appraisal

6.Taking Corrective Actions

Limitations/ Problems in Performance Appraisal:-

1. Error in Rating -(a) Halo effect

(b) Stereotyping

(c) Central Tendency

(d) Constant Error

(e) Personal Bias

(f) Spill over Effect

2. Lack of Reliability

3. Incompetence

4. Negative approach

5. Multiple Objectives

6. Resistance

7.Lack of Knowledge

Methods of Performance Appraisal system:-

Several methods and techniques are used for evaluating performance.These may be classified into two broad categories-

1. Traditional methods-(a). Confidential Reports

(b). Free Form or Essay

(c). Straight Ranking

(d). Paired Ranking

(e). Forced Distributions

(f). Graphic Rating Scales

(g). Checklist Method

(h). Critical Incidents

(i). Group Appraisal

(j). Field Review

2. Modern methods-(a). Assessment Centre

(b). Human Resource Accounting

(c). Behaviorally Anchored

(d). Appraisal through MBO

Essentials of an Effective Performance Appraisal System: To be effective, a performance appraisal system should satisfy the following requirements

1.Mutual Trust

2.Clear Objectives

3.Standardization

4.Training

5.Job Relatedness

6.Documentation

7.Feedback and Participation

8.Individual Differences

9.Post Appraisal Interview

10.Review and Appeal

Appraising potential is different from assessing performance.

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Uncategorized by samar singhai

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