2. 1. Performance appraisal is a process of systematically
evaluating performance and providing feedback upon
which performance adjustments can be made.
2. Performance appraisal is a system of review and
evaluation of an individuals performance.
3. Performance Appraisal provides reassurance to employees
that they are contributing and doing the right things.
Performance Appraisal creates awareness of the impact on
desired results such as customer satisfaction.
Performance Appraisal reveals the adequacy of
performance in terms of quantity, quality, speed, timelines,
etc.
Performance Appraisal provides means for recognizing of
the importance and value of performance of employees.
4. Performance Appraisal provides opportunities for self
development of employees.
Performance Appraisal provides for administrative
decisions and reward management of employees.
Performance Appraisal is a critical tool for training and
development of employees.
Performance Appraisal is a foundation of career
succession planning.
5. Performance Appraisal is a basis for legally
defensible management actions.
Performance Appraisal is a valuable source of
talent management
6. Making Development Decisions
Motivate and guide the employees towards purposeful
personal development of skills and competencies
Providing feedback
Making Administrative Decisions
Support administrative decisions such as promotions,
transfers, demotions, terminations, pay increases, etc.
7. To be effective, a performance appraisal system must
possess the following essential ingredients:
Correlated with the organizations objectives and
strategy.
Cover assessment of performance as well as potential
for development.
Look after the needs of both the individual and the
organization.
8. Help create energizing work environment.
Link rewards to achievements.
Generate information for career and succession
planning
Suggesting appropriate person-job matching
9. T = Technical Phase
E = Extended Phase
A = Appraisal Phase
M = Maintenance Phase
10. Defining Objectives of Performance Appraisal
Defining Performance Expectations
Designing Performance Appraisal System
Implementing Performance Appraisal System
Performance Appraisal Interview
Post Performance Appraisal Actions
12. Halo Effect
Horn Effect
Central Tendency
Strict Rating
Lenient Rating
Status Effect
Spillover Effect
Initial Impression
Latest Behaviour
Same as Me
Different from Me
Performance Factor Order
Contrast Effect
Sympathy Effect
13. Time and resource constraint of managers
Wide variation in standards and ratings
Personal values and bias
Lack of communication
Limitation of performance appraisal technique
Managerial resistance
Negative feedback
14. Aligning individual performance expectations with the
organization’s vision and values
Measuring key results and competencies
Appraising against clearly defined performance
expectations
Working together to develop performance expectations
Providing frequent and timely feedback