1. Performance Appraisal
Defined as the assessment of individual performance in a systematic way
against factors such as job knowledge, quality and quantity of output,
initiative, leadership abilities, supervision, dependability, cooperation,
judgement, versatality
- Concentrates on assessing past performance as well as potential
for future performance

2. Objectives
 To assess T & D needs of employees
 To effect promotion based on competence and performance
 To let the employees know about their performance
 To determine whether the programmes such as selection, training and
transfers been effective or not
 To improve communication and trust between superior and subordinate

3. Performance Appraisal Process
It is a five step process which include:
 Formulating of Objectives
 Establish Job Expectation
 Design an Appraisal Programme
 Appraise Performance
 Performance Interview
Use Appraisal data for appropriate purposes

4. Performance Appraisal Criteria
Include:
Quality
Quantity
Timeliness
Cost Effectiveness
 Human Relation
 Evaluation Timings

5. Performance Appraisal Rating Errors
Refers to the inaccuracies occurred during rating which might occur in
observations, judgement, information processing etc
Include:
 Leniency or Severity
 Central tendency
 Rater Effect
 Perpetual Set
 Halo Effect
 Performance Dimension Order
 Spillover Effect
 Status Effect

6. Performance Appraisal Rating Errors
Refers to the inaccuracies occurred during rating which might occur in
observations, judgement, information processing etc
Include:
 Leniency or Severity
 Central tendency
 Rater Effect
 Perpetual Set
 Halo Effect
 Performance Dimension Order
 Spillover Effect
 Status Effect