3. Performance Appraisals
• Performance appraisal means evaluating an employee’s
current and/or past performance relative to his or her
performance standards
4. Performance Appraisal Process
• Setting work standards
• Assessing the employees actual
performance relative to those
standards
• Providing feedback to the employee
with the aim of helping him to
eliminate performance deficiencies
5. Importance of Performance Appraisal
• Setting the employers par, promotions and
retention
• Performance management process
• Correcting the deficiencies
• Appraisals facilitates the career planning.
• To identify employees training and
development needs.
6. Performance Management
• Continuous process of identifying, measuring, and
developing the performance of individuals and teams
and aligning their performance with the organizations
goals.
10. Techniques For Appraising
Performance
• Graphic Rating Scale method
– A graphic rating scale lists traits or performance
dimensions and a range of performance values for
each trait.
• Alternation Ranking Method
– Ranking employees from best to worst on a
particular trait, choosing highest, then lowest,
until all are ranked.
11. • Paired comparison method
– Ranking employees by making a chart of all possible
pairs of the employees for each trait and indicating
which is the better employee of the pair.
• Forced Distribution Method
– Similar to grading on a curve; predetermined
percentages of rates are placed in various
performance categories
12. • Management by Objectives
– MBO generally refers to a comprehensive and formal
organization-wide goal setting and appraisal program.
• Steps for MOB
– Setting Organizational Goals
– Setting departmental Goals
– Discuss departmental Goals
– Define expected Results
– Conduct performance reviews
– Provide feedbacks
13. Appraisal Problems
• Unclear Standards
– An appraisal that is too open to interpretation.
• Halo Effects
– In performance appraisal, the problem that occurs
when a supervisors rating of a subordinate on one
trait biases the rating of that person on other
traits.
14. • Central Tendency
– A tendency to rate all employees the same way,
such as rating them all average.
• Leniency/Strictness
– The problem that occurs when a supervisor has a
tendency to rate all subordinates either high or
low.
• Recency Effects
– The recency effect means letting what the
employee has done recently blind you to what his
or her performance has been over the year.
15. Guidelines for Effective Appraisals
• Knowledge about the performance Appraisals
Problems
• Use the right Appraisal Tool
• Keep a diary
• Get agreement on a plan
• Be a fair and effective supervisors
