• Performance Appraisal is the process of measuring quantitatively and qualitatively an employees past or present performance against the background of his expected role performance. • The evaluation of the performance and personality of each employee is done by his immediate superior or some other person trained in the techniques of merit rating.
• According to Dale S. Beach ” Performance appraisal is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development”.
• Systematic process consisting of a number of steps to be followed for evaluating an employee’s strengths and weakness. • Ongoing and continuous process • Seeks necessary information necessary for making objective and correct decisions on employees • Formal or Informal
• Work related • Assess the work of employees • To improve efficiency • To carry out job evaluation • To help mgt. to fix employees in a proper way Career Development Objective • To assess the strong and week points of the employees. • To determine career potential • To plan promotion , transfers, lay offs etc of the employees • To plan career goals Communication • Feed back to employees • To clearly establish goals • To provide coaching , councelling , career planning and motivation to employees Organisational Objectives • Serve as a basis for promotion or demotion • Serve as a basis for wage and salary administration • Serve as a basis for T& D • Serve as a basis for transfers and termination
Uses and Benefits
• Helps supervisor to evaluate the performance of his employees systematically and periodically. • Helps to guide the employees in the efficient performance of their jobs • Salary increases and special increments • Transfer and promotion of employees • T & D needs and evaluating the effectiveness of existing training programmes • Rewards ,Recognition and incentives • Build Confidence among employees
• Hallo Error : is a tendency to evaluate a person on the basis of one trait or characteristic. • Central Tendency : most commonly used error in merit rating . This error arises when the rater is not sure about the performance of a person, may not be well conversant with his worker may have less time at his disposal. He will evaluate the person as average. •
• Similarity error : This error arises from the mental make up of an evaluator. Evaluator uses his own trait as a basis for assessing the employees . If the rater is aggressive then he will find this trait in subordinates. • Leniency or Strictness : The evaluators have their own standard for evaluation . Rating depends upon lenient/strict. • Miscellaneous Biases : Bias may exist based on the ground of sex ,race , religion , position etc. • Psychological Blocks
Process of Performance Appraisal
Establishing Standards Communicating Standards to Employees Measuring Actual Performance Comparing Actual with standards Discussing Reports with employees