What is performance appraisal



Meaning:- A “Performance Appraisal” is a process of evaluating an employees’ performance of a job in terms of it’s requirements.

Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees.

Performance management Cycle
• Planning
• Monitoring
• Developing
• Rating
• Measuring Performance
• Rewarding

Planning- Work in Advance so that expectations and goals can be set
Monitoring:- Progress and performance continually
Developing :- The employee’s ability to perform through training and work assignments.
Rating:- periodically to summarize performance
Measuring Performance - Standard Performance - Actual performance
Reward:- Good Performance

Performance Appraisal Methods
Traditional :
1. Paired comparison
2. Graphic Rating Scales
3. Forced Distribution Method
4. Check Lists
5. Free Essay Method
6. Critical Incidents
7. Group Apprisal
8. Field Review
9. Ranking

Modern

 1. Assessment Center
2. Appraisal by Results or Management by Objectives (MBO )
3. Human Asset Accounting
4. Behaviorally Anchored Rating Scales

Appraisal error
Managers commit mistake while evaluating employees and their performance. Biases and judgment errors of various kinds may spoil the performance appraisal process. Bias here refers to inaccurate distortion of a measurement. These are:

1. Unclear Standards: Although the graphic rating scale seems objective, it would probably result in unfair appraisals because the trains and degrees of merit are open to interpretation.

2. Hello Effect: Hello effect means that your rating of a subordinate on one trait biases the way you rate that person on other traits. This problem often occurs with employees who are especially friendly toward the superior.

3. Leniency: Raters tend to give relatively high ratings.

4. Strictness: Raters tend to give everyone relatively low ratings.

5. Central Tendency: A Tendency to rate all employees the same way, such as rating them all average.
6. Regency: Raters allow recent events to exercise undue influence on ratings.

7. Personal Bias: Individuals different among rates in terms of characteristics like age, race, and sex can affect their ratings, often quite apart from each ratee’s actual performance.

Related Topics MBO , 360 Degree Appraisal Method

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