RTI,Jammu1 Performance Appraisal Prepared by: Regional Training Institute, Jammu

RTI,Jammu2 Session Overview A “ performance appraisal” is a process of evaluating an employee’s performance of a job in terms of its requirements. Three purposes

RTI,Jammu3 Learning objective At the end of the session, the learner will be able to understand the need for performance appraisal, different methods adopted by organizations for appraisal of the performance of their employees and the factors which distort such appraisal.

RTI,Jammu4 Basic concepts What is performance How are we concerned with effective and efficient performance

RTI,Jammu5 Purpose of Performance Appraisal Basis of Reward allocations Identification of areas where development efforts are needed,& Establishment of valid and bias free performance standards

RTI,Jammu6 Performance to play role in motivation Performance has close relationship to Expectancy theory of motivation Employees need to know that their performance is being appraised by superiors

RTI,Jammu7 Performance should be: Effective & Efficient

RTI,Jammu8 Appraisal Process Establishment of clear, understandable and measurable performance standards Communication of these standards to employees Measurement of performance Comparison of performance with standards Initiation of corrective action

RTI,Jammu9 Common sources of information Personal observation Statistical reports Oral reports Written reports

RTI,Jammu10 Appraisal methods Against absolute standards Against relative standards Against objectives

RTI,Jammu11 Types of appraisal against absolute standards Essay appraisal Critical incident appraisal Checklist Graphic rating scale Forced choice Behaviorally anchored rating scales (BARS)

RTI,Jammu12 Types of appraisal against relative standards Group order ranking Individual ranking

RTI,Jammu13 Appraisal against objectives Important Objectives should be tangible, Verifiable and measurable

RTI,Jammu14 Factors that distort appraisals Leniency error Halo error Similarity error Low appraiser motivation Misc. biases

RTI,Jammu15 Ethics of appraisal Appraise on the basis of representative, sufficient and reliable information.

RTI,Jammu16 Ethics of appraisal Be honest on your assessment of all facts you have obtained. Don’t write one thing and say another Do not accept another’s appraisal without knowing the basis on which it was made.

RTI,Jammu17 Appraisals can be made successful by Existence of an atmosphere of confidence and trust between supervisor and employees. Weightage of performance rather than personality traits Communication of negative appraisals to employees without delay. Training of appraisers

RTI,Jammu18 Appraisal Process-a challenging task Appraising performance touches on the most emotionally charged activity i.e assessment of other individuals contribution and ability. Subordinates perception of his performance overstates managers appraisal Appraisal can have both positive and negative motivational consequences