In this presentation Performance Appraisal will be explained to you by answering 8 simple questions. They’re:-  What is it?  Where its used?  Why its used?  Process of PA.  Different methods of PA’s?  What are the features?  What are its Advantages & Disadvantages?  Conclusion.

 It is a method by which the Job Performance of an Employee is evaluated (generally in terms of quality, quantity, cost & time) typically by the corresponding manager or supervisor.  In simple words it’s the process of evaluating the extent to which people are doing their assigned work Satisfactorily.  Its also known as Employee Appraisal, Performance Review or (career) Development Discussion.

 PA’s are used in schools and colleges which are usually filled by students or parents regarding the university or teachers.  PA’s are used in the field of business. E.g.: Bakeries, Cafes, Shops, etc.  PA’s are used in Hotels and Restaurants to rate their food or the service that they have provided.  PA’s are used in huge companies. E.g.: Infosys, Bosch, Times of India, Tata, Accenture, etc.

 For Raises, Merit Pay, Bonuses, etc.  For Personnel Decisions (e.g. Promotion, Transfer, Dismissal, etc.).  For Identification of Training need (like in schools & colleges for teachers.).  For Research purposes (e.g. assessing the worth of selection tests.).  For Feedbacks (so that they can make it much better.).

Observation Selective Attention Timing Structure Frequency Storage Memory Encoding of Information (e.g., categorization) Short vs. Long-term Evaluation Retrieve Information Combine information Decision-making (judgment)

1 st _____ 2 nd_____ 3 rd _____ Employee-1 _____ versus Employee-2 _____ Employee-1 _____ versus Employee-3 _____ etc. NOTE : Both are difficult to use when there are large number of subordinates in a company or industry.

Unstructured (e.g., content, length). Affected by the writing ability of supervisors and time availability.  Excellent  Good  Average  Poor  Very Poor

Behavioral Methods (use of critical incidents; examples of good and poor job behavior collected by job experts over time) Behavior Observation Scales (BOS) Rate the frequency in which critical incidents are performed by employees Sum the ratings for a total “performance” score 1) Assists others in job duties. _____ _____ _____ _____ _____ Never Usually Always 2)Cleans equipment after each use. _____ _____ _____ _____ _____ Never Usually Always

1) Leniency (positive bias) X _____ _____ _____ _____ _____ Very Average Excellent Poor 2) Severity (negative bias) X _____ _____ _____ _____ _____ Very Average Excellent Poor 3)Central Tendency (midpoint) X _____ _____ _____ _____ _____ Very Average Excellent Poor All lead to a restriction in the range of performance scores

1) Production Data (e.g., sales volume, units produced) When observation occurs (timing), and how data is collected Fairness and relevancy issue Potential limited variability Limitations regarding supervisory personnel 2) Personnel Data Absenteeism (excused versus unexcused) Tardiness Accidents (fault issue)

1) Generate critical incidents (examples of good and poor job performance) 2) Place Critical Incidents Into performance dimensions (e.g., Responsibility, Initiative, Safety) 3) Retranslation Step (do step # 2 again with a separate group of job experts. Discard incidents where disagreement exists as to which dimension in which they belong) 4)Calculate the mean and standard deviation of each critical incident (discard those with a large standard deviation) 5) Place critical incidents on a vertical scale There are 5 steps for this process:-

Goals. Motivation & Coaching. Monitoring Performance. The Role of the Leaders. Clarify Job Expectations. Review & Update Job Skills. Review Accomplishments & Goals. Final Steps & Rewards.

i.Performance Based Conversations with Employees. ii.Targeted Staff Development. iii.Encouragement to staff. iv.Rewards staff for a Job Well Done! v.Under-Performers Identified & Eliminated. vi.Documented History of Employees Performance. vii.Allows for Employee Growth.

Time Consuming- It can take hours to write a Departments PA. Discouragement- If the process is not a pleasant experience, it has a potential to discourage the staff. Inconsistent Message- If a manager doesn’t keep notes & accurate records of employee behavior, they may not be successful in sending a consistent message to the employee. Biases- It is difficult to keep biases out of the PA process and it takes a very structured, objective process and a mature manager to remain unbiased through the process.

Organizations need some means of ensuring performance standards are being achieved and objectives are being met. They also need to plan for the future by setting organizational objectives. These should be achieved through personal objectives agreed at the appraisal. This is vital for all employees in order to maintain a competitive position, and it is important that the method for doing this is successful. All the material in the ‘Skills of Appraisal and Performance Review’ resource is dedicated to that end. However, underlying the methods, practices and techniques there must be crucial managerial thoughts, attitudes and activities. Therefore PA’s are very vital in the Modern Competitive World.