1. PERFORMANCE APPRAISAL

2. INTRODUCTION
It is a formal, structural system of measuring and evaluating an employee’s job related behavior and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee,organisation and a society will benefit.

3. OBJECTS OF PERFORMANCE APPRAISAL
To assess the work of employees in relation to job requirements
To consider employees for promotions,transfers, layoffs etc
To assess good and bad points in working of employees and then making suggestions for improvement
To help in wage and salary administration and considering pay increases and increments

4. To evaluate skill and training capability of employees and helping in planning suitable training and development programs.
To know the problems faced by employees while doing various jobs
To help management in fixing employees according to their capacity, interest and qualifications
To help supervisors to know their subordinates more closely for increasing their efficiency

5. CRITERIA FOR EVALUATING EMPLOYEES
Level of performance of an employee
Quantum of work done for the organization
Time taken for completing the work assigned
Cost effectiveness
Interpersonal relations with other employees
Potential for taking higher responsibilities

6. PERFORMANCE APPRAISAL PROCESS
ESTABLISHING STANDARDS
COMMUNICATING STANDARDS TO EMPLOYEES
MEASURING ACTUAL PERFORMANCE
COMPARING ACTUAL WITH STANDARDS
DISCUSSING REPORTS WITH EMPLOYEES
TAKING CORRECTIVE ACTION

7. IMPORTANCE OF PERFORMANCE APPRAISAL
It is a managerial technique to find out worth of employees
It helps in correct placement of workers
Evaluation reports help employees to know their good points and weaknesses
It provides scientific base for employee’s selection, training, promotion, demotion etc.
It provides a base for fixing wages and salaries and also helps in deciding about pay increases and incentive plans.

8. METHODS OF PERFORMANCE APPRAISAL
TRAIT APPRAISAL
APPRAISAL THROUGH VERIFIABLE OBJECTIVES

9. TRAIT APPRAISAL Trait approach is also known as traditional approach
It is based on the evaluation of traits in a person
This system may list personal characteristics such as ability to get along with people, competence, judgment, initiative etc.
The rater appraises subordinates on the basis of these standards and gives his rating

10. METHODS UNDER TRAIT APPROACH
STRAIGHT RANKING METHOD- Under this method every employee is judged as a whole without distinguishing the rates from his performance. A list is then prepared for ranking the workers in order of their performance on the job so that an excellent employee is at the top and poor at the bottom
PAIRED COMPARISON METHOD-In this method every person is compared trait-wise, with other persons one at a time, the number of times one person is compared with others is tallied on a piece of paper. The results are tabulated and a rank is assigned to each employee.

11. GRADING SYSTEM- Under this system certain features like ability, cooperativeness etc are selected for evaluation and employees are given grades such as A-outstanding, B-very good, C-satisfactory, D-average etc.
FORCED DISTRIBUTION METHOD- This system is based on the presumption that all employees can be divided into 5 categories i.e outstanding, above average, average, below average and poor. The rater is asked to place 10% persons in outstanding group, 20% in above average, 40% in average, 20% in below average and 10% in poor category.

12. CHECK LIST METHOD-Under this method supervisors are provided with printed forms containing descriptive questions about the performance of employees and the supervisor has to answer in yes or no.
CRITICAL INCIDENT METHOD-This method attempts to measure worker’s performance in terms of certain events or incidents that occur in the course of work. The supervisors keeps a record of critical incidents at different times and then rates him on this basis.

13. FREE ESSAY METHOD-Under this method the supervisor writes a report about the employee which is based on his assessment. The supervisor continuously watches the subordinates and writes his assessment. This method may suffer from human bias because of likings or disliking of the supervisor.

14. APPRAISAL THROUGH VERIFIABLE OBJECTIVES
The basic idea behind this approach is that employees performance should be judged by their contribution in achieving organizational objectives and not by their traits alone
This approach has its roots from Management By Objectives (MBO)
The superior provides a plan to the subordinate for a specific period, normally 1 year, and plans his objectives . At the end of the period the supervisor evaluates the performance as per criteria agreed earlier between them.

15. PROBLEMS OF PERFORMANCE APPRAISAL
HALLO ERROR-The hallo error of effect is the tendency to evaluate a person on the basis of one trait and does not base his inference on overall performance.
CENTRAL TENDENCY-This error arises when the rater is not sure about the performance of the worker or may have less time at his disposal. He may like to play safe and will rate them average
SIMILARITY ERROR-This error arises from mental makeup of evaluator. If the rater his aggressive he will try to find this trait in subordinates

16. LINIENCY OR STRICTNESS-Some evaluators may b lenient and will give high rating to everyone and on the other hand some evaluators may b strict and will give low ratings to all persons. The tendency of giving high ratings is positive leniency error and tendency of giving low ratings is negative leniency error.
MISCELLANEOUS BIASES-Bias may exist on the grounds of sex, race, religion, position etc. A rater may have preference for persons belonging to his own sex, religion, race etc.

17. FAULTY ASSUMPTIONS-There are faulty assumptions about the performance appraisal system by both superior and subordinates. These assumptions work against the effectiveness of this system.

18. SUBMITTED BY: KARSIFAT KAUR (160) MANVEEN KAUR (172)
THANK YOU 
SUBMITTED BY:
KARSIFAT KAUR (160)
MANVEEN KAUR (172)