1. Performance Appraisal

2. Definition • Performance Appraisal is the systematic evaluation of the individual with respect to his or her potential for development.

3. Relationship of Performance Appraisal and Job Analysis • Job Analysis Performance Performance Standards Appraisal Describes Translates Describes Work and Job requirement the job-relevant Personnel into levels strengths and requirement of acceptable/ weaknesses of of a job unacceptable each individual performance

4. Objectives of Performance Appraisal • To effect promotions based on competence and performance. • To confirm the services of probationary employees • To assess the Training and Development needs of employees • To decide upon a pay rise • To let the employees know where they stand in their performance

5. Objectives of Performance Appraisal (continued…) 6. To improve Communication 7. To determine whether HR programs like Selection, Training and Transfers have been effective or not.

6. Performance Appraisal process • Objectives of Performance Appraisal • Establish Job expectations • Design an Appraisal Program • Appraise Performance • Performance Interview • Use Appraisal data for appropriate purposes

7. Past Oriented Performance Appraisal methods • Rating Scales • Checklists • Forced Choice methods • Forced Distribution methods • Critical Incident method • Behaviorally Anchored Scales • Field Review method

8. Past Oriented Performance Appraisal methods (continued…) 8. Performance tests and observations 9. Annual Confidential Reports 10. Essay Method 11. Cost Accounting Approach 12. Comparative evaluation Approach

9. Future Oriented Performance Appraisal methods • Management by Objectives • 360-Degree Appraisal • Psychological Appraisals • Assessment Centers

10. Challenges of Performance Appraisal • Create a culture of excellence that inspires every employee to improve and lend himself to be assessed • Align organizational objectives to individual aspirations • Clear growth paths for talented individuals • Provide new challenges to rejuvenate careers

11. Challenges of Performance Appraisal (contd…) • Forge a partnership with people for managing their careers • Empower employees to make decisions without the fear of failing • Embed teamwork in all operational processes • Debureaucratise the organizational structure for ease of flow of information

12. Legal Issues associated with Performance Appraisal • Legally defensible appraisal procedures • Legally defensible appraisal content • Legally defensible documentation of appraisal results • Legally defensible raters