Definition of Performance appraisal

According to S.P Robbins, “Performance appraisal process is a formal process in an organization whereby each employee is evaluated to determine how he or she is performing.”

According to Bartol and Martin, “Performance appraisal is the process of defining expectations for employee performance, measuring, evaluating and recording employee performance relative to those expectations and providing feedback to the employee.”

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According to Prof. R.W.Griffin, “Performance appraisal is a formal assessment of how well employees are performing their job.”

Importance of performance appraisal

• Identifying areas of development 
• Basis of selection devices 
• Development of self-awareness 
• Role in motivating the employees 
• Knowing the deficiency and corrective action can be taken 
• Verifying performance 
• Formation of promotion policy 
• Improve morale 
• Providing needed information and 
• Basis for reward allocation  

Process of performance appraisal

• Establish performance standards
• Communicate performance expectation to employees 
• Measure actual performance 
• Comparison of actual performance with standards 
• Discuss the appraisals with the employees 
• Initiation of corrective action where necessary

Steps of effective performance appraisal process

• Prepare for and schedule the appraisal in advance 
• Create a supportive environment to put employees at ease 
• Explain the purpose of the appraisal to employees 
• Involve the employee in the appraisal discussion including a self-evaluation 
• Focus discussion on work behavior, not on the employees 
• Support evaluation with specific examples 
• Give both positive and negative feed-back 
• Ensure employee’s understand what was discussed in the appraisal 
• General a development plan

Techniques of performance appraisal

• Descriptive essay appraisal 
• Critical incident appraisal 
• The check list appraisal 
• Forced choice appraisal 
• Graphic rating scale appraisal 
• Behaviorally anchored rating scales 
• Forced distribution appraisal 
• Alternation ranking appraisal 
• Group order ranking 
• Individual ranking 
• Paired comparison appraisal 
• Point system 
• Confidential report 
• Management by objective

Suggestions for improving performance appraisal

• Clarifying standards 
• Rewards to accurate appraisers 
• Use peer evaluations 
• Use right appraisal tool 
• Diary keeping 
• Train appraisers 
• Behavior based measures 
• Use more than one appraiser 
• Provide on going feedback 
• Equity and justice 
• Post – appraisal interview

Factors considering of performance appraisal

• Acceptability 
• Reliability 
• Suitability 
• Understand ability 
• Determining standard 
• Knowledge and skill 
• Organizational elements 
• Feedback

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