Performance Appraisal 14.09.2022 (1).ppt

PERFORMANCE
APPRAISAL
Mrs. Jaya Mathew

INTRODUCTION
 Performance Appraisal is the systematic
evaluation of the performance of employees
and to understand the abilities of a person for
further growth and development.
Performance appraisal is generally done in
systematic ways which are as follows:
 The supervisors measure the pay of
employees and compare it with targets and
plans.
 The supervisor analyses the factors behind
work performances of employees.
 The employers are in position to guide the
employees for a better performance.

DEFINITION
 Performance Appraisal is the evaluation of the work done during
specified period against the background of the total work situation.
(Hendry)
 An effective appraisal process rewards productive employees and
assists the professional growth and development of inexperienced
and unproductive individuals. (Mable H Smith)
 Is a periodic formal evaluation of how well the nurse has performed
her duties during a specified period
- Ann Mariner

 According to Edwin Flippo, "Performance Appraisal is the
systematic, periodic and impartial rating of an employee's
excellence, in matters pertaining to his present job and his
potential for a better job."
 Performance Appraisal is the process of evaluating the
performance and qualifications of the employees in terms of other
requirements of the job for which he is employed, for purpose of
administration including placement, selection for promotion,
providing financial rewards and other actions, which require
differential treatment among the members of a group as
distinguished from actions affecting all members equally. (Heyal)

OBJECTIVES OF PERFORMANCE
APPRAISAL
Performance Appraisal can be done with following objectives in
mind:
 To identify the strengths and weaknesses of employees to
place right men on right job.
 To maintain and assess the potential present in a person for
further growth and development.
 To provide a feedback to employees regarding their
performance and related status.
 To maintain records in order to determine compensation
packages, wage structure, salary raises, etc.
 Provide clarity of the expectations and responsibilities of the
functions to be performed by the employees.

 To review the performance of the employees over a given
period of time.
 To judge the gap between the actual and the desired
performance.
 To help the management in exercising organizational control.
 To strengthen the relationship and communication between
superior – subordinates and management – employees.
 To diagnose the strengths and weaknesses of the individuals
so as to identify the training and development needs of the
future.
 To judge the effectiveness of the other human resource
functions of the organization such as recruitment, selection,
training and development.
 To reduce the grievances of the employees

PURPOSES OF PERFORMANCE
APPRAISAL
For employees: Individual based
Criteria for promotion
Job performance measurement
Job improvement
Identify training needs and plan training programmes
Important tool for motivational force to employees
Basis for counselling
Organizational control
Feedback to employees
Self examination and periodic review of progress

For organization: Institution based
Measurement of organizational objectives
Measurement of work standards
Reduces grievances of the employees
Helps for manpower
Specific uses:
Promotion decision
Training and development programmes
Evaluation of supervisors and managers
Compensation decisions
Performance feedback
Personal development

Uses of an appraisal system
A properly designed performance appraisal system can
(Rao, 1985):
 help each employee to understand more about their
role and become clear about their functions;
be instrumental in helping employees to better
understand their strengths and weaknesses with respect
to their role and functions in the organization;
help in identifying the developmental needs of
employees, according to their role and function;

 increase mutuality between employees and their
supervisors so that every employee feels happy to work
with their supervisor and thereby contributes their
maximum to the organization;
 act as a mechanism for increasing communication between
employees and their supervisors. In this way, each
employee gets to know the expectations of their superior,
and each superior also gets to know the difficulties of their
subordinates and can try to solve them.

 provide an opportunity to each employee for self-reflection
and individual goal-setting, so that individually planned
and monitored development takes place;
 help employees internalize the culture, norms and values of
the organization, thus developing an identity and
commitment throughout the organization;
 help prepare employees for higher responsibilities in the
future by continuously reinforcing the development of the
behaviour and qualities required for higher-level positions
in the organization;

 be instrumental in creating a positive and
healthy climate in the organization that drives
employees to give their best while enjoying doing
so; and
 assist in a variety of personnel decisions by
periodically generating data regarding each
employee.

PRINCIPLES
 Employees evaluation should be based on behaviorally
stated performance standards and the employees should be
aware of them as their desirable performance goals.
 Involvement of personnel in all phases of evaluative process
increases belief in the fairness and accuracy of the
evaluation
 Clear and concise role delineation and job description
enables employee and employer to know the duties and
responsibilities of the job
 A well planned performance review session increases the
workers effectiveness and promotes satisfaction
 Clear standards and criteria for measuring performance
increase the objectivity and validity of evaluation

 When documenting the evaluation the manager should
indicate the satisfactory and unsatisfactory areas of
performance
 Areas of performance that need improvement should
be stated according to priority
 Evaluation interview should be scheduled in proper
time and environment
 Goal of evaluation should improve performance and
satisfaction rather than punishment
 An adequate representative sample of the nurse’s job
should be observed to provide the basis of education
 Nurse should be given a copy of the job description,
performance standards & performance evaluation form
to understand how she will be evaluated

Characteristics of an appraisal system
Some of the important considerations in designing a
performance appraisal system are:
 Goal oriented
 Reliable and consistent
Practical and simple format
 Regular and routine
 Participatory and open
Rewards - both positive and negative
 Feedback – timely & Impersonal feedback
Relevance and responsiveness
 Commitment

Approaches in performance appraisal
 Performance appraisal is a multistage process involving
several activities, which can be administered using a
variety of approaches. Some of these approaches are
considered below, based on Einstein and LeMere-Labonte,
1989; and Monga, 1983:
 Intuitive approach In this approach, a supervisor or
manager judges the employee based on their perception of
the employee's behaviour.
 Self-appraisal approach Employees evaluate their own
performance using a common format.

 Group approach The employee is evaluated by a group of
persons.
 Trait approach This is the conventional approach. The
manager or supervisor evaluates the employee on the basis
of observable dimensions of personality, such as integrity,
honesty, dependability, punctuality, etc.
 Appraisal based on achieved results In this type of
approach, appraisal is based on concrete, measurable, work
achievements judged against fixed targets or goals set
mutually by the subject and the assessor.
 Behavioural method This method focuses on observed
behaviour and observable critical incidents.

 Teacher evaluation/ Appraisal by Teacher: appraisal
of performance on the job/ clinical skills is most
frequently carried out by the superior/teacher.
 Essay appraisal method: the assessor writes a brief
essay providing an assessment of the strengths,
weaknesses and potential of the subject.
 Peer appraisal: the peers also can do the rating as they
are the primary appraisers.

PREREQUISITES FOR EFFECTIVE
PERFORMANCE APPRAISAL
 Documentation
 Standards/ goals
 Practical and simple format
 Evaluation technique
 Communication
 Feedback
 Personal bias

WHO PERFORMS PA FOR NURSING
PERSONNEL?
 Director or Higher authority
 Principal
 Head of Department
 Self
Criteria considered for Performance Appraisal
 Determine what is to be appraised
 Who are going to be appraised and by whom?
 Why to appraise?
 When to appraise?
 How to appraise?

METHODS OF PERFORMANCE
APPRAISAL/TOOLS AND TECHNIQUES
Individual
evaluation
Multiple person
evaluation
Other methods
• Confidential
Report
• Essay Evaluation
Ranking Field Review
Technique
• Critical Incident Paired Comparison Assessment centre
• Checklists Group appraisal
• Graphic Rating
Scale
• BARS
Forced Distribution 360 degree appraisal
• Forced Choice
Method
• MBO
• Human resource
accounting

Performance Appraisal 14.09.2022 (1).ppt

Ranking Method
The ranking system requires the rater to rank his subordinates on overall
performance. The ranking of an employee in a work group is done
against that of another employee. The relative position of each
employee is tested in terms of his numerical rank. It may also be done
by ranking a person on his job performance against another member
of the competitive group.
Paired Comparison Method :
 In this method, each employee is compared with the other on one-to-one basis.
This method makes judgment easier as compared to ranking method. The
number of times the employee is rated as better in comparisons with others
determines his or her final ranking. The total number of comparison can be
ascertained by the following formula :
N(N-1)/2 , where N stands for number of employees to be evaluated.
Forced Distribution method
 This is a ranking technique where raters are required to allocate a certain
percentage of rates to certain categories (eg: superior, above average, average) or
percentiles (eg: top 10 percent, bottom 20 percent etc). The workers of
outstanding merit may be placed at top 10 percent of the scale, the rest may be
placed as 20 % good, 40 % average, 20 % below average and 10 %
unsatisfactory.

Critical Incident techniques
 Evaluator rates employee on the basis of critical events and
how the employee behaved during those incidents-both
positive and negative behaviour of student or an employee.
The discussion focuses on actual behaviour rather than
traits.
 (d) Forced Choice Method :
 This method was contributed by J.P. Guilford. Here, an
evaluator rates an employee on the basis of a group of
statements. These statements are a combination of positive
and negative statements and are arranged in blocks of two
or more. The rater is required to identify the most or least
descriptive statement pertaining to an employee. For
example :
 (1) Provides clear guidance to employees.
 (2) Can depend to complete the assignment on hand.
 (3) Is reliable and trustworthy.
 (4) Is partial to some employees

Checklists and Weighted Checklists
 In this system, a large number of statements that describe a
specific job are given. Each statement has a weight or score
attached to it. While rating an employee the supervisor
checks all those statements that most closely describe the
behaviour of the individual under assessment. The rating
sheet is then scored by averaging the weights of all the
statements checked by the rater.
 Rating scales: It locates the behaviour at a point on a
continuum and notes quantitative and qualitative abilities.
 Numerical Rating scale: includes numbers against which a
list of behaviours are evaluated
Eg. Observation of working hours 1 2 3 4 5
Ability to get along with others 1 2 3 4 5

 Anecdotal notes: objective description of behavior
recorded on plain paper or a form. The notations should
include who was observed, by whom, when, where and
doing what. Accurate coverage of facts is essential
 Field review: the departmental supervisors are
interviewed by an expert belonging to the personnel
department. The expert questions the supervisor to
obtain all the pertinent information regarding each
employee& takes notes in his notebook. The notes are
sent to supervisor for approval. The workers are usually
classified into three categories- outstanding, satisfactory
& unsatisfactory
 Peer review: monitoring work performance by peers
rather than supervisors.

MODERN METHODS OF
BARS (Behaviorally Anchored Rating Scale) :
 Behaviorally Anchored Rating Scales (BARS) is a
relatively new technique which combines the graphic
rating scale and critical incidents method. It consists of
predetermined critical areas of job performance or sets of
behavioral statements describing important job
performance qualities as good or bad (for eg. the
qualities like inter personal relationships, adaptability
and reliability, job knowledge etc). These statements are
developed from critical incidents.


 CONFIDENTIAL REPORT SYSTEM
Confidential report system is well known method of performance
appraisal system mostly being used by the Government
organizations. In this method of appraising system, subordinate is
observed by his superiors regarding his performance in the job
and on his duties done and writes confidential report on his
performance and remarks if any. Confidential reports will be kept
confidential and will not be revealed to anyone and forwarded to
the top management officials for taking decision against person on
whom confidential report has made. Confidential reports are the
main criteria for promoting or transferring of any employee
mainly in the government sector.

 Key factors assessed in Confidential Report writing
 Character and conduct of an employee
 Absenteeism of an employee
 Knowledge of an employee
 His nature and quality of work
 Punctuality of employee
 Unauthorized absenteeism or leave without permission
 Behaviour of an employee with colleagues, superiors and with
public
 Ability of supervision and controlling
 His/her integrity and honesty
 If any complaints against employee

360 DEGREE PERFORMANCE
APPRAISALS
 360 degree feedback, also known as 'multi-rater
feedback', is the most comprehensive appraisal where
the feedback about the employees’ performance comes
from all the sources that come in contact with the
employee on his job.
360 degree appraisal has four integral components:
1. Self appraisal
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal

 Self appraisal gives a chance to the employee to look at his/her
strengths and weaknesses, his achievements, and judge his own
performance.
 Superior’s appraisal forms the traditional part of the 360
degree performance appraisal where the employees’
responsibilities and actual performance is rated by the superior.
 Subordinates appraisal gives a chance to judge the employee
on the parameters like communication and motivating abilities,
superior’s ability to delegate the work, leadership qualities etc.
 Peer appraisal, the correct feedback given by peers can help to
find employees’ abilities to work in a team, co-operation and
sensitivity towards others

360 DEGREE FEEDBACK -
ADVANTAGES
 The employees find 360 degree feedback more acceptable
than the traditional feedback approaches.
 360 degree feedback is more impartial and objective than a
one-to-one assessment of employee traits
 It can be motivating for the employees who undervalue
themselves.
 It encourages teamwork.
 It is more credible as various people give almost same
feedback from various sources.
 It brings into limelight the areas of employee development as
it confirms the employee strengths and identifies his
weaknesses on which he can work upon.
 It creates an environment of trust and loyalty in an
organization.

PRE-REQUISITES OF 360 DEGREE
APPROACH
Following are the essentials of an organization’s
preparedness for the 360 degree approach-
 The top level management must be keen to spend their time
and efforts in giving feedback to their subordinates.
 Status and ego issues shouldn’t overwhelm in the
organization.
 The subordinates and the peer both should assess and
analyze the top-level managers and the top- level
management should be open to accept their feedback.

 Everyone in the organization should take the feedback considerately and
constructively and utilize it for their development.
 Ethics and moral values should be predominant in the organization.
 The organization should encourage teamwork.
 There should be self- learning in the organization, especially for the
managers.
 The personnel department of the organization should be highly credible.
 There should be no politics in the organization.
 Everyone in the organization should take the feedback seriously and
should make an attempt to benefit from the same.
 It must be ensured that the feedback is confidential.

 Following are the essentials of analyzing the
candidate’s (employee’s) preparedness for the 360
degree approach-
 The employee should have an intention to be better.
 The employee should be open to accept the feedback and
should respect the views of others.
 The employee should have a competitive feeling.
 The employee should be keen in knowing the viewpoints of
others towards him.
 The employee should always learn on the job.

 Assessment Centres
 Assessment centre refers to a method to
objectively observe and assess the people in action
by experts or HR professionals with the help of
various assessment tools and instruments.

 An assessment centre for Performance appraisal of an
employee typically includes:
 Social/Informal Events – An assessment centre has
a group of participants and also a few assessors which
gives a chance to the employees to socialize with a
variety of people and also to share information and
know more about the organization.
 Information Sessions – information sessions are also
a part of the assessment centres. They provide
information to the employees about the organization,
their roles and responsibilities, the activities and the
procedures etc.
 Assignments- assignments in assessment centres
include various tests and exercises which are specially
designed to assess the competencies and the potential
of the employees. These include various interviews,
psychometric tests, management games etc. all these
assignments are focused at the target job.

 HUMAN RESOURCE ACCOUNTING METHOD
Human resources are valuable assets for every
organization. Human resource accounting method tries
to find the relative worth of these assets in the terms of
money. In this method the Performance appraisal of the
employees is judged in terms of cost and contribution of
the employees. The cost of employees include all the
expenses incurred on them like their compensation,
recruitment and selection costs, induction and training
costs etc whereas their contribution includes the total
value added (in monetary terms). The difference
between the cost and the contribution will be the
performance of the employees. Ideally, the contribution
of the employees should be greater than the cost
incurred on them.

 Electronic Performance Monitoring (EPM)
is the process of observing ongoing employee
actions using computers or other nonhuman
methods. EPM allows management to know if
employees are actually working or doing personal
things during work hours.

 Competency-Based Performance
Management
 Competency-based performance, evaluates
large sets of capabilities and knowledge
which, if put to good use, can significantly
improve organizational productivity to a
much greater extent than just doing a job
using an existing skill set.

MANAGEMENT BY OBJECTIVES
The concept of MBO was first given by Peter Drucker in 1954. It can be
defined as a process whereby the employees and the superiors come
together to identify common goals, the employees set their goals to be
achieved, the standards to be taken as the criteria for measurement of
their performance and contribution and deciding the course of action
to be followed.
 is a process in which managers and employees jointly set objectives
for the employees, periodically evaluate performance, and reward
according to the results.
 The process of setting objectives in the organization to give a sense of
direction to the employees is called as Management by Objectives.

FEATURES OF MANAGEMENT BY
OBJECTIVES MBO
 Superior-subordinate participation
 Joint goal-setting
 Joint decision on methodology
 Makes way to attain maximum result
 Support from superior

ADVANTAGES
 clarification of organizational roles and structure and
responsibilities of individuals for achieving the goals.
 reveals organizational deficiencies such as overlapping of
authority, ineffective delegation and communication.
 elicits people's commitment for performance.
 Develops result-oriented philosophy
 Formulation of desired goals
 Facilitates objective appraisal
 Raises employee morale
 Facilitates effective planning
 Acts as motivational force
 Facilitates effective control
 Facilitates personal leadership

LIMITATIONS OF
MANAGEMENT BY
OBJECTIVES PROCESS
 Time-consuming
 Reward-punishment approach
 Increases paper-work
 Creates organizational problems
 Develops conflicting objectives
 Problem of co-ordination
 Problems related to goal-setting
 Lack of appreciation

PROCESS OF PERFORMANCE
APPRAISAL

PROCESS
 Establish performance standards
 Communicate standards
 Actual performance
 Measure actual performance
 Compare actual performance against standards
 Take corrective action

 ESTABLISHING PERFORMANCE
STANDARDS
The first step in the process of
performance appraisal is the setting up of
the standards which will be used to as the
base to compare the actual performance of
the employees. This step requires setting the
criteria to judge the performance of the
employees as successful or unsuccessful and
the degrees of their contribution to the
organizational goals and objectives. The
standards set should be clear, easily
understandable and in measurable terms.

 COMMUNICATING THE STANDARDS
Once set, it is the responsibility of the management to
communicate the standards to all the employees of the
organization.
The employees should be informed and the standards
should be clearly explained to the. This will help them to
understand their roles and to know what exactly is
expected from them. The standards should also be
communicated to the appraisers or the evaluators and if
required, the standards can also be modified at this
stage itself according to the relevant feedback from the
employees or the evaluators.

 MEASURING THE ACTUAL PERFORMANCE
 The most difficult part of the Performance appraisal
process is measuring the actual performance of the
employees that is the work done by the employees
during the specified period of time. It is a continuous
process which involves monitoring the performance
throughout the year. This stage requires the careful
selection of the appropriate techniques of measurement,
taking care that personal bias does not affect the
outcome of the process and providing assistance rather
than interfering in an employees work.

 COMPARING THE ACTUAL WITH THE DESIRED
PERFORMANCE
 The actual performance is compared with the desired or
the standard performance. The comparison tells the
deviations in the performance of the employees from the
standards set. The result can show the actual
performance being more than the desired performance
or, the actual performance being less than the desired
performance depicting a negative deviation in the
organizational performance. It includes recalling,
evaluating and analysis of data related to the
employees’ performance

 DISCUSSING RESULTS
 The result of the appraisal is communicated and
discussed with the employees on one-to-one basis. The
focus of this discussion is on communication and
listening. The results, the problems and the possible
solutions are discussed with the aim of problem solving
and reaching consensus. The feedback should be given
with a positive attitude as this can have an effect on the
employees’ future performance. The purpose of the
meeting should be to solve the problems faced and
motivate the employees to perform better

 DECISION MAKING
The last step of the process is to take decisions
which can be taken either to improve the
performance of the employees, take the required
corrective actions, or the related HR decisions
like rewards, promotions, demotions, transfers
etc.

POINTS TO CONSIDER FOR PA IN
NURSING EDUCATION
Classroom management:
Planning lectures and assignment in advance
Innovative teaching methods
Motivation of students
School discipline
Conducive learning environment
Accurate recording
Maintenance of equipment

Updating knowledge:
Utilizing institutional and community resources
Interacting with experts in the field and patients
Attending educational programmes
Participation in research activity

Interpersonal Relationship:
Cooperation with superiors and colleagues
Teacher student relationship
Self Discipline:
Punctuality, Honesty, hard work
Time management, initiative, neatness
Emotional stability, reliability
Faithfulness

Participation in other activity:
Social, cultural, NSS
Involvement in other activities of college
Managerial ability:
Ability to plan teaching program- completion of allotted
hours and content within time
Decision making, coordination and cooperation with
other colleagues-
recruitment of students,
orientation of students,
conducting examination,
organizing co curricular activities,
get work done from juniors,
 maintenance of recording

QUALITIES TO BE EVALUATED
 Quality of performance- work, neatness,
orderliness, reliability, accuracy, knowledge of work
execution etc.
 Mental qualities- ability to learn, adaptability,
reasoning power, judgement, memory etc.
 Supervisory qualities- leadership& organizational
ability, communication skill, co operation etc.
 Personnel qualities- honesty, self control, self
confidence, initiative, attitude towards others, team
work, appearance etc.
 Capacity for further development- intelligence,
acceptance of responsibility,& other features inherent
in leadership

RATING FACTORS
 GENERAL
 Adaptability
Efficiency with which employee works under stress
and responds to change
 Assertiveness/Motivation
Degree to which the employee pursues goals with
commitment and takes pride in accomplishment
 Attendance
The extent to which the employee can be depended
upon to be available for work and to fulfill position
responsibilities
 Communication
The extent to which the employee effectively listens,
conveys and receives ideas, information and direction.

 Creativity
Extent to which employee generates workable and
innovative ideas, concepts and techniques
 Customer Focus
The degree to which the employee takes the initiative to
meet internal and external customer needs
 Customer Service
 Serves customers in a manner that increases their confidence
and knowledge to resolve their own problems
 Dependability/Initiative
The extent to which an employee effectively and enthusiastically
accomplishes assignments with minimal supervision

 Job Knowledge
The demonstration of technical, administrative,
managerial, supervisory, or other specialized
knowledge required to perform the job. Consider the
degree of job knowledge relative to length of time in
the current position
 Judgment
Ability to analyze problems or procedures, evaluate
alternatives, and select best course of action.
 Initiative
The degree to which the employee independently
performs and accomplishes assignments
 Interpersonal Relations
The degree to which the employee shows
understanding and sensitivity to needs and problems
of others.

 Management Skills
Extent to which employee demonstrates effective
management abilities and overall results
 Planning & Organizing
The extent to which the employee plans, organizes and
implements tasks or programs
 Problem Solving & Decision Making
Degree to which employee demonstrates ability to clearly
isolate, define and seek solutions to problem areas
 Productivity
Degree to which the employee produces the expected quality
and quantity of assignments

 Quality of Work
The ability to set high standards for own personal
performance; strive for quality work; put forth extra effort
to ensure quality work.
 Quantity of Work
The volume of work produced by the employee, along with
his or her speed, accuracy and consistency of output.
 Resourcefulness
Consider the degree to which employee is a source of
supply and support to the department, customers, and/or
the organization as a whole.
 Responsibility
The degree to which the employee demonstrates
dependability in work performance.

 Safety
Degree to which employee adheres to safety and health
regulations
 Stress Tolerance
Degree to which employee's performance demonstrates
stability under time and/or interpersonal pressure and
opposition
 Time Management
The ability to adhere to one's responsibilities in a timely
manner.
 Work Habits
The manner in which an employee conducts his or
herself in the working environment.

 TEAM BASED FACTORS
 Consensus Building
The extent to which the employee builds and maintains work
relationships and contacts needed to effectively address
problems and opportunities associated with their position.
 Teamwork
The degree to which the employee works well in a team
setting
 Working with others Cooperation
Extent to which employee works cooperatively with
customers, co-workers and the public

 SUPERVISORY FACTORS
 Cost Effectiveness
Extent to which employee seeks best use of materials,
equipment, and staff to maximize efficiency and
effectiveness
 Delegation & Supervisory Skills
The extent to which the employee shows the ability to
effectively authorize work and supervise subordinates.
 Development of Subordinates
Consider the employee's ability to effectively evaluate
skills, knowledge, aptitudes, interests and
developmental
needs bearing on individual and group work
performance.
 Leadership
Consider the employee's ability to direct the
operations, activity and performance of others.

 Staff Development
Degree to which employee provides
opportunities to challenge subordinate's
capabilities and develops the knowledge and
skills necessary for career development.
 Supervising Staff Relations
Consider the extent to which the employee
effectively oversees and facilitates staff
relations

COMMON ERRORS IN THE EVALUATION PROCESS
 HALO EFFECT
Rating a person excellent in one quality, which in turn
influences the evaluator to give a similar rating or
higher-than-deserved rating on other qualities.
 HORN EFFECT
Rating a person unsatisfactory in one quality, which in
turn influences the evaluator to give that person similar,
or lower-than-deserved ratings on other qualities.
 STRICTNESS
Rating consistently lower than the normal or average;
being overly harsh in rating performance qualities.
 LENIENCY
Rating consistently higher than the expected norm or
average; being overly loose in rating performance
qualities.

 RECENCY
Rating influenced by most recent behavior; failing to
recognize the most commonly demonstrated behaviors during
the entire evaluation period.
 PERFORMANCE DIMENSION ORDER(PROXIMITY
EFFECT)
Two or more dimensions on a performance instrument follow
or closely follow each other and both describe or relate to a
similar quality. The evaluator rates the first dimension
accurately and then rates the second dimension similarly to
the first because of their proximity.
 INITIAL IMPRESSION
Rating based on first impressions; failing to recognize the
most consistently demonstrated behaviors during the entire
evaluation period.

 SPILLOVER EFFECT
Allowing past performance evaluation
ratings to unjustly influence current ratings;
Past performance ratings, good or bad, result
in a similar rating for the current period.
 CENTRAL TENDENCY
providing a rating of average or around the
middle of the scale for all qualities. This is the
most common and most serious kind of error.
GUESSING ERROR
Guessing by the rater about a particular
performance he did not really observe

 STATUS EFFECT
Over rating staff in higher-level jobs or jobs held in high esteem
and under rating staff in lower level jobs or jobs held in low
esteem.
 SAME AS ME
Giving the ratee a rating higher than deserved because the
person has perceived qualities or characteristics similar to those
of the evaluator.
 DIFFERENT FROM ME
Giving the rate a rating lower than deserved because the person
has qualities or characteristics dissimilar to the evaluator.
 MATTHEW EFFECT
Employees receive same appraisal results year in and year out.
SUNFLOWER ERROR
Rater may grade all employees high if he thinks his team is
great

 STEREOTYPING. Stereotyping is mentally
classifying a person into an affinity group, and
then identifying the person as having the same
assumed characteristics as the group
 SIMILARITY ERROR. This error occurs when
raters evaluate subordinates that they consider
more similar to themselves as better employees,
and subordinates that they consider different
from themselves as poorer employees

 CONTRAST ERROR. In contrast error, the rater
compares and contrasts performance between two
employees, rather than using absolute measures of
performance to measure each employee. For example,
the rater may contrast a good performer with an
outstanding performer, and as a result of the
significant contrast, the good performer may seem to
be “below average.” This would be a contrast error
 ATTRIBUTION ERROR. In simplified terms,
attribution is a process where an individual assumes
reasons or motivations (such as attitudes, values, or
beliefs) for an observed behavior. So, attribution error
in performance appraisal might occur when the rater
observes an employee action—such as an
argumentative answer to a question—and assumes
that the individual has a negative attitude toward the
job and is a poor performer

ADVANTAGES OF PERFORMANCE
APPRAISAL
 Promotion
 Compensation
 Employees Development
 Selection Validation
 Communication
 Motivation
 SWOT Analysis : strength, weaknesses and based on that
their opportunities and threats.
 Career Planning

 Self-Development
 Effective Training Programme
 Sound Personnel Policies
 Employee – Employer Relations.
 Higher Employee Productivity :
 Human resource planning

LIMITATIONS OF PERFORMANCE
APPRAISAL
 Lack of Uniform Standards
 Appropriate Appraisal Technique
 Wrong Appraisal by Superior
 Stress on Individual and not on Performance : Central
Tendency
 Lack of Importance to Self-Development
 Lack of Communication and Participation with Employees
 Time-Consuming and Huge Paperwork

Performance Appraisal 14.09.2022 (1).ppt

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Performance Appraisal 14.09.2022 (1).ppt