What does it mean?

 Performance appraisal is a method of evaluating

the behavior of employees in the work spot,
normally including both the quantitative &
qualitative aspects of job performance.
 A process of systematically evaluating performance and
providing feedback upon which performance
adjustments can be made.

 Performance here refers to the degree of

accomplishments of the tasks that make up an
individual’s job
 Often the term is confused with effort. But
performance is always measured in terms of
results not efforts.
 Functions of performance appraisal.
 Define the specific job criteria against
which performance will be measured.
 Measure past job performance
accurately.
 Justify rewards, thereby differentiating
between high and low performance.
 Define ratee’s needed development
experiences.
 Purposes of performance appraisal.

 The four functions describe two general purposes of good

performance appraisal.
 Evaluation.

 Feedback and development.

 Evaluative decisions.
 Concerned with issues regarding:
 Promotions
 Transfers.
 Terminations.
 Salary increases.
 When these issues are decided on the basis of performance, a
performance appraisal system is needed.
 Feedback and development
decisions.
 Letting ratees know where they stand in
terms of expectations and performance
objectives.
 Feedback should involve a detailed
discussion of the ratee’s strengths and
weaknesses.
 Feedback can be used as a basis for
coaching and training by the manager.
 Who does the performance appraisal?
 Ratee’s immediate superior.

 Ratee’s peers.

 Ratee’s subordinates.

 360-degree evaluation.
 Immediate supervisor
 Subordinates
 Peers
 Rationale for evaluations conducted by team members
 Self-appraisal
 Customer appraisal
 Period
 Prepared at specific intervals
 Usually annually or semiannually

 Period may begin with

employee’s date of hire

 All employees may be evaluated

at same time
 Criteria
 Traits

 Behaviors

 Competencies

 GoalAchievement
 Improvement Potential
Difficulties in Performance
Management Systems
 Focus on the individual: Discussions of
performance may elicit strong emotions and
may generate conflicts when subordinates and
supervisors do not agree.
Difficulties in Performance
Management Systems
 Focus on the process: Company policies
and procedures may present barriers to a
properly functioning appraisal process.
 Additionally, appraisers may be poorly trained.
 The Performance Appraisal Process
External Environment
Internal Environment
Plan the Performance
Identify Performance Goals
Communicate Goals
Establish Performance Criteria

Determine: Responsibility
Anticipate and Consider
for Appraisal Appraisal Period
Problems in PA
Appraisal Method(s)
Effective PA Systems
Computer Software

Management Support
Examine Work Performed
Coaching and T&D

Appraise the Results

Conduct Appraisal Interview

Take corrective action if necessary
Discuss Goals for Next Period
 The Appraisal Process
 Establishment of performance
standards
 Derived from company’s strategic goals.
 Based on job analysis and job
description.
 Communication of performance
standards to employee.
 Trends in performance appraisal
Item Former Emphasis Present Emphasis
Terminolo Merit rating, Employee appraisal/
gy Performance Performance appraisal
Purpose evaluation
Determine & control
the basis Employee
for wage increase, development, team
transfer, promotion, building
Application layoff etc.
Four hourly For technical,
paid/causal/temporary professional, and
workers managerial employees
Factor Heavy emphasis on Emphasis on results,
Rates personal traits accomplishment,
performance
Appraisers Only supervisor Supervisor,
subordinates,
customers and
 The Appraisal Process
 Measurement of performance using
information from:
 personal observation
 statistical reports
 oral reports
 written reports
 Comparison of actual performance
with standards.
 Managerial ethics

A Manager Should A Manager Should Not

Appraise on the basis of Appraise without
representative, knowing why the
sufficient, and relevant appraisal is needed
information
Be honest, in assessing Write one thing and
all the facts he has say the sub-ordinates
obtained
Make it crystal-clear that another
Be biased in
this is only your personal statements,
opinion of the facts that presentation of
can be dissemble, and as information
you perceive them
 The Appraisal Process
 Discussion of appraisal with
employee.
 Identification of corrective action
where necessary.
 Immediate action deals with symptoms.
 Basic corrective action deals with
causes.
Uses of Performance Appraisal
 Human resource planning
 Recruitment and selection
 Training and development
 Career planning and
development
 Compensation programs
 Internal employee relations
 Assessment of employee
potential
Performance Appraisal
Methods
2 Part of the session
nd

View & analyze the Performance

Appraisal Form of Abdul Momen Ltd.
(Igloo Ice Cream Plant)
 Cont.
Identify the problems or weak points of the PA
form
 The performance appraisal form of Abdul Momen
Limited is short and simple.
 Most of the indicators are subjective.
 The rating scales are from A to E. Which is not easy
for calculation.
 The form does not include important indicators
like:
 Communication Skill
 Planning and organizing
 Results
 Problem solving
 Management Effectiveness
 Objectives for the next year
 The appraisal is done by the immediate supervisor
and the Department Head. No peers or
subordinates

 Recommendations
 The appraisal should be done by him or herself,
supervisor, subordinate or one employee of his/her own
department, and two employees of other department
allowing the employee 360° appraisal.
 Rating from 0 to 5 should be used instead of A to E for
ease of calculations.
 Some objective (measurable) indicators should be
included.
 The next years objectives should be included in the
form to use as the bench-marks against which the
performance should be evaluated.
 Other important indicators like communications skills,
planning and organizing skills, management skills
should be included.
 For every evaluation the appraiser should be able to
give comments (if possible) to give a basis of the rating.
 There should be some flexibility for including or
deducting any factors if necessary.
 Calculation should be weighted average method.
 3rd Part of the session
Development of a new Form
 For your information: We try to
develop a fully new concept in
Performance Appraisal system. Let
us discuss about that.
 There are three part of form-A, B, C
 Now let us see the Part-A
 3rd Part: Cont.

 Let us see the Part-B

 3rd Part: Cont.

 Let us see the Part-C

 Discussion on new concept
Let us see why this method is considered as
something new & why it should be
followed?
 CGPA Method
 In other method there are 100 or 200 fixed
marks. So if any criteria will not match with
someone’s working environment than he or
she will be miss evaluated.
 Flexibility to include or deduct any factor
 Always Grade Point is same: 5 Scale, but no
chance for miss evaluation as it is calculated
on average.
 Single type of form can be used for
 Discussion on new concept
 Form A contains all the factor heading, but
the rating method is overall, because this
is an easy & widely used ways for
judgment
 But as there is another form B in which the
every segment of each factors are
considered, no chance for miss measure or
bias ness
 Calculation of average ensure
measurement from two angels (over all &
specific)
 Weighted average method ensures the
evaluation more specific & justified
 Form B is not filled by peers as they may
not know about the subhead of an
 Discussion on new concept
 50% weight is reserved for the annual objective
as he or she is highly responsible for that
 Other 50% weight is distributed according to the
job description. This indicates that the weight is
not fixed for the PA. and this is changeable
according to job nature
 There is some flexibility to HR department as
there are two form-A & B. They can use only A or
B if the purpose allows & time is short.
 We highly emphasis on Annual target so that
every employee will also emphasis to perform
their annual target smoothly.
 There is also previous year performance point on
the indicator, so that every body can compare
employee’s performance easily
 4th & the last Part: Conclusion
 We concentrated our best to give the
highest effort for preparing an easily
understandable, well accepted, useable for
every purpose & bias less performance
appraisal form.
 But there may be some error, so we
request all of you to identify & evaluate
the error & suggest us to recover that
error as well as to make it more effective
 It will be highly appreciated if you send
your valuable recommendations through
the following email address:
rmnzaidi@gmail.com
 Conclusion Cont.
 At last we expect cooperation of our
honorable instructor and of all the
participants for submitting this new
concept to BSHRM for the nation
wide as well as world wide
acceptance.
 We are grateful for your participation
with us.
 Vote of Thanks

Thanks a lot
to
everybody