PERFORMANCE APPRAISAL,PROMOTION AND TRANSFERS 1
PERFORMANCE APPRAISAL ,PROMOTION AND
TRANSFERS
PERFORMANCE APPRAISAL
Performance appraisal is a systematic process in which employees job
performance is evaluated in relation to the projects on which employee has
worked and his contribution to the organisation. It is also known as an annual
review or performance review.
Definition
Performance appraisal is a systematic, periodic and an impartial rating of an
employee’s excellence in matters pertaining to his present job and to his
potential for a better job. ”- Edward Flippo
Objectives of Performance Appraisal
i) To provide feedback - The feedback received by the employee can be
helpful in many ways. It gives insight to how superiors value your performance,
highlights the gap between actual and desired performance and diagnoses
strengths and weaknesses as wells as shows areas for improvement.
ii) To improve communication - The method of performance appraisals helps
superiors strengthen relationships and improve communication with employees.
iii) To clarify expectations - Performance appraisals should clarify roles,
responsibilities and expectations of all employees
iv) To allocate rewards - Performance appraisals reduce employee grievances
by clearly documenting the criteria used to make organizational decisions such
as promotions, raises or disciplinary actions.
Importance of Performance Appraisal
1.It review the performance of the employees over a given period of time.
2.To judge the gap between the actual and the desired performance.
3. To help the management in exercising organizational control.
4. Helps to strengthen the relationship and communication between superior –
subordinates and management – employees.
5. To diagnose the strengths and weaknesses of the individuals so as to identify
the training and development needs of the future.
Chapter 4
Human Resource Management
, PERFORMANCE APPRAISAL,PROMOTION AND TRANSFERS 2
6. To provide feedback to the employees regarding their past performance.
7.Provide information to assist in the other personal decisions in the organization.
8.Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.
9.It reduces the grievances of employees.
Methods of Performance Appraisal
Traditional Methods
1. Forced Choice Method
2. Graphic Rating Scales
3. Comparative Evaluation Approach
• Straight Ranking
• Paired Comparison
4. Grading System
5. Forced Distribution
6. Check List Method
7. Critical Incident Method
8. Free Essay Method
9. Group Appraisal
10. Field Review
11. Nominations
12. Work Sample Tests
13. Confidential Report
Modern Methods
1. Assessment Centre
2. Human Resource Accounting
3. Behaviourally Anchored Rating Scales
4. Management by Objectives
5.360 Degree Appraisal
TRADITIONAL METHODS
1. Forced choice Method
This method was developed to eliminate bias and the preponderance of high
ratings that might occur in some organizations. The primary purpose of the
forced choice method is to correct the tendency of a rater to give consistently
Chapter 4
Human Resource Management
, high or
Chapter 4
Human Resource Management
PERFORMANCE APPRAISAL ,PROMOTION AND
TRANSFERS
PERFORMANCE APPRAISAL
Performance appraisal is a systematic process in which employees job
performance is evaluated in relation to the projects on which employee has
worked and his contribution to the organisation. It is also known as an annual
review or performance review.
Definition
Performance appraisal is a systematic, periodic and an impartial rating of an
employee’s excellence in matters pertaining to his present job and to his
potential for a better job. ”- Edward Flippo
Objectives of Performance Appraisal
i) To provide feedback - The feedback received by the employee can be
helpful in many ways. It gives insight to how superiors value your performance,
highlights the gap between actual and desired performance and diagnoses
strengths and weaknesses as wells as shows areas for improvement.
ii) To improve communication - The method of performance appraisals helps
superiors strengthen relationships and improve communication with employees.
iii) To clarify expectations - Performance appraisals should clarify roles,
responsibilities and expectations of all employees
iv) To allocate rewards - Performance appraisals reduce employee grievances
by clearly documenting the criteria used to make organizational decisions such
as promotions, raises or disciplinary actions.
Importance of Performance Appraisal
1.It review the performance of the employees over a given period of time.
2.To judge the gap between the actual and the desired performance.
3. To help the management in exercising organizational control.
4. Helps to strengthen the relationship and communication between superior –
subordinates and management – employees.
5. To diagnose the strengths and weaknesses of the individuals so as to identify
the training and development needs of the future.
Chapter 4
Human Resource Management
, PERFORMANCE APPRAISAL,PROMOTION AND TRANSFERS 2
6. To provide feedback to the employees regarding their past performance.
7.Provide information to assist in the other personal decisions in the organization.
8.Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.
9.It reduces the grievances of employees.
Methods of Performance Appraisal
Traditional Methods
1. Forced Choice Method
2. Graphic Rating Scales
3. Comparative Evaluation Approach
• Straight Ranking
• Paired Comparison
4. Grading System
5. Forced Distribution
6. Check List Method
7. Critical Incident Method
8. Free Essay Method
9. Group Appraisal
10. Field Review
11. Nominations
12. Work Sample Tests
13. Confidential Report
Modern Methods
1. Assessment Centre
2. Human Resource Accounting
3. Behaviourally Anchored Rating Scales
4. Management by Objectives
5.360 Degree Appraisal
TRADITIONAL METHODS
1. Forced choice Method
This method was developed to eliminate bias and the preponderance of high
ratings that might occur in some organizations. The primary purpose of the
forced choice method is to correct the tendency of a rater to give consistently
Chapter 4
Human Resource Management
, high or
Chapter 4
Human Resource Management
