Performance Appraisal system is a part of

ongoing management process, the purposes of

which are to:
Provide for systematic planning by allowing the
manager to identify critical job elements &
objectives.
Conduct a systematic review of employees
overall performance & provide constructive
feedback.
Provide objective information to guide
management decisions on promotions etc.
Establish an objective basis for determining
annual performance.

 Establishing Performance Standards

Communicating Performance Standards to
employees
Measuring Actual Performance
Comparing Actual Performance with
Standards
Discussing appraisal with the employees
Taking Corrective Action

 The following criteria should be followed to

make the performance appraisal more effective:
Make performance appraisal part of an ongoing
process
Look at all aspects of an employees
performance
Make specific and constructive judgments
Criticize work habits & behavior, not the person
Dont let marginal employees slide
Keep complete written records for all
performance appraisals.

 Developing Business Plans

Establishing aspects of performance that need
to be measured
Setting up Systems to Monitor & Evaluate
Defining the General Performance Expectations
of Employees
Agreements on Specific Performance Objectives
Developing an Internal Communications System
Ensuring that the performance Appraisal
System is well understood & is working
effectively
Supporting employees to help them perform
well
Seeking Performance improvement
Recognizing & Rewarding good performance

Capabilities
Jobs

Technical

Managerial

Human

Concept
ual

Skilled workers,
Very much
operators, clerks,
essential
typist, foreman, etc.

Not needed Some

desirable
Some
essential

Not
Needed

First level
supervisor, junior

Very essential

A few are
desirable

Some
desirable
Some
essential

Not
Needed

Junior & middle

level manager

Some
important
many not
essential

Important

Some
essential

A few
are
useful

Junior &
middle
level
manager

Some
important
many not
essential

Important

Some
essential

A few are
useful

Senior
managers,
Head of
Dept./Sec

A few are
desirable

Very
essential

Many are
needed
Some are
important

Desirable

Unit Heads,
GM etc.

A few are
desirable

Very
essential

Many are
essential &
important

Essential

Chief
Executives

Not needed

Important

Very
essential

Most
Essential

Traditional

Modern

Graphic Rating Scales

Confidential Report
Straight Ranking Method
Paired Comparison Method
Forced Distribution Method
Grading System
Checklist Method
Critical Incident Method

HR Scorecard
HR Accounting
Competency Mapping
Assessment & Development
Centre
360 degree Appraisal
540 degree Appraisal
Management by Objective (MOB)
Behaviorally Anchored Rating
Scale (BARS)

 Identifying Job Families

Identifying Competencies
Defining Competencies
Strategizing Competencies
Defining Measurement Scale
Position Profiling
Person Profiling

Development of Reward
Strategy
Business Strategy
Satisfy need and expectations of stake holders
Provide added value to customers

HR Stratery
.

Obtain, develop and retain the skilled, motivated & committed people the organization needs
Reward Strategy
Define what the organization wants & is prepared to pay for encourage & support desired behavior
Develop & maintain competitve pay policies which will attract & retain high quality people.
Adopt a total rewards approach which includes a mix of rewards the best meets & individuals needs.

Reward Management
Process
Non Financial
Rewards
Employee
Benefits
Market
Surveys

Business
Strategy

Reward
Strategy

Pay
Structures

Pay Levels
& relativities

Total
remuneration

Improved
performance

Job Evaluation
Performance Pay
Perfomance
Mangement

Employee
development

THANK YOU