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 StandardsCommunicating Performance Standards to

employees Measuring Actual PerformanceComparing Actual Performance with

Standards Discussing appraisal with the employeesTaking 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 employee’s performance

Make specific and constructive judgmentsCriticize work habits & behavior, not the personDon’t let marginal employees slideKeep complete written records for all

performance appraisals.

Developing Business PlansEstablishing aspects of performance that need

to be measuredSetting up Systems to Monitor & EvaluateDefining the General Performance Expectations

of EmployeesAgreements on Specific Performance ObjectivesDeveloping an Internal Communications SystemEnsuring that the performance Appraisal

System is well understood & is working effectively

Supporting employees to help them perform well

Seeking Performance improvementRecognizing & Rewarding good performance

JobsCapabilities

Technical Managerial Human Conceptual

Skilled workers, operators, clerks, typist, foreman, etc.

Very much essential

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 FamiliesIdentifying CompetenciesDefining CompetenciesStrategizing CompetenciesDefining Measurement ScalePosition ProfilingPerson Profiling

Development of Reward Strategy

.

Business Strategy

Satisfy need and expectations of stake holdersProvide added value to customers

HR Stratery

Define what the organization wants & is prepared to pay for encourage & support desired behaviorDevelop & 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 Strategy

Obtain, develop and retain the skilled, motivated & committed people the organization needs

Reward Management Process

Non FinancialRewards

Employee Benefits

MarketSurveys

Business Reward Pay Pay Levels Total ImprovedStrategy Strategy Structures & relativities remuneration performance

Job Evaluation

Performance Pay

Perfomance EmployeeMangement development

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