Amity Global Business School Semester I

1. Amity Global Business School Semester I Performance Appraisal Tanvir kaur

2. Performance appraisal, also known as employee appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time). Performance appraisal is a part of • career development. The aims of a performance appraisal are to: • Give feedback on performance to employees. • Identify employee training needs. • Document criteria used to allocate organizational rewards. • Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, etc. • Provide the opportunity for organizational diagnosis and development. • Facilitate communication between employee and administrator.

3. Methods of Performance Appraisal • Performance Appraisal is broadly classified into 2 categories: • TRADITIONAL METHODS: Are relatively older methods of performance appraisal. These methods are based on studying the personal qualities of the employees. These may include knowledge, initiative, loyalty, leadership and judgment. • MODERN METHODS: Modern methods were devised to improve upon the traditional methods. Modern methods attempted to remove the shortcomings of the old methods such as subjectivity, bias etc.

4. PERFORMANCE APPRAISAL TRADITIONAL METHODS Unstructured Appraisal Employee Ranking Forced Distribution Graphic- rating scales Check-lists • MODERN METHODS • Management by • objective (MBO) • Behaviourally • anchored rating scales.

5. Unstructured Appraisal: • The impression of the appraiser is written in an unstructured manner. • In some organisations, comments are grouped under specific headings- quality of job performance, personality traits, development needs. • Used in small firms • 2. Ranking Methods: • Permits comparison of employees in groups regardless of the type of job role and all are judged on the same factors. • The employees are rated on the basis of their job performance rather than personal traits. • It does not indicate the degree of difference between the first and the second man. • Paired comparison is an improvement over simple ranking. • N(n-1) , the total no. of employees to be compared • 2 • Cannot be done for periodic evaluation of the employees in an oragnisation.

6. Forced Distribution Method: • Appraisal done on the basic factors such as excellent, average or poor in which the evaluation o poor, average or excellent is not explained very clearly. • Forced Distribution Method is a forced method in which the appraiser is required to evaluate the performance of the employees on a scale of 5 i.e outstanding 10%, above average 20%, average 40%, below average 20% and poor 10%. • This method eliminates biasness from the part of the supervisor. • Feasible in large groups. • 4. Graphic Rating scales: • Scales are established for a no. of specific factors and qualities based on 2 characteristics: • Characteristics, such as initiative and dependability • Contributions, such as quality of work. • In this method a space should be given after every column so that the appraiser gives an example of his behaviour. characteristics

7. Check list: • Consists of 2 techniques: • Weighted check list • Forced choice • A checklist is a set of objectives or descriptive statements about the employee and his behavior. • Under weighted checklist, value of each question may be weighted. • Example: • Is the employee really interested in the task assigned? Yes / No • Is he respected by his colleagues? Yes / No • The rater is forced in the forced choice method to choose between descriptive statements of seemingly equal worth. • This method removes biasness and offers great objectivity.