Performance Appraisal


The degree of accomplishment of any task is called performance.


Any criteria through which performance of any employee can be evaluated.

Performance Appraisal:

“It is a process of determining and communicating to an employee that how he/she is performing on job and ideally establishing a plan of action.”

It has three basic tasks to do,

1. Determine what employee doing
2. Communicate with employee about his performance
3. Set a plan of action for training needs if required.

Uses of Performance Appraisal

– Promotion
– Compensation
– Performance
– Training
– Firings (Layoffs)
– Transfers
– Test Validation
– Motivation

The above are some uses of Performance appraisal.

Determinants of Performance Appraisal


“Amount of energy individual uses to perform a task.”


“Personal characteristics which a person uses to perform a task.”

Role Perception:

“Direction in which individuals believe that they should generalize their efforts.”

Individual Human Potential = (Inborn Abilities + Acquired Abilities) x Attitude

Process of Performance Appraisal

1. Establish the performance standard with employees
2. Mutually set measurable goals
3. Measure actual performance
4. Compare actual performance with standards
5. Discuss the performance evaluation with employee
6. If necessary, go for immediate corrective action.

Methods of Performance Appraisal

1. Graphical Rating Scale Method

“A scale that list a number of traits and a range of performance for each. The employee is then rated by identifying the scale that best describe his or her performance for each trait.”

Typical Graphic Rating Scale (Example)
Employee Name……………….        Job title ……………..

Department …………………….       Rate ……………

Data …………………………….






Quantity of work: Volume of work under normal working conditions
Quality of work: Neatness, thoroughness and accuracy of work Knowledge of job
A clear understanding of the factors connected with the job
Attitude: Exhibits enthusiasm and cooperativeness on the job
Dependability: Conscientious, thorough, reliable, accurate, with respect to attendance, reliefs, lunch breaks, etc.
Cooperation: Willingness and ability to work with others to produce desired goals.

Table Reference

2. Alternation Ranking Method

“Ranking the employees from best to worst on a particular trait choosing highest then lowest until all are ranked.”

3. Paired Comparison Method

“Ranking the employees by making a chart of all possible paires of the employees for each trait and then indicating which is the better employee of the pair.”

4. Force Distribution Method

“It is similar to the grading on curve. Predetermined percentages of the ratees are placed in various performance categories.

5. Critical Incident Method

“Keeping a record of uncommonly good or undesirably bad examples of an employee work related behavior and reviewing it with employee at predetermined times.

6. Behaviorally Anchored Rating Scale (BARS)

“An appraisal method that aim at combining the benefits of narrative critical incidents and quantified rating by anchoring a quantified scale with narrative examples of good and poor performances.”

Steps to create BARS

6.1 Generate critical incidetns

6.2 Develop performance dimensions

6.3 Reallocation of incidents

6.4 Scale the incidents

6.5 Develop a final instrument

An Example of Behaviorally Anchored Rating Scale (BARS)




Extremely good7Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country.
Good6Can expect to initiate creative ideas for improved sales.
Above average5Can expect to keep in touch with the customers throughout the year.
Average4Can manage, with difficulty, to deliver the goods in time.
Below average3Can expect to unload the trucks when asked by the supervisor.
Poor2Can expect to inform only a part of the customers.
Extremely poor1Can expect to take extended coffee breaks and roam around purposelessly.

Table Reference

7. Management By Objective (MBO)

“It involves setting specific measurable goals with each employee and then periodically reviewing the progress made by the employee.”

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