PSYCH-105 Industrial Psychology

Chapter 17: Performance Appraisal

Unit 1

Unit 2

Unit 3

Unit 4

Appendix

Prerequisites for Effective and Successful Performance Appraisal

1. Documentations

Means continuous noting documenting the performance. It also helps the evaluators to give a proof and the basis of their rating.

2. Standards / goals

The standards set should be clear, easy to understand, achievable, motivating, time bound and measurable.

3. Practical and simple format

The appraisal format should be simple, clear, fair and objective. Long and complicating format are time consuming, difficult to understand, and do not elicit much useful information.

4. Evaluation techniques

An appropriate evaluation technique should be selected; the appraisal system should be performance based and uniform. The criteria for evaluation should be based on observable and measurable characteristics of the behaviour of the employee.

5. Communication

Communication is an indispensable part of the performance appraisal process. The desired behaviour or the expected results should be communicated to the employees as well as the evaluators. Communication also plays an important role in the review or feedback meeting. Open communication system motivates the employees to actively participate in the appraisal process.

6. Feedback

The purpose of the feedback should be developmental rather then judgmental. To maintain its utility, timely feedback should be provided to the employees and the manner of giving feedback should be such that it should have a motivating effect on the employees future performance.

7. Personal bias

Interpersonal relationship can influence the evaluation and the decision in the performance appraisal process. Therefore, the evaluators should be trained to carry out the process of appraisal without personal bias.

Essentials of Effective Performance Appraisal Program

1. Determination of purpose

The objective of the appraisal program may be either to appraise the actual performance of individuals on their present jobs or to determine the potential of individuals to do higher jobs or both. Sometimes performance appraisal programs are associated with specific objectives like training and development, transfer and promotion, increase in pay etc.

2. Training of appraiser

There are certain limitations of appraisal by one person because of judgmental role of the appraiser. The appraisal may be biased towards certain traits about which he himself does not know. In order to avoid subjectivity in appraisal, it is advisable to give sufficient trainings to the appraiser. It is also suggested by some people that the performance of one man should be appraised by two persons independently in order to have objective results.

3. Establishing standards of performance

Standards of performance should be set up to measure the performance of various individuals on their jobs. The standards of performance should be laid down in clear cut terms and put in writing and communicated to the subordinates well in advance. This will help the subordinates in understanding the expectations of the management. 

4. Frequency of appraisal

In practice most of the firm conducts yearly or half yearly appraisals because of lack of time with the superiors and to avoid a sense of fear among the subordinates. The frequency of appraisal should be determined by the objective and scope of performance appraisal.

5. Preparation of forms

Suitable forms should be designed to help the appraisers in their work. The forms should be related to the job family such as clerical mechanical, sales etc. the content and design of the forms will be determined by the objectives of the performance appraisal program.

Author – Dr. Niyati Garg

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