Professional Documents
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Performance Apprasal
Performance Apprasal
NURSING MANAGEMENT
ASSIGNMENT
ON
PERFORMANCE APPRAISAL
SUBMITTED TO,
SCON, PUNE
SUBMITTED ON:03/06/2024
PERFORMANCE APPRAISAL:
INTRODUCTION:
In every organization there is a need to understand the abilities of the employees to perform and
grow, performance appraisal acts as a tool to check the developmental opportunities for the
employees. It is a systematic evaluation of the work performed by the employees. A performance
appraisal is a regular review of an employee’s job performance and contribution to a company.
Companies used performance appraisal to determine which employees have contributed the most
of company’s growth, review progress and reward high achieving workers.
MEANING:
Performance appraisal means the systematic evaluation of the performance of an expert or his
immediate supervisor.
Personal equation of trust and compatibility is important for good informal interface between the
employer and the employee. There should also be broadagreement over criteria to be adopted
for appraisal;
The organization should ensure that the appraisal system is job-related, performance-based,
uniform, consistent, fair, just and equitable and that appraisers are honest, rational and objective
in their approach and judgment and have the desirable behavioral orientation for ethical
judgment.
Supervisors responsible for performance appraisal should be well trained in the art and science
of performance appraisal to ensure uniformity, consistency and reliability of the process. Success
of the evaluation ultimately depends on the evaluator and not on any system however perfect a
support it may provide;
Performance appraisal reports should be examined meticulously, before any action, positive or
negative, is proposed to be initiated;
To promote consistency and uniformity regarding performance standards, lineand staff co-
ordination is vital;
There should be provision for appeals against appraisals to ensure confidence of the employees
and their associations and unions; and
Performance appraisal is a continuous activity which also evolves over time. Continuous study
and review are therefore a must.
emphasize on institution of feedback and follow-up action, ensure that appraisal results are taken
into account in administrative decision-making relating to placements, career planning and
development and finally, appraisalsystems should be evaluated from time to time to ensure
desired stipulations (both theoretical and practical) are duly properly followed in practice every
time
DEFINITIONS:
OBJECTIVES:
In most work organizations, performance appraisals are used for a variety of reasons. These
reasons range from improving employee productivity to developing the employees themselves.
This diversity of uses is well documented in a study of why companies use performance
appraisals. Traditionally, compensation and performance feedback have been the most prominent
reasons organizations use performance appraisals.
Feedback to employees: Performance appraisals provide feedback to employees about
quantity and quality of job performance. Without this information, employees have little
knowledge of how well they are doing their jobs and how they might improve their work.
Self-development: Performance appraisals can also serve as an aid to employee self-
development. Individuals learn about their strengths and weaknesses as seen by others and
can initiate self-improvement programs (see discussion on behavioral self-management
programs).
Reward systems. In addition, appraisals may form the bases of organizational reward
systems - particularly merit-based compensation plans.
Personnel decisions. Performance appraisals serve personnel-related functions as well. In
making personnel decisions, such as those relating to promotions, transfers, and
terminations, they can be quite useful. Employers can make choices on the basis of
information about individual talents and shortcomings. In addition, appraisal systems help
management evaluate the effectiveness of its selection and placement functions. If newly
hired employees generally perform poorly, managers should consider whether the right kind of
people are being hired in the first place.
Training and development. Finally, appraisals can help managers identify areas in which
employees lack critical skills for either immediate or future performance. In these
situations, new or revised training programs can be established to further develop the
company's human resources.
PURPOSES:
To identify the strengths and weaknesses of employees to place right men on right job.
To maintain and assess the potential in a person for growth and development.
To provide feedback to employees regarding their performance and related status.
It serves as a basis for influencing working habits of the employees.
To provide adequate feedback to each person on his or her performance
To serve as a basis for modifying or changing behavior toward more effective working habits
To provide data to managers with which they may judge future job assignments
BENEFITS:
IMPORTANCE:
Employees can improve in their jobs with the help of performance appraisals, especially if they
want to rise to a higher position within the organization. A performance assessment can assist
employees in developing a professional development plan.
Giving feedback encourages employees to perform better. When a manager gives positive
feedback, employees are motivated to perform in a better way. Because performance reviews are
frequently used to evaluate how incentives are distributed, they can help motivate and recognize
employees for their efforts.
Employee engagement and retention can be increased by incorporating them in the performance
appraisal process on a routine basis. Employees will be more likely to perform well when they can
see how their actions influence the organization as a whole. Regular performance reviews also
demonstrate to employees that their employer cares about them and is ready to take the time to
offer them the guidance they need to succeed.
Helps Determine Training Requirements:
Companies can use performance appraisals to see which employees require additional training and
to choose what subjects to re-train in. If several employees are struggling to achieve a daily target,
for example, an employer may offer a seminar on how to work more productively or consider
cutting down the target.
Managers might reiterate their expectations for staff during performance appraisals. This aids
employees in understanding their everyday tasks as well as what their employer expects of them.
Performance appraisals provide managers with a scheduled, defined period to review how each
employee is performing overall, allowing for a smooth flow of conversation with no interruptions.
Managers can coach employees and provide tips on how to enhance their productivity during these
sessions. This time is also set up for employees to ask questions and address any issues they may
have.
Helps In Goal-Setting:
Employers can assess how effectively an employee met their objectives and provide input on what
kinds of objectives should be set for the next quarter. Creating a goal management system that is
updated regularly ensures that staff is progressing and contributing to the organization’s goal.
Employers that conduct performance reviews regularly can identify areas that require improvement
before they harm the firm or become permanent. Employers frequently offer suggestions and
actions that employees might do in the future. Employees can continue to develop and become the
best they can be as a result of this.
Develops Team Bonding:
Managers and staff can use performance appraisals to synchronize their goals and brainstorm
together. Meetings regularly might help to strengthen ties and make the boss appear more
accessible. Peer reviews allow people to know how much their colleagues value them.
Employees frequently overlook why they are working or how their actions make a big difference
in the day-to-day functioning of the company. Employees can recall why their effort counts by
obtaining feedback on tasks they’ve done. Managers can use performance appraisals to reinforce
the organization’s values and the goals that employees are striving toward.
Performance appraisal has many names across organizations. Some call it performance evaluation,
and some prefer performance review, merit rating, annual performance review, etc.
This process is carried out to identify the inherent qualities of an employee and the abilities and
level of competency of an employee for their future growth and development and that of the
organization they are associated with. It aims at ascertaining the value of an employee and his/her
offering to the organizational performance.
Performance appraisals help managers and supervisors place the right employee to do the right job,
depending on the skill set they possess. Without an ounce of doubt, every organization needs a
robust performance appraisal process.
There are various methods that managers and supervisors use to evaluate employees based on
objective and subjective factors. However, it can get a bit tricky, but to effectively evaluate an
employee, both factors are essential.
COMPONENTS OF PERFORMANCE APPRAISAL:
• Identify areas where management may enhance working circumstances in order to raise
productivity and work quality.
• They give insight into how people are contributing.
• Deal with behavioral problems before they affect the efficiency of your department. Assist
employees in their skills and career development.
Ranking method
Paired comparison method Forced
distribution method Grading
Checklist
Forced choice method Critical
incident method
• The employee selects peers to conduct the evaluation. Usually, two to four peers are
identified through a predetermined process.
• The employee submits self-evaluation portfolio. The portfolio might describe how he
or she met objectives and/or pre-determined standards during the past evaluation cycle.
Supporting material are included.
• The peer evaluates the employee. This may be done individually or in a group. The
individuals are group then submit a written evaluation to the manager.
• Manager and employee meet to discuss the evaluation. The manager's evaluation is
included and objectives for the coming evaluation cycle are finalized.
Appraisal interview
2. They provide feedback to an employee which enables him to improve his performance in future.
3. They help management to ascertain and assess the training needs of individual employees.
4. They enable management to know the problems and difficulties experienced by subordinates in
discharging their responsibilities and also their suggestions for removing these difficulties.
Performance appraisals can be broken down into four distinct significant types:
1. 360-Degree Appraisal:
The manager gathers information on the employee’s performance, typically by questionnaire, from
supervisors, co-workers, group members, and self-assessment.
2. Negotiated Appraisal:
This type of appraisal uses a mediator to help evaluate the employee’s performance, with a greater
emphasis on the better parts of the employee’s performance.
3. Peer Assessment:
The team members, workgroup, and co-workers are responsible for rating the employee’s
performance.
4. Self-Assessment:
The employees rate themselves in categories such as work behavior, attitude, and job performance.
Note that some organizations use several appraisal types during the same review. For instance, a
manager could consult with the employee’s peers and assign a self-assessment to the employee. It
doesn’t have to be a case of either/or.
METHODS OF PERFORMANCE APPRAISAL:
Numerous methods have been devised to measure the quantity and quality of performance
appraisals
Each of the methods is effective for some purposes for some organizations only. None should be
dismissed or accepted as appropriate except as they relate to the particular needs of the
organization or an employee.
Broadly all methods of appraisals can be divided into two different categories.
1. Rating Scales: This is the simplest and the most popular technique for appraising all
employee performance. The typical rating scales system consists of several numerical scales, each
representing job related performance criterion such as dependability initiative output, attendance
attitude, co – operation and the like. Each scale ranges from a excellent to a poor. The number of
points scored may be linked to salary increases where by so many points equal to a rise of some %.
Advantages –
Adaptability.
easy to use, low cost.
every type of job can be evaluated.
large number of employees covered.
no formal training required.
Disadvantages –
Low cost
Easy to administer
Little training required Standardized format
Rater’s bias
Improper HR weighs
Discrete rating values only
3. Forced Choice Method: This method was evolved by Tiffen to eliminate the central tendency
of rating most of the employees at a higher end of the scale. The method assumes that employees’
performance level confirms to a normal statistical distribution i.e., 10,20,40,20 and 10 per cent.
This is useful for rating a large number of employees’ job performance and promo ability. It tends
to eliminate or reduce bias.
It is also highly simple to understand and easy to apply in appraising the performance of
employees in organizations. It suffers from the drawback that improve similarly; no single grade
would rise in a rating.
Advantages –
Absence of personal biases because of forced choice.
Disadvantages –
Statements may be wrongly framed.
4. Forced Distribution Method: The forced-choice method is developed by J. P. Guilford. It
contains a series of groups of statements, and rater rates how effectively a statement describes each
individual being evaluated. Common method of forced-choice method contains two statements,
both positive and negative. Here employees are clustered around a high point on a rating scale.
Rater is compelled to distribute the employees on all points on the scale. It is assumed that the
performance is conformed to normal distribution.
Disadvantages –
o Assumption of normal distribution, unrealistic, errors of central tendency.
5. Critical Incidents Method: In this method, the rater focuses his or her attention on those key or
critical behaviors that make the difference between performing a job in a noteworthy manner
(effectively or ineffectively).
Advantages –
Evaluations are based on actual job behaviors.
ratings are supported by descriptions.
feedback is easy.
reduces recency biases.
chances of subordinate improvement are high.
Disadvantages –
Negative incidents can be prioritized
forgetting incidents
overly close supervision
feedback may be too much and may appear to be punishment.
7. Field Review Method: When there is a reason to suspect rater’s biasedness or his or her rating
appears to be quite higher than others, these are neutralized with the help of a review process. The
review process is usually conducted by the personnel officer in the HR department.
Advantages –
Useful for managerial level promotions, when comparable information is needed,
Disadvantages –
Outsider is generally not familiar with employees work environment; Observation of actual
behaviors not possible.
8. Performance Tests & Observations: This is based on the test of knowledge or skills. This
appraisal technique tests knowledge and skills in written or actual forms. Reliable tests are
required to be formulated and validated in order to be unbiased.
Advantages of this technique include:
Formulated tests are focused to evaluate potential.
Disadvantages of this technique include:
High cost of test formulation and administration.
10. Essay Method: In this method the rater writes down the employee description in detail within
a number of broad categories like, overall impression of performance, promote ability of
employee, existing capabilities and qualifications of performing jobs, strengths and weaknesses
and training needs of the employee.
Advantage –
It is extremely useful in filing information gaps about the employees that often occur in a
better-structured checklist.
Disadvantages –
It is highly dependent upon the writing skills of rater and most of them are not good
writers. They may get confused success depends on the memory power of raters.
11. Cost Accounting Method: Here performance is evaluated from the monetary returns yields
to his or her organization. Cost to keep employee, and benefit the organization derives is
ascertained. Hence it is more dependent upon cost and benefit analysis.
12. Comparative Evaluation Method (Ranking & Paired Comparisons): These are collection
of different methods that compare performance with that of other co-workers. The usual
techniques used may be ranking methods and paired comparison method.
Ranking Methods: Superior ranks his worker based on merit, from best to worst. However how
best and why best are not elaborated in this method. It is easy to administer and explanation.
Paired Comparison Methods: In this method each employee is rated with another employee in
the form of pairs. The number of comparisons may be calculated with the help of a formula as
under.
N x (N-1) / 2
Advantage –
It is more useful for managerial positions.
Disadvantages –
Not applicable to all jobs, allocation of merit pay may result in setting short-term goals
rather than important and long-term goals etc.
2. Psychological Appraisals: These appraisals are more directed to assess employees potential for
future performance rather than the past one. It is done in the form of in-depth interviews,
psychological tests, and discussion with supervisors and review of other evaluations. It is more
focused on employees emotional, intellectual, and motivational and other personal characteristics
affecting his performance. This approach is slow and costly and may be useful for bright young
members who may have considerable potential. However, quality of these appraisals largely
depends upon the skills of psychologists who perform the evaluation.
3. Assessment Centers: This technique was first developed in USA and UK in 1943. An
assessment center is a central location where managers may come together to have their
participation in job related exercises evaluated by trained observers. It is more focused on
observation of behaviors across a series of select exercises or work samples. Assesses are
requested to participate in in-basket exercises, work groups, computer simulations, role playing
and other similar activities which require same attributes for successful performance in actual job.
The characteristics assessed in assessment center can be assertiveness, persuasive ability,
communicating ability, planning and organizational ability, self-confidence, resistance to stress,
energy level, decision making, sensitivity to feelings, administrative ability, creativity and mental
alertness etc. Disadvantages – Costs of employees traveling and lodging, psychologists, ratings
strongly influenced by assesses inter-personal skills. Solid performers may feel suffocated in
simulated situations. Those who are not selected for this also may get affected.
Advantages –
well-conducted assessment center can achieve better forecasts of future performance and
progress than other methods of appraisals.
Also, reliability, content validity and predictive ability are said to be high in
assessment centers. The tests also make sure that the wrong people are not hired or
promoted.
Finally, it clearly defines the criteria for selection and promotion.
The first step in the process of performance appraisal is the setting up of the standards which will be
used to as the base to compare the actual performance of the employees. This step requires setting
the criteria to judge the performance of the employees as successful or unsuccessful and the
degrees of their contribution to the organizational goals and objectives. The standards set should be
clear, easily understandable and in measurable terms. In case the performance of the employee
cannot be measured, great care should be taken to describe the standards.
Once set, it is the responsibility of the management to communicate the standards to all the employees
of the organization. The employees should be informed and the standards should be clearly
explained to the employees. This will help them to understand their roles and to know what exactly
is expected from them. The standards should also be communicated to the appraisers or the
evaluators and if required, the standards can also be modified at this stage itself according to the
relevant feedback from the employees or the evaluators.
The most difficult part of the Performance appraisal process is measuring the actual performance of
the employees that is the work done by the employees during the specified period of time. It is a
continuous process which involves monitoring the performance throughout the year. This stage
requires the careful selection of the appropriate techniques of measurement, taking care that
personal bias does not affect the outcome of the process and providing assistance rather than
interfering in an employee’s work.
4. Comparing actual performance with desired performance:
The actual performance is compared with the desired or the standard performance. The comparison
tells the deviations in the performance of the employees from the standards set. The result can
show the actual performance being more than the desired performance or, the actual performance
being less than the desired performance depicting a negative deviation in the organizational
performance. It includes recalling, evaluating and analysis of data related to the employees’
performance.
The result of the appraisal is communicated and discussed with the employees on one-to-one basis.
The focus of this discussion is on communication and listening. The results, the problems and the
possible solutions are discussed with the aim of problem solving and reaching consensus. The
feedback should be given with a positive attitude as this can have an effect on the employees’
future performance. Performance appraisal feedback by managers should be in such way helpful to
correct mistakes done by the employees and help them to motivate for better performance but not
to demotivate. Performance feedback task should be handled very carefully as it may leads to
emotional outburst if it is not handing properly. Sometimes employees should be prepared before
giving them feedback as it may be received positively or negatively depending upon the nature and
attitude of employees.
1. Promotions
2. Confirmations
3. Training and Development
4. Compensation reviews
5. Competency building
6. Improve communication
7. Evaluation of HR Programs
8. Feedback & Grievances
BENEFITS OF PERFORMANCE APPRAISALS:
They help supervisors plan promotions for solid, performing employees and dismiss
inefficient workers.
They help the organization decide how to compensate the employees best. Also,
companies can use performance appraisal records to help determine extra benefits and
allowances.
They can call attention to employee weaknesses and help set up training programs in-
house.
The performance appraisals can help make changes in the selection process which
inevitably help hire better employees.
Employees are encouraged to meet or surpass their goals through performance reviews.
Nonetheless, they are subject to a lot of criticism.
According to some labor analysts, the usage of merit- and performance-based pay has
decreased due to the use of performance reviews.
Employees may receive biassed evaluations due to performance reviews focusing more on
their likeability than accomplishments.
Unreliable raters can introduce a number of biases that tilt assessment results towards
desired traits or ones that reflect the rater's preferences, which can result in managers
giving underperforming personnel a favorable evaluation in order to preserve their
connection.
Performance reviews that are effective for one culture or job function might not be
applicable to another.
COMPANY BENEFIT:
Employee evaluations can influence an organization’s performance. They enable firms to:
Identify areas where management may enhance working circumstances in order to raise
productivity and work quality. They give insight into how people are contributing.
Deal with behavioral problems before they affect the efficiency of your department.
Enhance strategic decision-making in scenarios that call for layoffs, succession planning, or
internally filling available posts.
Performance reviews should benefit the employees who get them. The knowledge obtained by
evaluating and debating an employee's performance can help you:
Recognize and advocate for the need for extra education or training to advance one's
profession.
An appraisal form is a document that managers and human resources staff use to evaluate the
performance of employees. The form often includes ratings and room for comments on
performance. On an appraisal form, managers keep track of employees’ achievements and
contributions during a specific period. They also indicate the employees’ areas of strength and
weakness.
Managers often use the performance appraisal form to guide them through an employee’s
performance review by highlighting specific items to discuss. When going through the appraisal
form, both the employee and manager can work together to create goals for the employe
PERFORMANCE APPRAISAL FORM:
Employee information
Name: Date:
Job title: Review period:
Supervisor: Department:
4 3 2 1
Outstanding Good Acceptable Unacceptable
Very impressed by The performance in this The performance The efforts are
the performance of category is more than expectations are fulfilled not enough in this
the individual in this expected. Keep on the but there is room for category.
category. good work. improvements. Seriously need an
improvement
plan.
Categories 4 3 2 1 Comments
Attitude
Communication
Work output
Productivity
Creativity
Authority
Dependability
Strength
Weakness
Other comments
Signature
SUMMARY:
In this module, we have studied the meaning of performance Appraisal. It is a process of
summarizing, assessing and developing the work performance of an employee which is
reviewed on the basis of employee’s performance of assigned duties and responsibilities
and based on results obtained by the employee in their job.
CONCLUSION:
In conclusion, performance appraisal is an important process that provides numerous
benefits to both employees and organizations. It helps employees identify areas for
improvement, set goals, receive feedback, and receive recognition for their achievements. A
performance evaluation conclusion John consistently exceeds expectations and is always
willing to help others. During this appraisal, a manager will discuss the employee's recent
achievements, how they're fulfilling their responsibilities, their progress toward goals, and
areas of improvement — with the objective of helping that employee perform even better
moving forward. Performance appraisal is a method of evaluating the behaviour of
employee in the work spot. Normally including both the quantitative and qualitative aspects
of the job performance.
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