APPROACHES, ISSUES & CHALLENGES IN APPRAISAl

APPROACHES, ISSUES &
CHALLENGES IN APPRAISAL
Presented By:-
Alisha Pandit
Bhavya
Ramaque Jawaid Warsi
Subodh Kant Pandey
APPRAISAL IN TODAY’S WORLD
• Performance appraisals are an annual process where an employee’s performance and

productivity is evaluated against a predetermined set of objectives.
• The employee performance appraisal process is crucial for organizations to boost employee
productivity and improve their outcomes.
• To prevent performance appraisals from becoming nothing more than empty buzzwords, HR
managers need to revamp their existing process and try implementing methods that are listed
below.
SIX MOST-USED MODERN PERFORMANCE METHODS:
1. MANAGEMENT BY OBJECTIVE (MBO)

• Ideal for measuring the quantitative and qualitative output of senior management like managers,
directors, and executive (business of any size).
• Retail giant Walmart, uses an extensive MBO participatory approach to manage the performance
of its top, middle, and first-line managers.
MANAGEMENT BY OBJECTIVE PROCESS FLOW
2. 360-DEGREE FEEDBACK
• Ideal for private sector organizations than public sector organisations as peer reviews at public sector
organizations are more lenient.
• Include five major components :
 Self Appraisal
 Managerial Reviews
 Peer Reviews
 Subordinates Appraising Manager (SAM)
 Customer or Client Reviews.
• RBS, Sainsbury’s, and G4S are using 360-degree, multi-rater performance feedback to measure employee
performance.
3. ASSESSMENT CENTRE METHOD
• Ideal for manufacturing organizations, service-based companies, educational institutions, and

consulting firms to identify future organizational leaders and managers.
• Microsoft, Philips, and several other organizations use the assessment centre practice to identify
future leaders in their workforce.
STAGES IN TYPICAL ASSESSMENT CENTRE
APPRAISAL
4. BEHAVIOURALLY ANCHORED RATING SCALE (BARS)
• Behaviourally anchored rating scales (BARS) bring out both the qualitative and quantitative
benefits in a performance appraisal process. BARS compares employee performance with
specific behavioural examples that are anchored to numerical ratings.
• Ideal for businesses of all sizes and industries can use BARS to assess the performance of their
entire workforce from the entry level agent to c-suite executives
5. PSYCHOLOGICAL APPRAISALS
• This method focuses on analysing an employee’s future performance rather than their past work.
These appraisals are used to analyse seven major components of an employee’s performance
such as interpersonal skills, cognitive abilities, intellectual traits, leadership skills, personality
traits, emotional quotient, and other related skills.
• Large enterprises can use psychological appraisals for an array of reasons including development
of leadership pipeline, team building, conflict resolutions, and more.
6. HUMAN-RESOURCE (COST) ACCOUNTING METHOD
• Effectively measure the cost and value that an employee brings to the organization
• Help identify the financial implications that an employee’s performance has on the organization’s
bottom line
• Ideal for Startups and small businesses where the performance of one employee can make or
break the organization’s success.
CHALLENGES IN APPRAISAL :-
• Several problems may arise during performance appraisals. Some problem arises from the
manager, some from the employees and some from other factors (Wells et.al, 1994).
• Most employees dislike performance appraisal interviews for fear of criticism, fear of
uncertainty in handling question and fear that their salaries, promotions and their destinies with
the organization hinge upon the outcomes of these interviews as justification for decisions that
are already made concerning salaries, promotions and job tenures.
• Sometimes organizations come across various problems and challenges of performance appraisal
in order to make a performance appraisal system effective and successful.
CONCLUSION :-
• In the end choosing the right performance appraisal method is more critical than ever since it
reflects what we think of your employees and how much we care about employee morale.
• Once we’ve found an ideal performance review method for our needs, the next step is
implementing it properly to eliminate critical performance gaps and address pressing issues that
impact ROI.

APPROACHES, ISSUES & CHALLENGES IN APPRAISAl

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

APPROACHES, ISSUES & CHALLENGES IN APPRAISAl

Uploaded by

Copyright:

Available Formats

APPROACHES, ISSUES &

• Performance appraisals are an annual process where an employee’s performance and

1. MANAGEMENT BY OBJECTIVE (MBO)

• Ideal for manufacturing organizations, service-based companies, educational institutions, and

You might also like