Effective Tools & Technique of Performance Appraisal (PowerPoint PPT Slide Deck)

Lecture Outline
1. Detail of Performance Assessment (PA)
2. 10 Step in Developing A New PA System
3. Get Top Management Actively Involved
4. Establish the criteria for an ideal system
5. Appoint An Implementation Team
6. Build Mission, Vision, Values, and Core Competencies
7. Ensure Ongoing Communication
8. Train & Orient All Appraisers
9. Monitor and Revise The Program
10. Tools & Technique
a. Essay appraisal
b. Graphic rating scale
c. Field review
e. Forced-choice rating
f. Critical incident appraisal
g. Management by Objectives approach
h. Works standard approach
i. Ranking methods
j. Assessment Centers

The term performance appraisal refers to the regular review of an employee's job performance and overall contribution to a company. Also known as an annual review, performance review or evaluation, or employee appraisal, a performance appraisal evaluates an employee's skills, achievements, and growth, or lack thereof.

Companies use performance appraisals to give employees big-picture feedback on their work and to justify pay increases and bonuses, as well as termination decisions. They can be conducted at any given time but tend to be annual, semi-annual, or quarterly.

Performance appraisals are usually designed by human resources (HR) departments as a way for employees to develop in their careers. They provide individuals with feedback on their job performance. It ensures that employees are managing and meeting the goals expected of them, giving them guidance on how to reach them if they fall short.

Because companies have a limited pool of funds from which to award incentives, such as raises and bonuses, performance appraisals help determine how to allocate those funds. They provide a way for companies to determine which employees have contributed the most to the company's growth so companies can reward their top-performing employees accordingly.

Performance appraisals also help employees and their managers create a plan for employee development through additional training and increased responsibilities, as well as to identify ways the employee can improve and move forward in their career.

Ideally, the performance appraisal is not the only time during the year that managers and employees communicate about the employee's contributions. More frequent conversations help keep everyone on the same page, develop stronger relationships between employees and managers, and make annual reviews less stressful.