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Pretty Bhalla, Lovely Professional University Unit 5: Performance Appraisal

Unit 5: Performance Appraisal Notes

CONTENTS

Objectives
Introduction
5.1 Meaning of Performance Appraisal
5.2 Process of Performance Appraisal
5.3 Approaches of Performance Appraisal

5.4 Summary
5.5 Keywords
5.6 Self Assessment
5.7 Review Questions

5.8 Further Readings
Objectives

After studying this unit, you will be able to:
Describe the process of performance appraisal
Explain the approaches of performance appraisal

Introduction

Many people believe that appraisal systems have created more problems than they have solved;
and question their very need in organizations. Experience has shown that appraisal is not a
play-safe gimmick. If these are not handled properly, appraisals can do a lot of damage to an
organization in the areas of employee morale, climate of trust and consequences for employee
relations.

5.1 Meaning of Performance Appraisal

Performance appraisal is a systematic evaluation of present potential capabilities of personnel
and employees by their superiors, superior’s or a professional form outside. It is a process of
estimating or judging the value, excellent qualities or status of a person or thing. It is a process
of collecting, analyzing, and evaluating data relative to job behavior and results of individuals.
The appraisal system is organized on the principle of goals and management by objectives.
Management decisions on performance utilize several integrated inputs: goals and plans, job
evaluation, performance evaluation, and individual history. It connotes a two-dimensional
concept-at one end of the continuum lies the goals set by the authority, and at the other end, the
performance achieved by the individual or any given group.
Performance appraisal can be either formal or informal. Formal appraisals are usage of former
systems schedule regular sessions in which to discuss an employee’s performance. Informal
appraisals are unplanned, often just chance statements made in passing about an employee’s
performance. Most organizations use a formal appraisal system. Some organizations use more
then one appraisal system for different types of employees or for different appraisal purposes.
Organizations need to measure employee performance to determine whether acceptable

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