Performance
Appraisal and
Employee
Development
P R E S E N T E D BY: G R O U P 6
COURSE: BCOM(PROG)
S U B J E C T: H R M
D AT E : 1 2 . 0 5 . 2 5
T E A C H E R N A M E : M S L A L I TA K U M A R I
Keshav Dev Gupta, 804,24016503140
Kanveer, 837,24016503114
Manan,811, 24016503133
Palakk bajaj,834,24016503116
Shivansh Aggarwal 825,24016503122
Performance Appraisal –
Definition & Nature
Performance management is a continuous process that helps
organizations align individual performance with strategic goals. It
involves setting clear expectations, providing regular feedback,
evaluating outcomes, and fostering employee development. The goal is
not only to assess performance but to enhance it through ongoing
support and improvement initiatives.
Objectives of
Performance Appraisal
Provide feedback to employees
Identify training and development needs
Basis for promotion, compensation, and transfers
Facilitate career planning
Improve organizational performance
Performance Appraisal
Process
Set performance standards
Communicate expectations
Measure actual performance
Compare performance with standards
Discuss appraisal with employee
Take corrective actions
Methods of Performance
Appraisal
Traditional Methods: Ranking, Rating Scale, Checklist
Modern Methods: 360-degree feedback, MBO, BARS
Traditional methods
1. Ranking Method
•Employees are ranked from best to worst based on overall performance.
•Simple and quick for small teams.
•Limitation: Doesn't show how much better one employee is than another; not ideal
for large or diverse teams.
2. Rating Scale Method
•Employees are rated on a scale (e.g., 1 to 5) across various criteria
like punctuality, teamwork, communication.
•Helps standardize evaluations across teams.
•Limitation: Subjective — ratings may be influenced by personal bias.
3. Checklist Method
•A checklist of traits or behaviors is used; the evaluator marks "Yes"
or "No" for each.
•Offers a structured review.
•Limitation: Doesn’t measure the intensity of performance or prioritize
criteria.
Modern methods
1. 360-Degree Feedback
•Performance is assessed by multiple sources: peers, subordinates, managers, and
even customers.
•Provides a well-rounded perspective.
•Limitation: Time-consuming and can be biased if anonymity is not ensured.
2. Management by Objectives (MBO)
•Employees and managers set specific, measurable goals
together.
•At the end of the period, performance is evaluated based on goal
achievement.
•Strength: Focuses on outcomes and aligns employee goals with
company objectives.
•Limitation: Ignores the behavioral aspects of performance.
3. Behaviorally Anchored Rating Scales (BARS)
1. Combines elements of the rating scale and critical incidents
method.
2. Defines performance levels with specific behavioral examples.
3. Strength: Increases objectivity by linking ratings to actual
behavior.
4. Limitation: Time-consuming to develop and customize for each
role.
Performance Management vs.
Appraisal
Aspect Performance Appraisal Performance Management
A continuous process of setting goals, assessing progress, and
Definition A periodic evaluation of an employee's performance.
providing feedback.
Focus Past performance and evaluation. Ongoing performance, development, and improvement.
Frequency Typically conducted annually or semi-annually. Continuous throughout the year.
Broad – includes planning, coaching, feedback, and
Scope Narrow – focuses mainly on evaluation.
development.
To develop, improve, and align performance with
Objective To rate or rank employee performance.
organizational goals.
Approach Often one-sided, top-down. Collaborative, involving both managers and employees.
Enhanced employee engagement, goal alignment, and skill
Output Performance rating, promotions, or salary decisions.
development.
Example Tools Appraisal forms, rating scales. KPIs, 360-degree feedback, performance coaching.
Potential Appraisal
Identifies employee's future potential
Assesses leadership and problem-solving skills
Helps in succession planning and talent development
Employee Counselling
Helps employees cope with personal/professional issues
Issues: stress, performance, conflicts, career dilemmas
Types: Directive, Non-directive, Participative
Employee Enhancement
Programs
Training and development
Career planning and mentoring
Skill development workshops
Leadership development programs
Transfers and
Promotions
Aspect Transfer Promotion
Definition Movement of an employee to a different Upward movement to a higher position
job or location at the same level. with more responsibility.
Change in Position Lateral – no change in rank or level. Vertical – involves higher rank or status.
Salary/Benefits Usually no change in salary or benefits. Typically includes a salary increase and
improved benefits.
Purpose Organizational needs, balancing workload, Recognizing performance, potential, or
or employee request. seniority.
Responsibilities May change, but usually remain similar in Increased duties and decision-making
scope. authority.
Motivational Impact Generally neutral. Highly motivational and morale-boosting.
Basis Can be initiated by management or Usually performance- or merit-based.
employee.
Frequency Can occur more frequently. Less frequent, based on specific criteria.
Best Practices in
Appraisal & Development
Set clear and measurable goals
Regular feedback and documentation
Use a mix of appraisal methods
Involve multiple reviewers (360°)
Link performance with rewards and development plans
Conclusion
Effective appraisals drive performance and morale
Employee development is key to organizational success
Transparency and fairness are essential in all HR practices
