Definition
  • Once the employees have been selected, 
    trained and motivated, they are then 
    appraised for their performance. 
  • PA is the step where the management 
    finds out how effective it has been at 
    hiring and placing employees.
  • If any problems are identified, steps are 
    taken to communicate with employees and 
    to remedy them.
  Definition
  • Performance appraisal is a process of 
   evaluating an employee’s performance of 
   a job in terms of its requirements.
  • It is the process of evaluating the 
   performance of employees, sharing that 
   information with them and searching for 
   ways to improve their performance, 
   coaching for improved performance and 
   distribution of economic rewards.
         Steps of Performance 
                   Appraisal
    • Performance appraisal is a process 
      involving such steps as:
      – Setting performance standard
      – Communicating performance expectations to 
        employees
      – Measuring actual performance
      – Comparing actual performance with the 
        standards
      – Discussing the appraisal results
      – Initiating corrective actions, if necessary.
                                                                                     Contd.
      Steps of Performance 
             Appraisal
   Step-1: Setting performance standard:
    The performance process begins with the establishment 
    of performance standards in accordance with the 
    organization’s strategic goals. Performance standards 
    serves as a benchmark against which performance is 
    measured.
   Step-2: Communicating performance expectations to 
    employees:
    Once performance standards are set, it is necessary to 
    communicate these expectations. It should not be part of 
    the employee’s job to guess what is expected of them. 
    Employees can be involved in setting standards.     Contd.
     Steps of Performance 
           Appraisal
  Step-3:Measurement of Actual performance: 
   The next step in the appraisal process is the 
   measurement of performance. To determine, what 
   actual performance is, it is necessary to acquire 
   information about it. 
   We should be concerned with how we measure and 
   what we measure. 
   Four common sources of information are frequently 
   used by managers regarding how to measure 
   actual performance: personal observation, 
   statistical reports, oral reports, and written reports.