KAMALNAYAN BAJAJ NURSING COLLEGE
Submitted to: Submitted by:
Mr. Vikrant Kulthe Ms. LaveenaAswale
Assisstant professor IIndyear M.sc nursing
Performance appraisal, also known as employee appraisal, is a method by
which the performance of an employee is evaluated (generally in terms of
quality, quantity, cost and time). The roots of performance appraisal can be
found in Frederick Winslow Taylor 's time and motion study.
People differ in their abilities and their aptitudes. There is always
some difference between the quality and quantity of the same work on the
same job being done by two different people. Performance appraisals of
Employees are necessary to understand each employee’s abilities,
competencies and relative merit and worth for the organization. Performance
appraisal rates the employees in terms of their performance. It is widely used
in the society.
According to Newstrom, “It is the process of evaluating the performance of
employees, sharing that information with them and searching for ways to
improve their performance’’.
A performance appraisal (PA) is a systematic and periodic process that
assesses an individual employee’s job performance and productivity in
relation to certain pre-established criteria and organizational objectives.
OBJECTIVES OF PERFORMANCE APPRAISAL
To provide an opportunity for reflection and feedback on work
performance and the work environment for a given period of time
between an employee and supervisor.
To acknowledge and encourage appropriate and above standard
To identify and remove distracters, dissatisfiers and obstacles as well as
To identify areas of growth for employees and organizations.
Principles of performance appraisal:
Objectives of appraisal are identified to all parties.
Results by appraisal are clearly understood.
The appraisal process and tools are developed with input from all levels
of employees affected by the job responsibilities.
The supervisor has received education and training in the use of appraisal
process and tool.
The appraisal process is valued by the organization.
The appraisal process occurs consistently.
In nursing, certain principles must be followed:
1) Assess the performance in relation to behaviorally stated work goals. The
employee’s evaluation should be based on behaviorally stated performance
standards for the position occupied. E.g. Keep job description of nursing
2) Observe the representative sample of employee’s total work activities. An
adequate representative sample of the nurse’s job behavior should be
observed to provide a basis for evaluation.
3) Compare supervisor’s evaluation with employees self evaluation. The
nurse should be given a copy of her or his job description, performance
standards and performance evaluation form to review before the evaluation
conference (so that supervisor and nurse can approach their discussion from
the same frame and reference)
4) Cite specific examples of satisfactory and unsatisfactory performance
while documenting nurse’s performance appraisal. The manager/supervisor
should cite specific instances of satisfactory/ unsatisfactory behavior to
substantiate evaluative statement.
5) Indicate which job areas have highest priority for improvement.
PURPOSE OF PERFORMANCE APPRAISAL
To provide backup data for management decisions, concerning salary
standards, merit increases, selection of qualified individuals for hiring,
promotion or transfer and demotion or termination of unsatisfactory
To serve as a check on hiring and recruiting practices and as validation of
To motivate employs by providing feedback about their work.
To discover the aspirations of employees and to reconcile them with the
goals of the organization.
To provide employees with recognition for accomplishments.
CHARACTERISTICS OF PERFORMANCE APPRAISAL
The philosophy, purpose and objectives of the organizations are clearly
stated so that the performance appraisal tools can be designed to reflect
Job descriptions are written in such a manner that standards of job
performance can be identified for each job.
Evaluators are trained in the use of tool.
Plans for policing the appraisal procedure and evaluating appraisal tools
are developed and implemented.
Performance appraisal has the full support of the top management.
The appraisal tool used is suited to the purposes for which it will be
utilized and is accompanied by clear instructions for its use.
REASONS FOR APPLICATIONS OF PERFORMANCE APPRAISAL
A central reason for the utilization of performance appraisals (PAs) is
performance improvement (“initially at the level of the individual
employee, and ultimately at the level of the organization”).
Other fundamental reasons include “as a basis for employment decisions
(e.g. promotions, terminations, transfers), as criteria in research (e.g. test
validation), to aid with communication (e.g. allowing employees to know
how they are doing and organizational expectations), to establish
personal objectives for training” programs, for transmission of objective
feedback for personal development, “as a means of documentation to aid
in keeping track of decisions and legal requirements” and in wage and
Additionally, PAs can aid in the formulation of job criteria and selection
of individuals “who are best suited to perform the required organizational
tasks”. A PA can be part of guiding and monitoring employee career
development. PAs can also be used to aid in work motivation through the
use of reward systems.
WHEN PERFORMANCE APPRAISALS ARE CONDUCTED
Performance appraisals (PAs) are conducted at least annually. However, “it
has been acknowledged that appraisals conducted more frequently (more
than once a year) may have positive implications for both the organization
It is suggested that regular performance feedback provided to employees
may quell any unexpected and/or surprising feedback to year-end
discussions. In a recent research study concerning the timeliness of PAs,
“one of the respondents even suggested that the performance review should
be done formally and more frequently, perhaps once a month, and recorded
twice a year.”
Other researchers propose that the purpose of PAs and the frequency of their
feedback are contingent upon the nature of the job and characteristics of the
employee. For example, employees of routine jobs where performance
maintenance is the goal would benefit sufficiently from annual PA feedback.
On the other hand, employees of more discretionary and non-routine jobs,
where goal-setting is appropriate and there is room for development, would
benefit from more frequent PA feedback.
PROCESS OF PERFORMANCE APPRAISAL
1. Establish Performance Standards
Appraisal systems require performance standards, which serve as
benchmarks against which performance is measured. In order to be useful,
standards should relate to the desired results of each job. Appraisals must
have a clear- cut criteria. Performance standards must be both to the
appraiser and the appraise. The performance standards of goals must be
developed after a thorough analysis of the job. Goals must be written down.
They must be measurable within certain time and cost considerations.
2. Communicate the Standards
Performance appraisal involves attract two parties; the appraiser who does
the appraisal and the appraise whose performance is being evaluated. Both
are expected to do certain things. The appraiser should prepare job
descriptions clearly, help appraise set his goals and targets; analysis results
objectively; offer coaching and guidance to appraise whenever required and
reward good results. The appraiser should be very clear about what he is
doing and why he is doing. For this purpose, the performance standards must
be communicated to appraise and their reactions are noted initially. These
standards must be revised or modified as and when required.
3. Measure Actual Performance
After the performance standards are set and accepted, the next step is to
measure actual performance. This requires the use of dependable
performance measures, the ratings used to evaluate performance.
Performance measures in order to be helpful must be easy to use, reliable
and report on the critical behaviors that determine performance. Generally,
managers regarding how to measure actual performance use four common
sources of information: personal observation, statistical reports, oral reports
and written reports.
4. Compare Actual Performance with Standards
Actual performance may be better than expected and sometimes it may even
go off then track. The assessment of another person's contribution and ability
is not an easy task. It has serious emotional overtones as it affects the self-
esteem of the appraise. Any appraisal asked on subjective criteria is likely to
be questioned by the appraisers and leave him quite dejected and unhappy
when the appraisal turns out to be negative.
5. Discuss the differences
If there have any major difference between actual and standard, that will be
discussed in management and discuss with particular employee or group.
6. Corrective Action, if Necessary
Corrective action is of two types: The one, which puts out the fires
immediately and the other one, which strikes at he root of the problems
permanently. Immediate action sets things right and get things back or track,
whereas the basic corrective action gets to the source of deviations and
seems to adjust the difference permanently. Basic corrective step seek to
find out how and why performance deviate.
METHODS OF PERFORMANCE APPRAISAL
a) Essay technique:
The evaluator writes a paragraph or more regarding a particular employee’s
strength & potential. Essay content should reflect the employee’s
performance in relation to his job description. It may also include
information about personal characteristics which are pertinent to the
employee’s job such as the ability to work well with others or motivation for
Advantages of essay:
1) Provide in depth analysis of performance.
2) Helps to identify training & development needs & problem areas.
Disadvantages of essay:
1. Time consuming
2. Vary greatly in length & content
3. Difficult to combine & compare
b) Graphic rating scale:
It requires a rater to assign a numerical value to each dimensions of
performance to indicate judgments ranging from superior to unsatisfactory.
Advantages of graphic rating scale:
1) More consistent & reliable than essay
2) Acceptable to raters
3) Easy to construct
Disadvantages of graphic rating scale:
1) Does not yield the depth of information
Checklist calls for a simple “yes or no”. It is a method of recording whether
a characteristic is present or absent or whether an action is taken or not.
Advantage of checklist
1. Helps for the evaluation of large number of employees.
Disadvantage of checklist:
1)Difficult to construct.
This may be utilized to avoid rater bias or to allow comparison of several
supervisor’s rating for the same employee. A member of the personal or
central administrative staff meets with a small group of rater and reviews
each employee’s rating to:
Identify areas of inter-rater agreement
Help the group arrive at a consensus
Determine that each rater conceives the standards similarly.
Advantage of field review:
1. Group judgment seems to be more fair and valid
Disadvantage of field review:
1) Time consuming
e) Rating method
In this method the rater is asked to choose from among groups of statements,
those which ‘best fit’ the individual being rated and those which ‘least fit
him’. The statements are then weighed & scored.
Advantage of rating method:
1. Reduce bias since the rater does not know the scoring value for each
Disadvantage of rating method:
1) Costly to develop
f) Critical incidence:
It is operated by the supervisors by collecting and recording instances of
their subordinates performing in the ways that are of critical importance to
the success or failure of the job. These critical incidences are reviewed with
the employees during a schedule feedback interview.
Advantage of critical incidence:
1) Evaluator rates performance rather than personality traits.
2) Helps supervisor do a better coaching job and communicate
performance appraisal information to subordinates.
Disadvantage of critical incidence:
1) Difficult to accomplish
2) Time consuming
g) Management by objectives:
It focuses on the supervisor’s observation of the subordinate’s performance
measured against specific, predetermined goals which have been jointly
which have been agreed by both. During a feedback interview, the superior
discusses the results and his evaluation with the subordinate & new goals for
the following time period are established.
1) It avoids the problem of criticism by employees that are being
judged by unfairly high standards.
2) It encourages employee’s participation in setting their own work
1) Employee’s goals may not coincide with management.
2) Employees may not always want to be involved in their goal
h) Work standard technique
When utilizing work standard techniques, management sets measurable,
identifiable work standards for each job. These may be either quantitative or
qualitative standards or both.
1. If adequate time is spent arriving at realistic output standards, work
standards technique’s primary advantage is that an objective and
accurate appraisal of the work of employees can result.
1. The disadvantage is that comprising employees become
difficult if different standards are used for different job.
i) Ranking method
The two most common ranking methods are
Paired comparison ranking.
In the alternation ranking method, the names of employees are listed on the
left hand side of a sheet of papers in random order. The supervisor begins by
choosing the most valuable employee on the list and writing his name at the
top of the column on the right hand side of the sheet.
The least valuable employee is then selected & his name is written at the
bottom of the right hand column. The supervisor next chooses the most
valuable person from the remaining list of names, enters his name below the
top name on the right hand list, and so on. This procedure produces an order
of merit ranking.
Paired Comparison ranking:
In this, we list the names of the employees on the left side of the sheet. On
the basis of the criteria we compare the performance of each employee with
that of the other and put tally marks infront of their names accordingly. The
man with the most tallies is the most valuable person and the man with no
tallies at all is regarded as the least valuable person.
1. They are especially useful in making decision about salary
administration, promotion, selection, particularly when done
independently by several raters and combined.
1) Time consuming
j) Assessment center technique:
It is used to select a person for a job for which he has no prior experience, or
to assess potential. Typically individuals from different departments are
brought together to spend two or three days working on individual and group
assignment similar to the one they will be handling if they are promoted.
The pooled judgment of observers sometime derived by paired comparison
or alternation ranking loads to an order of merit ranking for each participant.
1. The primary advantage of using an assignment center is that it allows
employees who are unknown to the top management to be seen &
assessed, and this can improve morale in an organization.
1. The major disadvantage is that assignment centers are both costly and
OBSTACLES TO EFFECTIVE PERFORMANCE
1) Lack of support from top management.
2) Resistance on the part of evaluators because:
a) Performance appraisal demands too much of supervisor’s efforts in
terms of time, paper work and periodic observation of subordinate’s
b) Supervisors do not fully understand the purposes and procedures of
c) Supervisors lack skills in appraisal techniques.
d) Performance appraisal is not perceived as being productive.
3) Evaluator biases and rating errors, which result in unreliable and invalid
4) Lack of clear, objective standards of performance.
5) Failure to communicate purposes and results of performance appraisal to
6) Lack of suitable appraisal tool.
7) Failure to police the appraisal procedure effectively.
ADVANTAGES OF PERFORMANCE APPRAISAL
Promotion: Performance Appraisal helps the supervisors to chalk out the
promotion programmes for efficient employees. In this regards, inefficient
workers can be dismissed or demoted in case.
Compensation: Performance Appraisal helps in chalking out compensation
packages for employees. Merit rating is possible through performance
appraisal. Performance Appraisal tries to give worth to a performance.
Compensation packages include bonus, high salary rates, extra benefits,
allowances and pre-requisites are dependent on performance appraisal. The
criteria should be merit rather than seniority.
Employees Development: The systematic procedure of performance
appraisal helps the supervisors to frame training policies and
programmes. It helps to analyse strengths and weaknesses of
employees so that new jobs can be designed for efficient employees. It
also helps in framing future development programmes.
Selection Validation: Performance Appraisal helps the supervisors to
understand the validity and importance of the selection procedure. The
supervisors come to know the validity and thereby the strengths and
weaknesses of selection procedure. Future changes in selection
methods can be made in this regard.
Communication: For an organization, effective communication
between employees and employers is very important.
Through performance appraisal, communication can be sought for in
the following ways:
Through performance appraisal, the employers can understand
and accept skills of subordinates.
The subordinates can also understand and create a trust and
confidence in superiors.
It also helps in maintaining cordial and congenial labour
It develops the spirit of work and boosts the morale of
DISADVANTAGES OF PERFORMANCE APPRAISAL
1) One Sided Input
Traditional performance appraisals involve a supervisor and supervisee,
both of which have limited perspectives. As with any situation, limited
perspectives lead to a limited amount of information by which to judge
If a manager is busy supervising several people, as well as tasks and other
projects, then there will be limited time to take in the full scope and practice
of the performance of the supervisee. As an alternative, many industries
today are utilizing 360-degree feedback, which takes into account the
relationships that an employee has with peers, customers, clients,
supervisors and those whom the supervisee is responsible for overseeing.
2) Forms Only Give Quantitative or Qualitative Data
Many times, feedback forms that are utilized in performance appraisals only
use quantitative or qualitative measures, but not both. Quantitative appraisals
mainly measure numbers, such as how many projects, how many were on
time. While this is important, there are other things to take into
Qualitative benchmarks involve the completion of personal or professional
goals and the stories of how the supervisee utilized opportunities to lead by
example and proactively implement the values and mission of the
organization. Listening to the stories of what has happened over the past
year and looking at numbers and outcomes will result in a clearer picture of
what the value of the employee is to the organization.
3) Once-a-Year Raises
Performance appraisals are usually done once a year and are connected to an
increase in salary. This is a disadvantage in that supervisees generally live in
fear and experience anxiety when their review time comes up. Having more
consistent interaction when it comes to feedback between management and
supervisees can help reduce the fear, anxiety and wondering about a raise.
Furthermore, the employee naturally will want to bargain for more money
focusing on their strengths and the management will want to emphasize the
constructive areas of performance evaluation in order to keep from giving
raises, since money is a limited resource in any organization. This adds to
the stress of the review.
Halo Effect: It is the tendency to over rate a person’s performance or over
emphasize a positive event, i.e. rating the person higher than deserved for
Horn effects: It is the tendency to rate an employ lower than that
performance, for various reasons or over emphasize a negative event &
under rate total performance.
Central Tendency error: In this performance a person is not is not
observed and medium rating given for all tasks.
Self Aggrandizing effect: Rates worker so as to create favorable view of
Performance appraisal & legal implication:
There are federal laws addressing fair employment practices, and this also
concerns performance appraisal (PA). Discrimination can occur within
predictions of performance and evaluations of job behaviors. The revision of
many court cases has revealed the involvement of alleged discrimination
which was often linked to the assessment of the employee’s job
Some of the laws which protect individuals against discrimination are “the
Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the
Age Discrimination in Employment Act (ADEA), and the Americans with
Disabilities Act(ADA).”Lawsuits may also results from charges of an
employer’s negligence, defamation, and/or misrepresentation.
A few appraisal criteria to keep in mind for a legally sound PA is to keep the
content of the appraisal objective, job-related, behavior-based, within the
control of the ratee, and related to specific functions rather than a global
Some appraisal procedure suggestions for a legally sound PA is to
standardize operations, communicate formally with employees, provide
information of performance deficits and give opportunities to employees to
correct those deficits, give employees access to appraisal results, provide
written instructions for the training of raters, and use multiple, diverse and
unbiased raters. These are valuable but not exhaustive lists of
recommendations for PAs.
Cross cultural implication of performance appraisal:
Performance appraisal (PA) systems, and the premises of which they
were based, that have been formed and regarded as effective in the
United States may not have the transferability for effectual utilization
in other countries or cultures, and vice versa. Performance “appraisal
is thought to be deeply rooted in the norms, values, and beliefs of a
society”. “Appraisal reflects attitudes towards motivation and
performance (self) and relationships (e.g. peers, subordinates,
supervisors, organization), all of which vary from one country to the
next”. Therefore, appraisal should be in conjunction with cultural
norms, values, and beliefs in order to be operative. The deep-seated
norms, values and beliefs in different cultures affect employee
motivation and perception of organizational equity and justice. In
effect, a PA system created and considered effectual in one country
may not be an appropriate assessment in another cultural region.For
example, some countries and cultures value the trait of assertiveness
and personal accomplishment while others instead place more merit
on cooperation and interpersonal connection. Countries scoring high
on assertiveness consider PA to be a way of assuring equity among
employees so that higher performing employees receive greater
rewards or higher salaries.
Countries scoring low on assertiveness but higher in interpersonal
relations may not like the social separation and pay inequity of
higher/lower performing employees; employees from this more
cooperative rather than individualistic culture place more concern on
interpersonal relationships with other employees rather than on
High assertive countries value performance feedback for self-
management and effectiveness purposes while countries low in
assertiveness view performance feedback as “threatening and
obtrusive”. In this case, the PA of the high assertive countries would
likely not be beneficial for countries scoring lower in assertiveness to
employ. However, countries scoring lower in assertiveness could
employ PA for purposes of improving long-term communication
development within the organization such as clarifying job objectives,
guide training and development plans, and lessen the gap between job
performance and organizational expectations.
PLAN OF ACTION
PROCESS OF STAFF EVALUATION
The Performance Appraisal process involves the following steps:
NAME OF INSTITUTE ( HOSPITAL)
APPRAISAL FORM FOR STAFF NURSE
Review Period: from ______________ to ______________________
Signature of staff: Overall appraisal:
Signature of reporting officer(S/I): Signature of reviewing
Signature of reviewing officer (NS): Signature of Medical
NAME OF THE INSTITUTE
APPRAISAL FORM FOR ANS/DNS
Review Period: from _____________ to _____________________
Date of joining:______________ Date:
Complete this review record using the following scale:
1- Poor, 2- Fair, 3- Good, 4- Very Good, 5- Outstanding
General assessment Nursing superintendent
1 2 3 4 5
1 Knowledge of work
5 Decision making
6 Human resource
7 Management skills
9 Managing change and
Performance area which need improvement:
Signature of ANS/DNS: Overall appraisal
Signature of reviewing officer (NS): Signature of Medical
NAME OF THE INSTITUTE(NURSING COLLEGE)
APPRAISAL FORM FOR TUTOR
Review Period: from ___________ to ______________
y approach to
n skills with
others in the
skills in the
resources in an
diversity in the
clinical as well
as the college
by the tutor.
by the tutor.
Signature of Tutor: Overall appraisal:
Signature of reporting officer (H.O.D): Signature of reviewing
Performance appraisal or merit rating is one of the oldest and most universal
practices of management. The approach resulted in an appraisal system in
which the employee’s merits like initiative, dependability and personality
were compared with others and ranked or rated. The trend today is to
attempt to measure what man does (performance appraisal) rather than what
he is (merit rating). Appraisal can be made by one or more supervisors or by
subordinates or peers. There can even be a system of self- appraisal in which
an employee can evaluate his own performance and potential.
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Clement, I. Management of nursing services and education. 1st
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Vati, Joginder. Principles and Practice of Nursing Management and
edition, 2013, Jaypee Brothers Medical Publishers.
Cleveland JN, Murphy KR. Analysing performance appraisal as goal
directed behaviour. Research in Personal and Human Resource
Management 1992; 10: 121-185