Meaning of performance appraisal
Method of performance appraisal
Principles of performance appraisal
Limitations of Performance appraisal
Meaning and definition of promotion
Important objectives of promotion
Advantages of promotion
Disadvantages of promotion
2. What Is a Performance Appraisal?
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
3. Method of Performance Appraisal
Past-oriented Methods (Also known as Traditional Methods of
Performance Appraisal)
Rating Scales
Checklists
Forced Choice
Forced Distribution
Critical Incident
Performance test and observation
Field review
Confidential Record
Essay method
Comparative Evaluation Approaches
Cost Accounting Method
Behaviorally Anchored Rating Scales
4. •Future Oriented Methods (Also known as Modern
Methods of Performance Appraisal)
• Management by objectives
• Psychological Appraisal
• Assessment Centres
• 360-Degree Feedback
• 720-Degree Feedback
Performance Appraisal is a part of performance
management. It helps in gaining the competitive edge, by
improving the performance level of the employees
working in the organization, making rational decisions
regarding hike in salaries, promotions, transfers,
discharge of the employees, reducing job dissatisfaction
and employee turnover.
5. PRINCIPLES OF PERFORMANCE APPRAISAL
Single employee is rated by two raters. Continuous
and personal observation of an employee is
essential to make effective performance appraisal.
The rating should be done by an immediate superior
of any subordinate in an organization. A separate
department may be created for effective
performance appraisal.
6. LIMITATIONS OF PERFORMANCE
APPRAISAL
The performance appraisal methods are
unreliable. If an employee is well known to an
employer, the performance appraisal may not
be correct. The inability of supervision to
appraise an employee does not bring out the
accurate performance appraisal. Some
qualities of an employee can not be easily
appraised through any performance appraisal
method. A supervisor may appraise an
employee to be good to avoid incurring his
displeasure. Uniform standards are not
followed by the supervisors in the
7. Promotion – Meaning and
Definition
Promotion means the advancement of an employee to a
higher job involving more work, greater responsibility
and higher status. It may or may not be associated with
the increment in salary. Sometimes, salary of the
employee also increases with the promotion. Sometimes
it is not so. When an employee is promoted but his salary
does not increase it is known as dry promotion.
Promotion means the placement of an employee on a
higher post involving greater amount of responsibility,
better status, more pay and more perks.
8. Promotion – 11 Important Objectives
i. It is recognition of a job well done by the employee.
ii. It is to increase the employee’s and the organization’s effectiveness.
iii. Promotion builds loyalty, morale, and belongingness on the part of the employee.
iv. Promotion impresses upon others that opportunities are available to them also if
they perform well.
v. Promotion is a device to retain and reward an employee for his years of service to the
organization.
vi. a concrete promotion policy should be based on the following aspects
vii. Encouragement of promotion within the organizations, instead of looking outside to
fill vacancies in higher posts.
viii.An understanding that ability as well as seniority will be taken into account in
making promotions.
ix. Drawing up an organization chart to make clear to all the ladders of promotion.
x. All promotion should be for a trial period. Normally during this trial period the
employee draws the pay of the higher post.
xi. It should be clearly understood that if “he does not make the grade” he will be
reverted to his former post
9. Advantages of promotion
It evaluates the creativity.
It creates a competitive environment among employees and
they try to show their capability.
Innovative and creative employees get chance to perform
according to their ideas.
This process is able to remove the traditionalism and
conservatism.
By this process, meritorious, competent, energetic
employees are rewarded.
Hard works are encouraged by this process.
Young but energetic employees are motivated and
encouraged by this process.
10. Disadvantages of promotion
By this process of partiality, nepotism etc are increased
in the organization.
Senior employees become frustrated during this process.
It is very difficult to find out meritorious and competent
employees and also there is no standard to evaluate it.
This process does not deal with experience, obedience,
and reliability.
Employees are discouraged and they get no reason to
stay in the same organization for a long time.
This process increases the autocratic among the
superior. They take a decision by their own self without
evaluating the employees
