Performance Appraisal 
                     Performance Appraisal
Performance Appraisal Meaning and Definition
Definition: Performance appraisal is 
Meaning: It is a regular assessment 
defined as system which 
used to verify the contribution of 
communicate about the ideal 
employee’s performance to the 
performance of the employee and the 
organization
actual performance of the employee. 
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Types of Employee Performance Appraisal
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 Methods of  Performance Appraisal
Traditional Methods Modern Methods
1. Rating Scales 1. Management by Objectives
2. Checklist 2. Psychological Appraisals
3. Forced Choice Method 3. Assessment Centers
4. Forced Distribution Method 4. 360-Degree Feedback
5. Critical Incidents Method 5. 720-Degree Feedback
6. Behaviorally Anchored Rating Scale
7. Field Review Method
8. Performance Tests and Observations
9. Confidential Reports
10. Essay Method
11. Cost Accounting Method
12. Comparative Evaluation Approaches
Objectives of Employee Performance Appraisal
Keep records Determine the 
to decide strengths and 
salary of weaknesses of Know about 
employees the employees future growth 
potential of 
the employee
Objectives of Performance Appraisal
Provide 
feedback of Inputs about 
Makes 
the training employees employee 
needs work orientedperformance
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Advantages and Disadvantages of Performance 
Appraisal
Advantages Disadvantages 
• Helps in promotion and dismissal decisions • Many times the vital factors are ignored while 
• Provide framework and information to decide compensation measuring the performance.
• Helps to decide the developmental programs for employees • Emotional and psychological factors are difficult to
• Guide the hiring process to make selection more accurate quantify.
• Effectively convey the performance status to employee • If the evaluation is carried out by less qualified person
• Motivates the employee to improve their performance then the process is of no use to the organization. 
Thank You 
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