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Performance Appraisals
Rating: 4.6 out of 5(39 ratings)
293 students

Performance Appraisals

Performance appraisal means evaluating an employee’s current & past performance relative to his performance standards.
Created byManagement Study Guide
Last updated 7/2026
English
English [Auto],

What you'll learn

  • Explain what is Performance Appraisal
  • Describe the purpose of Performance Appraisal
  • Define Goals and Work Efforts
  • Define Performance Criteria
  • Explain the steps in Performance Appraisal Process
  • Describe Who Should Do the Appraising
  • Explain the various methods of Performance Appraisal
  • Explain the importance of Appraisal Interview
  • Explain the Requirements of an Effective Appraisal System
  • Describe the errors of Performance Appraisal

Course content

2 sections • 12 lectures • 40m total length

  • Introduction2:35

    Explore performance appraisals, including their purpose, goals, criteria, steps, appraisers, methods, and the appraisal interview, to inform effective promotion decisions.

  • Explain what is Performance Appraisal1:10

    Assess employees' personality, performance, and potential through a performance appraisal review process, communicate performance and establish plans for improvement, with two to three appraisals yearly.

  • Describe the purpose of Performance Appraisal1:40

    Explain how performance appraisal offers direction, provides feedback on performance, and fuels improvement to align employee efforts with organizational goals.

  • Define Goals and Work Efforts1:10

    Define clear goals and work efforts for each employee aligned with the company's strategic goals, using smart goals—specific, measurable, attainable, and timely—to guide daily direction and encourage participation.

  • Define Performance Criteria1:00

    Define performance criteria to guide performance appraisals by translating job requirements into acceptable or unacceptable behavior levels, and note gap between ideal and actual criteria and predictors in job analysis.

  • Explain the steps in Performance Appraisal Process0:52

    Set and communicate performance standards, measure and compare them, plan the performance and identify goals, and conduct appraisal interviews to discuss the next period with coaching and development.

  • Describe Who Should Do the Appraising1:03

    Evaluate performance using 360 degree feedback and multiple raters beyond the immediate supervisor to reduce bias, including peers, rating committees, self, and subordinates.

  • Explain the various methods of Performance Appraisal16:05

    Explore diverse performance appraisal methods, including graphic rating scales, management by objectives, 360-degree feedback, bars, checklists, essays, and ranking, with their advantages and drawbacks.

  • Explain the importance of Appraisal Interview1:54

    Review the appraisal with the subordinate, develop a direct action plan to correct deficiencies and reinforce strengths, and encourage the employee to talk during the interview, empathetically handling defensive behavior.

  • Explain the Requirements of an Effective Appraisal System5:40

    Explore the components of an effective appraisal system, including role clarity, developmental goals aligned with strategy, ongoing monitoring and feedback, coaching, rewards, standardization, open communication, and well-documented ratings.

  • Describe the errors of Performance Appraisal7:33

    Explore common errors in performance appraisals, including unclear standards, halo effect, biases, central tendency, and recency, and learn practical fixes like behaviorally anchored scales and improved guidelines.

Requirements

  • No prior knowledge is required

Description

Performance Appraisal (PA) is the process that is used to evaluate the personality, performance and potential of the employees of an organization. It is a process of evaluating and communicating to an employee how he or she is performing the job and establishing a plan for improvement. Hence, it is a system of review and evaluation of job performance to assess accomplishments and to evolve plans for development.

Performance appraisal means evaluating an employee’s current and/or past performance relative to his performance standards. 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’’. It is the step where the management finds out how effective it has been at hiring and placing employees. It is recommended that in addition to an annual formal performance appraisal, informal performance appraisals should be conducted two or three times a year.

The main purpose of any organization is to make sure that all the employees work towards the strategic goal of the company. For this purpose, it is crucial that the company should define well-defined and clear goals and work efforts to each employee. Each employee should clearly know his goals and work effort. He should know, towards which direction he is working each day. It is essential that the goals and work effort defined should be specific, measurable, challenging, practically feasible and encourages participation.

to translate job reqPerformance Criteria helps uirements into levels of acceptable or unacceptable employee behaviour. It is essential to define ‘Performance Criteria’ for conducting a performance appraisal. Hence, ‘performance criteria’ is an important determinant of performance.

Who this course is for:

  • Human Resource Professionals
  • Managers
  • Project managers
  • Supervisors

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