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Performance Management


•Performance appraisal is a systematic evaluation of personal by supervisors/ others familiar with their performance because employees are interested in knowing about employee performance. Employees also wish to know their position in the Organisation.

•The overall objective of the performance appraisal is to improve the efficiency of the Organisation. Other objectives are enhancing the skills, placement, promotion, transfer, punishment etc.

Methods of Traditional appraisal

1.Free from essay method

2.Straight ranking method

3.Comparison method

4.Grading method

5.Graphic/linear rating scales

6.Forced choice description method

7.Forced Distribution method

8. Group appraisal method

Modern Method

1.Assessment Centre Workshop

2.Management by Objectives (MBO)

3.Human asset accounting method

4.Behavioural anchored rating scales

5. 360 degree appraisal method

•MBO is the most popular method in vogue to day.

It includes 1.Setting of Organisational sales (KRA setting)

2.KRA setting to be done jointly

3.Frequent review meeting

4.Sharing of feedback

•Advantages of MBO

1.Participative approach in goal setting

2.Enhances motivation level of the employees

3.Creates an atmosphere of competition

4.Provides objective appraisal method

5.Problems can be identified in advance

6.Effective tool to identify training and developmental needs


1.Concentrate on results and not on process

2.May lead to unhealthy competition

3.May create a conflicting situation

4.Sometimes soft targets are set to show higher achievement.

Appraisal in Banking industry

1.Self appraisal

2.Appraisal by the reporting authority

3.Review by the superior of reporting authority

Performance Review

1.Preparation for review

2.Appraisal interview

3.Giving feedback (not judgmental but suggestive)


•Managing average performers

•Motivating through counselling

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