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PRESENTED BY :
 NAYAN PATEL (120110105018)
 SACHIN PATEL (120110105029)
 CHARMIN PATEL (120110105016)
 RISHIT JHAVERI (120110105012)
 SANDIP MANGUKIYA (120110105061)

DEFINITION:
 It is the process of evaluating the performance of
employees, sharing that information with them and searching
for ways to improve their performance.

INTRODUCTION:
 Performance appraisal goes by various names such as
performance rating , progress rating, merit rating , merit
evaluation etc.
 Performance appraisal is the systematic evaluation of the
individuals with respect to his or her performance on the
job and his or her potential for development.

BASIC STEPS IN A PERFORMANCE APPRAISAL:
 Conduct ongoing observation and measurements to track
performance
 Exchange ongoing feedback about performance
 Conduct a performance appraisal
 If performance meets desired performance standards
, reward for performance

EXAMPLE :
 Performance appraisal at Cloud International Organization.
 cloud conducts two appraisals :
 1. At the end of the year
 2. At the end of a projects

 Appraisals are based on Balanced Scorecard, which
tracks the achievements of employees on the basis of
targets at four levels-
 1. Financial
 2.Customer
 3.Internal
 4.Learning and Growth

 The financial perspective quantifies the employee’s
contribution in terms of revenue growth, cost reduction
, improved asset utilization and so on.
 The customer perspective looks at the differentiating
value proposition offered by the employee.
 The internal perspective refers to the employee’s
contribution in creating and sustaining value.
 The learning and growth refers to the development of
employee.

APPRAISING AT CLOUD INTERNATIONAL:
 Based on their individual achievements, employees are
rated on a scale of one to five
 (five = “superstar”).If employees get a low rating (less
than two) in two consecutive appraisals , the warning
flags go up. “if the poor performer continues getting low
scores then the exit option may be considered”

 Over the years cloud has found the pattern that leads to
the maximum decline in performance-boredom. If
employees work for more than two years on the same
project , typically either their performance dips or they
leave the organization.
 To avoid that, shuffles its employees between projects
every 18 months or so.
 Believes “Performance drops if motivation drops”

Preparation
Appropriate
setting
Assessment
Deliver it
clearly
Reviewing
Document
Encouragement
Six steps to successful in performance
appraisal:

PREPARATION :
 The key to success in any endeavor is preparation. In this
case, preparation means sitting down and creating
objectives for the performance period. We've got to
ensure that people know what's expected of them if we
ever expect them to achieve it.

ASSESSMENT :
 A critical manager responsibility is assessing and giving
timely feedback to your staff on their performance. There
are many benefits to doing this. Feedback on
performance that is given as soon as possible has proven
to be the most effective.

REVIEWING DOCUMENTS :
 Before you actually do sit down with the
employee, review all your documentation from the year.
Take a look again at the objectives that you and the
employee agreed to and documented at the beginning of
the year.

APPROPRIATE SETTING :
 Make sure that you have an appropriate setting in which
to deliver the appraisal. The most commonly used
location, a manager's office, is often the worst place.

DELIVER IT CLEARLY :
 Deliver the appraisal in simple language. Don't use code
or jargon, and don't mince words. Don't dance around the
issue at hand even if the appraisal is not as positive as the
employee might have hoped

ENCOURAGEMENT :
 At the conclusion of the performance appraisal
meeting, which also marks the end of one performance
appraisal cycle and the beginning of the next, your job is
to encourage.

CONCLUSION:
 Performance Appraisal has a beneficial effect on both the
persons doing the appraisal and being appraised.
 The Appraisal brings prominently to the attention of
supervisors or executives the importance of knowing
their subordinates as human resource.

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