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BBA Semester 4 - Performance Appraisal - Human Resource Management #bba #ggsipu #hrm #ipumusings #MBA

BBA Semester 4 - Performance Appraisal - Human Resource Management 

BBA Semester 4 - Performance Appraisal - Human Resource Management  #bba #ggsipu #hrm #ipumusings

Q1: What is performance appraisal?

Answer: It is the process of formally evaluating performance and feedback to an employee. Performance appraisal is the process of assessing quantitative and qualitative aspects of an employee's job performance.

Performance appraisal is one of the most important human resource management practices.

Q2: What is the purpose of performance appraisal?


1. Evaluation  — document and let people know how well they are doing; judgmental role.

2. Development — identify how training and support can improve performance; counselling role. 

Q3: What are the benefits of performance appraisal?


Suitable Placements

Assistance in self-improvement

Incentives to grow and develop

Effective Training Programme

Introduction of sound Personnel Policies

Cordial Employers- Employees Relations


Employee Communication

High Employee Morale

Q4: What are the limitations of performance appraisal?


Time-consuming and huge paperwork involved

Limited Stress on self-improvements

Ineffective communication

Absence of Uniform Standards

Absence of effective participation of employees

Resistance of employee to appraisal

Halo effect

Horn effort

Personal bias

Defective appraisal by superiors

Q5: What are the two main techniques of performance appraisals?

Answer: Two methods are:

- Trait Approach

- Modern Approach

Trait Approach includes:

Ranking Method

Paired Comparison

Grading Method

Forced Rating Method

Checklist method

Graphic Rating Scales

Critical Incident Method

Essay Method

Field review Method

The modern approach includes:

Human Resources Accounting method

MBO (Management By Objectives)

Assessment Centers

BARS (Behaviourly Anchored Rate Scale)

360 Degree Appraisal

Q6: Define in one line the following:

(a) Critical Incident Technique

(b) 360 Degree feedback

(c) Multi-person Comparison

(d) Graphic Rating Scale


(a) Critical Incident Technique: Keeps a log of a person’s affective and ineffective job behaviour

(b) 360 Degree feedback: Includes superiors, subordinates, peers and even customers in the appraisal process

(c) Multi-person Comparison: Rates employees against each other

(d) Graphic Rating Scale: Uses a checklist of characteristics or traits to evaluate performance.

Q7: Explain the behavioural Anchored rating scale.

Answer: BARS uses specific descriptions of actual behaviours to rate various levels of actual performance. It is used in various domains like customer feedback, employee appraisal.

It uses a scale from 1 to 5 (5: Outstanding performance, 1: Unsatisfactory performance).

Scale 5: The employee cheerfully works with the customer until they find exactly what they need.

Scale 4: The employee asks what the customer is looking for and checks in once to see how they are doing.

Scale 3: The employee asks what the customer is looking for but doesn't offer much assistance.

Scale 2: The employee says hello when customers enter the store but do not ask what they are looking for.

Scale 1: The employee does not talk to or make eye contact with customers when they enter the store.

Q8: Define the responsibilities of the following in a performance appraisal system?

(a) the company

(b) the manager

(c) the employee


(a) The company

- creates the strategic plan

- Provides support and resources

(b) The manager

- identifies job requirements and job goals 

- observes and documents employee performance

- help employees in creating their action plans

- Provides ongoing feedback to the employee

- Provides support and resources

(c) The employee

- listens to and acts on feedback from the manager

- Meets requirements and goals in order to succeed.

- Provides feedback to the manager about the work environment

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