Directorate of distance education master of business administration

Self Assessment Question
1.  What are the objectives of performance appraisal?
2.  State the various method of performance appraisal.
3.  What are assessment centres?
4.  What is potential appraisal?
Summary 
Performance appraisal is a systematic evaluation of personnel by 
superiors or others familiar with their performance.  The objectives of 
performance appraisal is many and varied. It may be for salary increase, 
promotion or to give feed back to employees. A systematic performance 
appraisal consists of the following:

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1.  Defining objectives of appraisal.
2.  Defining appraisal norms. 
3.  Designing appraisal programme. 
4.  Implementing appraisal programme. 
5.  Feedback  and
6.  Post appraisal actions. 
There are several methods of performance appraisal. Some are 
traditional and a few are modern and scientific. Under MBO, evaluation 
is done both by the superior and the concerned employees. 
Potential appraisal is needed to fill up future vacancies and to 
evaluate how many of the employees have necessary skills and traits 
to occupy higher position and responsibilities. Incidentally it will give 
feedback to employees to improve themselves for future requirements.    
Answer Key
1.  Objectives – for effecting salary increase based on skill, to decide 
promotion, to chart out training and development programmes, to 
render feedback to employees, to let know where they stand and to 
motivate the employees. 
2.  Explain the traditional methods and the modern methods.  More 
accent on i. appraisal by results, ii. BARS, and iii. 360 degree appraisal. 
3.  An assessment centre is a central location where managers come 
together and participate in a number of simulated exercises on the 
basis of which they are evaluated by a panel of appraisers.
4.  Potential appraisal is for assessing the potentialities of existing 
employees for higher positions and responsibilities.  The feedback 
provided to employees could help them to improve upon and shape 
for future positions.  
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