UNIVERSITY OF MAKATI

J. P. Rizal Ext., West Rembo, Makati City

COLLEGE OF BUSINESS AND FINANCIAL SCIENCE
Department of Human Resource Management
Course Title Title

Module No. 6 Performance Appraisals,

Feedback
and Rewards
HUMAN BEHAVIOR IN
ORGANIZATION

Uploaded by: Dr. Analyn C. Dionaldo

Timeframe: How long the student should take this module? Students are
required to complete all the activities, assignments and assessment
of this module in two weeks.
How to Complete this Students are required to do the following to complete this module:
module? 1. Complete the reading assignment on given lecture.
2. Watch the video presentation
3. Participate in this week’s discussion about the topic and
video they have seen.
4. Submit assignments after the discussions on the topic.
5. Peer group collaboration
6. Take chapter long quiz.

Teaching Strategies PowerPoint presentation, video presentation, assignments, chapter

long quiz, video conferencing, peer group collaboration
INTRODUCTION

A motivated workforce can be a significant factor in organizational success. When employees

are motivated to work at higher level of productivity, the organization as a whole run more
efficiently and is more effective at reaching the goals. This is in contrast to an unmotivated
workforce, who can negatively disrupt an organization and distract employees from their work.
For this reason, it is imperative that managers understand the effects of a regular and fair
performance plus the power of reward system and how they are used to employee behavior.

At the end of this module, the students should be able to:

1. Identify purpose and focus of performance appraisals

2. Identify the different variations of performance appraisal systems
3. Discuss ways of improving performance appraisals
`

4. Differentiate the elements of an effective performance appraisal feedback

5. Explain reinforcement theory and ways of controlling behaviour of employees
6. Identify the rewards program of employees
7. Prepare an employee reward program
 PERFORMANCE APPRAISALS, FEEDBACK AND REWARDS

Performance appraisals deals with how organization evaluate and measures its employee
achievement and behaviors.

o It is an employee review by the manager where his work performance is evaluated and
strengths and weaknesses are identified so that the employee knows his improvement
areas.
o Periodic appraisal of performance is a key component of employee development.
o Periodic performance reviews are an important and it is a constructive way to evaluate
the contributions an employee is making to the company.

Effective Performance Appraisals Systems

1. Evaluation system is to identify the performance gap (if any). This gap is the shortfall
that occurs when performance does not meet the standard set by the organization as
acceptable.

2. Feedback system is to inform the employee about the quality of his performance. The
appraiser also receives feedback from the employee about job problems.
CONTENT

Purposes of Performance Appraisals

1. Judgmental orientation – focus on past performance and provide a basis for making
judgments on which employee should be rewarded and how effective organizational
programs like selection and training.

2. Developmental orientation – concern with improving future performance by ensuring

expectations are clear and by identifying ways to facilitate employee performance
through training.

Performance appraisal must be focus on job performance not the performers.

Types of Performance Appraisals

1. Self –evaluation is when employee is asked to judge their own performance against pre-
determined criteria. Employee evaluation help to demystify the appraisal process and
can provide interesting insights into gaps between employee and manager ratings.

2. Behaviorally Anchored Rating Scales (BARS) – the evaluation is done on the basis of
individual employee performance without comparisons. It is a combination of the
rating scale and critical incident techniques of employee performance evaluation.
3. The 360 Degree Approach involve the appraisee receiving feedback from the manager,
supervisor, team members and any direct report whose views are considered helpful and
relevant. The feedback is typically provided on a form showing job skills/
attitudinal/behavioral criteria and some sort of scoring or value judgment system.

4. Management by Objectives (MBO) is a typical evaluation which falls under modern

approach of performance appraisal. Often called MBO method where manager &
employee agree upon specific & obtainable goals with a set deadline.

5. Forced distribution is a form of comparative evaluation in which an evaluator rates

subordinates according to specified distribution of job performance as follows: 10 percent
low; 20% low average; 40% average; 20% above average; and 10% high.

6. Graphic rating scale is probably the most common performance rating appraisal method.
It is used to evaluate an employee in terms of success within a variety of areas: technical
skills, teamwork and communication skills.

7. Critical incident method allows supervisors to describe employee’s excellent or poor

response to situations arising during the year in question. This method keeps answers
open-ended, flexible, multi-dimensional and respectful of context.

8. Paired comparison analysis relies on a grid that presents numerical values for each other
employee based on an established set of criteria. After the values have been collected,
they can be reviewed against each other values presented in the same format and
affected by the same factors.

9. Ranking methods compare on employee to another, resulting in an ordering of

employees in relation to one another. Rankings often result in overall assessments of
employees, rather than specific judgment about a number of job components:

 Straight ranking requires an evaluator to order a group of employees from the best to the
worst overall or from most effective to least effective in terms of certain criterion.

 Alternative ranking makes the same demand, but ranking process must be done in a
specific manner.
Comparative evaluation system such as ranking are rarely popular. Evaluators are often
reluctant to make such discrimination.

10. Essay method involves an evaluator’s written report appraising an employee’s

performance, usually in terms of job behaviors and/or results. The subject of an essay
appraisal is often justification of pay, promotion, or termination decisions, but essay can be
used for developmental purposes as well.
Performance Appraisals Feedback

Performance appraisal feedback is always easier to give (and receive) if managers have
followed the structured process of:
1. Agreeing performance objectives or standards
2. Monitored employee performance and
3. Given employees ongoing performance feedback (not just employees performance
time)
Elements needed to ensure its effectiveness:
1. Specificity
2. Timeliness
3. Manner

Reinforcement Theory

Reinforcement theory of motivation was proposed by BF Skinner and his associates. It

states that individual’s behavior is a function of its consequences. It is based on “Law
of effect”. Individual’s behavior with positive consequences tends to be repeated, but
individual’s behavior with negative consequences tends not to be repeated.

 This theory focuses totally on what happens to individual when he takes some action.
According to Skinner, the external environment of the organization must be designed
effectively and positively so as to motivate the employee.

Methods used for Controlling Employees Behavior

1. Positive reinforcement - giving a positive response when individual shows positive and
required behavior. Ex: immediately praising an employee for coming early to job. This
will increase probability of outstanding behavior occurring again. Reward is a positive
reinforce but not necessarily.

2. Negative reinforcement - implies rewarding an employee by removing negative /

undesirable consequences. Both positive and negative reinforcement can be used for
increasing desirable / required behavior.

3. Punishment – implies removing positive consequences so as to lower probability of

repeating undesirable behavior in the future. Ex: Suspending an employee for
breaking the organizational rules. Punishment can be equalized by positive
reinforcement from alternative source.
 4. Extinction – implies absence of reinforcements. Ex: if an employee no longer receives
praise and admiration for his good work, he may feel that his behavior is generating no
fruitful consequences. Extinction may unintentionally lower desirable behavior.

Employee Reward Program

Intrinsic rewards - intrinsic motivation is internal to that person and that it is something
that has to be offered to oneself and is driven by personal interest or enjoyment in the work
itself.
 Intrinsic motivation provides that personal pat on the back or natural high that
reflects a person ability, competency, growth, knowledge and self-control over their
endeavors.
 Employees who are intrinsically motivated tend to work at higher levels of
productivity and strive to develop professionally. Intrinsic rewards include things
such as: personal achievement, professional growth, sense of pleasure and
accomplishment.

Extrinsic rewards - is based on tangible assets. Unlike intrinsic motivation that is self-
administered, extrinsic motivation is external to an individual and is typically offered by a
supervisor or manager who holds all the power in relation to when intrinsic rewards are
offered and in what amount.
 Extrinsic rewards are usually financial in nature, such as raise in salary, a bonus for
reaching some quota or paid time off. However, intrinsic rewards can also be as
simple as getting better office, verbal praise, public recognition or awards,
promotions and additional responsibility.

Innovative Rewards System

There are seven different approaches to Rewards that are not yet widely tested but are
being considered by managers:
1. Skill-based pay
2. Broadbranding
3. Concierge services employee benefit
4. Flexible Time
5. Part-time benefits
6. Gain-sharing
7. Employee stock ownership
ASSIGNMENT
1. What is the purpose and focus of performance appraisals? What are the different types
of performance appraisals?
2. How does intrinsic reward differ from extrinsic reward?
3. Prepare employee reward program
4. Peers group collaboration – Work Sheet Activity 6 and Mini Case Study 6
ASSESSMENT

1. Chapter long quiz

2. Online essay
3. Video Conferencing using google meet or zoom – graded citation
4. Insights on video presented
5. Peer group collaboration
RUBRICS

Required Textbook:
Management of Human Behavior in an Organization by: Prof. Angelita Serrano and
Dr. Marivic Flores, Unlimited Books (2016)
REFERENCES

Basic Performance Appraisal

https://www.youtube.com/watch?v=o2mi8zhnhYM&t=217s

Employee Reward Program

https://www.business.com/articles/employee-rewards-programs/

How to Run a Strategic Employee Rewards Program

https://www.kazoohr.com/resources/library/strategic-employee-rewards-programs