Performance Appraisal

& KPI

Prof. Dr. F. A. Sobhani

School of Business & Economics
United International University
 Performance Appraisal
➢ Performance appraisal is a part of
performance management system (PMS)
that refers to a method by which the job
performance of an employee is documented
and evaluated in an organization.

➢ It is a regular review of an employee's

performance and overall contribution to a
company. Also known as an annual
review, or employee appraisal. It evaluates
an employee's skills, achievements, and
growth--or lack thereof.
9–2
 Who Performs the Appraisal

➢ Immediate Supervisor ➢ Evaluation Teams

➢ Higher Management ➢ Customers
➢ Self-Appraisals ➢ “360° Appraisals”
➢ Peers (Co-Workers)
 360º Appraisal

Supervisor

Other Other
Superiors Superiors

Individual
Peers Staff Customers
Self-Assessment

Teams Teams

Sub-Ordinates
 Performance Appraisal Methods

Table 9–3
© 2005 Prentice Hall Inc. All rights reserved. 9–5
 Commonly Used Two Methods for
Employee Appraisal

➢ Behaviorally anchored rating scale (BARS)

– An appraisal method that uses quantified scale
with specific narrative examples of good and poor
performance.

➢ Advantages of using a BARS

– A more accurate gauge
– Clearer standards
– Feedback
– Independent dimensions
– Consistency
9–6
© 2005 Prentice Hall Inc. All rights reserved. 9–7
Performance Appraisal Methods (cont’d)
➢ Forced distribution method
– Similar to normal distribution curve
• 5% high performers – rewarded
• 25% high-average performers
• 40% average performers
• 25% low-average performers
• 5% low performers-punished
Key Performance Indicator

Prof. Dr. F. A. Sobhani

School of Business & Economics
United International University
SMART Goals for Smart KPI
 How to Set KPIs

https://www.youtube.com/watch?v=RJDA7wLey6M
Thanks