Performance Appraisal

• Brainstorming Questions
1. Who is/are appraiser/s?
2. What are performance appraisal
processes/phases
3. Methods used to appraise employee
performance?
4. What are the common problems observed
during employee performance appraisal?
 Performance Appraisal
• Performance appraisal is the process by which
organization evaluate employee job performance
• Its a process that involves detemining and
communicating to an employee how he/she
performing the job and ideally establishing a plan
of improvement
• Its a systematic and objective way of evaluating
both work related behaviour and potential of
employees
 Performance…Cont’d

Other terms for performance evaluation:

 Performance review
Personnel rating
Merit rating
Performance appraisal
Employee appraisal
Employee evaluation
• Many organizations have two evaluation systems: formal and informal
• Thinking about how well employees are doing is an informal system
• A formal system is set up by the organization to regularly and systematically
evaluate employee performance
• Political and interpersonal processes influence the informal system
• Employees who are liked better have an advantag
• Formal Performance Evaluation
• Purposes of a well-designed formal evaluation system:
 Development
 Motivation
 Human resource and employment planning
 Communication
 Legal compliance
 HRM research
• Employees should consider an evaluation meaningful, helpful, fair, and honest
• This is difficult to attain because of a number of factors, including:
•  Unfairness
•  Negative practices
•  A short-term focus
Who conducts appraisal?
Performance appraisal process
 Establish Criteria
• The dimensions of performance upon which an employee is
evaluated are called the criteria of evaluation
 Examples: quality, quantity, and cost of work
• A major problem with many evaluation systems:
• They require supervisors to make person evaluations rather than
performance evaluations
• An effective criterion should possess the following characteristics:
Reliability
Relevance
Sensitivity
Practicality
• Multiple criteria are necessary to measure performance completely
One must evaluate both activities and results
Management must weigh these criteria
Performance Appraisal Methods
1) Graphic Rating Scale
 Category Rating Method
2) Checklists
• A performance appraisal tool that uses a
list of statements or work behaviors that
are checked by raters
• Can be quantified by applying weights to
individual check list item
 Comparative Methods
 Ranking  Narrative methods
• A listing of all • Critical accident
employees fom highest  Managers keeps witten
to lowest in records of highly
performance. favaourable and
 Forced distibution unfaourable employee
conditions
• A controversial process
 Essay
by which employees
graded against each • Managers writes a short
other rather than judged essay describing an
against performance employee’s pefommance
standard
 Behavioural Methods
 Behavioual rating  Management by ojective
approach (MBO)
• Assess employees • Specify the performance
behaviour instead of goals that individual and
other characteristics his/her manager agree the
• Consists of identifying employee will try to attain
important job with appropriate length of
dimensions, creating time
statements decribing a
range of desired &
undesired behaviours
 360 Feedback system
• A system of collecting performance information from multiple
parties such as peers, supervisors, and customers
• It also used to design promotion and reward
• Positive features of a 360-degree system:
 Multiple perspectives of a person’s performance
 Raters base evaluations on contact and observation
 Feedback is provided from multiple directions… above, below, peer
 Anonymous upward feedback, which results in full participation
 Learning about weaknesses and strengths is motivational
Negative features of a 360-degree system:
  Feedback from all sources can be overwhelming
  Rater can hide in a group of raters and provide harsh evaluations
  Conflicting ratings can be confusing and frustrating
  Providing feedback that is constructive requires a plan&well trained raters
 Poblems with Performance Appraisal
 Reading Assigments
 First Impression
 Stereotyping
 Leniency
 Other Reading Assigments
• Compensation
• Diversity Management
 THANK YOU FOR YOUR ATTENTION!
THE END!