Developing a Performance System

Topics: Performance appraisal, Management, Employment Pages: 6 (1001 words) Published: September 17, 2014
Developing a Performance Appraisal System

A performance appraisal system is “the process by which a manager or consultant examines and evaluates and employee’s work behavior by comparing it with preset standards.” (, n.d.). Performance appraisals are conducted to determine who needs more training, who will be promoted, demoted, retained, or fired. Performance appraisal is helpful because it can promote better understanding of employee’s roles, and it gives an understanding of strengths and weakness of the employee, identifies development need, establish common ground between the employee and the supervisor, increase communication, and provides an opportunity for individual goals.

The elements that should be present in an appraisal system are planning, monitoring, developing, rating, and rewarding. Planning is when performance expectation goals are set for the organization that the employees have to achieve. Monitoring means watching the employee and giving feedback of their performance. Monitoring provides the chance for the manager to check how well employees are meeting their goals. Developing gives the employee a chance to perform through training, assigning certain assignments that will introduce new skills, improve work process and a chance to introduce the employees to new skills. Rating gives a manager the chance to evaluate an employee’s performance against the performance plan that the organization has set. Also, ratings help the manager keep up with what positions the employee need more training on, as-well-as help to assign task and promotions. Rewarding is when the manager recognizes the employees for their performance and behavior. Rewarding an employee can be a simple “thank you,” as-well-as giving employee’s time off with pay and cash bonuses. The purpose of a performance appraisal system is “so that the employee keeps a check on his or her work right from the first day of the job.” There are several different employee appraisal system (1) trait-focused performance appraisal based on helpfulness, dependability and punctuality, (2) behavior-focused performance appraisal also known as behaviorally anchored rating system (BARS) judges employees actions using a rating scale to measure behavior, (3) unstructured method relies on a statement or description from a manager, (4) straight ranking compares employees to each other ranking them from best to worst, (5) paired comparison compares each employee with every other employee in a group, (6) grading and checklist grading method uses A to F grades in different categories and checklist relies on a list of yes no questions, (7) management by objective (MBO) requires employee and supervisor to agree on a set of objectives before the evaluation, (8) psychological appraisals assess the employee intellectual ability, emotional stability, analytical skills, and other psychological traits, and (9) 360-degree feedback requires employer to survey co-workers, supervisors, subordinates, and customers about each employee actions. (, n.d.) The benefits for the organization “so the company can get to know about the expectation of the employees from the company, and what their view about the promotion and policies of the management. Performance appraisals help organizations improve the overall workforce efficiency, skills and productivity and build good relationships with employees. (, n.d.).

The four key elements of a good management and appraisal system are: (1) set objectives, (2) manage performance, (3) carry out appraisal, and (4) provide rewards/remedies. (, n.d.). Set objectives mean set timescales for employees to achieve a goal, manage performance give your employees the tools they need to perform their jobs. Carry out appraisal is to monitor employee performance, provide rewards/remedies consider pay rewards, promotions, and decide how to handle poor employee...

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Griffin, Dana Demand Media, Types of Employee Appraisal Systems. Retrieved from
Kettner, Peter M. (2002) Achieving Excellence in the Management of Human Services Organization
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