Performance appraisals and management

Topics: Management, Performance appraisal, 360-degree feedback Pages: 36 (1267 words) Published: December 27, 2014
Human Resource
Management

Performance Appraisal and
Performance Management
 Performance appraisal
 Evaluating an employee’s current and/or
past performance relative to his or her
performance standards.
 Performance management
 The process employers use to make sure
employees are working toward
organizational goals.

Difference between PM and PA
Processes used to identify,
encourage,
measure,evaluate,
improve, and reward
employee performance.

The process of evaluating how
well employees perform their
jobs and then communicating
that information to the
employees.

Performance appraisal

Definitions
According to Newstrom, “It is the process of
evaluating the performance of employees, sharing
that information with them and searching for ways to
improve their performance’’.

Meaning
Performance appraisal
is the step where the
management finds out how effective it has been at
hiring and placing employees.
A “Performance appraisal” is a process of
evaluating an employee’s performance of a job in terms
of its requirements.

WHY THE PERFORMANCE Appraising
 Appraisals play an integral role in the
employer’s performance management process.
 Appraisals help in planning for correcting
deficiencies and reinforce things done correctly.
 Appraisals, in identifying employee strengths
and weaknesses, are useful for career planning
 Appraisals affect the employer’s salary raise
decisions.

Benefits of Performance Appraisal

Continuous improvement
 A management philosophy that requires
employers to continuously set and relentlessly
meet ever-higher quality, cost, delivery, and
availability goals by:
 Eradicating the seven wastes:
overproduction, defective products, and
unnecessary downtime, transportation,
processing costs, motion, and inventory.
 Requiring each employee to continuously
improve his or her own personal performance,
from one appraisal period to the next.

Performance Appraisal Roles
 Supervisors
 Usually do the actual appraising.
 Must be familiar with basic appraisal
techniques.
 Must understand and avoid problems that
can cripple appraisals.
 Must know how to conduct appraisals
fairly.

Performance Appraisal Roles (cont’d)
 HR department
 Serves a policy-making and advisory role.
 Provides advice and assistance regarding
the appraisal tool to use.
 Prepares forms and procedures and insists
that all departments use them.
 Responsible for training supervisors to
improve their appraisal skills.
 Responsible for monitoring the system to
ensure that appraisal formats and criteria
comply with EEO laws and are up to date.

Steps in Appraising
Performance
1.Defining the job
 Making sure that you and your subordinate agree
on his or her duties and job standards.

2.Appraising performance
 Comparing your subordinate’s actual
performance to the standards that have been set;
this usually involves some type of rating form.

3.Providing feedback
 Discussing the subordinate’s performance and
progress, and making plans for any development
required.

Designing the Appraisal
Tool
 What to measure?
 Work output (quality and quantity)
 Personal competencies
 Goal (objective) achievement
 How to measure?
 Graphic rating scales
 Alternation ranking method
 MBO

Performance Appraisal Methods

Performance Appraisal
Methods
Graphic rating scale
 A scale that lists a number of traits
and a range of performance for each
that is used to identify the score that
best describes an employee’s level of
performance for each trait.

Graphic
Rating
Scale with
Space for
Comment
s

9–16

© 2005 Prentice Hall Inc. All rights reserved.

Figure 9–3

Comparative methods
Ranking
 A listing of all employees from highest to
lowest in performance.
Drawbacks
 Does not show size of differences in
performance between employees
 Implies that lowest-ranked employees
are...
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