Performance appraisal
Evaluating an employees current/past performance based on his/her performance standards
Performance management
Continuous process of identifying, measuring,
and developing the performance of individuals and
teams and aligning their performance with the
organization’s goals.
Performance appraisal process steps
Sets work standards
Assess performance
Provides feedback to the employee
Why appraise performance
Used for pay, promotion, and retention decisions
Links performance management to company goals
The manager can correct deficiencies and reinforce strengths
With appraisals employees can review career plans
Training needs are identified
Who should do appraising?
1. Peer Appraisals
2. Rating Committees
3. Self Ratings
4. Appraisal by Subordinates
5. 360-Degree Feedback
Types of performance appraisal methods
Graphic rating scale => Scale of performance standards on which employee is measured
Alternation ranking method => Ranking employees based on particular trait
Paired comparison method => Pair employees by trait and see who performs better
Forced distribution method => Placing employees on performance scale
Narrative forms
Behaviorally anchored rating scale => Uses quantified scale with specific narrative examples of good and poor performance
Management by objectives => Setting specific measurable goals, regularly track performance
Computer based and web based perf app
Possible problems with performance appraisal
o Unclear standards
o Halo Effect
o Central Tendency
o Leniency or Strictness
o Recency Effects
Tips for performance appraisal interview
Prepare => Plan => Measure success => Date to complete => Coach
Be objective, objective, encourage
Never attack, set own limits
Critize constructively, give examples, take a step towards employee
Last changed2 years ago