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It is defined as the method by which, through observations of the appraiser, the individual worker’s efficiency in performing his duties and responsibilities during a given period is evaluated on the basis of pre-determined performance standards or established goals mutually set by the employee and his supervisor.
The performance of an employee on his job is judged in terms of two factors:
1. The dimension of the job which includes the requirements, duties and responsibilities, and their standards of satisfactory performance.
2. The dimension of the man and his performance.
Duties and responsibilities refer to what should be done, the rendering of what is due any person or organization and the fulfillment of moral obligations. Performance tells how much should be done or accomplished, its quality and the manner in which it is done.
PERFORMANCE AS DISTINGUISHED FROM DUTIES
OBJECTIVES OF PERFORMANCE APPRAISAL
1.Providing feedback on employee’s performance
2.Basis for personnel actiona.Potentials and promotions
b.Transfer, demotion, layoff, and discharge
c.Salary increase
OBJECTIVES OF PERFORMANCE APPRAISAL
3. Management guide in employee counseling and discipline
4.Promotion of better employee – employer relations
5.Improvements of supervision by making the supervisor better aware if his duties
OBJECTIVES OF PERFORMANCE APPRAISAL
6.Development of employees and supervisors. While performance rating is used for the development of employees, it is likewise useful in the development of supervisors
7.As an agent of change
8.Identification of the training needs and management development
9.Facilitate organization diagnosis and development
METHODS USED IN PERFORMANCE APPRAISAL
1. Rank order methodADVANTAGES
a) This method has a distinctive advantage of simplicity. It facilitates the comparison of employees by placing them on a spectrum from the best to the poorest in terms of performance. This method simplifies the problem of maintaining specific standards of each quality.
DISADVANTAGESb) It is unwieldy if many workers are to be rated and
many traits are involved.c) The rating of one employee in one unit of the
company cannot be compared with these of the employees in other unit.
2. Paired Comparison Method
3. Forced Distribution Method
METHODS USED IN PERFORMANCE APPRAISAL
4. Narrative Essay• The narrative essay represents an absolute rating system in its
simplest form.
5. Graphic Rating Scale• The graphic rating scale uses a chart or graph containing a list
of traits to be considered in rating the employees.
6. Checklist Method• The rating methods provides a number of traits or factors with
their corresponding definitions written in the left-hand column of the form such as quality of work, attitude toward the job, judgement, reliability, functionality, and punctuality.
7. Critical incidents• The critical requirements of a job are those behaviors that make
a critical difference between doing a job effectively and ineffectively.
METHODS USED IN PERFORMANCE APPRAISAL
8. Rating scale method• The rating scale method of performance evaluation is a
variation of the checklist method.
9. Weighting• Some companies assign weight or numerical value to each trait,
although these values may not appear in the form.
10.Management by objectives• It is a new approach in appraising management performance
introduced by Peter Drucker in early 1950’s whereby the superior and the subordinate managers of an enterprise jointly identify their common goals.
THE APPRAISAL INTERVIEW
Most organizational appraisal systems require supervisors to assess employees on various aspects of their productivity, behavior or personal traits. Examples of these 3-dimension includes (a) quality of work, (b) quantity of output, (c) attendance and initiative, and (d) general attitude. Some managers ask the supervisors to write essays describing the employee’s performance. Others recommend that they accumulate a record of critical incidents (both negative and positive). Many uses graph rating scales that grade the employee with A B C D E or 1 2 3 4 5.
Regardless of systems used, the assessment is the communicated to the employee in an appraisal interview. This is a session in which the supervisor provides feedback to the employee on past performance, discusses any problem that had arisen, and invites a response. Then the two parties set objectives for the next time period. The appraisal interview provides a rich opportunity to motivate the employee.
COMMON ERRORS IN RATING
1. The halo error• It is an error that can be recognized quite easily on factor
scales. It takes place when the rater allows one aspect of a person’s character or performance to influence the entire evaluation.
2. The central tendency error• This error is evidenced when the rater marks all or almost all
personnel as average.
3. The constant error• These are easy raters and tough raters in all phases of life.
These are teachers who rarely award A’s and those who give them to most of the class. This is also called systematic error. Educating the one who gives rate is the solution rather than manipulate the ratings.
COMMON ERRORS IN RATING
4. Miscellaneous errorsa. Similar –to –me
• Rater rates favorably those who appear to be similar to herself. Unless corrected, individually and creativity may ultimately be eliminated.
b. Contrast errors• Workers are likely to be rated down. If poorer performance
were rated first the average performer maybe rated highly.
c. Position errors• Those in higher position are rated highly while those in the
lower position were rated poorly . The rater must be aware that some begin or start at the lower positions then catapults to high positions.
d. Biases• These are raters who feel biased and rates employees badly
according to their feelings.
SUGGESTED APPROACHES
Appraisal interviews are most likely to be successful when
the appraiser......
1. Is knowledgeable about the employee’s job.2. Has previously set measurable performance
standards.3. Has gathered specific evidence s frequently about
performance.4. Seeks and uses inputs from other observers in the
organization.5. Limits the amount of criticism to a few major items –
so that the employees can focus their improvements efforts.
6. Provides support, acceptance and praise for task well done.
7. Listens to the employees input and reactions.8. Allows participation and discussion and offers future
assistance.
