EMPLOYEE APPRAISAL
HUMAN RESOURCE MANAGEMENT GOALS AND
FUNCTIONS
Develop an Effective Workforce
Training
Development
Appraisal
Maintain an Effective Workforce
Wage and salary
Benefits
Labor relations
Terminations
HRM planning
Job analysis
Recruiting
Selecting
Attract an Effective Workforce
CSO Strategy
HRM Environment
Legislation
Trends in society
International events
Changing technology
WHERE ARE WE NOW
1. Staffing
2. Training and development
3. Performance management
4. Compensation and benefits
5. Employee relations
6. Personnel policies
7. Compliance with laws
•Performance measures
•Performance appraisals
•Discipline
PERFORMANCE MANAGEMENT
AND MEASUREMENT
Performance management system - A process of
establishing performance standards and evaluating
performance in order to get to objective human
resource decisions and to provide documentation to
support personnel actions
• Performance Management – The process of
ensuring that employees’ activities and outputs
match the organization’s goals.
• Performance appraisal - evaluation of an
employee’s job performance
WHY PERFORMANCE MANAGEMENT?
• 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.
• The belief that traditional performance appraisals are often not just
useless but counterproductive.
• The necessity in today’s competitive environment for every employee’s
efforts to focus on helping the company to achieve its strategic goals.
• A management philosophy that requires each employee to continuously
improve personal performance
WHO SHOULD DO THE APPRAISING?
Appraisal involves as minimum - the worker and a nominated
appraiser - the immediate supervisor
But also:
Peers
Rating committees
Self-ratings
Subordinates
360-Degree feedback is the most comprehensive
360-DEGREE PERFORMANCE REVIEW
• An appraisal device
that seeks feedback
from a variety of
sources
• Process that
gathers feedback
from a review panel
that includes co-
workers,
supervisors, team
members,
subordinates, and
sometimes
customers
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.
HR department
Serves a policy-making and advisory
role.
Provides advice and assistance
regarding the appraisal tools 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.
PERFORMANCE APPRAISAL PROCESS
Process of observing and evaluating an employee’s
performance, recording the assessment, and providing
feedback to the employee
Steps
Developmental goal setting
Ongoing performance monitoring
Ongoing feedback
Observing and assessing performance
Providing feedback to employee - interview
Rewards, recognition, and compensation
Workflow, process control and return
DESIGNING THE APPRAISAL TOOL
Performance Appraisal Form
Graphic rating scales
Alternation ranking method
Group-order ranking
Individual ranking approach
Paired comparison approach
Management by Objectives (MBO)
Forced distribution method
Narrative Forms
Behaviorally anchored rating scale (BARS)
Critical incidents method
…
HOW TO CONDUCT THE APPRAISAL
INTERVIEWShare the appraisal form before
Prepare for the interview
Have the employee prepare, too
Be direct - Don’t tiptoe around
Be specific - talk in terms of objective work data
Don’t get personal
Don’t make the subordinate feel threatened during the interview.
Give the subordinate the opportunity to present his or her ideas and
feelings and to influence the course of the interview.
Be a helpful and constructive supervisor when conducting the
interview.
Offer the subordinate necessary support for development and
change.G.Dessler, 2003
EXERCISE
15’
Appraise one employee
PERFORMANCE EVALUATION
ERRORS
Stereotyping/bias
Halo/horns effect
Primacy/recency effect
Motivations for soft (less-
than-candid) appraisals
Central tendency
Leniency/strictness
Blind spot
Subjectivity
…
THE MOST COMMON MISTAKES
Appraisal comes as a surprise – no announcements, no preparation
The mark comes as a surprise – no feedback until the end
•Untrained staff
•Unskilled appraisers
•No consequences for any mark
•Poorly designed system or not
at all
•Incomparable marks – no
standards
•No privacy
•No recording system to base
marks on
•Misused marks
HOW TO AVOID APPRAISAL PROBLEMS
Learn and understand the potential problems, and the solutions
for each.
Develop and use the right appraisal tool. Each tool has its own
pros and cons.
Train supervisors to reduce rating errors such as halo, leniency,
and central tendency.
Have raters compile positive and negative critical incidents as
they occur.
Have managers effectively use the performance appraisal
interview to provide feedback that reinforces good performance
and motivate employee development
…
THE APPRAISAL MARKS
Types of appraisal interviews
Satisfactory—Promotable
Satisfactory—Not promotable
Unsatisfactory—Correctable
Unsatisfactory—Uncorrectable
What to do with them?
WHEN PERFORMANCE FALLS SHORT
Remove performance impediments
Mismatched skills
Inadequate training
Employee’s personal problems
Discipline
Actions taken by a manager to enforce an organization’s standards and regulations
Employee counseling
A process designed to help employees overcome performance-related problems
Employee training and development
A process designed to help employees gain necessary skills related to performance problems
Thank you for your attention!