Strategies for effective performance appraisal systems

Strategic choices
1.

2.

3.

Managers should decide on the objectives and purposes for the performance appraisal. Will the evaluations be for correcting problems, for determining rewards, or for other purposes? Will the evaluations be individual or group based?

4. Managers can choose between formal and informal procedures for the performance appraisal. 5.Managers must decide on the frequency of the performance appraisal. 6. Managers must decide who conducts the performance appraisal.

Job performance process

Job

analysis Performance standards Performance appraisal system Assessing performance Performance review Future action plan.

Types of performance review

Closed

reporting Open reporting coaching

Types of performance appraisal methods

Behavioral performance appraisal methods: Checklists Weighted checklists Graphic rating scale Mixed standard scale Forced choice scale Critical incident method

Types of performance appraisal methods

Personnel comparison systems: Ranking Forced distribution Paired comparisons

Types of performance appraisal methods

Results-oriented performance appraisal methods: Management by objectives (MBO) Work planning ( Similar to MBO with some more focus on feedback and review).

Selecting a performance appraisal method

There is no best method.. It depends on the situation.

Strategy and the Performance appraisal process

Strengthening

the linkage between the performance appraisal system and the organizations long term strategic plans can improve organizational effectiveness.

Criteria for a successful performance appraisal system

Clear objectives Management and employee endorsement Flexibility Predictability Performance dialogue Appraisal form Periodic system checks ( for its validity)