APPRAISING EMPLOYEE PERFORMANCE

• Performance appraisal may be defined as the method by which, through

observation by the appraiser, the individual worker’s efficiency in performing
his duties and responsibilities during a given period is evaluated on the basis
of predetermined performance standards or established goals mutually set by
the employeeand his supervisor

WHY STUDY PERFORMANCE APPRAISAL

• Understand the objectives and principles of appraising the performance of

employees

• Know the different types of performance rating plan that will fit a company

• Learn how to formulate and install an employee appraisal program in a

company

• Learn how to evaluate the performance of an employee and communicate

the results of the appraisal in a way that the employee will understand and
accept them

PERFORMANCE DISTINGUISHED FROM DUTIES

• Duties and responsibilities- what should be done, the rendering of what is due
any person or organization, and the fulfillment of moral obligations.

• Performance- how much should be done or accomplished, its quality, and the
manner in which it is done

THE OBJECTIVES OF AN EMPLOYEE PERFORMANCE RATING SYSTEM

1. Providing feedback on employee performance

2. Basis for personnel action

3. Management guide in employee counseling and discipline

4. Promotion of better employee-employer relations

5. Improvement of supervision by making the supervisor better aware of his

duties.

6. Development of employees and supervisors

7. As an agent of change

8. Identification of training needs and management development

9. Facilitate organizational diagnosis and development

METHODS USED IN PERFORMANCE APPRAISAL

1. Rank Order Method

2. Paired Comparison Method

3. Forced Distribution System

4. Narrative Essay

5. Graphic Rating Scale

6. Preference Checklist Method

7. Crirical Incidents

8. Rating Scale Method

9. Weighing

10.Management by Objectives or Results Oriented Method

QUALITIES OF A GOOD APPRAISAL FORM

1. It must be as simple as possible

2. It must provide the basis or standards for appraisingbsatisfactory

performance

3. It must be flexible

4. It must be thorough

5. It must provide for a definite control over personal biases and

prejudices

6. Whenever possible, it should provide for two or more independent

evaluations of each employee

7. It must provide for a training program for supervisors who will rate
their subordinates.

WHO WILL DO THE RATING

• The most common practice is for the employees immediate supervisor to do

the rating inasmuch as it is he who assigns the work to the employee and
gives the instructions on how it should be done.
 • Nevertheless, current trends point to the use of multi-raters: peers,
subordinates, clients, and the individual himself.

COMMON ERRORS IN RATING

1. Discrepancies in interpreting the meaning of factors

2. The halo effect

3. Logical error

4. Blaming subordinates for errors that are not their fault

5. Leniency

6. Severity

7. Central tendencies

8. Bias and prejudice

9. Previous performance bias