PERFORMANCE

APPRAISAL
(Management)

Chapter Objectives
Define performance appraisal and identify
the uses of performance management
Describe the performance appraisal
process
Identify the various performance appraisal
methods used
The reason behind appraisal discomfort
Explain the characteristics of an effective
appraisal system

Describe the
legal implications
of
Chapter
Objectives
(Continued)

performance appraisal.
Discuss the responsibility of performance
appraisal
Explain how the appraisal interview should
be conducted.
Interview with Human Resources Manager
about Performance Management Systems

Performance Appraisal Defined

System of review and

evaluation of job
performance

Assesses accomplishments
and evolves plans for
development

Performance Management
Process that significantly determines how
organization performs
Managers and employees work together
to set expectations, review results and
reward performance.
Platform for assessing individual and
team performance

Appraiser Discomfort

Performance appraisal
process cuts into
managers time

Experience can be
unpleasant when
employee has not
performed well

Employee Anxiety

Creates anxiety for appraised employee

Rationale for Performance Appraisal

Provides legal and other benefits for

employers

Uses of Performance Appraisal

Human resource planning
Recruitment and selection
Training and development
Career planning and development
Compensation programs
Internal employee relations
Assessment of employee potential

Performance Appraisal Process

Plan the Performance
Identify Performance Goals
Communicate Goals
Establish Performance Criteria
Determine:
Responsibility
for Appraisal Appraisal Period
Appraisal Method(s)
Computer Software

Examine Work Performed

Anticipate and Consider

Problems in PA
Effective PA Systems

Management Support
Coaching and T&D

Appraise the Results

Conduct Appraisal Interview
Discuss Goals for Next Period
9

Responsibility for Appraisal

Immediate supervisor
Subordinates
Peers
Self-appraisal
Customer appraisal

10

Performance Appraisal
Methods
360-Degree Feedback
Rating Scales
Critical Incidents
Essay
Work Standards
Ranking

11

The Appraisal Period

Prepared at specific
intervals
Usually annually or
semiannually
Period may begin with
employees date of hire
All employees may be
evaluated at same time

12

Effective Appraisal System

Job-related criteria
Performance expectations
Standardization
Trained appraisers
Continuous open communication
Performance reviews
Due process

13

Legal Implications
Adverse impact on protected classes
The controlling of subordinate career
Should have someone review and approve
appraisals
The rater must have personal knowledge
of employees performance
The appraisal system must use
predetermined criteria

14

The Appraisal Interview

Scheduling the
interview
Interview structure
Use of praise and
criticism
Employees role
Concluding the
interview

15