SELECTING THE RIGHT

PERFORMANCE APPRAISAL
PERFORMANCE MANAGEMENT

A management practice focused on

developing and implementing
processes that help maximize the
productivity and effectiveness of the
organization and its members.
PERFORMANCE APPRAISAL

The process of reviewing and

evaluating the performance of
individuals or teams on their work
tasks
VARIOUS APPRAISAL METHODS
Trait-Based
Behavior-Based
Knowledge/skill based
Result-Based
 TRAIT-BASED

A trait approach to performance

appraisal whereby each employee is
rated according to a scale of individual
characteristics.
ADVANTAGES
Simple to conduct evaluation
Can apply to different employee
groups
Communicates important traits up
front
Are inexpensive to develop
Are easy to use
DISADVANTAGES
Not job-specific
Tends to be very subjective
Have high potential for rating
errors
Are not useful for employee
counseling, allocating rewards and
promotion decisions
BEHAVIOR BASED
Assumes that certain behaviors drive
performance and measures what the
position incumbent does
ADVANTAGES
Can be tailored to specific jobs
Helps employees understand specifically
how job is to done
Behaviors helps reinforce culture/values
Behaviors prove the presence of the related
competency
Are acceptable to employees and superiors
Are useful for providing feedback
Are fair for reward and promotion decision
DISADVANTAGES
Can be time consuming to develop/use
Can be costly to develop
Have some potential for rating error
Behaviors may not produce desired
results
KNOWLEDGE/SKILL BASED
Assumes the certain knowledge /skill drive
performance; measures what the position
incumbent knows/applies.
ADVANTAGES
Measures only the specific
competencies required on
each job
Reinforces cross-training
and flexibility
DISADVANTAGES
Assumes the link between knowledge/skills
and results
Employee may have, but not need to use
Difficult to measure diverse skills
RESULT-BASED
Assumes that achievement of objectives
equals performance; measures what the
position incumbent achieves.
ADVANTAGES
Have less subjectivity bias
Are acceptable to employees and superiors
Link individual to organizational
performance
Encourage mutual goal setting
Are good for reward and promotion
decisions
Emphasizes results
DISADVANTAGES
Are time consuming to develop/use
May encourage short-term perspective
May use contaminated criteria
May use deficient criteria
Debate between short-term and long-term
emphasis
Works only when specific objectives be
established and measured
SOURCES OF PERFORMANCE
APPRAISAL
Subordinate Appraisal
Appraisal of a superior by an employee, which is more
appropriate for developmental than for administrative
purposes.
Peer Appraisal
Appraisal by fellow employees, compiled into a single
profile for use in an interview conducted by the
employee’s manager
Customer Appraisal
A performance appraisal that, like team appraisal, is
based on TQM concepts and seeks evaluation from both
external and internal customers
Team Appraisal
Based on TQM concepts, that recognizes team
accomplishments rather than individual performance
THANK YOU