Anh Dang
Jan Ruecker
James Choi
Jarrett Robbins
Sakshi Sachdev
Shan Moin
Group B1
What is Performance Appraisal
It is the process of obtaining, analyzing
and recording information about the
relative worth of an employee.
 The focus of the P.A is measuring and
improving the actual performance of
the employee and also the future
potential of the employee.

1
Approaches
Traditional P.A methods- quantitative
tools to rate employees and are oriented
to numerical or scalar ratings
 Collaborative approach - managementby-objectives, work planning and review,
360°appraisals, peer review, etc.
 Approaches that fall in between the
traditional numerical approach and
collaborative techniques

2
Benefits for the individual





Gaining a better understanding of their role
Understanding more clearly how and
where they fit in within the wider picture
Improving understanding of their strengths
and weaknesses and developmental needs
Identifying ways in which they can improve
performance
Providing an opportunity to discuss and
clarify developmental and training needs
3
Benefits to Managers/Team
leaders
Opportunities
 to hear and exchange views and opinions away
from the normal pressure of work
 Identify any potential difficulties or weaknesses
 An opportunity to- plan for and set objectives
for the next period
 Think about and clarify their own role
 Plan for achieving improved performance
 Motivate members of the team
4
Benefits to the organisation





A structured means of identifying and assessing
potential
Up-to-date information regarding the
expectations and aspirations of employees
Information on which to base decisions about
promotions and motivation
An opportunity to review succession planning
Information about training needs which can act
as a basis for developing training plans
5
Negative Aspects
 The
team’s target becomes secondary
 Teamwork suffers from unfair appraisals
 Energy will get lost
 Cooperation becomes competition
 The overall company’s vision does not
play a significant role
6
Negative Aspects
 Monetary
reward is not the best
motivator
 More losers than winners  creates a
negative atmosphere
 Behaviour is according to the target
 People could act like they are
supposed to
7
Discrepancies with leadership theory
“Leadership is the ability to unify
participants behind common goals and
maximise their potential for
contribution.”
(MBE Group B1)
8
Discrepancies with leadership theory
“Leadership is the ability to
participants behind
and
goals
their potential for
contribution.”
(MBE Group B1)
9
Leadership theories elements
Leadership grid (Psychological Theory)
 Holding informal meetings (PT)
 Developing the individual (Adair)
 Building and maintaining a team (Adair)
 Achieving the task (Adair)
 Help, support & understand people (EFQM)

10
Deming
Evaluation of performance is a deadly disease
Point 8: Drive out fear
 Point 9: Break Down the Barriers Between
Departments
 Point 10: Eliminate Slogans, Exhortations and
Targets
 Management should lead not supervise. Focus
on the outcome must be abolished in favour of
leadership


11
Means to combat barriers

Re-Design the appraisal process to
minimise negative dynamics.
12
How







Uncouple performance appraisal from
development appraisal
Define specific performance & behavioural
objectives
Disconnect the appraisal process from
rewards system.
Recognise individual differences
Communication
Develop relationships
Use of Self assessment in the formal appraisal
process.
13
Conclusion
Performance Appraisal system has its
place
 Understanding its limitations to improve
the system

14
References





Beer, M.,(1981) Performance appraisals dilemmas and
possibilities, Organizational Dynamics, Winter 1981.
AMACOM, a division of American Management
Associations.
Nicolls, Dr., (2005), Notes on Performance appraisals,
Warwick Manufacturing Group, People in
Organisations, course notes, [Feb. 2010].
Warwick University MBE Homepage [2011]:
http://www2.warwick.ac.uk/fac/sci/wmg/ftmsc/modules/
modulelist/le/
Deming, W. E. (1986) Out of the crisis Cambridge,
Mass: MIT
Murphy, T. & Margulies, J (2004). Performance
Appraisals. ABA Labor and Employment Law Section
Equal Employment Opportunity Committee..
15