Prepared by
Supervised by
Elements of Lecture

 Performance Appraisal Definition
 Performance Appraisal Management
 Uses of Performance Appraisal
Performance appraisal

 It is a formal system of review and evaluation
of individual or team task performance.
 The focus of performance appraisal in most
firms remains on the individual employee.
 An effective appraisal system evaluates
accomplishments and initiates plans for
development, goals, and objectives
Performance Appraisal Management

 management system is consisting of all organization
processes that determine how well employees,
teams, and ultimately, the organization perform.
 PAM includes: HR planning, Employee recruitment
and selection, T&D, career planning and
development and compensation.
 An organization must have some means of assessing
the level of individual and team performance in
order to make appropriate development plans.
Appraiser Discomfort

 Conducting performance appraisals is often a
frustrating human resource management task.
 If a performance appraisal system has a faulty
design, the employees will dread receiving
appraisals and the managers will despise giving
them.
Uses of Performance Appraisal

 For many organizations, the primary goal of an
appraisal system is to improve individual and
organizational performance.
 Performance Appraisal data are potentially for
virtually every human resource functional areas:

 HR Planning
 Recruitment and Selection
 Training and Development
 Career Planning and Development
 Compensation Programs
 Internal Employee Relations
 Assessment of Employee Potential
 HR planning

 Data that describe the promo ability and potential of
all employees, especially key executives must be
available in order to assess the firm's human
resources.
 Management succession planning is a key concern
for all firms.
 All-designed appraisal system provides a profile of
the organization's human resource strengths and
weaknesses to support this effort.
 Recruitment and selection

 Performance evaluation rating may be helpful in
predicting the performance of job applicants.
 Training and development:
 A performance appraisal should point out an
employee's specific needs for training and
development.
 Determining T&D needs is more precise when
appraisal data are available.
 Career planning and development

 Performance appraisal data are essential in assessing
an employee’s strengths and weaknesses and in
deterring the person’s potential.
 Compensation Programs

 Performance appraisal result provide a basis for
rational decisions regarding pay adjustment.
 Rewarding the behaviors is necessary for
accomplishing organizational objectives which is at
the heart of a firm’s strategic plan.
 To encourage good performance, a firm should
design and implement a reliable performance
appraisal system and then reward the most
productive workers and teams accordingly.
 Internal Employee Relations

 Performance appraisal data are frequently used for
decisions in several areas of internal employee
relations,
including
promotion,
demotion,
termination, layoff and transfer.
 When performance level is in
demotion or even termination,
appropriate.
unacceptable,
it may be
 Assessment of Employee Potential

Some organizations attempts to assess
employee potential as they appraise their job
performance.