PERFORMANCE APPRAISAL
TEAM B1
Gurbani Dassan
Sophie Bellone
Fawaz Iqbal
Farhaan Mirza
Nikhil Nair
TABLE OF CONTENTS
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What is Performance Appraisal
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Examples of AP techniques
Management by Objectives
 360 Evaluation
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Pros & Cons
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Link between Leadership theory and PA
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Conclusion and references
PERFORMANCE APPRAISAL
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What is PA?
Management tool to assess people
Who do we assess ?
Employees
How do we assess them ?
Different approaches like MBO, 360 degree evaluation, BARS
What do we assess ?
Level of performance, capacity, potential and reward
Why ?
Essential to make administrative decisions such as reward
allocation, salary, promotion, etc …
Improve the overall performance of an organization
MANAGEMENT BY OBJECTIVES
Measure the employee’s performance
 Evaluate someone based on the accomplishment
of objectives within a specific time period
 Objectives are decided upon and must be
measurable, realistic and specific
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MANAGEMENT BY OBJECTIVES
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Advantages :
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Flexibility in choosing the priorities
Focus on individual performance
Gives information on the employee’s personality
Easy to determine whether the objectives have been
achieved
Effective motivating mechanism
Drawbacks:
Does not help for reward allocation
 A specific objective can require the support of others
 Results can be biased by the resources available
 Can have negative impact if not used properly
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360 EVALUATION
Assesses employees based on two or more sources
such as peers, superiors and subordinates
 Derived from a job analysis of clearly identifiable
tasks
 Widely adopted by companies
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360 EVALUATION – PROS & CONS
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Advantages:
Teamwork: assessment made by peers who are in the
best position to comment and understand
 Motivation: empowers employees by putting their
feedback into the appraisal process, allowing them to
influence how they are managed
 Behaviour: helps to create self-awareness by self
assessment
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Disadvantages:
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Teamwork: Can lead to office politics
Motivation: Peer reviews tend to be too lenient
Behaviour: Can lead to the person appraised
becoming defensive
PROS AND CONS OF PERFORMANCE
APPRAISAL
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Pros:
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Making reward decisions
Improve performance with targets
Motivate staff with positive feedback
Improve manager/subordinate communication
Identify potential
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Improve the overall performance of the organization
Cons:
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Subjective assessment > tensions, defensiveness
Truth from manager > provoke problematic relationship
Can be biased by personal interests
No PA method is perfect
Affects teamwork
WHAT NEEDS TO BE MODIFIED ?
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To better align performance management
approaches with leadership theory:
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Setting realistic objectives
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Avoid comparison of people but focus the appraisal scheme
on improving skills and setting personal targets
Combine goal setting and personal development
 How feedback is given > Positive way of presenting
results
 Commitment for a better understanding and
communication
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CONCLUSION
Powerful management tool
 Help for administrative decision making
 Can have great impact on an organization and
employee’s behaviour
 Has to be applied properly
 To be efficient, any PA techniques needs to be
adapted to people and corporate culture …
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REFERENCES
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King P, 1984. Performance planning & Appraisal, King. 1st ed. Mc Graw
Hill (chapter 9)
Fletcher C, 2008. Appraisal, Feedback and Development. 4th ed. Routledge
Fleenor J.W., Prince J.M., 1997. Using 360 degree feedback in
Organizations: an annotated bibliography. Centre for creative leadership.
Fletcher C, 1997. Appraisal routes to improves performance. 2nd ed.
British Library Cataloguing in Publication Data
Wiese D., Buckley M. B, 1998. The evolution of the performance appraisal
process", Journal of Management History (Archive), Vol. 4 Iss: 3, pp.233 –
249