PERFORMANCE APPRAISAL
It is the systematic evaluation of employees’ efficiency in the performance of their duties and
responsibilities during a given period on the basis of a pre-determined criteria or standards mutually
established/agreed upon by the employee and his superior.
Overview:
1. Benefits of appraisal
 Identify strengths and weaknesses
 Determine suitability for promotion
 Important feedback
2. Questions to be addressed
 Who should be appraised?
 Who should undertake the appraisal?
 What should be the frequency of appraisals?
 Should there be an open system of appraisal?
3. Methods of appraisal
 Achieving objectives
 Performance agreement of contract
4. Principles and ethics
 Psychological principles
 Adequate and timely feedback
 Clear, attainable goals
 Setting of task and goals
 Ethics
 Credibility based on ethical principles
 Individual development, trust and openness
APPLYING ETHICAL PRINCIPLES
 Basis of representative information
 Basis of sufficient information
 Basis of relevant information
 Honest appraisal
 Keep written and oral appraisals consistent
5. Establishing the system
6. Potential problems
 Allowance for discretion
 Managers loss of expertise
 Emphasis on past performance
 Regular review of performance
TEAM – NEVER ALLOWING ANYONE TO FAIL
What to evaluate?
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Organizational performance against key performance measure (kpm’s)
Group performance against KPM’s
Individual performance against KPM’s
Objective:
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Evaluative
Developmental
STEPS IN DEVELOPING A PERFORMANCE APPRAISAL SYSTEM
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Determine performance requirements
Choose appropriate appraisal method
Train supervisors
Discuss methods with employees
Appraise according to job standards
Discuss appraisal with employees
Determine future
HOW DO YOU DO PERFORMANCE APPRAISAL?
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o
Relative Judgment
 Ask supervisors to make judgment
Absolute Judgment
 Based on performance
Performance Appraisal
 Helps an organization effectively manage people
 Enables employees to meet their job goals
 Let’s employees know how they are doing
FOCUS ON DISTRIBUTION OF AWARDS FAIRLY
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The system must be objective in order to tie performance and incentives together
ONE ON ONE COMMUNICATION ON PERFORMANCE APPRAISAL: (SANDWICH)
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Positive
Negative
Motivation
OBSERVANCE PER COMPANY POLICIES:
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SPECIFIC