Appraising and Managing
Performance
By
Prof. Jallavi Panchamia
Why Appraise Performance?
Five major reasons:
1. Used for pay, promotion, and retention decisions
2. Links performance management to company goals
3. The manager can correct deficiencies and reinforce strengths
4. With appraisals employee’s can review career plans
5. Training needs are identified
Multiple Purposes of Performance Assessment
General Applications Specific Purpose
Identification of individual needs
Performance feedback
Developmental Uses
Determining transfer and job assignments
Identification of individual strengths and developmental needs
Salary
Promotion
Retention or termination
Administrative Uses/Decisions
Recognition of individual performance
Lay-offs
Identification of poor performers
HR planning
Determining organisation training needs
Organisational Evaluation of organisational goal achievement
Maintenance/Objectives Information for goal identification
Evaluation of HR systems
Reinforcement of organisational development
Criteria for validation research
Documentation Documentation for HR decisions
Helping to meet legal requirements
Source: Cynthia D. Fisher, et al. Human resource management, Houghton Mifflin, 1997, p.455
How Performance Appraisal can Contribute to Firm’s
Competitive Advantage
Improving
Performance
Making
Strategy and
Correct
Behaviour
Decisions
Competitive
Advantage
Ensuring
Values and
Legal
Behaviour
Compliance
Minimising
Dissatisfaction and
Turnover
The Performance Appraisal Process
Objectives of Performance
Appraisal
Establish Job Expectations
Design an Appraisal
Programme
Appraise Performance
Performance Interview
Use Appraisal Data for
Appropriate Purposes
Methods of Performance Appraisal
MBO Future-oriented
Rating
Scales
Cost
Accounting Checklists
360 Degree Appraisal
Essay
Forced
Assessment Centres
Choice
ACRS Appraisal
Methods
Forced
Tests and Distribution
Observations
Critical
Field Review Incident
BARS
Psychological Past-oriented
Appraisals
Graphic
Rating Scale
with Space for
Comments
Sample Graphic
Rating Performance
Rating Form
Examples of Critical Incidents for
an Assistant Plant Manager
Example of a
Behaviorally
Anchored Rating
Scale for the
Dimension
Salesmanship Skill
Accenture’s strategic role assessment Matrix
Computerized Performance
Appraisal
Visit these web sites for online performance
rating tools.
Online Performance
Appraisal Tool
Dealing with Performance
Appraisal Problems
Potential Rating Scale
Appraisal Problems
Unclear Halo Leniency or
Central tendency Bias
standards effect strictness
Primacy and recency effects
Perceptual set
Spillover effect
Status effect
The Appraisal Interview
an interview in which the supervisor and subordinate review the appraisal and make plans to
remedy deficiencies and reinforce strengths
Checklist
During the
Appraisal
Interview
Source: Reprinted with permission of
the publisher, HRnext.com. Copyright
HRnext.com, 2003.
Figure 9–11
Guidelines to Conducting the Appraisal
Interview
Objective data
Don’t get personal
Encouragement
Agreement
