Performance appraisal principles
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The document outlines the principles and processes of effective performance appraisals, emphasizing the importance of planning, monitoring, developing employee capacity, periodic performance ratings, and rewarding achievements. It discusses different appraisal methods, such as Management by Objectives and 360-degree feedback, along with the advantages and challenges associated with performance appraisals. Ultimately, it highlights that performance appraisals are a crucial component of performance management but do not encompass the entirety of it.
Performance appraisal principles
- 2. 1. Describe the concepts of performance appraisal 2. Explain the benefits of performance appraisal 3. State the types of performance appraisal Learning Objectives At the end of this session, learners should be able to :
- 3. Performance appraisal relates to a systematic process that involves employees in improving organizational effectiveness to achieve the overall mission and goals. Overview Of Performance Appraisal
- 4. Other Terms Performance appraisal has been synonymous with performance review, performance evaluation, performance assessment, performance measurement, employee evaluation, personnel review, staff assessment, and service rating
- 5. planning work and setting expectations, continually monitoring performance, developing the capacity to perform, periodical rating performance in a summary, and rewarding good performance. Concepts Of Performance Appraisal 1 General performance appraisal components are: 2 3 4 5
- 6. Planning work and setting expectations1 Planning sets performance expectations and goals to channel efforts to achieve organizational objectives. An effective organization plans work in advance. Involving employees in the planning process will enable them to understand organizational goal, tasks to be carried out, reasons for doing, and the standards it should be completed. Planning employees' performance include setting elements and standards of their performance appraisal plans. Performance elements and standards should be measurable, understandable, verifiable, equitable, and achievable.
- 7. Continually monitoring performance2 Monitoring entails consistent measuring of performance with providing ongoing feedback on progress toward reaching organizational goals. In an effective organization, assignments and projects are monitored continually. Consideration for regulatory requirements includes conducting progress reviews with employees to compare performance against elements and standards. Ongoing monitoring offers an opportunity to check achievement of predetermined standards . This helps to make changes to unrealistic or problematic standards. Monitoring continuously identifies unacceptable performance at any time during the appraisal period. It provides assistance for addressing such performance instead of waiting at the end of the period during allocation of summary rating levels
- 8. Developing the capacity to perform3 In an effective organization, employee developmental needs are continually evaluated and addressed. Developing means increasing the capacity to perform through many ways of training, giving assignments to introduce new skills or higher levels of responsibility, improving work processes, or other methods. Training and developmental opportunities motivates job-related skills and competencies. This helps employees keep up with changes such as the introduction of new technology in the workplace. Performance appraisal process provides a timely opportunity to identify developmental needs. For example, at the time of planning and monitoring of work, deficiencies may become evident to be addressed. Opportunities for improving good performance stand out to lead to action to help successful employees improve even further
- 9. Periodical rating performance in a summary4 In effective organizations, employee’s performance is summarized from time to time. The aim is to review performance over time as compare to various employees, especially to know who best performers are. The context of formal performance appraisal regulatory requires rating for evaluating employee performance against the elements and standards performance plan before assigning a summary rating of record. This follows procedures in the organization’s appraisal program. The period covers work performed for an entire appraisal period. Record for rating influences other personnel actions, such as within-grade pay increases and determining other retention service. However, group performance may have an impact on an employee’s summary rating, although individual ratings still prevail.
- 10. Rewarding good performance5 In an effective organization, rewarding means recognizing employees in the context of individual and as members of groups. It covers performance and acknowledgement of contributions to the organization’s mission. Based on a basic principle of effective management about behavior being controlled by its consequences, which are and should be both formal and informal with positive and negative outcomes . Good performance is recognized without nominations for formal awards . Recognition should be ongoing as natural daily experience. Still, awards based on regulations has a broad formal range ,such as cash, time off, or other nonmonetary items.
- 11. Types of appraisal Management By Objectives (MBO) A method in which managers or employers set a list of objectives and make assessments on their performance on a regular basis, and finally make rewards based on the results achieved This method mostly cares about the results achieved (goals) but not to the way how employees can fulfill them. 360 Degree Performance Appraisal A method that employees will give confidential and anonymous assessments on their colleagues.
- 12. Types of appraisal Performance Ranking Method Used to assess the working performance of employees from the highest to lowest levels Managers will make comparisons of an employee with the others, instead of making comparison of each employee with some certain standards Peer Review Appraisal A way to more effectively gauge the performance of employees by establishing relevant evaluation criteria, using those best equipped to speak about individual’s work to grade him / her accordingly Peer review can take the form of disciplinary panels or ongoing feedback between co- workers This method helps to enhance employee trust and communication
- 13. Benefits of Performance Appraisal Organization Recognize and manage staff performance Planning and decision making Improve staff retention Appraiser Framework for sharing feedback Promote career planning for staff Feedback on own management style and leadership skills
- 14. Benefits of Performance Appraisal Appraisee Reflection on areas of weakness and strengths Opportunity to raise issues / obstacles Focus on developing individual performance Better understanding of goals and requirements Identify action plan for future development Indication for Salary increment / incentives
- 15. Disadvantages of Performance Appraisal • If not done right, performance appraisal can create a negative experience. • Performance appraisals are very time consuming and can be overwhelming to managers with many employees. • Performance management is based on human assessment and are subject to rater errors and biases. • Some appraisees may find it a very stressful environment for everyone involved.
- 16. The performance appraisal is like a central pillar of performance management. A common misconception is to assume organisations implement performance appraisals will have performance management. However, this may not be so, because performance management is a holistic process combining activities that collectively manage individuals and teams to achieve high levels of organisational performance. Known as a strategic process, performance management handles broader issues and long-term goals, with integration to link various aspects of the business, people management, individuals and teams. On the contrary, performance appraisal is operational, short- to medium- term and concerned mainly with individual employees and their performance and development .It is one of the tools of performance management, and the data produced may contribute to other elements of performance management. Thus, an appraisal by itself does not represent performance management. Relationship with performance management
- 17. Visuals found in this document are used as part of educational purposes within a designated group of users. Each visual is credited to respective copyright owners where applicable : 1. https://ictnblog.files.wordpress.com/2014/05/manager1.jpg 2. https://www.qapa.fr/news/wp-content/uploads/manager.jpg 3. http://hr.fiu.edu/eperformance/images/discussion_head.png 4. http://www.enrollmentbuilders.com/wp- content/uploads/2012/10/Success-Coach-Performance- Management2.jpg Contents in this learning resource is used for educational purposes only. Sources are adapted from http://firstcallhr.com/app/download/5785107510/Conducting+effective+performan ce+appraisals+-+fact+sheet.pdf. http://www.rassweb.com/wp-content/uploads/PDF/IJMS/Vol-3/Issue- 7/Paper%203.pdf. http://www.scribd.com/doc/237718976/Performance-Management#scribd