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SMH 3053
PERFORMANCE APPRAISAL

   INTRODUCTION
Outline

DEFINITION
          OF PA
IMPORTANCE OF PA
IMPORTANT TERMS
DEFINING PERFORMANCE
       APPRAISAL

 PA is a formal system of review
  and evaluation of individual or
      team task performance
           (Mondy, 2008).
DEFINING PA
  PA is the process of evaluating
  PA is the process of evaluating
       and communicating to an
       and communicating to an
      employee how he or she is
      employee how he or she is
        performing the job and
        performing the job and
         establishing a plan of
         establishing a plan of
  improvement (Byars & Rue, 2008;
   improvement (Byars & Rue, 2008;
            Dessler, 2010)
             Dessler, 2010)
Performance Appraisal - Introduction 2
DEFINING PA
     PA is a process of evaluating an
     PA is a process of evaluating an
   employee’s performance based on a
   employee’s performance based on a
     certain predetermined standard,
     certain predetermined standard,
 communicating to the employee on how
 communicating to the employee on how
   he or she did on the job, and finally
    he or she did on the job, and finally
    developing ways on how individual
    developing ways on how individual
      performance can be improved.
      performance can be improved.
Why conduct performance
Why conduct performance
        appraisal?
        appraisal?
BENEFITS OF PA
Provide a solid foundation for
       all aspects of the
     employer/employee
          relationship.
BENEFITS OF PA TO THE
        ORGANIZATION
Increase   employees’ organizational
 commitment and loyalty towards the
 organization
Ensure employee retention and increase
 productivity and innovation
Reduce the risk of complaints and
 litigation by ensuring that employees feel
 treated fairly and are not surprised by
 management decision
BENEFITS OF PA TO THE
           MANAGER
Determine   how the job of each
 employee can further the overall goals of
 the organization
Examine each employee as an individual
 to evaluate the employee’s strengths and
 weaknesses
Identify and reward good employees, in
 order to foster loyalty and motivate
 employees to continue to achieve
BENEFITS OF PA TO THE
          MANAGER
Keep employee morale high
 through continuous feedback

Stay on top of the needs of
 the workforce
BENEFITS OF PA TO THE
           EMPLOYEE
Clarifyorganization’s or
 employer’s expectation
Get continuous feedback
 from the manager
Help in achieving personal
 goals
UNDERSTANDING
UNDERSTANDING
 PERFORMANCE
 PERFORMANCE




           VROOM…..VROOM…
What is Performance?
 Performance  refers to the degree of
 accomplishment of the tasks that make
 up an employee’s job (Byars & Rue, 2000)
  ◦ It is usually measured in terms of results.
  ◦ For example, for a car salesperson,
    performance means the volume of sales;
    for a teacher, performance might mean how
    many students score all As in the exam.
What is Performance?
Job performance has become one of the
 significant indicators in measuring organizational
 performance in many studies (Wall et al. 2004).
Schmitt  and Chan (2003) categorized job
 performance into ‘will-do’ and ‘can-do’. The
 latter refers to individuals’ KSAOs required in
 performing certain job and the former denotes
 the motivation level that individuals may have in
 performing their work.
What is Performance?
Motowidlo  and Van Scotter (1994) pointed out
 that performance construct should consist of
 task performance and contextual performance.
Cardy  and Dobbins in Williams (2002)
 conceptualized performance as work outcomes
 that relates closely to task performance, such as
  the quantity and quality of work done, and job
 relevant behaviors that consist of behavioral
 aspects useful in achieving task performance.
What is Performance?
 Gomez-Mejia    et al. (2007) stated that task performance
  should be distinguished into quality of work done,
  quantity of work performed, and interpersonal
  effectiveness.
 Motowidlo (2003) defined task performance or in-role
  behaviors as the organization’s total expected value on
  task related proficiency of an employee.
 Motowidlo’s (2003) assertion that task performance is
  best construed as a behavioral construct because it
  involves psychological process that is related to
  selection, training, motivation, and facilitating situational
  processes.
What about…..
                         EFFORT?




COMMITMENT?
What is Effort?
Effort is the amount of energy (physical
 and/or mental) an individual uses in
 performing a task.
 ◦ For example, the salesperson might spend a
   lot of time entertaining and attending to
   clients, but it does not necessarily means that
   he is able to hit required number of sales per
   month.
 ◦ If this salesperson did not meet his target, it
   means that he put a lot of effort, but his
   performance is still considered as low.
Commitment

The degree to which an employee
     identifies with a particular
   organization and its goals and
 wishes to maintain membership in
         the organization.
Your
opinion????
So, what
 determines
performance?
PERFORMANCE

ABILITY             MOTIVATION




          ENVIRONMENT

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Performance Appraisal - Introduction 2

  • 2. Outline DEFINITION OF PA IMPORTANCE OF PA IMPORTANT TERMS
  • 3. DEFINING PERFORMANCE APPRAISAL PA is a formal system of review and evaluation of individual or team task performance (Mondy, 2008).
  • 4. DEFINING PA PA is the process of evaluating PA is the process of evaluating and communicating to an and communicating to an employee how he or she is employee how he or she is performing the job and performing the job and establishing a plan of establishing a plan of improvement (Byars & Rue, 2008; improvement (Byars & Rue, 2008; Dessler, 2010) Dessler, 2010)
  • 6. DEFINING PA PA is a process of evaluating an PA is a process of evaluating an employee’s performance based on a employee’s performance based on a certain predetermined standard, certain predetermined standard, communicating to the employee on how communicating to the employee on how he or she did on the job, and finally he or she did on the job, and finally developing ways on how individual developing ways on how individual performance can be improved. performance can be improved.
  • 7. Why conduct performance Why conduct performance appraisal? appraisal?
  • 8. BENEFITS OF PA Provide a solid foundation for all aspects of the employer/employee relationship.
  • 9. BENEFITS OF PA TO THE ORGANIZATION Increase employees’ organizational commitment and loyalty towards the organization Ensure employee retention and increase productivity and innovation Reduce the risk of complaints and litigation by ensuring that employees feel treated fairly and are not surprised by management decision
  • 10. BENEFITS OF PA TO THE MANAGER Determine how the job of each employee can further the overall goals of the organization Examine each employee as an individual to evaluate the employee’s strengths and weaknesses Identify and reward good employees, in order to foster loyalty and motivate employees to continue to achieve
  • 11. BENEFITS OF PA TO THE MANAGER Keep employee morale high through continuous feedback Stay on top of the needs of the workforce
  • 12. BENEFITS OF PA TO THE EMPLOYEE Clarifyorganization’s or employer’s expectation Get continuous feedback from the manager Help in achieving personal goals
  • 14. What is Performance?  Performance refers to the degree of accomplishment of the tasks that make up an employee’s job (Byars & Rue, 2000) ◦ It is usually measured in terms of results. ◦ For example, for a car salesperson, performance means the volume of sales; for a teacher, performance might mean how many students score all As in the exam.
  • 15. What is Performance? Job performance has become one of the significant indicators in measuring organizational performance in many studies (Wall et al. 2004). Schmitt and Chan (2003) categorized job performance into ‘will-do’ and ‘can-do’. The latter refers to individuals’ KSAOs required in performing certain job and the former denotes the motivation level that individuals may have in performing their work.
  • 16. What is Performance? Motowidlo and Van Scotter (1994) pointed out that performance construct should consist of task performance and contextual performance. Cardy and Dobbins in Williams (2002) conceptualized performance as work outcomes that relates closely to task performance, such as the quantity and quality of work done, and job relevant behaviors that consist of behavioral aspects useful in achieving task performance.
  • 17. What is Performance?  Gomez-Mejia et al. (2007) stated that task performance should be distinguished into quality of work done, quantity of work performed, and interpersonal effectiveness.  Motowidlo (2003) defined task performance or in-role behaviors as the organization’s total expected value on task related proficiency of an employee.  Motowidlo’s (2003) assertion that task performance is best construed as a behavioral construct because it involves psychological process that is related to selection, training, motivation, and facilitating situational processes.
  • 18. What about….. EFFORT? COMMITMENT?
  • 19. What is Effort? Effort is the amount of energy (physical and/or mental) an individual uses in performing a task. ◦ For example, the salesperson might spend a lot of time entertaining and attending to clients, but it does not necessarily means that he is able to hit required number of sales per month. ◦ If this salesperson did not meet his target, it means that he put a lot of effort, but his performance is still considered as low.
  • 20. Commitment The degree to which an employee identifies with a particular organization and its goals and wishes to maintain membership in the organization.
  • 23. PERFORMANCE ABILITY MOTIVATION ENVIRONMENT