PERFORMANCE MANAGEMENT & PERFORMANCE APPRAISAL
DEFINITION
a process that allows for an individual
employee’s overall capabilities and potential to be assessed for the purposes of
improving their performance
PURPOSES
IMPORTANCE
SYSTEM
Factors
General mistakes
METHODS
evaluate the performance of employees
help employees improve action plan
enhance organizational performance
enhance employment relationship
feedback provided
increase motivation
identify training and development needs & potential
career development and succession planning
award salary increases/performance related pay
evaluate the effectiveness of the selection process
solve job problems
performance standards
matching performance against job descriptions
rating an employee based on a scale
Knowledge, ability and skill on the job
Attitude to work, expressed as enthusiasm, commitment and motivation
Quality of work on a consistent basis and attention to detail
Volume of productive output
Interaction, as exemplified in communication skills and ability to relate to
others in teams
Self-appraisal
Peer appraisal
Upward appraisal
Customer appraisal
ORGANIZATION PRACTICE
Appraisal targets and selection
basic personal details
job title/job description
individual’s performance/performance rating
manager comments/employees comments
development and action plan
interview method
Prejudice/Subjectivity
Insufficient knowledge of the appraisee
Managers rate employees on the basis of their
personal relationships
good
bad
Focuses on a catalogue of failures and omissions
the meeting is controlled by the appraiser
the meeting ends with disagreement between appraiser and appraisee
Appraisees do most the talking
Appraisers listen actively to what they say
There is scope for reflection and analysis
Performance is analysed and not personality
The whole period is reviewed and not just recent or isolated events
Achievement is recognized and reinforced
Ends positively with agreed action plans
The problem of context
Outcomes are ignored
managers would not want to justify the
criticisms in the performance review interview
Appraising the wrong features/recent past
appraisal time
annual
training of appraisers
senior management making rating
or ranking decisions that differentiate between staff on the basis of their relative performance
making judgements
about an employee’s contribution , value/worth, capability and potential has to be considered as a vital relationship with employees