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