Chapter 6

PERFORMANCE REVIEW
AND APPRAISAL
What is
performance
review and
appraisal?
-Is a method by which the job
performance of an employee is
documented and evaluated.
-Involves a formal discussion
about an employee’s
development and performance.
Why measure
performance?
-It allows management to
specify what must be done
and to combine feedback
with goal setting.
“2 EARLY APPROACHES TO PERFORMANCE APPRAISAL”

1.Focusing on the employees’ past performance.

- is refers to how something has performed in the past.

2. Focusing on the employees’ development.

-is defined as a process where
the employee with the support of his/her
employer undergoes various training
programs to enhance his/her skills and
acquire new knowledge and skills.
“OBJECTIVES OF PERFORMANCE APPRAISAL”

-is to measure and improve the performance of employees

and increase their future potential and value to the
company.

“3 PERFORMANCE CRITERIA”

1.Relevant
2.Reliability
3.Freedom from contamination
“9 INDICATORS OR MATRIX THAT CAN HELP
MEASURE EMPLOYEE PERFORMANCE”

1.Quantity
2. Quality
3.Timeliness
4.Cost-effeciveness
5.Absenteeism/Tardiness
6.Creativity
7.Adherence to policy
8.Gossiping and other personal habit
9.Personal appearance/Grooming
“8 WHO SHOULD EVALUATE PERFORMANCE”

1.Manager/Supervisor appraisal
2.Self-appraisal
3.Subordinates appraisal
4.Peer appraisal
5.Customer/Supplier
6.Team appraisal
7.Assessment center
8.360-Degree or “full-Circle” appraisal
“3 SOURCES OF DATA IN APPRAISAL”
1.Production data
2.Personnel data
3.Judgement of other

“3 MUTIPLE PERSON EVALUATION METHOD”

1.Ranking method
2.Paired comparison method
3.Forced distribution

“6 INDIVIDUAL EVALUATION METHOD”

1.Critical Incident Method
2.Checklist and Weighted Checklist Method
3.Graphic Rating Scales
4.Behaviorally Anchored Rating Scales (BARS)
5.Management by Objective (MBO)
6.Multi-rater Assessment or the 360-degree Performance Feedback
“SEVEN TIPSFOR CREATING A WORLD-CLASS
APPRAISAL SYSTEM”

1.Design the form first

2.Build your company’s values into your form
3.Assure ongoing communication during
development
4.Train all appraisers
5.Orient all appraises
6.Use the results
7.Monitor and revise the program
1.Halo Effect
- is a type of cognitive bias in which our overall impression
of a person influences how we feel and think about his or her
character.

2.Recency Effect
- is the tendency for individuals to be most influenced
by what they have last seen or heard, because people
tend to retain the most complete knowledge about the
most recent events.

3.Previous Performance Bias

-Managers commit mistakes while evaluating employees
and their performance.

4.Leniency/Harshness/Strictness Error
- This can happen when a manager over-emphasizes either positive or
negative behaviors.
5.Central Tendency
- is a single value that attempts to describe a set of data
by identifying the central position within that set of
data.

6.Carelessness
-not concerned or worried about.
-not giving sufficient attention or thought to
avoiding harm or error.

7.Bias
- is prejudice in favour of or against one thing, person,
or group compared with another.
“Feedback of Appraisal Interview”
-it provides an opportunity to identify the subordinate’s feelings more
thoroughly and thus improve communication between supervisor and the
employee.

“Annual discussions of performance”

1.Review of overall progress;
2.Discussion of problems that’s were encountered;
3.Discussion of sources of ineffective performance;
4.Agreement about how performance can be improved;
5.Discussion on how current performance fits with long-range career goals;
And
6.Specific action plans for the coming year and how to reach short and long-
term objectives;