Managers’ and Supervisors’ Evaluation of

The effectiveness of Performance

Management and Appraisal

Prepared for:
Scribd.com
Director of Human Resource Department
Hack3|Gateway Group
(Facebook.com)

Prepared by:
Peony Shatter

April 2nd 2010

Transmittal Memo:

i
Memorandum

April 1st, 2010

To : Mrs. Halina, Director of Human Resource Department

From : Nor fatihah Binti Che Jusoh

Nor nilli Wahida Binti Tookiman

Siti Sharifah Binti Mat Aros

Subject : Survey on Managers and Supervisors Evaluation of Performance Management

And Appraisal at Bersatu Teguh Corporation

Dear Mrs Halina,

Here is the report you authorized in March 2009 regarding the managers and supervisors’
opinion on the performance management and appraisal at Bersatu Teguh Corporation.

The purpose of this study is to determine opinion of the managers and supervisors at Bersatu
Teguh Corporation regarding the of the performance appraisal that this company used.
Questionnaires were distributed to 50 managers and 150 supervisors with provided the primary
data for this study.

The findings show that managers and the supervisors are very familiar with all the performance
management and appraisal. However majority of them agree to introduce the modern approach
in this company. The managers and supervisors also agree if the company use the key
elements of an effective performance appraisal system.

They also agreed if Bersatu Teguh Corporation make training to managers and supervisors to
improve the performance management and appraisal. In their opinion, most system can be
improved by training supervisors in doing performance appraisals. Recommendations include
reevaluating the effectiveness of the performance management and appraisal.

Thank you for opportunity to conduct this research. If you have any questions about the material
in this report, please call us.

Table of Contents

ii
Memo of Transmittal i.

Executive summary iii-iv

Introduction
Purpose and scope
Procedures 1-2

Findings

Present Methods for Appraising Performance

Knowledge of Performance Information and Appraisal
The Mistake on Appraising Performance 3-13
Trainings of Managers and supervisors
The Importance of an effective Performance management and appraisal
New Approach- Modern Method

Summary, Conclusions, and Recommendations

Summary of the Problems and Procedures 14-17

Summary of the findings
Conclusions and Recommendations

References

18
Appendix A: Questionnaires 1-3

List of Illustrations

Table 1: Level of Familiarity with Performance Information 3

Figure 1: The Performance Appraisal Methods 4

Figure 2: Why Managers and Supervisors Avoid the Problems of Performance 7

appraisal
Figure 3: Techniques Of Performance Appraisal 9

Executive Summary

iii
The purpose of this study is to the purpose of this study is to determine opinion of the managers

and supervisors at Bersatu Teguh Corporation regarding the of the performance appraisal that

this company used. Questionnaires were distributed to 50 managers and 150 supervisors with

provided the primary data for this study.

The findings show that managers and the supervisors are very familiar with all the performance

management and appraisal. However majority of them agree to introduce the modern approach

in this company. The managers and supervisors also agree if the company use the key

elements of an effective performance appraisal system.

They also agreed if Bersatu Teguh Corporation make training to managers and supervisors to

improve the performance management and appraisal. In their opinion, most system can be

improved by training supervisors in doing performance appraisals. Recommendations include

reevaluating the effectiveness of the performance management and appraisal.

To enhance an effectiveness current performance appraisal system, the recommendation are

as follow:

1. Clearly defined performance standards.

2. An effective monitoring system.

3. Regular discussions of performance.

4. Development of appropriate action plans as a consequence of the appraisal.

iv
 Those elements will help to ensure that performance appraisals conducted in any

organization will yield the desired benefits and be more readily accepted by all

concerned.

5. Legal and job-related

6. Effective in documenting employee performance

7. Beneficial as a development tool

These recommendations, as well as the findings of this study, should help Bersatu Teguh

implement and effective performance management and appraisal.

v
 THE EVUALATION OF EFFECTIVELY OF PERFORMANCE MANAGEMENT AND

APPRAISAL AT BERSATU TEGUH CORPORATION

1.0 INTRODUCTION

A performance appraisal program is important to employees’ professional development, to

meeting the companies or firm’s goals or objectives and, ultimately, to contributing to the

company’s or firms bottom line. No employer, whether a small CPA firm, a Big Four firm, a

nonprofit organization, a government institution or a private or public company, should be

exempt from having a formal performance appraisal program. Other benefits that could be

derived from having a performance appraisal program include enhanced communications, an

opportunity to effectively address performance problems, and improved employee morale.

Before creating a performance appraisal program, there are several factors to consider. The

employer should first determine the objectives for the program. Second, the employer should

develop a plan and timeframe for launching the program. Finally, the employer should prepare

for any obstacles that might appear, and regularly consider ways to improve the program.

Otherwise, performance appraisal can be done either informally or systematically. Systematic

usually are done annually.

1.1 Purpose and Scope

Finally, the following problem was found in this study. The question is: What is the opinion of the

managers and supervisors at Bersatu Teguh Corporation regarding the of the performance

appraisal that this company used.

To answer this question, the following sub-problems were addressed

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 1. What are the types of performance info that you are familiar with?

2. What are their opinions on the performance approach?

3. What are their opinions on method?

4. What knowledgeable are the manager and supervisor with common training of

managers?

5. Do you have any suggestion of performance in management and appraisal?

This study attempted to determine the managers and supervisors opinions only. Whether or not

these opinions are feasible is not within the scope of this study.

1.2 Procedures

A list of 120 managers and 250 supervisors was generated from the company’s Human

Resource Information System (HRIS). Because of the big number, only 50 managers and 150

supervisors were selected. On dISEMBER 10, 2009 each of them was sent the cover letter and

questionnaire shown in Appendix A. 200 of the supervisors and managers completed the

questionnaires, for a response rate of 95 percent.

The primary data provided by the survey was then analyzed and compare with findings from the

secondary source to determine the supervisor and manager opinion of the performance

management and appraisal at Bersatu Teguh Corporation.

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2.0 Findings

2.1 Knowledge of Performance Information and Appraisal

The managers and supervisors were asked to rate their choose three different are types of

information about how employees are performing their jobs which are trait-based, behavior-

based, and result –based. The result was shown in this table:

Table 1: Level of Familiarity with Performance Information.

Level of Familiarity (%)

Issues Familiar Unfamiliar Undecided Total
Trait-based 98 1 1 100
Behavior-based 94 4 2 100
Results-based 96 2 2 100

An average of 96% of managers and the supervisors are very familiar with all the performance.

This is important because all employees want employees who perform their jobs well and

effective performance management system increase the likelihood that such of the performance

will occur. The highest percentage of familiarity is Trait-based; the lowest percentage of

familiarity by regarding the table is Behavior-based.

2.2 Present Methods for Appraising Performance

Performance can be appraised by a number of methods. The various methods are categorized

into four groups. There are combinations of methods which may occur across different jobs in

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the same organization and even within the same jobs when appropriate in this company. The

methods was shown in figure 1.

Figure 1: The Performance Appraisal Methods

Category Rating Graphic Rating Scale

Checklist
Methods
Comparative Ranking
Forced Distribution
Methods
Behavioral Behavior Rating Approach
Management by objectives
Methods
Narrative Critical Incident
Essay
Methods Field Review

The different methods raise question of whether performance is measured against a valid

standard. An employee’s performance can be compared to the duties spelled out in the job

description or it can be compared to performance or results of others.

From this survey, 70% of the managers and supervisors think that the current appraising

performance is not effectives, 20% say that it is effectives and only 10% think that it is very

effective.

2.3 The Mistake on Appraising Performance

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From the survey, the managers and supervisors agreed with this survey which said that there

are several mistake that they always done. Although the manager is in the best position, they

always try to avoid it. From the survey, the reasons managers and supervisors want to avoid

the problem of performance appraisal include the following mistake:

2.3.1 Waiting for the Performance Appraisal to Give Feedback

This is the biggie, and all too common. It is where a managers and supervisors fails to give

someone adequate feedback on their performance during the year, and then dumps it on them

in the performance appraisal meeting.

Unfortunately, the feedback is almost always negative, so the employee ends up sitting there in

shock at best, wondering why their managers and supervisors did not say something sooner at

worst, and feeling unjustly victimized.

2.3.2 Overemphasizing Recent Performances

It is all too human to remember, and give greater weight, to recent events rather than earlier

events. However, this can lead to an inaccurate and unfair assessment when it comes to

reviewing an employee's performance.

2.3.3 Being Too Positive or Negative

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Some managers and supervisors feel uncomfortable giving negative feedback and

consequently, can omit to give employees the constructive criticism they need to improve. And

then there are other managers and supervisors who are instinctively too negative, leaving the

employee wondering if they can do anything right.

While, as a managers and supervisors appraising someone's performance should give their

honest opinion, they also want the employee to understand and appreciate what the workers

are saying.

2.3.4 Being Critical Without Being Constructive

The managers and supervisors can be too critical and neglect to provide any constructive

advice on how an employee can improve.

This does not help the employee or the manager. Even if the managers and supervisors

criticisms all have merit, if they do not explain how the employee can improve, the managers

are likely to miss the validity of what was being said and simply think they are being victimized.

2.3.5 Talking Not Listening

The final big mistake that managers and supervisors make in performance appraisals is doing

too much talking and not enough listening.

These meetings are supposed to be interactive. Where they does not simply relay their own

appraisal of the employee's performance during the year, but they are also listens to the

employee's viewpoint.

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As Figure 2 shows, high majority of managers and supervisors are facing the above issues in

performance appraisal.

Figure 2: Why Managers and Supervisors Avoid the Problems of Performance Appraisal

14% Waiting For the

25%
Performance Appraisal to
Give Feedback
17% Overemphasizing Recent
Performances
Being Too Positive or
Negative
Being Critical Without
23% Being Constructive
20% Talking Not Listening

2.4 Trainings of Managers and supervisors

87% of the managers and supervisors did not agree with this company because Bersatu Teguh

corporations did not have any training to managers and supervisors. This company did not use

any training, but majority of their managers and supervisors was agreed if this company makes

training for their workers, their opinion was selected recommendations.

2.5 The Importance of an effectives Performance Management and Appraisal

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The managers and supervisors were asked their opinion on the importance of an effective

performance appraisal. From the survey, 95% of the managers and supervisor agree that an

effective Performance Appraisal is importance. 4% of them were disagreed and 1% from them

is undecided.

The result shown that most of them agree that an effective Performance Appraisal is important

for this company. An effectives Performance management system will be a positive experience

and contribute to the overall welfare of the organization. It helps individuals to do better, raises

self-esteem and motivation. Above all it strengthens the management relationship and fosters

commitment. Performance evaluation is not a process to be avoided; rather it should be

implemented in all organizations and promoted as a key management activity. The benefits to

be realized from a proper evaluation system far outweigh the time and effort required to

develop, implement and maintain the process.

There is much research to show that individuals have a strong need to know how they are doing

and where they stand in the eyes if their supervisor. Recognizing the importance of performance

feedback, it follows that discussions of performance should take place more than once a year.

Frequent, regular discussions of performance should occur on an on-going basis and be seen

as an opportunity for useful communication between the individual who assigns work and those

performing it. These regular meetings serve to provide feedback so good performance is

recognized and performance problems are nipped in the bud. The more formal periodic reviews

can then simply be a summary of what has occurred throughout the reporting period recorded

on the official performance evaluation form.

2.6 New Approach- Modern Method

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Figure 3: Techniques Of Performance Appraisal

xiv
 PERFORMANCE
APPRAISAL

TRADITIONAL MODERN
METHODS METHODS

1) ESSAY APPRAISAL

METHOD 1) MANAGEMENT BY

2) STRAIGHT RANKING OBJECTIVES (MBO)

METHOD 2) 360 DEGREE

3) PAIRED COMPARISON APPRAISAL

4) CRITICAL INCIDENTS 3) ASSESSMENT

CENTRES
5) FIELD REVIEW
4) BEHAVIORALLY
6) CHECKLIST METHODS
ANCHORED RATING
7) GRAPHIC RATINGS
SCALES
SCALE
5) HUMAN RESOURCE
8) FORCED
ACCOUNTING
DISTRIBUTION

xv
This company had used the traditional methods. A common approach to assessing performance

is to use a numerical or scalar rating system whereby managers are asked to score an

individual against a number of attributes. In some companies, employees receive assessments

from their manager, peers, subordinates, and customers, while also performing a self

assessment. This is known as a 360-degree appraisal and forms good communication patterns.

Trait-based systems, which rely on factors such as integrity and conscientiousness, are also

commonly used by businesses. The scientific literature on the subject provides evidence that

assessing employees on factors such as these should be avoided. The reasons for this are two-

fold:

1) Because trait-based systems are by definition based on personality traits, they make it

difficult for a manager to provide feedback that can cause positive change in employee

performance. This is caused by the fact that personality dimensions are for the most part static,

and while an employee can change a specific behavior they cannot change their personality.

For example, a person who lacks integrity may stop lying to a manager because they have been

caught, but they still have low integrity and are likely to lie again when the threat of being caught

is gone.

2) Trait-based systems, because they are vague, are more easily influenced by office politics,

causing them to be less reliable as a source of information on an employee's true performance.

The vagueness of these instruments allows managers to fill them out based on who they want

to/feel should get a raise, rather than basing scores on specific behaviors employees

should/should not be engaging in. These systems are also more likely to leave a company open

xvi
to discrimination claims because a manager can make biased decisions without having to back

them up with specific behavioral information.

The managers and supervisors agreed to introduce the modern approach.

1) Management By Objectives

Management by Objectives (MBO) specifies the performance goals that an individual and her

or his manager agree to try to attain an appropriate length of time.

Implementing a guided self-appraisal system using MBO is a four –stage process.

1) Job review and agreement

2) Development of performance standards

3) Guide objectives setting

4) Continuing performance discussion

The MBO process seems to be most useful with managerial personnel and employees who

have a fairly wide range of flexibility and control over their job.

2) 360 Degree Performance Appraisals

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive

appraisal where the feedback about the employees’ performance comes from all the sources

that come in contact with the employee on his job.

360 degree respondents for an employee can be his or her peers, managers, subordinates,

team members, customers, supplier’s vendors. Anyone who comes into contact with the

xvii
employee and can provide valuable insights and information or feedback regarding the “on-the-

job” performance of the employee.

3) Assessment Centers

An assessment centre typically involves the use of methods like social/informal events, tests

and exercises, assignments being given to a group of employees to assess their competencies

to take higher responsibilities in the future. Generally, employees are given an assignment

similar to the job they would be expected to perform if promoted. The trained evaluators observe

and evaluate employees as they perform the assigned jobs and are evaluated on job related

characteristics.

The major competencies that are judged in assessment centers are interpersonal skills,

intellectual capability, planning and organizing capabilities, motivation, career orientation etc.

assessment centers are also an effective way to determine the training and development needs

of the targeted employees.

4) Behaviorally Anchored Rating Scales

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the

graphic rating scale and critical incidents method. It consists of predetermined critical areas of

job performance or sets of behavioral statements describing important job performance qualities

as good or bad (for example the qualities like inter-personal relationships, adaptability and

reliability and job knowledge). These statements are developed from critical incidents.

xviii
In this method, an employee’s actual job behavior is judged against the desired behavior by

recording and comparing the behavior with BARS. Developing and practicing BARS requires

expert knowledge.

5) Human resources accounting

Human resources are valuable assets for every organization. Human resource accounting

method tries to find the relative worth of these assets in the terms of money. In this method the

Performance of the employees is judged in terms of cost and contribution of the employees. The

cost of employees include all the expenses incurred on them like their compensation,

recruitment and selection costs, induction and training costs etc whereas their contribution

includes the total value added (in monetary terms). The difference between the cost and the

contribution will be the performance of the employees. Ideally, the contribution of the employees

should be greater than the cost incurred on them.

xix
3.0 Summary, Conclusions and Recommendations

3.1 Summary of the Problems and Procedures

The purpose of this study is to determine the opinions of the managers and supervisors of

Bersatu Teguh Corporation regarding the effectiveness of the current performance management

and appraisal. Specifically, the investigation include determining the managers and supervisors

level of knowledge about the mistake in the performance management and appraisal, their

opinion on the current of the performance management and appraisal, knowledge and skill

necessary to handle the problem and subjection for a new performance management and

appraisal. Questionnaires were distributed 50 managers and 150 supervisors which provided

the primary data for this study.

3.2 Summary of the Findings

The findings shown that the managers and supervisors are extremely knowledgeable

About the common this performance management and appraisal types which are trait-based,

behavior-based and results-based.

They also understand the current the performance management appraisal which is the

Performance Appraisal Methods. However, a majority agreed that this performance

management and appraisal has been effectives in this company.

Performance appraisal, also known as employee appraisal, is a method by which the

performance of an employee is evaluated (generally in terms of quality, quantity, cost and time).

The roots of performance appraisal can be found in Frederick Winslow Taylor's time and motion

study. Performance appraisal is a part of career development.

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Performance appraisals are a regular review of employee performance within organizations.

Generally, the aims of a scheme are:

 Give feedback on performance to employees.

 Identify employee training needs.

 Document criteria used to allocate organizational rewards.

 Provide the opportunity for organizational diagnosis and development.

 Facilitate communication between employee and administrator.

 Validate selection techniques and human resource policies to meet federal Equal

Employment Opportunity requirements.

A common approach to assessing performance is to use a numerical or scalar rating system

whereby managers are asked to score an individual against a number of objectives/attributes.

Employees are also allowed the opportunity to assess the person (manager) at the same time.

This is known as 360° appraisal. The most popular methods that are being used as

performance appraisal process are:

 Management by objectives (MBO)

 360 degree appraisal

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3.3 Conclusions and Recommendations

To conclude, performance appraisal should be viewed as a beneficial process within the context

of an effective system of personnel management. It should be accepted as a normal

management responsibility to review the performance of all employees and for all managers to

discuss performance with their subordinates on a regular basis.

The key elements of an effective performance appraisal system are:

8. Clearly defined performance standards.

9. An effective monitoring system.

10. Regular discussions of performance.

11. Development of appropriate action plans as a consequence of the appraisal.

Those elements will help to ensure that performance appraisals conducted in any

organization will yield the desired benefits and be more readily accepted by all

concerned.

12. Legal and job-related

13. Effective in documenting employee performance

14. Beneficial as a development tool

Most system can be improved by training supervisors in doing performance appraisals. It is

because, conducting the appraisal is critical in a performance management system, training

should center around minimizing rater errors and providing a common frame of reference on

how raters observe and recall information.

xxii
Most businesses would benefit from better communications and management. A good review

system could help to improve communications, while aiding people to increase their own

effectiveness and to clarify their own jobs and responsibilities. An innovative system could not

only increase the performance of the staff, but also help them to work together, with common

goals and fewer obstacles. It could help people to comment on others' performance and

perceived problems more freely.

Even for a small business, one with a single owner or manager and three or more employees,

360 degree feedback, upward appraisals, and peer appraisals may be helpful. They can bring

out things which are normally never spoken, reducing tension, improving communications, and

most likely raising the employees' (or the manager's) performance considerably. However, to

use the data and opportunity wisely, follow-through is essential; otherwise the results will

eventually fade and gather dust.

Involve your employees in the process. If they design the new performance appraisal system,

they may be more dedicated to it and both you and your employees can reap the benefits.

xxiii
References

Robert L Mathis, John H. Jackson, (2002), Human Resource Management (10 th edition).

(pp.337-364) Thomas: South- Western.

Ober, S.(2009). Business Communication (7th edition). Boston, MA: South-Western, Cengage

Learning.

xxiv
APPENDIX A

xxv
Cover Memo

Memorandum

March 25th,2010

To : All Managers and Supervisors

From : Nor Fatihah Binti Che Jusoh

Nor Nilli Wahida Binti Tookiman

Siti Sharifah Binti mat Aros

Subject : Survey on Managers and Supervisors Evaluation Effectiveness of Performance

Management and Appraisal

The Human Resource Department will be conducting a resource to gather the Managers and
supervisor’s opinions on the performance management and appraisal at Bersatu Teguh
Corporation.

Kindly answer the questionnaires attached and return it to the Human Resource Department by
April 15th,2010.

Your cooperation is very much appreciated.

Thank you.

xxvi
 Questionnaire

Managers and supervisors Evaluation of Performance Management and Appraisal

Instruction: Please tick ( ) your chosen answer

1. You are a: Manager _________

Supervisor _________

2. Years of service: 0 – 9 years _________

2 - 5 years _________

5 years and above _________

3. Are you familiar with the common performance management and appraisal issue?

Please tick your answers in the columns.

Issues Familiar Unfamiliar Undecided

Trait-based
Behavior-based
Result-based

4. Do you think the present performance management and appraisal is effective?

Very effective
Effective
Not effective

xxvii
 Please give your reasons

5. Do you think you have the knowledge and skill necessary to handle performance

management and appraisal system problems?

Yes
No
Undecided

Please give your comment

6. Do you agree with this company with the available training in this company? Please give

your comment.

______________________________________________________________________

______________________________________________________________________

______________________________________________________________________

7. Do you agree that an effective performance management and appraisal approach is

important to Bersatu Teguh Corporation?

Agree
Disagree

xxviii
 Undecided

Please give your comment.

8. In your opinion, should Bersatu Teguh Corporation introduce new performance

management and appraisal system?

Yes
No
Undecided

Please give your comment regarding Modern methods performance management and

appraisal system?

xxix