What is performance appraisal?

A performance appraisal, employee

appraisal, performance review, or
(career) development discussion is a
method by which the job
performance of an employee is
evaluated (generally in terms of
quality, quantity, cost, and time)
typically by the corresponding
manager or supervisor.
Why performance appraisal?
• Major use is for pay decisions
• Identify candidates for promotion and
reassignment
• Determine needs for training and
development
• Give feedback for improvement
• Administer rewards and discipline
• Motivation tool for improved productivity
• Goal setting for future accomplishments and
measure attainment
 Types of performance
appraisal systems
• Rating scale
• Ranking system
• Critical incident technique
• Behavior checklists
• Management by objective
• 360 degree feedback
Stages of Performance
Appraisal:

• Specified performance criteria

• Identify the appraisers
• Deciding on the frequency of
appraisal
Performance Appraisal Criteria

• Traits
• Behavior
• Outcomes
Traits:

Traits such as leadership,

judgment, initiative and
dependability are positively
correlated with job performance
but may be difficult to measure
Behavior:

This criteria focuses on tasks to be

performed but performance of
expected criteria do not
necessarily lead to success on the
job if other criteria is not met.
Outcomes:

Focuses on measurable results

 Who are appraisers?
• Immediate managers
• Leaders at the parent and host location
• Team members
• Clients
• Self appraisal
In most MNCs, appraisal system have
a combination of these appraisers,
which provides fair and balanced
approach.
 Frequency of Appraisal:

• Refers to, how frequently an

appraisal is done or how much gap
is left before each appraisal.
• It may be once in 3months,
6months or once in a year
• Usually it is done once in a year.
• Newer recruits are assessed more
than the experienced ones.
 Issues in performance management

Performance
Management

Culture & Subsidiary

Performance performance
management

Rewarding Virtual
performance Teams

Under
performers
 Culture Implication:
Individual collective
Level of achievement Provide direct feedback -Feedback should consider
individuals role
- Feedback should consider
group harmony

Provide opportunity for Focus on top-down

Feedback approach individual to participate communication
in assessment -Avoid perception by
lessening the managerial
participation
Feedback communication -Consider surrounding
Communication style should be direct context of the feed back
-Pay close attention to the
body language of
individual
-Be indirect in
communicating feedback
Three Ways in which cultural
differences impact PMS

1. Goal commitment and

participation
2. Feedback - Performance
3. Feedback seeking behavior
Rewarding performance

• Provide annual performance

awards.
• It could be unit wise, subsidiary
wise or in global forum.
• Such awards motivates and makes
sure that achievements are in
alignment with the global value
Managing underperformers:
• Stage 1: Setting expectations and monitoring
performance, clear communication of the non -
performance parameter shared with the employee,
showing evidence for the same.
• Stage 2: Discussing and documenting problem
performance. made sure the employee is
communicated fully regarding the area of under
performance.
• Stage 3: Establishing and implementing
consequences to poor performance. this stage
occurs when problem continues even after one or
more performance discussion.
Managing underperformers:
The performance is then rated as
"unsatisfactory", in which case the
employee is placed on probation for
a month or two, after being given a
written notification about the area of
underperformance. If the probation
is not satisfactorily completed, the
employee is terminated or asked to
resign.
Virtual assignment:

In order to raise up the

competency level of the
individuals, virtual
assignments are given and see
how the individuals perform.
Subsidiary assessment:

Though the performance of

individual expatriates is
important, the performance of the
subsidiary as a whole is even
more important, therefore it is
more important to assess the
growth of the subsidiary as a
whole.
Difficulties in Assessment:
• Balancing HQ and Home unit
performance
• Attention to external forces
• Vagaries of the international
environment
• Significance of time and distance
• Variable level of maturity