BATANGAS STATE UNIVERSITY

College of Accountancy, Business Economics and International Hospitality Management

GRADUATE SCHOOL

HUMAN RESOURCE MANAGEMENT

Written Report on the Topic

PERFORMANCE MANAGEMENT AND APPRAISAL
Glenda P. Micosa

INTRODUCTION

Few things supervisors do are fraught with more perils than appraising subordinates
performance. Employees send to be overly optimistic about what their ratings will be.
They also know their raises, career and peace of mind may hinge on how them rate them.
Its not enough few appraisal process are as fair as employers thinknthey are.
Hundreds of obvious and not so obvious problems occur such as bias, tendency for the
supervisor to rate everyone average and also distort the process. However the perils
notwithstanding the performance appraisal plays a central role of human resource
management.
Before appraising performance, managers should understand the basic concepts in
performance management and appraisal. Stripped to its essential s, performance
appraisal involves setting work standards, assessing the employees actual performance
relative to those standards and also providing feedback to the employee. Managers should
also appraise employees based on the criteria and the actual standards and should be
SMART- specific, measurable, attainable, relevant and timely.

OBJECTIVES

1. Define Performance Management and Performance Appraisal.

2. Describe the appraisal process.
3. Set effective performance appraisal standards.
4. Explain Key Methods used in Managing Performance

DISCUSSION
What is Performance Appraisal?
PERFORMANCE APPRAISAL
Evaluating an employees current performance relative to his/ her performance standards

PERFORMANCE PROCESS
1. Setting the work standards.
2. Assessing the employees actual performance relative to the standards.
3.Providing feedback to the employee and aim to eliminate performance
deficiencies or to continue to perform above par.

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 BATANGAS STATE UNIVERSITY
College of Accountancy, Business Economics and International Hospitality Management
GRADUATE SCHOOL

Objectives of Performance Management:

• Opportunity to Regularly Discuss Results
• Supervisor Identifies Strengths and Weaknesses
• Fair and Equitable Format
• Basis for Salary/Promotion Recommendations
•
What is Performance Appraisal?

• PERFORMANCE MANAGEMENT
The continuous process of identifying , measuring and developing the
performance of individual and teams and aligning their performance with the
organization’s goals.
• S- pecific ( desired result of the goal )
• M –easurable ( put goals quantitative, answer how much )
• A- ttainable ( how to reach the goal)
• R –elevant (clearly what the company want to achieve)
• T-imebound ( reflect deadlines and target dates)

Main Purposes of Performance Management

• Individual Rewards (Base and Incentive)
• Feedback for Sub-Ordinate (Plus and Minus)
• Recognition of Superior Performance
• Documentation of Weak Performance
• Personnel Decision-Making
• Future Goal Commitments (Planned Achievements)

Reasons for Appraisals

• Compensation "Pay for Performance"
• Job Performance Improvements
• Feedback to Subordinates
• Documentation for Decisions
• Goal Setting - Later Evaluation
• Promotion Decisions
• Identify Training Needs
• HR Planning

Who Performs the Appraisal?

• Immediate Supervisor
• Higher Management
• Self-Appraisals
• Peers (Co-Workers)
• Evaluation Teams
• Customers
• “360° Appraisals”

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 BATANGAS STATE UNIVERSITY
College of Accountancy, Business Economics and International Hospitality Management
GRADUATE SCHOOL

Supervisor Appraisal
• Performance appraisal done by an employee’s manager and often reviewed by a
manager one level higher.

Self-Appraisal / Ratings
Performance appraisal done by the employee being evaluated, generally on an
appraisal form completed by the employee prior to the performance review.

Subordinate Appraisal
• Performance appraisal of a superior by an employee, which is more appropriate
for developmental than for administrative purposes. Upward feedback can
improved a manager’s performance.

Peer Appraisal
• Performance appraisal done by one’s fellow employees, generally on forms that
are complied into a single profile for use in the performance interview conducted
by the employee’s manager. Firms uses in self- managing teams can be effective.

Team Appraisal
• Performance appraisal, based on TQM concepts, that recognizes team
accomplishment rather than individual performance.

360 degree Appraisal

• The employer collects performance information all around the employee- from his
supervisors, subordinates, peers and internal and external customers generally for
developmental rather than pay purposes.

Scheduling the Performance Appraisal

1. Schedule the review and notify the employee ten days or two weeks in advance.
2. Ask the employee to prepare for the session by reviewing his or her performance,
job objectives, and development goals.
3. Clearly state that this will be the formal annual performance appraisal.

Preparing for the Review for the Performance Appraisal

1. Review the performance documentation collected throughout the year.

Concentrate on work patterns that have developed.
2. Be prepared to give specific examples of above- or below-average performance.
3. When performance falls short of expectations, determine what changes need to be
made. If performance meets or exceeds expectations, discuss this and plan how to
reinforce it.
4. After the appraisal is written, set it aside for a few days and then review it again.
5. Follow whatever steps are required by your organization’s performance appraisal
system.

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 BATANGAS STATE UNIVERSITY
College of Accountancy, Business Economics and International Hospitality Management
GRADUATE SCHOOL

Appraisal Methods
• Rating Scales
• Forced Choice Statements
• Essay
• Critical Incident Method
• Management by Objectives
• Alteration Ranking of Employees
• Paired Comparison Method

Rating Scale Methods

1.Global Scale (Total Performance)
2.Mixed Standard Scale (Choose from Different Statements)
3.Behaviorally Anchored Rating Scale (Descriptions along the scale to define)

1.Graphic Rating-Scale Method

• Performance appraisal whereby each employee is rated according to a scale of
pre-defined characteristics that are job performance related.
2.Mixed Standard Scales
• It is similar to BARS (Behaviorally anchored rating scales ) however it is mixed
scales of behavioral examples and performance dimensions. The employer mixes
resulting to behavioral examples statements when listing them.
3.Behaviorally Anchored Rating Scale (BARS )
• A behavioral approach to performance appraisal that consists of a series of
vertical scales, one for each important dimension of job performance.

Forced-Choice Method
• A trait approach to performance appraisal that requires the rater to choose from
statements designed to distinguish between successful and unsuccessful
performance.
Essay Method
• A trait approach to performance appraisal that requires the rater to compose a
statement describing employee behavior.
• Write a Behavioral Statement
• Strengths versus Weaknesses
• Describe Selected Traits
• Evaluate Performance

Critical Incident Method

• Unusual event that denotes superior or inferior employee performance in some
part of the job.
• Keeping a record of positive and negative examples of employees work related
behavior and reviewing it using the incident examples.

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 BATANGAS STATE UNIVERSITY
College of Accountancy, Business Economics and International Hospitality Management
GRADUATE SCHOOL

Management By Objective (MBO)

• Philosophy of management that rates performance on the basis of employee
achievement of goals set by mutual agreement of employee and manager.
• Integrates performance and goal setting
• Frequent intervals
• Record maintenance
• Objective review jointly
Mutual buy-in
Advantages of MBO
• Employees Can Measure Performance
• Quantifiable Goals
• Joint Effort
• Employee Satisfaction in Participation
Disadvantages of MBO
• Success Not Validates by Research Studies
• Easy to Set Unrealistic Goals
• Hard to Get Full Commitment to Process
• Difficult to Define Some Goals

Alteration Ranking Method

• Alteration Ranking method- Rank employees from best to work in a particular
trait. (Highest to Lowest )

Paired Comparison Method

• Paired Comparison Method- Ranking of employees by making a chart of all
possible pairs of employees and indicating which is better employee of the pair.

REFERENCES
Aquinis, Herman. Performance Management (Upper Saddle River, N.J.) Pearson (2009)
pp.3-4
Craig,S. Bartolomew & Facteu J. “Performance Appraisal Rating from different Rating
Scores” Journal of Applied Psychology 86 no.2(2001)pp.213-227
Glendinning ,Peter”Performance Management Parish or Messiah” Public Personnel
Management 31,no,2(Summer 2002)pp.161-178.

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