‫بسم اهلل الرمحن الرحيم‬

GSB
Human Resources Management

Performance Appraisal
Dr. Abdelnasser Ghanem
Dr. Abdelnasser ghanem (aahhg@hotmail.com)
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Objectives & Contents

1 Performance Management and Appraisal

2 Objectives Performance Appraisal

3 Stages of Appraisal

4 Appraisal Settings

5 Appraisal Methods

6 360 Degrees Feedback System

7 Appraisal Errors

2
Performance Management &
Performance Appraisal
An American study reported that,
organizations in the (upper) quarter
in individuals’ appraisal rates could
raise the productivity by 18% and
the profitability by 16% and
decreased the work accidents by
49% compared to those in the
fourth (lower) quarter in rates of
appraisal.
Hence the direct impact of
individual performance and the
ability of organizations to achieve
their objectives become clear.
PMSs are developed to define
expectations; and measure,
evaluate, and reward performance,
in addition they provide the
corrective Actions.
Corporate Strategy
Performance Management
 Identify expected performance levels
 Develop Suitable Work Environment
 Encourage high levels of performance
 Coaching and ongoing feedback
Performance Appraisal
 Performance Assessment
 Feedback
Uses or Appraisal results
 Rewards and compensation
 Training and Development
Organizational performance
 Goals met or not met
 Stakeholders Satisfaction
 Performance Management
Employee performance management combines and
integrates many parts of people management. It is a
process for establishing a shared understanding about
what is to be achieved at an organizational level.

In the Performance
oriented organizational
culture the achievement
becomes the driving force Clear expectations and well defined objectives
to the activities of
employees. Performance- Encouraging work environment
oriented culture is based
on several layers: . Valid Measure of actual performance

Clear feedback

Corrective actions
 The Performance Appraisal Process

Performance appraisal : is the Process of evaluating

an employee’s current and/or past performance
relative to his /her performance standards.

You may link “performance appraisal” to appraisal forms, but appraisal involves
more than forms. Effective appraisals actually begin before the point of
measuring the performance

Managers should defining the employee’s job and performance criteria, explain
these criteria to subordinates and making sure that you and your subordinate
agree on his /her duties and job standards
Thus appraisals must be developed with great attention, as poor appraisals
bring depressing results, and corrupt relations among the team members.
 Objectives Performance Appraisal

Performance appraisal : is the process of:

 evaluating the performance of employees,
 sharing that information with them and,
 searching for ways to improve their performance.
There are three major uses of appraisal results:

Administrative Uses Development Uses Strategic objectives

• Pay & Compensation • Identifying strengths  Verify that performance
• Promotion • Identifying Weaknesses is moving towards
• Retention & Firing • Development planning achieving strategic goals
•Identify training needs  Human resources
planning
• Coaching and career
planning  Succession planning
 Stages of performance appraisal

Define the Performance

Discuss the
objectives for criteria and Performance
evaluation
the evaluation evaluation
with staff
evaluation criteria

Appraisals have The evaluation The choice of Employees must get

different aims and criteria must method depends a feedback on their
any measure is not reflect the on the performance, but
able to support all performance  purpose of the this is very critical
purposes: criteria: evaluation, for both supervisor
• Pay & Bonus • Doing maximum  resources, and subordinates, so
(Short term) effort they must be
 size, and managed well
• Succession • achieving goals culture of
planning (long aiming at enhancing
• Doing many tries. organization not criticism
term)
 Job Criteria & Appraisal Criteria
Job criteria identify factors employees must meet for
satisfactory job performance including major classifications:

Trait-based criteria Behavior-based criteria: Result-based criteria: one of

Subjective personal Identify behaviors such the most important criteria,
treats, such as creativity as having communication where objectives vary due to
or having a positive skills that may lead to job level. Example: Ending a
attitude that may successful completion of project in a timely manner is
contribute to job success. job. a criterion for the a manager
Information about Information about while achieving target is a
personality behavior criteria for a salesman.
 Honesty • Collaboration Information about the
 Teamwork • Achieve customer results
 Commitment satisfaction • production volume
 Efficiency • Negotiate skills • Reduce costs
 Innovation • Participation • Achieve the target
 Values and morals • Communication skills • Production quality
Effort –based : Some times difficult to be Easier to be identified
identified and evaluated objectively and evaluated objectively
 Appraisal Settings

Appraisal Responsibilities: Rests with a supervisor or manager, but the HR staff

plays a vital role in the process, and other partied may be involved in evaluating:

Customers colleagues Subordinates Self Rating Outsiders Multi-raters

When to conduct Appraisals: Timing of formal appraisals vary in two diminutions:

Number of times of appraisal, And When to conduct the appraisal

Number of times When to conduct

Once a year monthly Quarterly Specific time (ex: anniversary

January / June) dates

Appraisal and Pay: Whichever timing is used, appraisals are often coupled with a
pay increase for employees and evaluation is used to set the specific amount or
percentage
 Appraisal Settings

Informal Versus Formal

Appraisal

The informal appraisal process A formal appraisal process

is typically conducted at the
manager’s judgment, and is
activated by an event or situation
requiring appraisal feedback.
The informal feedback should be
documented and retained for
further review and consideration
at the employee’s annual review
Is the organizational policy and
regular procedures on performance
appraisal. It involves using an
official form that documents the
important aspects of the job and
formally evaluates employees’
performance.
 Appraisal Methods

Traditional Appraisal Methods

Graphic Rating Scale Method : A form lists the traits each employee
1 should have and rates workers on a numbered scale for each trait.

2 Forced Distribution Method

3
Narrative Forms : Also called an essay, it is simply a written analysis
of an employee's performance. It's one of the oldest methods. It is
complementary, very individualized and qualitative in nature.

Management by Objectives (MBO): is a that determines how closely

4 aligned an employee's goals are to organizational goals. Therefore,
managers and executives they report to often work together to
establish goals for this type of appraisal method.
 Appraisal Methods

Modern Appraisal Methods

Assessment Centers An assessment center involves the use of methods

like social/informal events, tests and exercises, assignments being given
1
to an employee to assess his/her 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 who
are evaluated on job related characteristics.

2 360 ̊ Method.

Use a combination of methods: There is no ideal way for all positions and
functions, so using a combination of evaluation methods can increase the
effectiveness of evaluation and avoid the disadvantages of each of them
 360 degree feedback system
Is called 360-degree feedback system and has become one of the most widely
used evaluation methods by organizations around the world.

The basic idea is to get feedback about

employee’s performance and rating
the employee by different people with
whom he or she has a work or
business relationship. 360 Degree
Feedback is a process in which
employees receive confidential,
unnamed feedback from the people
who work around them. This typically
includes the employee's manager,
peers, and subordinates

The 360 degree feedback system is very valid as it combines the assessments
and information from Different point of view. The system has become
widely used around the world by many famous organizations such as
General Electric, Procter &Gamble, Motorola, and other.
 360 degree feedback system
Advantages of the System

1- Avoid problems of evaluating performance of employee by only his direct

supervisor, which may result in some rating errors

2- Organizations have recently shifted from deep hierarchical structures to flat

structures, which resulted in changing the communication channels as a result of
the wide scope of supervision. These wide scope of supervision brings more
difficulties to the evaluation process, which increase the importance of
evaluations of other parties around employee

3- The wide dependence on team working , which increased the importance of

communication at the horizontal level. Therefore, the importance of colleagues’
opinions increased
4 – Due to increased business orientation toward customers, the need to survey
the views of customers has increased to insure their satisfaction toward the level
of services received.
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 360 degree feedback system How to conduct 360
180 90
Degrees Degrees
Colleague Supervisor
The method gained its name from the idea of
summation of the four angels of the square. Where
Employee the employee is located in the middle of a square
and each of the four raters is located in one angle.
Customer Subordinate During this process, roles and positions are
270 360 exchanged, to allow each of them to evaluate others
Degrees Degrees
•The Supervisor assesses the performance due to results, productivity, ability to
implement his roles and achieve his goals.
•colleague: - is aware of the abilities and skills of his colleague, they also aware of
his behaviors (cooperation, team working) and traits (Honesty, loyalty) .
•The subordinate is able to assess his manager’s performance of roles of
leadership, supervision, and delegation.
•Customers are the core of the organization interest, so they are an important
sources of information on the quality of the performance and progress..
•The assessment of employee of his/her level of achievement and constraints to
the satisfactory performance is taken
 360 degree feedback system
Steps of 360 Degree Assessment:
In large organizations, evaluations are collected from
around 10 persons
Make sure that assessments are confidential

Make sure that everyone knows why 360 is conducted

and what is its purposes
The minimum period of time to participate in
assessment process is (6 months)
Computer applications are used to collect and analyze data
Reports are generated about employee performance, competencies, attitudes -
according to these different perspectives.

Make sure that the results are used to improve the performance and benefits
both organization and employees
It is a common belief that such programs are effective when used for
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development purposes but not for administrative (e.g. promotion& bonus)
360 degree feedback system

Steps of 360 Degree Assessment:

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 Rater Errors

Tell about a situation where you had been unfairly evaluated.

Why that happened? how was this reflected on your behavior later?

There are some common errors managers may do when evaluating employees.

Recency Central tendency Rater Bias Contrast Errors

Is to use only the Managers may tend Some times the This error occurs
recent events to to rate all employees appraisal reflect when a
judge employees’ within a narrow manager’s bias manager
performance. To range. This includes due to gender, compares
avoid this, you over and minor age, religion employees to
should keep evaluation, which among others. each other
positive and leaves the employees Here the rather than to
negative notes without ideas about manager’s performance
about employees where they really supervisor should standards.
along the year. stand. be involved.
 Appraisal Feedback

It is important to provide employees with a clear

understanding about how they are performing.
Managers should coach employees about their performance and provide
development opportunities.
The performance feedback is most effective when it is interactive and
mutually beneficial to managers and employees. It can involve the
following steps:

Collect Data Evaluate Data Taking Action

It is how This includes The final step is to take
managers objectively actions based on the
gather determining how appraisal results. This may
information the employee be a pay increase or a
about performed relative development plan. The
employees’ to job standards action should be an
performance. encouragement to the good
performance.