An organisation manages, measures and influences the performance of its employees through a

performance management and appraisal process.

Performance management is a continuous process of identifying, measuring and developing

performance in organisations by linking each individual's performance and objectives to the
organisation's overall mission and goals. The two key points for performance management are as
follows:

Performance appraisal refers to evaluating an employee's current and/or past performance

relative to their performance standards. Therefore, it implies comparing what should be with what
is. The three components of the ‘what should be’ aspect of performance appraisal are as follows:
The differences between the key performance indicators (KPIs) and the organisational key result
(OKRs) are as follows:

With respect to the framework for setting OKRs and KPIs (also known as KRAs, or key result
areas), an organisation, typically, will have three to five high-level objectives and three to five key
results per objectives. OKRs are created in a pyramid structure as follows:
An employer determines whether an employee is deserving of a promotion or not through the
performance appraisal process.

The reasons behind appraising an employee’s performance in an organisation are as follows:

The stakeholders involved in a performance appraisal process are as follows:

The advantages of performance appraisal for employees are as follows:
1. Boosting productivity
2. Improving outcomes
3. Evaluating strengths and gaps

The six steps involved in the performance appraisal process are as follows:
The barriers in the performance management system are as follows:
The consequences of not having a performance management system are as follows:

The responsibilities of a manager in the post COVID-19 pandemic world are as follows:
The various methods for performance appraisal are as follows:

Before using any performance appraisal methods, one must ensure that they eliminate bias and
ensure an objective analysis in the long run. The various performance appraisal methods are as
follows:
While conducting performance appraisals, a manager may encounter four types of appraisal
situations or discussions. Following is their explanation:
The guidelines for appraisal discussion are as follows:

Guidelines play a crucial role in performance review which is one of the key areas where managers
face challenges today. With the right guidelines and thought process, the complex process of
performance reviews can be eased out. The guidelines to follow as an evaluator are as follows:
The pitfalls to be avoided while conducting a performance appraisal review are as follows:

Organisations are making changes to performance management. It can be understood through

the following two examples.

Example 1 is of General Electric (GE). Initially, they followed the ‘Rank & Yank’ method that was
introduced by Jack Welch in the 1980s. However, in 2016, they shifted to a new system under the
leadership of Jeff Immelt. They introduced an app called ‘App-PD@GE’ through which employees,
managers and teams across the company could exchange voice and text inputs, attached
documents and even handwritten notes. This app facilitated a constant exchange of feedback
year-round wherein the participants could receive suggestions from anyone in their network. This
shifted the company’s focus from ‘command and control’ to ‘empower and inspire’.

Example 2 is of Adobe. In 2012, Adobe's then Senior Vice President of People Resources Donna
Morris was feeling frustrated with the annual performance reviews because of the following
reasons:
 1. The process was complex, bureaucratic and paperwork heavy.
2. It wasted thousands of hours of managers.
3. It created barriers to teamwork and innovation.
4. The employees felt undervalued and uninspired due to it.

To overcome the hassles of the annual performance review process, she announced to abolish
the performance review format. Thus, Adobe conducted surveys across the country and
eventually shifted from the old system of rating and ranking to check-in.

Check-in revolves around clear expectations, growth and development, frequent feedback, both
positive and constructive, and no ratings or rankings. The system was more developmental and
feedback oriented.

The scope of analytics in performance management system can be understood through the
following two examples:
Disclaimer: All content and material on the upGrad website is copyrighted material, either
belonging to upGrad or its bonafide contributors and is purely for the dissemination of education.
You are permitted to access print and download extracts from this site purely for your own
education only and on the following basis:
● You can download this document from the website for self-use only.
● Any copies of this document, in part or full, saved to disc or to any other storage medium
may only be used for subsequent, self-viewing purposes or to print an individual extract or
copy for non-commercial personal use only.
● Any further dissemination, distribution, reproduction, copying of the content of the
document herein or the uploading thereof on other websites or use of content for any
other commercial/unauthorized purposes in any way which could infringe the intellectual
property rights of upGrad or its contributors, is strictly prohibited.
● No graphics, images or photographs from any accompanying text in this document will be
used separately for unauthorised purposes.
● No material in this document will be modified, adapted or altered in any way.
● No part of this document or upGrad content may be reproduced or stored in any other web
site or included in any public or private electronic retrieval system or service without
upGrad’s prior written permission.
● Any rights not expressly granted in these terms are reserved.