Strategies for effective

performance appraisal
systems
 Strategic choices
1. Managers should decide on the
objectives and purposes for the
performance appraisal.
2. Will the evaluations be for
correcting problems, for
determining rewards, or for other
purposes?
3. Will the evaluations be individual or
group based?
 4. Managers can choose between
formal and informal procedures for
the performance appraisal.
5.Managers must decide on the
frequency of the performance
appraisal.
6. Managers must decide who
conducts the performance appraisal.
 Job performance process
 Job analysis
 Performance standards

 Performance appraisal system

 Assessing performance

 Performance review

 Future action plan.

 Types of performance review
 Closed reporting
 Open reporting

 coaching
 Types of performance appraisal
methods
Behavioral performance appraisal
methods:
 Checklists
 Weighted checklists
 Graphic rating scale
 Mixed standard scale
 Forced choice scale
 Critical incident method
 Types of performance appraisal
methods
Personnel comparison systems:
 Ranking

 Forced distribution

 Paired comparisons
 Types of performance appraisal
methods
Results-oriented performance
appraisal methods:
 Management by objectives (MBO)

 Work planning ( Similar to MBO with

some more focus on feedback and
review).
Selecting a performance appraisal
method

There is no best method….. It

depends on the situation.
 Strategy and the Performance
appraisal process
 Strengthening the linkage between
the performance appraisal system
and the organization’s long term
strategic plans can improve
organizational effectiveness.
 Criteria for a successful
performance appraisal system
 Clear objectives
 Management and employee endorsement

 Flexibility

 Predictability

 Performance dialogue

 Appraisal form

 Periodic system checks ( for its validity)