Appraising and Managing

Performance

By
Prof. Jallavi Panchamia
 Why Appraise Performance?
Five major reasons:
1. Used for pay, promotion, and retention decisions
2. Links performance management to company goals
3. The manager can correct deficiencies and reinforce strengths
4. With appraisals employee’s can review career plans
5. Training needs are identified
 Multiple Purposes of Performance Assessment
General Applications Specific Purpose
Identification of individual needs
Performance feedback
Developmental Uses
Determining transfer and job assignments
Identification of individual strengths and developmental needs
Salary
Promotion
Retention or termination
Administrative Uses/Decisions
Recognition of individual performance
Lay-offs
Identification of poor performers
HR planning
Determining organisation training needs
Organisational Evaluation of organisational goal achievement
Maintenance/Objectives Information for goal identification
Evaluation of HR systems
Reinforcement of organisational development
Criteria for validation research
Documentation Documentation for HR decisions
Helping to meet legal requirements
Source: Cynthia D. Fisher, et al. Human resource management, Houghton Mifflin, 1997, p.455
How Performance Appraisal can Contribute to Firm’s
Competitive Advantage

Improving
Performance
Making
Strategy and
Correct
Behaviour
Decisions

Competitive
Advantage

Ensuring
Values and
Legal
Behaviour
Compliance

Minimising
Dissatisfaction and
Turnover
The Performance Appraisal Process

Objectives of Performance
Appraisal

Establish Job Expectations

Design an Appraisal
Programme

Appraise Performance

Performance Interview

Use Appraisal Data for

Appropriate Purposes
Methods of Performance Appraisal
MBO Future-oriented

Rating
Scales
Cost
Accounting Checklists

360 Degree Appraisal

Essay
Forced

Assessment Centres
Choice
ACRS Appraisal
Methods
Forced
Tests and Distribution
Observations

Critical
Field Review Incident

BARS

Psychological Past-oriented
Appraisals
Graphic
Rating Scale
with Space for
Comments
Sample Graphic
Rating Performance
Rating Form
Examples of Critical Incidents for
an Assistant Plant Manager
 Example of a
Behaviorally
Anchored Rating
Scale for the
Dimension
Salesmanship Skill
Accenture’s strategic role assessment Matrix
 Computerized Performance
Appraisal

Visit these web sites for online performance

rating tools.
Online Performance
Appraisal Tool
 Dealing with Performance
Appraisal Problems

Potential Rating Scale

Appraisal Problems

Unclear Halo Leniency or

Central tendency Bias
standards effect strictness

Primacy and recency effects

Perceptual set
Spillover effect
Status effect
 The Appraisal Interview
an interview in which the supervisor and subordinate review the appraisal and make plans to
remedy deficiencies and reinforce strengths
 Checklist
During the
Appraisal
Interview

Source: Reprinted with permission of

the publisher, HRnext.com. Copyright
HRnext.com, 2003.
Figure 9–11
Guidelines to Conducting the Appraisal
Interview

 Objective data

 Don’t get personal

 Encouragement

 Agreement