Performance Management

and
Compensation

•G R O U P 4

• GLORIOSO, MARYLE

• R U I V I V A R , R O S E LY N

• S A N T I A G O , A L LY Z A

• SARMIENTO, CARIDAD

• R E Y N O S O , A LT H E A

• BANTUAS, AMER

• IBAÑEZ, RESTY
 • PERFORMANCE
APPRAISAL TO
PERFORMANCE
MANAGEMENT
Roselyn O. Ruivivar • 360-DEGREE
Master 613
Human Resource Management APPRAISAL
MMPA – Batch E
• C O M P E T E N C Y-
BASED
APPRAISAL
• APPRAISAL
FEEDBACK AND
COUNSELLING
 Performance Appraisal
The process of evaluating how employees perform their jobs compared to a set
of standards.
Is the ongoing process of evaluating employee performance.
Typically involves managers rating the performance of their subordinates.
Performance Management
Is a comprehensive, continuous, and flexible approach to the management of
performance of teams and individuals.
Is the process of identifying, measuring, managing, and developing the
performance of the human resources in an organization.
• Performance management is a goal-oriented and continuous
way to appraise and manage employees’ performance.

• The difference between performance management and

performance appraisal is subtle but distinct.

• Performance management is about providing support as well

as direction.

• Continuous feedback and strategically linked performance

criteria are the two important distinguishing characteristics
of performance management.
Some of the features of strategically linked performance management are:

• There is strategic linkage of performance targets with goals

• Strategic performance management relies on consensus and

cooperation

• It relies on setting specific and measurable goals

• It encourages self-management of individual performance

• It requires a management style that is open and encourages

two-way communication

• It provides a clear framework for growth.

360-DEGREE APPRAISAL
IS A PERFORMANCE ASSESSMENT
T O O L T H AT I N C O R P O R AT E S
FEEDBACK FROM ALL WHO OBSERVE
AND ARE AFFECTED BY THE
P E R F O R M A N C E O F A C A N D I D AT E .

1. Self-appraisal Self-appraisal gives a chance to the employee to look at his/her strengths,weaknesses,

and achievements, and judge his/her own performance.
2. Appraisal by senior The manager’s perception of an employee’s performance is still an important part
of the evaluation process. It gives a chance to judge employees on parameters such as communication and
motivating abilities, superior’s ability to delegate the work, and leadership qualities.
3. Appraisal by subordinate It is the concept of having supervisors and managers rated by juniors or
subordinates. It is analogous to the type of rating used in colleges and universities,where students
evaluate the performance of professors. This type of rating makes managers more responsive to
employees.
4. Peer or team appraisal The use of peer groups as raters is beneficial for organizations that rely heavily
on teams. Peer ratings are especially useful when supervisors do not have the opportunity to observe each
employee’s performance, but other work group members do. The feedback given by peers can help to find
employees’ abilities to work in a team, and for cooperation and sensitivity towards others.
5. Outsider appraisal Rating also may be done by outsiders. The customers or clients of an organization
are obvious sources for outside appraisals. For salespeople and other service personnel, customers may be
a good source of feedback. For people in purchase departments, reviews from suppliers or vendors may
help.
Advantages of 360-degree Appraisal
1. organizations that rely heavily on teams. Peer ratings are especially useful

 The 360-degree performance appraisal

when supervisors do not have the opportunity to observe each employee’s
performance, but other work group members do. The feedback given by peers
can help to find employees’ abilities to work in a team, and for cooperation and
system creates room for employee
sensitivity towards others.
5. Outsider appraisal Rating also may be done by outsiders. The customers or
clients of an organization are obvious sources for outside appraisals. For
development by providing individuals with
salespeople and other service personnel, customers may be a good source of
feedback. For people in purchase departments, reviews from suppliers or vendors

both direct and indirect feedback.

may help.

 It makes for a holistic form of assessment.

 It develops a level of self-awareness among
employees.
 The 360-degree feedback process enhances
productivity and professional relationships.
 It creates transparency within the
organization and establishes trust.
Disadvantages of 360-degree Appraisal
 It creates unhealthy competition between
employees and exposes personal biases.
 It neglects positivity.
 It can be time-consuming.
 It can create feelings of mistrust among
employees.
Competency-based Appraisal
• A competency-based appraisal process focuses on the skills and competencies necessary to be
successful.

• The performance targets may include strategically important behaviors, such as building trust or
customer satisfaction.

• Competency-based appraisal systems allow managers and supervisors to identify gaps in competencies
and deploy remedial measures.

• Assessment centers are an important tool for competency-based appraisal.

• An assessment center is a mechanism to evaluate an individual’s potential and performance.

• An assessment center typically involves the use of methods such as social events, tests, exercises, and
assignments to assess different competencies.

• When an assessment center is being set up, it must be designed with a specific purpose in mind.

• Trained evaluators observe and evaluate employees.

 APPRAISAL FEEDBACK AND COUNSELLING
A feedback interview is the process of sharing concerns and issues related to one’s appraisal.
Feedback involves three important stages:

Pre-Interview Stage
• The supervisor or manager should do some preparations. Make sure to accurately define the problem,
identify the strengths and development needs of the employee. They must also make sure that the
employee has sufficient advance notice for the interview so that he has time to do his own preparation.

Interview Stage
• The actual feedback stage. The concerned manager and the employee sit and discuss the results of the
appraisal process. Feedback should be given at a time when the employee is in a receptive mood. Most
importantly, feedback interview must be a two-way communication.

Post-Interview Stage
• Make a record of plans the manager and employee have made for the future. Identify any problems to
work on with the intention of developing an action plan for improvement of skills. Discuss a timeline for
continued informal and formal reviews. After the appraisal takes place, plans for improvement can be
implemented.
THANK YOU!