What is performance appraisal?

 Performance appraisal.
A process of systematically evaluating performance and
providing feedback upon which performance
adjustments can be made.
Performance appraisal should be based on job analysis,
job description, and job specifications.
Functions of performance appraisal.

Define the specific job criteria against which

performance will be measured.
Measure past job performance accurately.
Justify rewards, thereby differentiating between high
and low performance.
Define ratee’s needed development experiences.
Purposes of performance appraisal.

The four functions describe two general purposes of

good performance appraisal.

Evaluation.

Feedback and development.

Evaluative decisions.

Concerned with issues regarding:

Promotions.
Transfers.
Terminations.
Salary increases.
When these issues are decided on the basis of
performance, a performance appraisal system is needed.
Feedback and development decisions.

Letting ratees know where they stand in terms of

expectations and performance objectives.
Feedback should involve a detailed discussion of the
ratee’s strengths and weaknesses.
Feedback can be used as a basis for coaching and
training by the manager.
Who does the performance appraisal?

Ratee’s immediate superior.

Ratee’s peers.
Ratee’s subordinates.
360-degree evaluation.
Dimensions and standards of
performance appraisal.
Output measures.
Quantity of work output.
Quality of work output.
Activity measures.
Behavioral measures that are typically obtained from the
evaluator’s observation and rating.
Performance appraisal methods.

Comparative methods.
Seek to identify a person’s relative standing among those
people being rated.
Absolute methods.
Specify precise measurement standards.
Collectivist-oriented cultures are less likely to use
comparative methods and more likely to use absolute
methods.
Comparative methods of performance appraisal.
Ranking.
Paired comparison.
Forced distribution.
Ranking.

Consists of rank ordering individuals from best to worst

on each performance dimension.
Relatively simple to use.
Can be burdensome when evaluating a large number of
people.
Paired comparison.

.
Each person is directly compared with every other
person being rated.
Final performance ranking reflects the frequency of
endorsement across all pairs.
Can be very tedious when many people must be
compared.
Forced distribution
.
Uses a small number of performance categories, and
rater assigns a specific proportion of employees to each
category.
Forces rater to use all categories.
Can be problematic if most of the employees perform
similarly.
Absolute methods of performance appraisal
.
Graphic rating scales.
Critical incident diary.
Behaviorally anchored rating scales.
Management by objectives.
Graphic rating scales.

List of dimensions related to high

performance, and the rater assigns an
individual score on each dimension.
Easy and efficient to use.
Conundrum of job relevance and generality
across jobs.
Critical incident diary
.
Record of incidents of each subordinate’s behavior that
led to unusual success or failure in a give performance
aspect.
Excellent for development and feedback due to
qualitative emphasis.
Difficult to use for evaluation due to lack of quantitative
emphasis.
Guidelines for ensuring the legality of performance appraisal
systems.

Base appraisal on job requirements as reflected in

performance standards.
Ensure that employees clearly understand the
performance standards.
Use clearly defined dimensions.
Use behaviorally-based dimensions supported by
observable evidence.
Group evaluation.
Group or team performance

appraisal is consistent with:

Self-managed teams.
High performance
organizations.
Frequently accompanied by a
group-based compensation
system.