Performance Appraisal

Performance Appraisal

evaluating an employee's current and/or past performance relative to their performance standards

Performance Appraisal Process

setting work standards

Reasons to Appraise Performance

most employers base pay, promotion, and retention decision in large part on the appraisal

Defining Employee Goals and Performance Standards

performance appraisal should compare 'what should be' (performance standard) with 'what is' (current performance)

Who Should do the Appraising?

Immediate Supervisor is the heart of most appraisals

Peer Appraisals

appraisals by one's peers

Chairperson

Selects supervisors and peers for employee evaluation.

Peer Evaluation

Colleagues assess aspects unseen by supervisors.

Crowd Appraisals

Continuous evaluation via social media tools.

Virtual Games

Employees evaluate and reward each other interactively.

Rating Committees

Includes immediate supervisor and several other supervisors.

Self-Ratings

Employees rate themselves, often higher than supervisors.

Appraisal by Subordinates

Subordinates rate managers for developmental purposes.

360-Degree Feedback

Performance information collected from all around the employee.

Performance Criteria

Standards used to evaluate employee performance.

Traits

Subjective qualities related to job performance.

Behaviors

Task-related actions evaluated when outcomes are unclear.

Competencies

Knowledge, skills, and behaviors linked to job success.

Strategic Contribution

Aligning employee behaviors with organizational needs.

Business Knowledge

Understanding business operations and translating into action.

Personal Credibility

Demonstrated measurable value in HR roles.

HR Delivery

Efficient service in staffing and performance management.

HR Technology

Utilizing technology to enhance HR service delivery.

Goal Achievement

Results leading to organizational success within control.

Improvement Potential

Assessment of employee's future career development.

Graphic Rating Scale

Rates performance on a scale from unsatisfactory to outstanding.

Alternation Ranking Method

Ranking employees from best to worst on a trait.

Paired Comparison Method

Compares each employee against every other employee.

Forced Distribution Method

Categorizes employees into performance percentiles.

Critical Incident Method

Logs significant examples of employee performance.

Narrative Forms

Written assessments detailing performance strengths and weaknesses.

Behaviorally Anchored Rating Scales (BARS)

Combines numerical ratings with specific performance examples.

Management by Objectives (MBO)

Goal-setting process involving multiple organizational levels.

Unclear Standards

Ambiguous traits lead to unfair appraisals.

Halo Effect

General impression affects specific ratings.

Central Tendency

Rating all employees as average distorts evaluations.

Leniency or Strictness

Extreme ratings skew performance evaluations.

Recency Effects

Recent performance overshadows past evaluations.

Appraisal Interview

Discussion between manager and subordinate on performance.

Defensive Subordinate

Initial denial response to negative feedback.

Handling Written Warnings

Formal notice for employees with poor performance.

Performance Management

Continuous process of measuring and developing performance.

Direction Sharing

Communicating company goals to all employees.

Ongoing Feedback

Continuous updates on progress towards goals.

Recognition and Rewards

Incentives to maintain goal-directed employee performance.