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Chapter 26 Review and Appraisal of Individual Performance. Performance management and assessment. Aim : to get better results for the organisation via the measurement and evaluation of individual performance.

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chapter 26 review and appraisal of individual performance
Chapter 26

Review and Appraisal of Individual Performance

performance management and assessment
Performance management and assessment
  • Aim: to get better results for the organisation via the measurement and evaluation of individual performance.
  • Appraisal is a part of the system of PM, including goal setting, performance monitoring, feedback and improvement planning.
  • Definition: a means of getting better results by managing performance within an agreed framework of goals, standards and competence requirements. It is a process to establish shared understanding about what is to be achieved, and an approach to managing and developing people iot achieve it.
staff appraisal

The regular & systematic review of performance & the assessment of potential with the aim of producing action programmes to develop both work and individuals.

Staff Appraisal
performance appraisal pa
PA acts as an information processing system providing vital information for rational, objective & efficient decision-making

3 components of the PA process:

Measure the extent to which an individual may be awarded a salary increase

Identify T & D needs

Aid individuals career development needs

Performance appraisal (PA)
the purpose of appraisal
The purpose of appraisal
  • Personnel planning
  • Identify training needs
  • Plan personal & job objectives
  • Assess the level of reward payable
  • Encourages two-way communication
  • Identifies problem areas so that immediate corrective action can be taken
  • Assess potential, thereby facilitating succession planning.
outcomes of the pa process
Outcomes of the PA process
  • The outcome of the process provides a way to:
    • Review past performance
    • Assess future potential
    • Set performance objectives
    • Help improve current performance
    • Assess T & D needs
    • Assist career planning decisions
    • Assess increase or new levels of salary.
the appraisal criteria may include
The appraisal criteria may include
  • Volume of work produced
  • Knowledge of work
  • Quality of work
  • Supervisory or management skills
  • Personal qualities.
1 work quality
Technical & task knowledge

Accuracy & consistency

Exercise of judgement & discretion

Communication skills

Cost consciousness

1. Work quality
2 work quantity which includes
Personal planning & time management

Capacity to meet deadlines or work under pressure

Capacity to cope with upward variations in work volume.

2. Work quantity, which includes:
3 supervisory managerial skills competencies which include
3. Supervisory & managerial skills & competencies, which include:
  • Planning & organising
  • Communication & interpersonal skills
  • Directing guiding & motivating
  • Leadership & delegation
  • Co-ordination & control
  • Developing & retaining staff
  • Developing teamwork
beer et al criteria for assessing performance
Beer et al: Criteria for assessing performance
  • High commitment
  • High competence
  • Cost effectiveness
  • High congruence
Employees must be clear about the objectives & results required.

The objectives set & statement of results required, must relate to:

Job description

Person specification

Salary grading

Criteria for effectiveness:
  • A job performance criterion should be:
    • Capable of being measured reliably, stable and consistent
    • Capable of being differentiated
    • Capable of being influenced by the job-holder
    • Acceptable to those individuals whose performance is being assessed.
performance management as a control system
Performance Management as a Control System

Essential job functions & Performance standards

Comparison of performance & Standard

Actual Performance


Constructive performance evaluation


the benefits of appraisal
Rewards good performance, thereby motivates employees to continuously perform well

Sets motivating challenges and encourages creative problem solving on the job.

Benefits for employee and employer

The benefits of appraisal
barriers to effective staff appraisal
Barriers to effective staff appraisal
  • Criticism has a negative effective on goal achievement
  • Subordinates react defensively to criticism
  • Inferior performance result from defensive reactions
  • Repeated criticism can damage employees self-confidence, especially those who already have low SC
barriers to effective staff appraisal1
Barriers to effective staff appraisal
  • Appraisal as confrontation
  • Appraisal as judgement
  • Appraisal as chat
  • Appraisal as bureaucracy
  • Appraisal as annual event
  • Appraisal as unfinished business
overcoming barriers to effective appraisals
To avoid barriers to successful appraisal the process must be handled professionally. Any PA process is doomed for failure if:

Appraisal procedures are not made clear to everybody

The program does not get full support at all mgt levels

Overcoming barriers to effective appraisals
overcoming barriers to effective appraisals cont
Overcoming barriers to effective appraisals cont…
  • Potential appraisers have little or no experience in interviewing. Managers lack the necessary training to carry out the appraisals
  • Interviews designed to improve performance are often trying to weigh up at the same time salary & promotion issues.
Fear, ignorance, lack of involvement & the suspicion of unfairness can create open hostility, a scheme should be seen as objective & fair.
  • The facts are not recorded
  • Uncontrollable factors are introduced
  • It is not felt to be taken seriously.
various staff appraisal processes exist
Various staff appraisal processes exist:
  • Review & comparison
  • MBO
  • The task centred method
  • 360° appraisal
management skills
Management skills

The appraisal process

  • The persons carrying out appraisals should be skilled in:
    • Clarifying a person’s job
    • Assessing competence
    • Interviewing the job-holder
    • Identifying and agreeing future goals & targets
    • Agreeing action points
    • Giving regular feedback
management skills used in the process
Questioning and listening skills

Good persuasion & negotiation skills are also essential during the feedback stage.

Communication strategies that managers used can include:

Tell and sell

Tell and listen


Management skills used in the process
the appraisal interview
The appraisal interview may rate:


Highlight strengths

Set targets

Discuss potential

The appraisal interview
preparation for an appraisal interview
Preparation for an appraisal interview

1. Problems

  • Just playing the game
  • Choosing how often & at what level to evaluate
  • The ever present subject element
  • Deciding who should attend & approve
  • Deciding what should be discussed
  • The danger to giving the interviewee delusions of grandeur
2 pre interview documentation
Prior to the interview the supervisor/manager needs to be prepared. The following documents should be made available to them, and should be read by them:

Job description

Statement of performance such as the rating sheet or appraisal form

A diary or record book which highlights the good & bad points of the employees’ performance over the review period

2. Pre-interview documentation
pre interview documentation cont
Peer assessment

Comments from clients, customers & other outside agencies

The employees’ self-assessment form

The employees’ file with background notes on attendance, time-keeping, personality, temperament & family

Pre-interview documentation cont…
Part of the interview preparation

should consider:

  • The environment & atmosphere
  • Your approach and main points
Key communication skills:

Conducting the interview

  • Ask open questions requiring more that simply ‘yes’ or ‘no’ responses
  • Ask closed questions only when clarification is needed
  • Allow time for appraisee to ask questions
  • Refrain from asking multiple, leading or confusing questions
  • Encourage conversation with body language & appropriate cues
  • Periodically summaries, reflect & check your understanding
  • Refrain from talking too much
concluding the interview
There must be a clear and shared understanding of the outcome of the discussion with all parties knowing how, when and by whom action plans are to be progressed.Concluding the interview
After the interview:
  • The manager/supervisor should inform the appraisee of the results of the appraisal and write up on the following:
  • Agreed action plans on training, promotions..
  • The shortcomings & weaknesses that were discussed & the results of the discussion
  • Any help or assistance that the employee needs & what was promised by the interview.
after the interview cont
The follow-up procedures will include:

Providing feedback

Organizing training

Re-scheduling work

Altering work methods

Upgrading equipment

After the interview cont…
the importance of feedback
The importance of feedback
  • Feedback is a control process that gives people timely, relevant information on performance & progress. It is sought because, without feedback, learning is difficult or impossible
  • Feedback has a motivating effect
  • People naturally want to know how they have done on a particular task and need the reassurance that they are on the right track
assessing the appraisal system
Assessing the appraisal system
  • Relevance
  • Fairness
  • Serious intent
  • Co-operation
  • Efficiency
ensuring effective appraisals
Ensuring effective appraisals
  • Firm
  • Factual
  • Fair
  • Frequent
staff turnover
Staff turnover as a measurement of effectiveness refers to:

Movement of employees in and out of an organization over a period (normally one year)

The causes of ST include:




Staff turnover
staff turnover cont
Staff turnover cont…
  • Hidden costs of employee resignation:
    • Morale of remaining w/force declines
    • Org reputation can be damaged
    • Wages cost of learning while the employee is under training
    • Cost of recovering lost production time
    • Cost of extra scrap produced by learners
    • Extra supervision required to cope with R & S, T & D.
turnover ratios
Total # of voluntary leavers in a period

-------------------------------------------------------- *100

Average # of persons employed at the

start of the period

Turnover ratios
chapter summary
Chapter Summary
  • PM aims to get better results for the organisation and evaluation of individual performance.
  • Appraisal is part of the system of PM, including goal setting, performance monitoring, feedback and improvement planning.
  • Appraisal can be used to reward but also try to identify potential. It can be used to identify areas of improvement and T & D needs.
  • Formal PAS support objective, positive, relevant, consistent feedback by managers.
  • 3 basic requirements for PA: defining what is to be appraised; recording assessments; getting the appraiser and appraisee together for feedback and planning.
  • The effectiveness and cost-effectiveness of appraisal should be systematically evaluated.