SELECTING THE RIGHT
PERFORMANCE APPRAISAL
PERFORMANCE MANAGEMENT
A management practice focused on
developing and implementing processes
that help maximize the productivity and
effectiveness of the organization and its
members.
PERFORMANCE APPRAISAL
The process of reviewing and evaluating
the performance of individuals or teams
on their work tasks
VARIOUS APPRAISAL METHODS
 Trait-Based
 Behavior-Based
 Knowledge/skill based
 Result-Based
TRAIT-BASED
A trait approach to performance
appraisal whereby each employee is
rated according to a scale of individual
characteristics.
ADVANTAGES
 Simple to conduct evaluation
 Can apply to different employee groups
 Communicates important traits up front
 Are inexpensive to develop
 Are easy to use
DISADVANTAGES
 Not job-specific
 Tends to be very subjective
 Have high potential for rating errors
 Are not useful for employee counseling,
allocating rewards and promotion
decisions
BEHAVIOR BASED
Assumes that certain behaviors drive
performance and measures what the
position incumbent does
ADVANTAGES
 Can be tailored to specific jobs
 Helps employees understand specifically how
job is to done
 Behaviors helps reinforce culture/values
 Behaviors prove the presence of the related
competency
 Are acceptable to employees and superiors
 Are useful for providing feedback
 Are fair for reward and promotion decision
DISADVANTAGES
 Can be time consuming to develop/use
 Can be costly to develop
 Have some potential for rating error
 Behaviors may not produce desired results
KNOWLEDGE/SKILL BASED
Assumes the certain knowledge /skill drive
performance; measures what the position
incumbent knows/applies.
ADVANTAGES
Measures only the specific
competencies required on each
job
Reinforces cross-training and
flexibility
DISADVANTAGES
 Assumes the link between knowledge/skills
and results
 Employee may have, but not need to use
 Difficult to measure diverse skills
RESULT-BASED
Assumes that achievement of objectives
equals performance; measures what the
position incumbent achieves.
ADVANTAGES
 Have less subjectivity bias
 Are acceptable to employees and superiors
 Link individual to organizational
performance
 Encourage mutual goal setting
 Are good for reward and promotion
decisions
 Emphasizes results
DISADVANTAGES
 Are time consuming to develop/use
 May encourage short-term perspective
 May use contaminated criteria
 May use deficient criteria
 Debate between short-term and long-term
emphasis
 Works only when specific objectives be established
and measured
SOURCES OF PERFORMANCE
APPRAISAL
 Subordinate Appraisal
Appraisal of a superior by an employee, which is more
appropriate for developmental than for administrative
purposes.
 Peer Appraisal
Appraisal by fellow employees, compiled into a single
profile for use in an interview conducted by the
employee’s manager
 Customer Appraisal
A performance appraisal that, like team appraisal, is
based on TQM concepts and seeks evaluation from both
external and internal customers
 Team Appraisal
Based on TQM concepts, that recognizes team
accomplishments rather than individual performance
THANK YOU

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Selecting the right performance appraisal

  • 2. PERFORMANCE MANAGEMENT A management practice focused on developing and implementing processes that help maximize the productivity and effectiveness of the organization and its members.
  • 3. PERFORMANCE APPRAISAL The process of reviewing and evaluating the performance of individuals or teams on their work tasks
  • 4. VARIOUS APPRAISAL METHODS  Trait-Based  Behavior-Based  Knowledge/skill based  Result-Based
  • 5. TRAIT-BASED A trait approach to performance appraisal whereby each employee is rated according to a scale of individual characteristics.
  • 6. ADVANTAGES  Simple to conduct evaluation  Can apply to different employee groups  Communicates important traits up front  Are inexpensive to develop  Are easy to use
  • 7. DISADVANTAGES  Not job-specific  Tends to be very subjective  Have high potential for rating errors  Are not useful for employee counseling, allocating rewards and promotion decisions
  • 8. BEHAVIOR BASED Assumes that certain behaviors drive performance and measures what the position incumbent does
  • 9. ADVANTAGES  Can be tailored to specific jobs  Helps employees understand specifically how job is to done  Behaviors helps reinforce culture/values  Behaviors prove the presence of the related competency  Are acceptable to employees and superiors  Are useful for providing feedback  Are fair for reward and promotion decision
  • 10. DISADVANTAGES  Can be time consuming to develop/use  Can be costly to develop  Have some potential for rating error  Behaviors may not produce desired results
  • 11. KNOWLEDGE/SKILL BASED Assumes the certain knowledge /skill drive performance; measures what the position incumbent knows/applies.
  • 12. ADVANTAGES Measures only the specific competencies required on each job Reinforces cross-training and flexibility
  • 13. DISADVANTAGES  Assumes the link between knowledge/skills and results  Employee may have, but not need to use  Difficult to measure diverse skills
  • 14. RESULT-BASED Assumes that achievement of objectives equals performance; measures what the position incumbent achieves.
  • 15. ADVANTAGES  Have less subjectivity bias  Are acceptable to employees and superiors  Link individual to organizational performance  Encourage mutual goal setting  Are good for reward and promotion decisions  Emphasizes results
  • 16. DISADVANTAGES  Are time consuming to develop/use  May encourage short-term perspective  May use contaminated criteria  May use deficient criteria  Debate between short-term and long-term emphasis  Works only when specific objectives be established and measured
  • 17. SOURCES OF PERFORMANCE APPRAISAL  Subordinate Appraisal Appraisal of a superior by an employee, which is more appropriate for developmental than for administrative purposes.  Peer Appraisal Appraisal by fellow employees, compiled into a single profile for use in an interview conducted by the employee’s manager
  • 18.  Customer Appraisal A performance appraisal that, like team appraisal, is based on TQM concepts and seeks evaluation from both external and internal customers  Team Appraisal Based on TQM concepts, that recognizes team accomplishments rather than individual performance