CHAPTER 6

6.1 PERFORMANCE APPRAISAL

DEFINITION OF PERFORMANCE APPRAISAL

Is the process assessing employee performance by way of comparing present performance with already establish standards which have been already communicated to employees , subsequently providing feedback to employee about their performance level for the purpose of improving their performance as need by organization.

THE PURPOSE OF PERFORMANCE APPRAISAL

Is to measure and improve the performance of employee and increase their future potential and value to the company. Others objectives include providing feedback , improving communication , understanding training needs , clarifying roles and responsibilities and determining how to allocate rewards

Strategic purpose (motivation)
Administrative purpose
Developmental purpose

PERFORMANCE APPRAISAL PROCESS

Establishing performance standards > Communicating standards and expectations > Measuring the actual performance > Comparing with standards > Discussing results ( providing feedback) > Decision making-taking corrective actions


METHOD OF PERFORMANCE APPRAISAL

Ranking

Force distribution

Graphic rating scale

Mixed standard scale

Critical incidents

Behavioral anchored rating scale (BARS)


SOURCES OF PERFORMANCE APPRAISAL

6.3.1.ALTERNATIVES SOURCES OF PERFORMANCE APPRAISAL

Managers
Peers
Surbodinaters
Self evaluate
Customers

ERRORS IN PERFORMANCE APPRAISAL

 Recency effects
 Central , leniency and strictness tendency
 Prejudice and stereotyping
 Halo and horns effects