Course : MGMT6012 - Human Resources
Management
Effective Period : September 2017
PERFORMANCE MANAGEMENT
& APPRAISAL (I)
Session 15
Acknowledgement
These slides have been adapted from:
Gary Dessler. (2017). Human resources management. 15. Pearson. ISBN :
9781292152103
Learning Outcomes
• Describe the performance appraisal
process.
• Define the pros and cons of at least eight
performance appraisal methods.
Performance Appraisal
• means evaluating an employee’s current and/or past
performance relative to his or her performance
standards
Performance Appraisal Process
• Setting work standards
• Assessing the employee’s actual performance
relative to those standards (usually involnve some
rating form)
• Providing feedback to the employee
Why do we need to appraise performance ?
• Five reasons
1. Used for pay, promotion, and retention decisions
2. Links performance management to company
goals
3. The manager can correct deficiencies and
reinforce strengths
4. With appraisals employee’s can review career
plans
5. Training needs are identified
Who should do the appraising ?
1. The supervisors
2. The peers (in peer appraisals)
3. Rating committees
4. The employee themselves (self ratings)
5. Subordiantes
6. Internal and external customers
The Goals Importance
• Effective appraisal goals should be SMART
– Specific
– Measurable
– Attainable
– Relevant
– timely
Techniques for Appraising Performance
• Graphic rating scale method
• A scale is used to list a number of traits and a range of
performance for each,
• then the employee is rated by identifying the score that
best describes his/her performance level for each trait.
• Managers must decide which job performance aspects
to measure.
• Some options include generic dimensions, actual job
duties, or behaviorally recognizable competencies
Graphic rating
scale method
Techniques for Appraising Performance
• Alternation Ranking Method
• employees are ranked from best to worst on a particular trait,
choosing highest, then lowest, until all are ranked
• Paired Comparison Method
• it involves ranking employees by making a chart of all
possible pairs of employees for each trait and
indicating which one is the better employee of the
pair.
Alternation Ranking Scale
Paired Comparison Method
Techniques for Appraising Performance
• Forced Distribution Method
• predetermined percentages of rates are placed in various
performance categories, which is similar to grading on a
curve
• Critical Incident Method
• a supervisor keeps a record of positive and negative
examples of a subordinate’s work-related behavior,
and reviews the record with the employee at
predetermined times
Techniques for Appraising Performance
• Narrative Forms
• the method involves rating the employee’s performance for
each performance factor, writing down examples and an
improvement plan, aiding the employee in understanding
where his/her performance was good or bad, and
summarizing with a focus on problem solving
• Computerized and web-based method
• Electronic performance monitoring
Narrative Appraisal
Techniques for Appraising Performance
• Behaviorally anchored rating scales (BARS)
• method that combines the benefits of narratives,
critical incidents, and quantified scales by anchoring
a scale with specific behavioral examples of good or
poor performance
• Steps of (BARS)
1. generate critical incidents
2. develop performance dimensions
3. reallocate incidents
4. scale the incidents
5. develop a final instrument
Example of
BARS
Techniques for Appraising Performance
• Mixed standard scale
• The employer “mixes” together sequentially the good
and poor behavioral example statements when
listing them
• The aim is to reduce rating errors by making it less
obvious to the appraiser 1) what performance
dimensions he or she is rating; and 2) whether the
behavioral example statements represent high,
medium, or low performance.
Techniques for Appraising
Performance
• Management by Objectives (MBO)
• Multistep company wide goal setting and appraisal
program.
• In MBO, the manager sets specific measurable goals
with each employee and then periodically discusses
the employee’s progress toward these goals
• Steps of MBO
1. set the organization's goals
2. set departmental goals
3. discuss departmental goals;
4. define expected results (set individual goals)
5. conduct performance reviews
6. provide feedback
Comparison of each method
References
• Gary Dessler. (2017). Human resources
management. 15. Pearson. ISBN : 9781292152103,
Chapter 8
