Performance Appraisal System

1
Performance Appraisal System

• Team B3

2
Outline

• Introduction of Performance Appraisal(PA)
• Strength and limitation of PA
• Suggestions for the performance
• Conclusion

3
 Introduction of PA

• a platform to assess an employee's job
  performance
•  (Dessler, 2011)
• Performance measurement must be consistent with
  the organizations structure and culture
• Large and small organization
• Western and Eastern Culture
• (Ouchi, 1981 Jobber, Hooley Shipley, 1993)

4
Control System of PA

• Control standards are based primarily on
  organizational missions or departmental goals,
  which reflects the role a performance appraisal
  plays in the organization. 
• Measurement is concerned with the actual
  appraisal process, including the appraiser,
  appraisal criteria, appraisal methods, and
  appraisal timing. 
• Corrective actions comprise the feedback
  processes after the performance appraisal is
  completed.
•                            (Che-Ming, Dar-Hsin,
  2007).

5
Purpose of PA

• the evaluated purpose is intended to inform
  people of their performance standing the
  collected performance data are frequently used to
  reward high performance 
• the development purpose is intended to identify
  problems in employees performance the assigned
  task the collected performance data are used to
  provide necessary skill training or professional
  development

6
Motivation

• Performance appraisal is playing a major role in
  the establishment and maintenance of beliefs
  about the behavior-reward relationship
• for individual performance appraisal systems to
  act as a motivator, employees must believe that
  their appraisal is coupled closely to their
  performance
•  
• individuals form associations between a behavior
  (performance level) and the attainment of rewards
  
• Intrinsic motivation will increase as feelings of
  personal control and competence

7
Behavior

• PA provides employees with recognition for their
  work efforts.
• PA indicates to an employee that the organization
  is genuinely interested in their individual
  performance and development
•  
• This alone can have a positive influence on the
  individual's sense of worth, commitment and
  relationship

8
Teamwork

• Many who seem to be solo performers are actually
  individual contributors to a group effort,
  regardless of whether that group is a formally
  constituted team.
•  

9
Results of PA

• positive impact on performance to future
  well-being
•  
• encourage the employees make contribution and
  improve their performance
•  
• complete reward mechanism

10
Strength of PA

• On motivation and satisfaction
• Performance appraisal can have an effect on
  motivation and satisfaction (Benefits of
  Appraisal)
• Provides recognition for employees efforts
  (Benefits of Appraisal)
• Increased self-esteem (Aguinis, JooGottfredson,
  2011, P. 3)
• Training and Development
• An opportunity to recognize development needs
  (Benefits of Appraisal)
• Helps employees maximize strengths and minimize
  weaknesses (Aguinis, JooGottfredson, 2011, P. 3)
• Measures training effectiveness
• Recruitment and Induction
• Indicator of the organization's recruitment
  (Benefits of Appraisal)

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Negatives limitations of PA

• PA heavily relies on leadership
• Bias criteria might affect the results
• Emotion is possible leading to unfair judgment
• Hierarchy might cause the gap within the
  organization
• Appraisal can motivate by setting clear future
  objectives these conflict with assessing past
  performance
• Employees are reluctant to confide limitations as
  this could impact on their reward or promotion.
• Negative judgments on an individuals performance
  as it could be de-motivating.
• Conflict avoidance may cause central tendency
  
• Over-rating some clear competencies causes halo
  effect, while under-rating causes horns
  effect
• Tendency to favor recent events recency
  effects

(Prowse Prowse, 2009)
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The leaders should

• Inform the employees what are the expectations
  for their job performance
• Considering current situation, allow the
  employees to access limited resources for
  performing their job
• Appreciate good performance of all employees
• Review the appraisal process
• Examine and test some changes that have been
  recommended recently
• Determine and make clear the goals and the
  purpose of PA
• Focus on both results and behaviours
• Set and maintain the duration of PA process
• Involve more people in the process
• Provide training to those involved

(Kondrasuk, 2011)
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Source of PA-360 feedback
OTHER LEADERS
SUPERVISOR
EXTERNAL CUSTOMER
PEERS
SELF
INTERNAL CUSTOMER
SUB- ORDINATOR
SKIP-LEVEL REPORTER
(MacCathy and Garavan, 2001)
SUPPLIERS
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Conclusion

• On one hand it is a really problematic HR area
  but on the other hand it is really important for
  employees, supervisors and society.
• If the organization has the capability to
  implement a performance appraisal with the less
  bias possible, training those involved, using
  formats with research substantiation it might be
  an improvement for the organization but for the
  organizations that they dont it might be
  harmful.

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Reference

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  Why we hate performance management, And why we
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  Issue 6, NovemberDecember 2011, Pages 503507
• Benefits of Appraisal, Retrieved (n.d.), 7 Feb,
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  Accessed February 7, 2012b.
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• Thanks
• QA