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Making correct
Decisions
Advantage
Minimizing Values &
Dissatisfaction and behavior
turnover
Improving
performance
Benefits of Performance Appraisal
• Improving Performance in two ways by directing employee
behavior towards organizational goals, and by monitoring that
behavior to ensure that the goals are met.
• Making correct Decisions: Appraisal is a critical input in
making decisions on such issues as pay raise, promotion,
transfer, training, discharges, and completion of probation
periods. Right decision on each of these can contribute to
competitive strength of a firm.
• Ensuring legal Compliance: Promotions made on factors other
than performance might land up a firm in a legal battle, thus
diverting its focus on non-productive areas.
Benefits of Performance Appraisal
Feedback
Appraise Performance
Performance Interview
When to
Appraisal Whose
evaluate performance?
?
Design
Who are
What to the raters?
evaluate?
How to
solve?
Issues in Appraisal design
• Formal vs informal:
• Formal appraisal usually occurs at specific
time periods once or twice a year. Formal
appraisal are most often require by the
organization for the purpose of employee
evaluation. primary evaluation.
• Informal: whenever supervisor feels the need
for communication. Generally use as
feedback.
Issues in Appraisal design
• Whose Performance Should be rated?
• Employee performance should be evaluated ;
now whether it is individual or teams?
• Some time ratee has to rate the individual at
multiple levels for example work-group level for
merit pay increases and at the individual level to
assess training needs. Group cohesiveness is
important but the point to be remembered that
individual performance of all employees must be
rated.
Issues in Appraisal design
• Who are the Raters?
• Immediate supervisor: three reason why
immediate supervisor is the best person to rate
the employee
• 1)no one is more familiar with subordinate
performance than his or her superior.
• 2)superior has the responsibility to manage the
particular unit.
• 3)finally training & development of subordinate is
an important element in every manager’s job.
Issues in Appraisal design
• Who are the Raters?
• Subordinates can assess the performance of
their superiors. But the problem with
subordinate evaluation is that boss became
famous not because of his/her performance
but because of flattery.
• Peers are in a better position to evaluate
certain facts of job performance which the
subordinates or supervisor cannot do.
Issues in Appraisal design
• Who are the Raters?
• clients are seldom used for rating employee
performance, nothing prevent an organization for
using this source. Client may be members within
the organization who have direct contact with the
ratee and make use of output(good or
service)this employee provides. Interest,
courtesy, dependability, and innovativeness are
few of the qualities on which client can offer
ratings.
Issues in Appraisal design
• Who are the Raters?
• Rating committees; These committees includes immediate
supervisor or three or four other supervisor who come in
contact with the employees. There are multiple benefits of
multiple raters first there may be objectivity in rating when
there are more than one rater involved in assessment.
• Furthermore where there are differences in the raters ratings
they usually stem from the fact that the raters at different
levels in the organization observe different facets of an
employee performance the appraisal ought to reflect this
differences. Disadvantage the role of immediate supervisor in
the process of training and development get weakens.
Who are the Raters?
Spiltover Primacy
or
effect recency
Raters
error
Performan
ce Rater
Dimension effect
behaviour
Hallo
others effect
Perceptual
set
What should be rated?
• Quality
• Quantity
• Timelines
• Cost –effectiveness
• Need for supervision
• Interpersonal impact
• Community service