Performance%20Appraisal - PowerPoint PPT Presentation

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What is performance appraisal? Employee Assessment the assessment of an employee's effectiveness, usually as undertaken at regular intervals – PowerPoint PPT presentation

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Title: Performance%20Appraisal

Performance Appraisal
  • An introduction and overview

What is performance appraisal?
  • Employee Assessment the assessment of an
    employee's effectiveness, usually as undertaken
    at regular intervals
  • Performance appraisal may be defined as a
    structured formal interaction between a
    subordinate and supervisor in which the work
    performance of the subordinate is examined and
  • with a view to identifying weaknesses and
    strengths as well as opportunities for
    improvement and skills development
  • What does it get used for?

Appraisal is both inevitable and universal
  • Dulewicz (1989), "... a basic human tendency to
    make judgments about those one is working with,
    as well as about oneself."
  • The human inclination to judge can create serious
    motivational, ethical and legal problems in the
  • Without a structured appraisal system, there is
    little chance of ensuring that the judgments made
    will be lawful, fair, defensible and accurate.

Historically speaking
  • As a distinct and formal management procedure
    used in the evaluation of work performance,
    appraisal dates from the time of the Second World
    War (not more than 60 years ago)
  • almost everything in the field of modern human
    resources management can be traced to Taylors
    pioneering Time and Motion studies
  • Appraisal could claim to be the world's second
    oldest profession!

The start of a system
  • Performance appraisal systems began as simple
    methods of income justification.
  • The process was firmly linked to material
  • If an employee's performance was found to be less
    than ideal, a cut in pay would follow.
  • If an employees performance was better than the
    supervisor expected, a pay rise was in order.
  • Sometimes this basic system succeeded in getting
    intended results but more often than not, it

  • Motivational researchers have shown that
    different people with roughly equal work
    abilities could be paid the same amount of money
    and have different levels of motivation and
  • Pay rates are shown to be important.
  • But, other elements matter! For example, morale
    and self-esteem, can have a major influence.
  • In the 1950s in the United States, the potential
    usefulness of appraisal as tool for motivation
    and development was gradually recognized. The
    general model of performance appraisal, as it is
    known today, began from that time.

Controversy in performance appraisal
  • Researchers, management commentators,
    psychometricians have expressed doubts about the
    validity and reliability of the performance
    appraisal process.
  • Some have suggested that the process is so flawed
    that it is impossible to perfect it.
  • There are some advocates of performance appraisal
    who view it as potentially "... the most crucial
    aspect of organizational life" (Lawrie, 1990).
  • Others believe that performance appraisal has
    many uses, but scorn attempts to link the process
    to reward outcomes (raises and promotions), as it
    reduces developmental value.

Consider this
  • How many people would gladly admit their work
    problems if, at the same time, they knew that
    their next pay raise or a much-wanted promotion
    was riding on an appraisal result?
  • In situations like that, many people would deny
    or downplay their weaknesses.
  • But, if you do not link appraisals to rewards,
    those being evaluated may feel the process is a
    sham or a waste of time.
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