Performance appraisal in human resource management


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Performance Appraisal Systems take a variety of forms and are central to Performance Management Systems.
Appraisal takes place annually between the manager and the employee

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Performance appraisal in human resource management

  1. 1. Performance Appraisal in Human Resource Management from<br /><br />
  2. 2. Performance Appraisal Systems take a variety of forms and are central to Performance Management Systems.<br />Appraisal takes place annually between the manager and the employee. <br />However there are number of trends that are changing the style and relationship of the appraisal. <br /><br />
  3. 3. One important trend is to hold periodic reviews on a more regular basis. <br />This allows for a more dynamic process of discussion and adjustment to objectives to counter. <br />The criticism that objectives set and reviewed annually do not fulfill to important aspects of the process.<br /><br />
  4. 4. The objectives should remain relevant and achievable. The process of dialogue allows for relationship building and coaching that needs to take place.<br /><br />
  5. 5. The main purposes for Performance Appraisal include:<br />Evaluating Performances to enable a ‘rewards’ formula to be put into operation. <br />Auditing to discover work potential, both present and future, of individuals and teams. <br />Construction succession plans for corporate replacement planning. <br /><br />
  6. 6. Motivating staff to clarify and offer feedback on standards and objectives. <br />Developing individuals advising on, conducting and explaining work methods to enable individuals to take responsibility. <br />For their own performance, training and development and working relationships through feedback, dialogue and information sharing.<br /><br />
  7. 7. The Approaches or Orientations in Performance Appraisal:<br />Control Orientation: In this scheme, an assumption that a superior is controlling authority. <br />This is often perceived by employees negatively. <br /><br />
  8. 8. The “them and us” attitudes are formalized through power to judge via paperwork, which seals a view of how well somebody is perceived to work. <br />This approach works best where clear targets are available, which can be judged obviously.<br />It improves a standardized appraisal that is ‘felt fair’. <br /><br />
  9. 9. Development Orientation: The development appraisal does not start from the manager in control. <br />But, the need to deal with the uncertainty in the minds of the employees who genuinely want to know how they are performing and what the organization thinks of their contribution. <br /><br />
  10. 10. The employees need support to enhance contribution and match their skills with organizational needs. <br />This is a bottom up approach. The demand to develop and a learning climate are likely to evolve from such an attitude.<br /><br />
  11. 11. Types of Appraisals:<br />Top-down Schemes: is the most traditional form of appraisal. <br />This emphasizes both subordinate feedback and the lead on objective setting coming from the top. <br />The problems faced by this type of appraisal is that it stresses traditional organizational hierarchies, there may be lack of impartiality and favoritism. <br /><br />
  12. 12. Types of Appraisals:<br />There can be lack of full knowledge of the employee in some areas where manager’s span of control may be wide.<br />To counter the problems an independent reviewer is often asked to review the outcomes to avoid any potential bias. <br />Self Appraisal: Rarely used, as independent forms of appraisal but, encourages greater ownership and participation. <br /><br />
  13. 13. In the appraisal scheme through self-reflection and helps ensure full preparation for the appraisal discussion. <br />In an open environment it allows managers to shift from a directive, informing style to counseling style.<br />Thereby assisting staff to form objectives and plans, moving from ‘telling’ and ‘selling’ to facilitating which is seen as a creative and more effective level of satisfaction and ownership. <br /><br />
  14. 14. Upward Appraisal: It is increasingly used to reflect the growing trend for organizations to recognize that they have a duty to provide effective working systems for employees.<br />Employees are invited to provide managers with a rating on such dimensions as effective communication, involvement in decision-making, clarity of objectives and goals and so on. <br /><br />
  15. 15. Peer Appraisal: Involves members of teams evaluating each other. <br />One of the arguments for this type of system is the pressure to treat internal working relationships as internal feedback systems to external customer feedback techniques.<br />There are sensitivities involved and careful development of staff is required in using such schemes. <br /><br />
  16. 16. Multi-dimensional Appraisal: It is also called ‘360- Degree Appraisal’. It is used to collect data from outside the immediate team and often from external customer feedback.<br />Its key advantage is to overcome the criticisms of impracticalities and lack of knowledge of a single appraiser. <br />The term refers to the various sources of data: boss, peers, customers and reporting staff, in order to achieve a more comprehensive understanding of the performance relationships and retain positive employee relations.<br /><br />
  17. 17. Recent Trends in Performance Appraisal<br />Reduction in paperwork <br />Clarity of objective setting <br />Emphasis on the quality of the review discussion <br />Greater involvement of staff in the process<br /><br />
  18. 18. Disadvantages of Appraisals<br />Overtime to complete the paperwork <br />Vague objectives and inconsistent standards of objective setting. <br />Emphasis on getting the review ‘over’ rather than on the quality of the interview process. <br /><br />
  19. 19. Disadvantages of Appraisals<br />Narrow individual orientation that ignores wider feedback and operating context. <br />Failure to integrate appraisal issues within the wider organizational and operational reality.<br /><br />