A description of the performance appraisal tool

1. Performance Appraisal
A 'love-hate' HR component
YONDER MUSIC SDN BHD – 20TH JAN 2017

2. Key Topics
• Performance Appraisal Definition
• Methods of Performance Appraisal
• The Link Between Other HR Functions

3. Definition • Performance Management
The process of identifying, measuring, managing
and developing all key components of HR within
an organisation (to achieve optimal performance
in a synergised manner)
• Performance Appraisal
An on going process of identifying, observing,
measuring and developing talent in an
organisation
(It's just one component of the Performance
Management System)

6. Key Objectives • Enhance dialogue and understanding between
supervisor and staff
• Clarify job duties & responsibilities as well as
agree upon mutual expectations (pre determined
standards)
• To determine current skill & performance levels
• To recognise good performances and identify
crucial areas of development
• To establish areas for training and long term
development
• To aid other processes such as promotions,
remuneration, retention & design of future roles

7. Methods • Graphic Rating Scales: Oldest & most commonly
used method
• Essay Evaluation: Descriptive and non quantitative
• Behaviourally Anchored Rating Scales:
Performance ratings that focuses on specific
behaviours or indicators of effective or ineffective
performance
• Performance Ranking Method: Comparing staff to
another staff rather than to a standard measurement

8. Methods • Management By Objectives: Objectives which are
jointly set by supervisors and staff, periodically
measure performance and reward according to
results (focuses more on what needs to be
accomplished rather than how)
• 360 Degree Feedback: Confidential, anonymous
feedback from people who work around them
• Forced Ranking: Forced distribution method, e.g –
20% Top / 70% Mid / 10% Bottom
• Behavioural Observation Scales: Frequency rating
of critical incidents that the staff has performed

9. Supervisor's Role • Defining the skills required for the operations and
performance of the department
• Defining key objectives for each staff, performance
standards for each duty & expected results
• Coaching team members on an ongoing basis by
focussing on problem solving & staff development
• Carrying out performance reviews
• Involving staff in improving their performance and
jointly establishing a career development path

10. Staff's Role • Performing duties as per pre-agreed standards to
achieve desired results
• Seeking help in problem solving or recommending
solutions to remove barriers in achieving results
• Participating in performance planning to enhance
productivity and cost reduction where necessary
• Freely sharing views in performance reviews
• Completing designated trainings and working
towards the development plan

11. Link To Other
HR Functions
• Manpower Planning: The use of performance data
as a basis for decision making (compiling skills
inventories, data on future positions & developing
succession plans)
• Recruitment, Selection & Placement: Defining
competencies for entry level staff and the required
proficiency of each competency
• Remuneration: Based on merit pay system where
the results of performance appraisals are used as
basis to determine the rewards

12. Link To Other
HR Functions
• Learning & Development: Identifying L&D needs
(as appraisals determine the current vs desired levels
of knowledge & skills) as a tool for career
development path
• Promotions & Upgrading: As an administrative tool
for growth and motivation of employees (crucial to
avoid pitfalls of grading to maintain fairness)
• Corrective Measures & Dismissals: Appraisals used
in establishing serious performance gaps & thus
determining corrective measures, failure of which
leading to a dismissal

14. Key Topics (Revisited)
• Performance Appraisal Definition
• Methods of Performance Appraisal
• The Link Between Other HR Functions