Business Studies - Appraisal The aspects of an appraisal are explained along with it's benefits, drawbacks and methods. The 3 methods that are described and outlined in this presentation are self assessment, peer assessment and 360 degree feedback.

1. Appraisal
Business Studies
(A Level)

2. The process of assessing the
effectiveness of a process and/or
an employee
(Definition)

3. • An appraisal is usually conducted by comparing goals with
outcomes.
• An appraisal for an employee may be done through a
questionnaire but is more commonly a one-to-one
discussion between an employee and manager. The
conversation will focus upon the employee’s performance
such as timekeeping, customer sales levels and contribution
to teamwork. This interview will take place annually or
more frequently and will end with a discussion of a career
prospects and training needs.

4. 1. Set Objectives – discuss and set staff objectives (set
timescales if necessary)
2. Manage performance – give tools, resources and training
needed to perform well
3. Carry out appraisal – monitor and assess employee
performance
4. Provide rewards – consider performance rewards such as
pay or promotion, decide how to tackle bad performance

5. BENEFITS DRAWBACKS
 Motivates  Can cause tension in workplace
 Improves performance  Puts pressure on employees to keep
improving performance
 Allows to set achievable targets  Places a lot of power on manages who
may be ill-equipped to use the system
effectively
 Identify training needs
 Identify potential
 Enables achievable bonuses to be
earned
 Allows managers to value work done

6. Self Assessment
360º Feedback
Peer Assessment

7. • Employees self reflect on performance
• Employees record their progress
• Employees suggest targets for the future

8. Employees of a similar level of responsibility critically
comment upon the performance of a co-worker and
suggest areas of improvement. This helps employees
learn from each other and it would be less critical than
managers. This is useful for when large groups require
appraisal and helpful as workers naturally compete
with each others performance.

9. 360 degree feedback is a method of performance
appraisal which gathers feedback from a number of
sources (including peers, direct reports, colleagues and
customers). This can offer staff and managers a wide
range of perspectives and can help make performance
management a more objective and fair process.