SlideShare a Scribd company logo
HRM 751
PERFORMANCE AND
COMPENSATION MANAGEMENT
(PERFORMANCE APPRAISAL)
Nur Izyan binti Supandi

2012293352
BM7703CF
Outline


Introduction of Performance Appraisal






Performance Interview and Feedback








Appraisal Form
Traditional Methods vs Modern Methods
Type of appraisal Methods

Type of Appraiser




Definition
Importance Performance Interview

Performance Appraisal Methods




Definition and Purpose
When?
Performance appraisal steps/process

Supervisors, Peers, Subordinates, Self, Customers, Clients and Group

Appraiser Error





Judgmental Errors
Rater Training Program
Poor Appraisal Forms
Ineffective Organizational Policies and Practices
INTRODUCTION
Chapter 5: Performance Appraisal
Other Terms
Performance appraisal has been synonymous with
 performance review,
 performance evaluation,
 performance assessment,
 performance measurement,
 employee evaluation,
 personnel review,
 staff assessment, and
 service rating
(Aggarwal & Thakur, 2013)
Definition of Performance Appraisal
The observation and assessment of the employee performance against
job-related standards determined by the organization over a certain
period (Eichel & Bender, 1984).
The process of evaluating on employee’s job performance that helpful
to, and often even essential to, accomplishing important goals of all
organization (Kondrasuk, 2012)
Performance appraisals involves the similar idea of developing social
and performance norms, monitoring the actions of employees in relation
to the norms, assigning responsibility for the actions, and then ultimately
providing rewards or punishment based on performance towards those
norms (Milliman, Nason, Zhu, & Cieri, 2002)
Definition of Performance Appraisal
Performance appraisal provides an annual review and
evaluation of an individual's job performance (Eastern Illinois
University, 2009)
Performance appraisal is the process of determining how well
employees do their jobs compared with a set of standards and
communicating that information to those employees
(Chukwuba, 2011)

Performance appraisal is the evaluation of employee’s
performance based on the standard and give feedback about
the assessment .
Purpose of Performance
Appraisal
Walsh and Fisher (2005); Faseeh (2013):
(1) To provide feedback about strengths and weaknesses;
(2)To distinguish between individuals to allocate rewards;
(3)To evaluate and maintain the human resource systems of the
organization; and
(4)To create a paper trail of documentation (Murphy
& Cleveland, 1995)

Chattopadhayay and Ghosh (2012),
•It provides a justification for human resource decision such as
rewards, career planning, transfers, training, counseling, mentoring
, termination, etc.
Milliman, Nason, Zhu, and Cieri
(2002)
When Performance Appraisal?
Annually

• Many organization usually make an evaluation of the
employees’ performance in the end of the year.
• annual employee performance reviews appear to be the
standard in most American organizations.

Semiannually

• A semi-annual one for the employee to discuss with his manager
any needed remedial steps for his performance on an unofficial
basis. While the second one, would be an official one held at the
end of the year for the employee to receive his appraisal results
and know about the salary increase or promotion. E.g: Japan

Others

• According to the Chartered Institute of Personnel and
Development (CIPD), UK, 87% of employers use some
form of individual annual appraisals, 27% do them twice
a year and 10% more often than that. Some use them
when projects come to an end.
Six Formal Meetings

System
Inauguration

Selfappraisal

Classical
performance
review

Objective
setting

Development
plan

Merit/salary
review

(Aguinis, 2009)
Example Performance Appraisal
Step
1. Establish performance
standards for each
position and criteria for
evaluation.

2. Establish performance
evaluation policies on
when to rate, how often to
rate, and who should rate.

3. Have raters gather data
on employees’
performance.

6. Make decisions and file
evaluation.

5. Discuss the evaluation
with the employees.

4. Have raters (and
employees in some
systems) evaluate
employees’ performance.

(Kumari, 2012)
Example Performance Appraisal
Step
Step l: The
Initial
(Performance)
Planning
Session
• Meeting
individually to
described
expectation

Step II: The MidPoint Review

Step III: The Final
Review Session

• provide
feedback to
the employee
during the
primary
performance
period

• to review and
rate the
performance of
each
employee
during the
entire
performance
rating period.

(West Virginia Division of
Personnel Handbook, 2005)
PERFORMANCE
INTERVIEW AND
FEEDBACK
Definition of Performance
Interviewinterviews between a
Recurrent strategic
superior in an organization and an employee that
focus on employee performance and
development (Asmuß, 2008)
The interview constitutes a discussion session between an employee and his
or her supervisor with respect to the employee’s results during the period of
evaluation, focusing especially on employee progress, aims, and needs at
work (Anne Linnaa, Elovainio, Bos, Kivimäki, & Penttia, 2012)

The performance appraisal interview is defined as

the formal process of evaluating employee
performance (Keeping and Levy 2000)

A potentially important part of any organization’s
performance appraisal system that function in
several ways such as providing feedback
(Cederblom, 1982)
A formal meetings for the specific purpose of
discussing the various aspect of performance
and the performance management system
(Aguinis, 2009)
Function of Performance
Interview


Two main purpose:



Counseling and
development
 Evaluation and
discussion




About employees’
performance


Allow employees to
improve their
performance by
identifying
performance problem
and solution for
overcoming them.
Helps to build good
relationship

(Cederblom, 1982)
(Aguinis, 2009)
Importance of Performance
Interview
Instant
feedback
(Asmuß,
2008)

Human
resource
plan
Feedbacks in
Pepsi- Cola
International

Development
feedback
(Cederblom,
1982)

Coaching
(Cederblom
, 1982)

Accountability
based
performance
appraisals
Explanation of Feedback
Staff members should not receive any surprise
feedback because informal, continuous
discussion and feedback between staff and
manager throughout the year prevents surprises
(Boice & Kleiner, 1997).
PERFORMANCE APPRAISAL
METHODS
Traditional vs New Approach
Traditional Approach

New Approach

Traditional Approach
 This method is based on
studying the personal
qualities of the employees.
It may include
knowledge, initiative, loyalt
y, leadership and judgment
(Aggarwal &
Thakur, 2013).

New Approach
 Performance appraisal is
used for developmental
and motivational
purposes in the
organizations (Gürbüz &
Dikmenli, 2007).
(Nili, Ardakani &
Shekarchizadeh, 2012)
Methods and Form

SHRM Curriculum Guidebook (2010)
Critical Incident Method



Keeping a record of uncommonly good or
undesirable examples of an employee's work
related behavior and reviewing it with the
employee at predetermined times.
Management by Objectives
(MBO)


Employees are evaluated how well they
accomplished a specific set of objectives that
have been determined to critical in the
successful completion of the job.
Narrative Essay



Evaluator writes an explanation about
employee’s strength and weakness
points, previous performance, positional and
suggestion for his (her) improvement at the
end of evaluation time.
Rating Scale
Behaviorally
Anchored
Rating Scale
(BARS)
Graphic
Rating Scale

• BARS combines elements from critical
incident and graphic rating scale
approaches. The supervisor rates
employees’ according to items on a
numerical scale.

• A scale that lists a number of traits and
a range of performance for each, the
employee is then rated by identifying the
score that best describes his or her
performance for each trait.
Chapter 5: Performance Appraisal
Comparative Methods




Comparative
methods of
performance
appraisal seek to
identify one worker’s
standing to others.
Ranking, paired
comparison, and
forced distribution
Comparative Methods
Ranking Method
Forced
Distribution
Ranking
Paired
- This method
Comparison
- employees from
forces a set
best to worst on a - Each person is
percentage of all
particular
directly compared
person being
trait, choosing
with every other
evaluated into
highest, then
person being
pre-determined
lowest, until all
rated.
performance
ranked (Aggarwal
categories.
& Thakur, 2013)
Appraisal Form


Information on performance is collected by
using forms, which can be filled out in paper or
electronically (Aguinis, 2009)



Example appraisal form
Components in Appraisal Form











Basic employee information
Accountabilities, objectives and standard
Competencies and indicators
Major achievements and contributions
Developmental achievements
Developmental needs, plans, and goals
Stakeholder input
Employees comments
Signature
(Aguinis, 2009)
360 Degree






is known by a variety of names, including
multisource assessment, 360-degree
feedback, multirater assessment, and threedimensional or full-circle appraisal.
It relies on the input of an employee's
superior, colleagues, subordinates, sometimes
customers, suppliers and/or spouses.
The information collected and feedback is
provided in full circular fashion top down and
back to top.
TYPE OF APPRAISER
Supervisors

Peers

Subordinates

• Supervisor:
• Best position to evaluate performance in relation to
strategic organization goals

• Peer:
• Must know the level of performance of the employee
being evaluated.
• May be useful when the task of the work unit require
frequent working contact among peers

• For developmental aspects of performance evaluation
• Subordinates are a valuable source of information
regarding particular aspects of a supervisor or leader’s
performance such as communication, team building or
delegation.
• For example Exxon and universities
Self

Customers

• Self appraisal
• To be used for developmental aspects.
• Self evaluation have often been met with skepticism by
organizations because the self interest of the
employee.

• Customers
• Useful for jobs that require a high degree of
interaction with public or with particular jobrelated individuals.

• Clients may also offer a different perspective on a employee’s
performance, particularly for jobs that require a high degree of
interaction with people. For example, client appraisals can be a
valuable source of feedback regarding the quality of service
provision (e.g. the quality of interaction, degree of professionalism).

• Group
APPRAISER ERROR
Appraiser Error




Appraisal error affect the objectivity of the
appraisal negatively (Boachie-Mensah &
Seidu, 2012).
The problems that affect the validity and
dependability of the Performance appraisal
systems (Kumari, 2012)
Component of Appraisal Error
(Kumari, 2012)
Judgment Error

• People commit mistake due to biasness and
inadequate training while evaluating people and their
performance.
• These errors are also called as Rater Errors.

Poor Appraisal
Forms

• The rating scale may be quite vague and unclear.
• Problems with evaluation standards
• The rating form may ignore important aspects of job
performance.
• The forms may be too long and complex.

Ineffective
Organizational
Policies and
Practices

• Very often the sincere appraisal report put in by a rater
is not suitably rewarded
Ratings Error
Unintentionally












Similar to me
Contrast
Halo
Primacy
Recency
Negatively
First impression
Spillover
Stereotype
Attribution

Intentional




Leniency
Severity
Central tendency

(Aguinis, 2009)
Rater Training Programs






The overall objective of providing raters with tools
that will allow them to implement the performance
management system effectively and effectively
(Aguinis, 2009).
To improve managers’ ability to conduct effective
performance appraisals with dealing errors to
eliminate it from ratings (Inancevich &
Konopaske, 2013).
The example of training such as Rater Error
Training, Frame of Reference Training
(FOR), Behavioral Observation Training, and SelfLeadership Training.
A Study in polytechnic in Takoradi, Ghana
(Boachie-Mensah & Seidu, 2012)
Effect from
Appraisal Error

The most
common errors:
similarity and the
halo effect biases

Irregular and
inadequate
feedback

A negative
perception that the
employees

Recommendation

Precise definitions of the
job-related behaviours
being rated are required.

The superior to routinely document employee
accomplishments and failures throughout the whole
appraisal period.
Performance standards must be
clearly defined
Formal training programmes
Support from Previous Study




In a study of Telecom Industry in Navi Mumbai
Region
the most common appraisal errors in the
system are the similarity (similar-to-me)
effect and the halo effect.
Deming (1982/2000)
Deming was a recognized guru in
the quality movement and famous
for his critique of performance
ratings, identifying them as one of
management’s deadly diseases in
the
PA:
 It nourishes short-term
performance, annihilates longterm planning, builds fear,
demolishes team-work, nourishes
rivalry and politics. It leaves
people bitter, crushed, bruised,
battered, desolate, despondent,
dejected, feeling inferior, some
even depressed, unfit for work for
weeks after receipt of rating,
unable to comprehend why they
Conclusion






Organizations can benefit a lot from
performance appraisal by seeing it as crucial
part of management responsibility.
Employee will be motivated and inspired with
positive and constructive feedback from
performance appraisal.
Effective performance appraisal should
eliminate appraisal error.
THANK YOU..

More Related Content

What's hot

Job enrichment & Job enlargement
Job enrichment & Job enlargement Job enrichment & Job enlargement
Job enrichment & Job enlargement
Apeksha tare
 
Organizational behaviour
Organizational behaviourOrganizational behaviour
Organizational behaviour
gourav kottawar
 
Hawthorne experiments
Hawthorne experimentsHawthorne experiments
Hawthorne experiments
Piana Monsur Mindia
 
Performance management 1
Performance management 1Performance management 1
Performance management 1
IMCOST
 
Hawthorne experiments
Hawthorne experimentsHawthorne experiments
Hawthorne experiments
ashugaurh
 
Performance Management
Performance ManagementPerformance Management
Performance Management
Vivek Singampalli
 
Chapeter 6 appraising and rewarding performance
Chapeter 6 appraising and rewarding performanceChapeter 6 appraising and rewarding performance
Chapeter 6 appraising and rewarding performance
San Antonio de Padua - Center for Alternative Mathematics
 
Uses of performance appraisals
Uses of performance appraisalsUses of performance appraisals
Uses of performance appraisals
Cyril Ajith
 
Pay For Performance ppt
Pay For Performance pptPay For Performance ppt
Pay For Performance ppt
Rahul Gulaganji
 
STRATEGIC PAY PLANS
STRATEGIC PAY PLANSSTRATEGIC PAY PLANS
STRATEGIC PAY PLANS
Abdullah Khosa
 
Performance appraisal concepts and method
Performance appraisal  concepts and methodPerformance appraisal  concepts and method
Performance appraisal concepts and method
Pranav Kumar Ojha
 
Elton mayo focusing on human relation aspects
Elton mayo focusing on human relation aspectsElton mayo focusing on human relation aspects
Elton mayo focusing on human relation aspects
sanprupali
 
Human resource management- Performance Evaluation and Importance
Human resource management- Performance Evaluation and ImportanceHuman resource management- Performance Evaluation and Importance
Human resource management- Performance Evaluation and Importance
Chandra Shekar Immani
 
Chapter 9 - Motivation in HRM
Chapter 9 - Motivation in HRMChapter 9 - Motivation in HRM
Chapter 9 - Motivation in HRM
akademisuria
 
Management Performance Appraisal
Management Performance AppraisalManagement Performance Appraisal
Management Performance Appraisal
Marathwada College of Education
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
uncleRhyme
 
Pay for -performance
Pay for -performancePay for -performance
Pay for -performance
pr11ms1064
 
Compensation Management and Job Evaluation
Compensation Management and Job EvaluationCompensation Management and Job Evaluation
Compensation Management and Job Evaluation
Riddhima Kartik
 
Performance Management and Performance Appraisals
Performance Management and Performance AppraisalsPerformance Management and Performance Appraisals
Performance Management and Performance Appraisals
minnoo
 
Job evaluation-ppt
Job evaluation-ppt Job evaluation-ppt
Job evaluation-ppt
Hashim Hasnain Hadi
 

What's hot (20)

Job enrichment & Job enlargement
Job enrichment & Job enlargement Job enrichment & Job enlargement
Job enrichment & Job enlargement
 
Organizational behaviour
Organizational behaviourOrganizational behaviour
Organizational behaviour
 
Hawthorne experiments
Hawthorne experimentsHawthorne experiments
Hawthorne experiments
 
Performance management 1
Performance management 1Performance management 1
Performance management 1
 
Hawthorne experiments
Hawthorne experimentsHawthorne experiments
Hawthorne experiments
 
Performance Management
Performance ManagementPerformance Management
Performance Management
 
Chapeter 6 appraising and rewarding performance
Chapeter 6 appraising and rewarding performanceChapeter 6 appraising and rewarding performance
Chapeter 6 appraising and rewarding performance
 
Uses of performance appraisals
Uses of performance appraisalsUses of performance appraisals
Uses of performance appraisals
 
Pay For Performance ppt
Pay For Performance pptPay For Performance ppt
Pay For Performance ppt
 
STRATEGIC PAY PLANS
STRATEGIC PAY PLANSSTRATEGIC PAY PLANS
STRATEGIC PAY PLANS
 
Performance appraisal concepts and method
Performance appraisal  concepts and methodPerformance appraisal  concepts and method
Performance appraisal concepts and method
 
Elton mayo focusing on human relation aspects
Elton mayo focusing on human relation aspectsElton mayo focusing on human relation aspects
Elton mayo focusing on human relation aspects
 
Human resource management- Performance Evaluation and Importance
Human resource management- Performance Evaluation and ImportanceHuman resource management- Performance Evaluation and Importance
Human resource management- Performance Evaluation and Importance
 
Chapter 9 - Motivation in HRM
Chapter 9 - Motivation in HRMChapter 9 - Motivation in HRM
Chapter 9 - Motivation in HRM
 
Management Performance Appraisal
Management Performance AppraisalManagement Performance Appraisal
Management Performance Appraisal
 
Performance appraisal
Performance appraisalPerformance appraisal
Performance appraisal
 
Pay for -performance
Pay for -performancePay for -performance
Pay for -performance
 
Compensation Management and Job Evaluation
Compensation Management and Job EvaluationCompensation Management and Job Evaluation
Compensation Management and Job Evaluation
 
Performance Management and Performance Appraisals
Performance Management and Performance AppraisalsPerformance Management and Performance Appraisals
Performance Management and Performance Appraisals
 
Job evaluation-ppt
Job evaluation-ppt Job evaluation-ppt
Job evaluation-ppt
 

Similar to Chapter 5: Performance Appraisal

Performance measurement techniques
Performance measurement techniques Performance measurement techniques
Performance measurement techniques
Preeti Bhaskar
 
Performance measurement techniques
Performance measurement techniquesPerformance measurement techniques
Performance measurement techniques
Preeti Bhaskar
 
Class xx performance appraisal
Class xx performance appraisalClass xx performance appraisal
Class xx performance appraisal
Malavika Desai
 
Performance Evaluation and Appraisal Processes
Performance Evaluation and Appraisal ProcessesPerformance Evaluation and Appraisal Processes
Performance Evaluation and Appraisal Processes
ShaharyarShoukatShou
 
pm-pa.ppt
pm-pa.pptpm-pa.ppt
pm-pa.ppt
TahaReyan
 
Performance appraisal final copy
Performance appraisal final copyPerformance appraisal final copy
Performance appraisal final copy
Bismah Adam
 
Performance appraisal final copy
Performance appraisal final copyPerformance appraisal final copy
Performance appraisal final copy
Bismah Adam
 
Performance appraisal final copy
Performance appraisal final copyPerformance appraisal final copy
Performance appraisal final copy
Bismah Adam
 
performance appraisal
performance appraisalperformance appraisal
performance appraisal
Preeti Bhaskar
 
A critical review of performance evaluation tools and technique
A critical review of performance evaluation tools and techniqueA critical review of performance evaluation tools and technique
A critical review of performance evaluation tools and technique
tanjim11
 
9781447925262-PPT-C09.ppt
9781447925262-PPT-C09.ppt9781447925262-PPT-C09.ppt
9781447925262-PPT-C09.ppt
ReemBolok1
 
Performance Management System
Performance Management SystemPerformance Management System
Performance Management System
Mayank Singh
 
HRM - Performance Management
HRM - Performance ManagementHRM - Performance Management
HRM - Performance Management
Anthony B.
 
Performance Appraisal
Performance AppraisalPerformance Appraisal
Performance Appraisal
Gautam Varshney
 
A STUDY ON EFFECTIVE NESS OF PERFORMANCE A PPRAISAL SYSTEM IN MANUFACTURING...
A STUDY ON EFFECTIVE NESS OF  PERFORMANCE A PPRAISAL SYSTEM IN  MANUFACTURING...A STUDY ON EFFECTIVE NESS OF  PERFORMANCE A PPRAISAL SYSTEM IN  MANUFACTURING...
A STUDY ON EFFECTIVE NESS OF PERFORMANCE A PPRAISAL SYSTEM IN MANUFACTURING...
IAEME Publication
 
Evaluasi Kinerja
Evaluasi KinerjaEvaluasi Kinerja
Evaluasi Kinerja
Tian Sarwoyo
 
PERFORMANCE_APPRAISAL_IN_TATA_MOTORS.pdf
PERFORMANCE_APPRAISAL_IN_TATA_MOTORS.pdfPERFORMANCE_APPRAISAL_IN_TATA_MOTORS.pdf
PERFORMANCE_APPRAISAL_IN_TATA_MOTORS.pdf
marwaelsadat
 
Data1. From the Table below prepare the following Financial Statem.docx
Data1. From the Table below prepare the following Financial Statem.docxData1. From the Table below prepare the following Financial Statem.docx
Data1. From the Table below prepare the following Financial Statem.docx
whittemorelucilla
 
Performance Management
Performance ManagementPerformance Management
Performance Management
Gautam Ghosh
 
Dr. Jhansi Rani M R - Module V Multinational Performance Management
Dr. Jhansi Rani M R - Module V  Multinational Performance ManagementDr. Jhansi Rani M R - Module V  Multinational Performance Management
Dr. Jhansi Rani M R - Module V Multinational Performance Management
MRJhansiRani
 

Similar to Chapter 5: Performance Appraisal (20)

Performance measurement techniques
Performance measurement techniques Performance measurement techniques
Performance measurement techniques
 
Performance measurement techniques
Performance measurement techniquesPerformance measurement techniques
Performance measurement techniques
 
Class xx performance appraisal
Class xx performance appraisalClass xx performance appraisal
Class xx performance appraisal
 
Performance Evaluation and Appraisal Processes
Performance Evaluation and Appraisal ProcessesPerformance Evaluation and Appraisal Processes
Performance Evaluation and Appraisal Processes
 
pm-pa.ppt
pm-pa.pptpm-pa.ppt
pm-pa.ppt
 
Performance appraisal final copy
Performance appraisal final copyPerformance appraisal final copy
Performance appraisal final copy
 
Performance appraisal final copy
Performance appraisal final copyPerformance appraisal final copy
Performance appraisal final copy
 
Performance appraisal final copy
Performance appraisal final copyPerformance appraisal final copy
Performance appraisal final copy
 
performance appraisal
performance appraisalperformance appraisal
performance appraisal
 
A critical review of performance evaluation tools and technique
A critical review of performance evaluation tools and techniqueA critical review of performance evaluation tools and technique
A critical review of performance evaluation tools and technique
 
9781447925262-PPT-C09.ppt
9781447925262-PPT-C09.ppt9781447925262-PPT-C09.ppt
9781447925262-PPT-C09.ppt
 
Performance Management System
Performance Management SystemPerformance Management System
Performance Management System
 
HRM - Performance Management
HRM - Performance ManagementHRM - Performance Management
HRM - Performance Management
 
Performance Appraisal
Performance AppraisalPerformance Appraisal
Performance Appraisal
 
A STUDY ON EFFECTIVE NESS OF PERFORMANCE A PPRAISAL SYSTEM IN MANUFACTURING...
A STUDY ON EFFECTIVE NESS OF  PERFORMANCE A PPRAISAL SYSTEM IN  MANUFACTURING...A STUDY ON EFFECTIVE NESS OF  PERFORMANCE A PPRAISAL SYSTEM IN  MANUFACTURING...
A STUDY ON EFFECTIVE NESS OF PERFORMANCE A PPRAISAL SYSTEM IN MANUFACTURING...
 
Evaluasi Kinerja
Evaluasi KinerjaEvaluasi Kinerja
Evaluasi Kinerja
 
PERFORMANCE_APPRAISAL_IN_TATA_MOTORS.pdf
PERFORMANCE_APPRAISAL_IN_TATA_MOTORS.pdfPERFORMANCE_APPRAISAL_IN_TATA_MOTORS.pdf
PERFORMANCE_APPRAISAL_IN_TATA_MOTORS.pdf
 
Data1. From the Table below prepare the following Financial Statem.docx
Data1. From the Table below prepare the following Financial Statem.docxData1. From the Table below prepare the following Financial Statem.docx
Data1. From the Table below prepare the following Financial Statem.docx
 
Performance Management
Performance ManagementPerformance Management
Performance Management
 
Dr. Jhansi Rani M R - Module V Multinational Performance Management
Dr. Jhansi Rani M R - Module V  Multinational Performance ManagementDr. Jhansi Rani M R - Module V  Multinational Performance Management
Dr. Jhansi Rani M R - Module V Multinational Performance Management
 

More from HRM751

BENEFITS AND SERVICES ADMINISTRATION
BENEFITS AND SERVICES ADMINISTRATIONBENEFITS AND SERVICES ADMINISTRATION
BENEFITS AND SERVICES ADMINISTRATION
HRM751
 
JOB EVALUATION
JOB EVALUATIONJOB EVALUATION
JOB EVALUATION
HRM751
 
COMPENSATION ISSUES
COMPENSATION ISSUESCOMPENSATION ISSUES
COMPENSATION ISSUES
HRM751
 
Overview of Compensation Management
Overview of Compensation ManagementOverview of Compensation Management
Overview of Compensation Management
HRM751
 
Equity in Compensation
Equity in Compensation Equity in Compensation
Equity in Compensation
HRM751
 
Overview of Performance Management
Overview of Performance ManagementOverview of Performance Management
Overview of Performance Management
HRM751
 
Chapter 4: Performance Execution
Chapter 4: Performance ExecutionChapter 4: Performance Execution
Chapter 4: Performance Execution
HRM751
 
Chapter 4: Performance Execution
Chapter 4: Performance ExecutionChapter 4: Performance Execution
Chapter 4: Performance Execution
HRM751
 
Chapter 2: Performance Management Process
Chapter 2: Performance Management ProcessChapter 2: Performance Management Process
Chapter 2: Performance Management Process
HRM751
 
Chapter 3: Performance Planning
Chapter 3: Performance PlanningChapter 3: Performance Planning
Chapter 3: Performance Planning
HRM751
 
Chapter 3: Performance Execution
Chapter 3: Performance ExecutionChapter 3: Performance Execution
Chapter 3: Performance Execution
HRM751
 
Chapter 1: Overview of Performance Management
Chapter 1: Overview of Performance ManagementChapter 1: Overview of Performance Management
Chapter 1: Overview of Performance Management
HRM751
 

More from HRM751 (12)

BENEFITS AND SERVICES ADMINISTRATION
BENEFITS AND SERVICES ADMINISTRATIONBENEFITS AND SERVICES ADMINISTRATION
BENEFITS AND SERVICES ADMINISTRATION
 
JOB EVALUATION
JOB EVALUATIONJOB EVALUATION
JOB EVALUATION
 
COMPENSATION ISSUES
COMPENSATION ISSUESCOMPENSATION ISSUES
COMPENSATION ISSUES
 
Overview of Compensation Management
Overview of Compensation ManagementOverview of Compensation Management
Overview of Compensation Management
 
Equity in Compensation
Equity in Compensation Equity in Compensation
Equity in Compensation
 
Overview of Performance Management
Overview of Performance ManagementOverview of Performance Management
Overview of Performance Management
 
Chapter 4: Performance Execution
Chapter 4: Performance ExecutionChapter 4: Performance Execution
Chapter 4: Performance Execution
 
Chapter 4: Performance Execution
Chapter 4: Performance ExecutionChapter 4: Performance Execution
Chapter 4: Performance Execution
 
Chapter 2: Performance Management Process
Chapter 2: Performance Management ProcessChapter 2: Performance Management Process
Chapter 2: Performance Management Process
 
Chapter 3: Performance Planning
Chapter 3: Performance PlanningChapter 3: Performance Planning
Chapter 3: Performance Planning
 
Chapter 3: Performance Execution
Chapter 3: Performance ExecutionChapter 3: Performance Execution
Chapter 3: Performance Execution
 
Chapter 1: Overview of Performance Management
Chapter 1: Overview of Performance ManagementChapter 1: Overview of Performance Management
Chapter 1: Overview of Performance Management
 

Recently uploaded

THE IMPORTANCE OF CODING IN DEVOPS EXPLANATION
THE IMPORTANCE OF CODING IN DEVOPS EXPLANATIONTHE IMPORTANCE OF CODING IN DEVOPS EXPLANATION
THE IMPORTANCE OF CODING IN DEVOPS EXPLANATION
hrajkumar444
 
Satta matka guessing Kalyan result sattamatka
Satta matka guessing Kalyan result sattamatkaSatta matka guessing Kalyan result sattamatka
Satta matka guessing Kalyan result sattamatka
➑➌➋➑➒➎➑➑➊➍
 
foodgasm restaurant and Bar pune road.docx
foodgasm restaurant and Bar pune road.docxfoodgasm restaurant and Bar pune road.docx
foodgasm restaurant and Bar pune road.docx
PraghyaBhandari
 
brojjeddah Home Services Company in Saudi Arabia
brojjeddah Home Services Company in Saudi Arabiabrojjeddah Home Services Company in Saudi Arabia
brojjeddah Home Services Company in Saudi Arabia
brojjeddah
 
Best Practices in Negotiation for Business Management Students
Best Practices in Negotiation for Business Management StudentsBest Practices in Negotiation for Business Management Students
Best Practices in Negotiation for Business Management Students
zoyaws1
 
A Complete Guide of Dubai Freelance Visa and Permit in 2024
A Complete Guide of Dubai Freelance Visa and Permit in 2024A Complete Guide of Dubai Freelance Visa and Permit in 2024
A Complete Guide of Dubai Freelance Visa and Permit in 2024
Dubiz
 
United Kingdom's Real Estate Mogul: Newman George Leech's Impact on the Swiss...
United Kingdom's Real Estate Mogul: Newman George Leech's Impact on the Swiss...United Kingdom's Real Estate Mogul: Newman George Leech's Impact on the Swiss...
United Kingdom's Real Estate Mogul: Newman George Leech's Impact on the Swiss...
Newman George Leech
 
The-Three-Pillars-of-Doctoral-Research-What-Why-and-How (1).pptx
The-Three-Pillars-of-Doctoral-Research-What-Why-and-How (1).pptxThe-Three-Pillars-of-Doctoral-Research-What-Why-and-How (1).pptx
The-Three-Pillars-of-Doctoral-Research-What-Why-and-How (1).pptx
Jindal Global University, Sonipat Haryana 131001
 
Cracking the Customer Experience Code.pptx
Cracking the Customer Experience Code.pptxCracking the Customer Experience Code.pptx
Cracking the Customer Experience Code.pptx
Workforce Group
 
PETAVIT SIP-05.pdfAAAAAAAAAAAAAAAAAAAAAAAAA
PETAVIT SIP-05.pdfAAAAAAAAAAAAAAAAAAAAAAAAAPETAVIT SIP-05.pdfAAAAAAAAAAAAAAAAAAAAAAAAA
PETAVIT SIP-05.pdfAAAAAAAAAAAAAAAAAAAAAAAAA
lawrenceads01
 
You Get Me! Leveraging Communication Styles in Virtual Trainingpptx
You Get Me! Leveraging Communication Styles in Virtual TrainingpptxYou Get Me! Leveraging Communication Styles in Virtual Trainingpptx
You Get Me! Leveraging Communication Styles in Virtual Trainingpptx
Cynthia Clay
 
1234567891011121314151617181920212223242
12345678910111213141516171819202122232421234567891011121314151617181920212223242
1234567891011121314151617181920212223242
fauzanal343
 
Connected Small Boat Protection Solution | July 2024
Connected Small Boat Protection Solution | July  2024Connected Small Boat Protection Solution | July  2024
Connected Small Boat Protection Solution | July 2024
Hector Del Castillo, CPM, CPMM
 
Importance of Quality Transformations in VUCA World
Importance of Quality Transformations in VUCA WorldImportance of Quality Transformations in VUCA World
Importance of Quality Transformations in VUCA World
Ankur860831
 
شركات إبراهيم العرجاني: لدعم الاقتصاد المصري
شركات إبراهيم العرجاني: لدعم الاقتصاد المصريشركات إبراهيم العرجاني: لدعم الاقتصاد المصري
شركات إبراهيم العرجاني: لدعم الاقتصاد المصري
إبراهيم العرجاني
 
MEA Union Budget 2024-25 Final Presentation
MEA Union Budget 2024-25 Final PresentationMEA Union Budget 2024-25 Final Presentation
MEA Union Budget 2024-25 Final Presentation
PhysicsUtu
 
Innovation Hub_ Spotlight on Toms River's Role as a Beacon for Entrepreneuria...
Innovation Hub_ Spotlight on Toms River's Role as a Beacon for Entrepreneuria...Innovation Hub_ Spotlight on Toms River's Role as a Beacon for Entrepreneuria...
Innovation Hub_ Spotlight on Toms River's Role as a Beacon for Entrepreneuria...
Philip M Caputo
 
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
emmanuelpulido003
 
PAWFESSIONAL ELVA MAX.pdfAAAAAAAAAAAAAAAAAAA
PAWFESSIONAL ELVA MAX.pdfAAAAAAAAAAAAAAAAAAAPAWFESSIONAL ELVA MAX.pdfAAAAAAAAAAAAAAAAAAA
PAWFESSIONAL ELVA MAX.pdfAAAAAAAAAAAAAAAAAAA
lawrenceads01
 
The IIT Madras Product Management Casebook 23-24.pdf
The IIT Madras Product Management Casebook 23-24.pdfThe IIT Madras Product Management Casebook 23-24.pdf
The IIT Madras Product Management Casebook 23-24.pdf
Keerthiraja11
 

Recently uploaded (20)

THE IMPORTANCE OF CODING IN DEVOPS EXPLANATION
THE IMPORTANCE OF CODING IN DEVOPS EXPLANATIONTHE IMPORTANCE OF CODING IN DEVOPS EXPLANATION
THE IMPORTANCE OF CODING IN DEVOPS EXPLANATION
 
Satta matka guessing Kalyan result sattamatka
Satta matka guessing Kalyan result sattamatkaSatta matka guessing Kalyan result sattamatka
Satta matka guessing Kalyan result sattamatka
 
foodgasm restaurant and Bar pune road.docx
foodgasm restaurant and Bar pune road.docxfoodgasm restaurant and Bar pune road.docx
foodgasm restaurant and Bar pune road.docx
 
brojjeddah Home Services Company in Saudi Arabia
brojjeddah Home Services Company in Saudi Arabiabrojjeddah Home Services Company in Saudi Arabia
brojjeddah Home Services Company in Saudi Arabia
 
Best Practices in Negotiation for Business Management Students
Best Practices in Negotiation for Business Management StudentsBest Practices in Negotiation for Business Management Students
Best Practices in Negotiation for Business Management Students
 
A Complete Guide of Dubai Freelance Visa and Permit in 2024
A Complete Guide of Dubai Freelance Visa and Permit in 2024A Complete Guide of Dubai Freelance Visa and Permit in 2024
A Complete Guide of Dubai Freelance Visa and Permit in 2024
 
United Kingdom's Real Estate Mogul: Newman George Leech's Impact on the Swiss...
United Kingdom's Real Estate Mogul: Newman George Leech's Impact on the Swiss...United Kingdom's Real Estate Mogul: Newman George Leech's Impact on the Swiss...
United Kingdom's Real Estate Mogul: Newman George Leech's Impact on the Swiss...
 
The-Three-Pillars-of-Doctoral-Research-What-Why-and-How (1).pptx
The-Three-Pillars-of-Doctoral-Research-What-Why-and-How (1).pptxThe-Three-Pillars-of-Doctoral-Research-What-Why-and-How (1).pptx
The-Three-Pillars-of-Doctoral-Research-What-Why-and-How (1).pptx
 
Cracking the Customer Experience Code.pptx
Cracking the Customer Experience Code.pptxCracking the Customer Experience Code.pptx
Cracking the Customer Experience Code.pptx
 
PETAVIT SIP-05.pdfAAAAAAAAAAAAAAAAAAAAAAAAA
PETAVIT SIP-05.pdfAAAAAAAAAAAAAAAAAAAAAAAAAPETAVIT SIP-05.pdfAAAAAAAAAAAAAAAAAAAAAAAAA
PETAVIT SIP-05.pdfAAAAAAAAAAAAAAAAAAAAAAAAA
 
You Get Me! Leveraging Communication Styles in Virtual Trainingpptx
You Get Me! Leveraging Communication Styles in Virtual TrainingpptxYou Get Me! Leveraging Communication Styles in Virtual Trainingpptx
You Get Me! Leveraging Communication Styles in Virtual Trainingpptx
 
1234567891011121314151617181920212223242
12345678910111213141516171819202122232421234567891011121314151617181920212223242
1234567891011121314151617181920212223242
 
Connected Small Boat Protection Solution | July 2024
Connected Small Boat Protection Solution | July  2024Connected Small Boat Protection Solution | July  2024
Connected Small Boat Protection Solution | July 2024
 
Importance of Quality Transformations in VUCA World
Importance of Quality Transformations in VUCA WorldImportance of Quality Transformations in VUCA World
Importance of Quality Transformations in VUCA World
 
شركات إبراهيم العرجاني: لدعم الاقتصاد المصري
شركات إبراهيم العرجاني: لدعم الاقتصاد المصريشركات إبراهيم العرجاني: لدعم الاقتصاد المصري
شركات إبراهيم العرجاني: لدعم الاقتصاد المصري
 
MEA Union Budget 2024-25 Final Presentation
MEA Union Budget 2024-25 Final PresentationMEA Union Budget 2024-25 Final Presentation
MEA Union Budget 2024-25 Final Presentation
 
Innovation Hub_ Spotlight on Toms River's Role as a Beacon for Entrepreneuria...
Innovation Hub_ Spotlight on Toms River's Role as a Beacon for Entrepreneuria...Innovation Hub_ Spotlight on Toms River's Role as a Beacon for Entrepreneuria...
Innovation Hub_ Spotlight on Toms River's Role as a Beacon for Entrepreneuria...
 
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
21stcenturyskillsframeworkfinalpresentation2-240509214747-71edb7ee.pdf
 
PAWFESSIONAL ELVA MAX.pdfAAAAAAAAAAAAAAAAAAA
PAWFESSIONAL ELVA MAX.pdfAAAAAAAAAAAAAAAAAAAPAWFESSIONAL ELVA MAX.pdfAAAAAAAAAAAAAAAAAAA
PAWFESSIONAL ELVA MAX.pdfAAAAAAAAAAAAAAAAAAA
 
The IIT Madras Product Management Casebook 23-24.pdf
The IIT Madras Product Management Casebook 23-24.pdfThe IIT Madras Product Management Casebook 23-24.pdf
The IIT Madras Product Management Casebook 23-24.pdf
 

Chapter 5: Performance Appraisal

  • 1. HRM 751 PERFORMANCE AND COMPENSATION MANAGEMENT (PERFORMANCE APPRAISAL) Nur Izyan binti Supandi 2012293352 BM7703CF
  • 2. Outline  Introduction of Performance Appraisal     Performance Interview and Feedback      Appraisal Form Traditional Methods vs Modern Methods Type of appraisal Methods Type of Appraiser   Definition Importance Performance Interview Performance Appraisal Methods   Definition and Purpose When? Performance appraisal steps/process Supervisors, Peers, Subordinates, Self, Customers, Clients and Group Appraiser Error     Judgmental Errors Rater Training Program Poor Appraisal Forms Ineffective Organizational Policies and Practices
  • 5. Other Terms Performance appraisal has been synonymous with  performance review,  performance evaluation,  performance assessment,  performance measurement,  employee evaluation,  personnel review,  staff assessment, and  service rating (Aggarwal & Thakur, 2013)
  • 6. Definition of Performance Appraisal The observation and assessment of the employee performance against job-related standards determined by the organization over a certain period (Eichel & Bender, 1984). The process of evaluating on employee’s job performance that helpful to, and often even essential to, accomplishing important goals of all organization (Kondrasuk, 2012) Performance appraisals involves the similar idea of developing social and performance norms, monitoring the actions of employees in relation to the norms, assigning responsibility for the actions, and then ultimately providing rewards or punishment based on performance towards those norms (Milliman, Nason, Zhu, & Cieri, 2002)
  • 7. Definition of Performance Appraisal Performance appraisal provides an annual review and evaluation of an individual's job performance (Eastern Illinois University, 2009) Performance appraisal is the process of determining how well employees do their jobs compared with a set of standards and communicating that information to those employees (Chukwuba, 2011) Performance appraisal is the evaluation of employee’s performance based on the standard and give feedback about the assessment .
  • 8. Purpose of Performance Appraisal Walsh and Fisher (2005); Faseeh (2013): (1) To provide feedback about strengths and weaknesses; (2)To distinguish between individuals to allocate rewards; (3)To evaluate and maintain the human resource systems of the organization; and (4)To create a paper trail of documentation (Murphy & Cleveland, 1995) Chattopadhayay and Ghosh (2012), •It provides a justification for human resource decision such as rewards, career planning, transfers, training, counseling, mentoring , termination, etc.
  • 9. Milliman, Nason, Zhu, and Cieri (2002)
  • 10. When Performance Appraisal? Annually • Many organization usually make an evaluation of the employees’ performance in the end of the year. • annual employee performance reviews appear to be the standard in most American organizations. Semiannually • A semi-annual one for the employee to discuss with his manager any needed remedial steps for his performance on an unofficial basis. While the second one, would be an official one held at the end of the year for the employee to receive his appraisal results and know about the salary increase or promotion. E.g: Japan Others • According to the Chartered Institute of Personnel and Development (CIPD), UK, 87% of employers use some form of individual annual appraisals, 27% do them twice a year and 10% more often than that. Some use them when projects come to an end.
  • 12. Example Performance Appraisal Step 1. Establish performance standards for each position and criteria for evaluation. 2. Establish performance evaluation policies on when to rate, how often to rate, and who should rate. 3. Have raters gather data on employees’ performance. 6. Make decisions and file evaluation. 5. Discuss the evaluation with the employees. 4. Have raters (and employees in some systems) evaluate employees’ performance. (Kumari, 2012)
  • 13. Example Performance Appraisal Step Step l: The Initial (Performance) Planning Session • Meeting individually to described expectation Step II: The MidPoint Review Step III: The Final Review Session • provide feedback to the employee during the primary performance period • to review and rate the performance of each employee during the entire performance rating period. (West Virginia Division of Personnel Handbook, 2005)
  • 15. Definition of Performance Interviewinterviews between a Recurrent strategic superior in an organization and an employee that focus on employee performance and development (Asmuß, 2008) The interview constitutes a discussion session between an employee and his or her supervisor with respect to the employee’s results during the period of evaluation, focusing especially on employee progress, aims, and needs at work (Anne Linnaa, Elovainio, Bos, Kivimäki, & Penttia, 2012) The performance appraisal interview is defined as the formal process of evaluating employee performance (Keeping and Levy 2000) A potentially important part of any organization’s performance appraisal system that function in several ways such as providing feedback (Cederblom, 1982) A formal meetings for the specific purpose of discussing the various aspect of performance and the performance management system (Aguinis, 2009)
  • 16. Function of Performance Interview  Two main purpose:  Counseling and development  Evaluation and discussion   About employees’ performance  Allow employees to improve their performance by identifying performance problem and solution for overcoming them. Helps to build good relationship (Cederblom, 1982) (Aguinis, 2009)
  • 17. Importance of Performance Interview Instant feedback (Asmuß, 2008) Human resource plan Feedbacks in Pepsi- Cola International Development feedback (Cederblom, 1982) Coaching (Cederblom , 1982) Accountability based performance appraisals
  • 18. Explanation of Feedback Staff members should not receive any surprise feedback because informal, continuous discussion and feedback between staff and manager throughout the year prevents surprises (Boice & Kleiner, 1997).
  • 20. Traditional vs New Approach Traditional Approach New Approach Traditional Approach  This method is based on studying the personal qualities of the employees. It may include knowledge, initiative, loyalt y, leadership and judgment (Aggarwal & Thakur, 2013). New Approach  Performance appraisal is used for developmental and motivational purposes in the organizations (Gürbüz & Dikmenli, 2007).
  • 22. Methods and Form SHRM Curriculum Guidebook (2010)
  • 23. Critical Incident Method  Keeping a record of uncommonly good or undesirable examples of an employee's work related behavior and reviewing it with the employee at predetermined times.
  • 24. Management by Objectives (MBO)  Employees are evaluated how well they accomplished a specific set of objectives that have been determined to critical in the successful completion of the job.
  • 25. Narrative Essay  Evaluator writes an explanation about employee’s strength and weakness points, previous performance, positional and suggestion for his (her) improvement at the end of evaluation time.
  • 26. Rating Scale Behaviorally Anchored Rating Scale (BARS) Graphic Rating Scale • BARS combines elements from critical incident and graphic rating scale approaches. The supervisor rates employees’ according to items on a numerical scale. • A scale that lists a number of traits and a range of performance for each, the employee is then rated by identifying the score that best describes his or her performance for each trait.
  • 28. Comparative Methods   Comparative methods of performance appraisal seek to identify one worker’s standing to others. Ranking, paired comparison, and forced distribution
  • 29. Comparative Methods Ranking Method Forced Distribution Ranking Paired - This method Comparison - employees from forces a set best to worst on a - Each person is percentage of all particular directly compared person being trait, choosing with every other evaluated into highest, then person being pre-determined lowest, until all rated. performance ranked (Aggarwal categories. & Thakur, 2013)
  • 30. Appraisal Form  Information on performance is collected by using forms, which can be filled out in paper or electronically (Aguinis, 2009)  Example appraisal form
  • 31. Components in Appraisal Form          Basic employee information Accountabilities, objectives and standard Competencies and indicators Major achievements and contributions Developmental achievements Developmental needs, plans, and goals Stakeholder input Employees comments Signature (Aguinis, 2009)
  • 32. 360 Degree    is known by a variety of names, including multisource assessment, 360-degree feedback, multirater assessment, and threedimensional or full-circle appraisal. It relies on the input of an employee's superior, colleagues, subordinates, sometimes customers, suppliers and/or spouses. The information collected and feedback is provided in full circular fashion top down and back to top.
  • 34. Supervisors Peers Subordinates • Supervisor: • Best position to evaluate performance in relation to strategic organization goals • Peer: • Must know the level of performance of the employee being evaluated. • May be useful when the task of the work unit require frequent working contact among peers • For developmental aspects of performance evaluation • Subordinates are a valuable source of information regarding particular aspects of a supervisor or leader’s performance such as communication, team building or delegation. • For example Exxon and universities
  • 35. Self Customers • Self appraisal • To be used for developmental aspects. • Self evaluation have often been met with skepticism by organizations because the self interest of the employee. • Customers • Useful for jobs that require a high degree of interaction with public or with particular jobrelated individuals. • Clients may also offer a different perspective on a employee’s performance, particularly for jobs that require a high degree of interaction with people. For example, client appraisals can be a valuable source of feedback regarding the quality of service provision (e.g. the quality of interaction, degree of professionalism). • Group
  • 37. Appraiser Error   Appraisal error affect the objectivity of the appraisal negatively (Boachie-Mensah & Seidu, 2012). The problems that affect the validity and dependability of the Performance appraisal systems (Kumari, 2012)
  • 38. Component of Appraisal Error (Kumari, 2012) Judgment Error • People commit mistake due to biasness and inadequate training while evaluating people and their performance. • These errors are also called as Rater Errors. Poor Appraisal Forms • The rating scale may be quite vague and unclear. • Problems with evaluation standards • The rating form may ignore important aspects of job performance. • The forms may be too long and complex. Ineffective Organizational Policies and Practices • Very often the sincere appraisal report put in by a rater is not suitably rewarded
  • 39. Ratings Error Unintentionally           Similar to me Contrast Halo Primacy Recency Negatively First impression Spillover Stereotype Attribution Intentional    Leniency Severity Central tendency (Aguinis, 2009)
  • 40. Rater Training Programs    The overall objective of providing raters with tools that will allow them to implement the performance management system effectively and effectively (Aguinis, 2009). To improve managers’ ability to conduct effective performance appraisals with dealing errors to eliminate it from ratings (Inancevich & Konopaske, 2013). The example of training such as Rater Error Training, Frame of Reference Training (FOR), Behavioral Observation Training, and SelfLeadership Training.
  • 41. A Study in polytechnic in Takoradi, Ghana (Boachie-Mensah & Seidu, 2012) Effect from Appraisal Error The most common errors: similarity and the halo effect biases Irregular and inadequate feedback A negative perception that the employees Recommendation Precise definitions of the job-related behaviours being rated are required. The superior to routinely document employee accomplishments and failures throughout the whole appraisal period. Performance standards must be clearly defined Formal training programmes
  • 42. Support from Previous Study   In a study of Telecom Industry in Navi Mumbai Region the most common appraisal errors in the system are the similarity (similar-to-me) effect and the halo effect.
  • 43. Deming (1982/2000) Deming was a recognized guru in the quality movement and famous for his critique of performance ratings, identifying them as one of management’s deadly diseases in the PA:  It nourishes short-term performance, annihilates longterm planning, builds fear, demolishes team-work, nourishes rivalry and politics. It leaves people bitter, crushed, bruised, battered, desolate, despondent, dejected, feeling inferior, some even depressed, unfit for work for weeks after receipt of rating, unable to comprehend why they
  • 44. Conclusion    Organizations can benefit a lot from performance appraisal by seeing it as crucial part of management responsibility. Employee will be motivated and inspired with positive and constructive feedback from performance appraisal. Effective performance appraisal should eliminate appraisal error.