1. Human Resource Management
Employee Performance Appraisal

2. Introduction
 Importance
 Manage and improve employees’
performance
 Compensation
 Training needs analysis
 Make more valid staffing decisions
 Enhance overall effectiveness of firm

3. Limitation of Performance
Appraisal
 Efforts for short-term reward instead of long term
success of organization
 Supervisors consider EPA as reward punishment
exercise, not on overall skills and potential of the
employees
 Routine paperwork exercise rather than objective
critique of the individual’s performance
 Individuals consider the exercise as biased or unfair
 Subordinates react negatively when evaluators offer
unfavorable comments.
 Personal biases and inconsistencies of the individual
conducting EPA may undermine the efficacy of the
entire exercise

4. What should be measured?
 Worker or work performance
 Performance outcomes
 Example of instructor
 Clear distinction between competencies and
performance

5. Appraisal System
 Who devises an appraisal system
 Measurement content
 Measurement process
 Rater
 Ratee
 Administrative characteristics

6. Measurement Content
 Person
 Work
 Record of outcomes
 Domino’s
 Sheraton Hotel
 Others
 Important outcome categories
Quality, Quantity, Timeliness, Cost Effectiveness, Need
for supervision, Interpersonal Impact

7. Measurement Process
 Comparison among ratees
 Paired comparison
 Straight ranking
 Forced distribution (GE example)
 Comparison among performance anchors
 Pairs of behavior statements
 Forced choice

8.  Comparison to performance level anchors
 Graphic rating scales
 Behaviorally anchored rating scales
 MBOs
 Summated scales
 Performance Distribution Assessment

9. Rating errors
1. Leniency/Severity
2. Halo/Horns Effect
3. Central Tendency
4. Actor-observer bias
5. Representativeness
6. Availability
7. Anchoring

10. Benchmarking
Gauging the internal practices and activities
with an external standard or reference
Shaping
1. Identify a benchmark
2. Identify comparables
3. Data on comparables
4. Internal data
5. Set specific targets
6. Train staff to meet targets
7. Feedback and reinforcement
8. Progress review

11. BARS