This document outlines a presentation on performance appraisal. It begins with definitions of performance appraisal and management. It then discusses the importance of performance appraisal for making decisions around promotions, preventing grievances, and more. Key topics covered include objectives of appraisal, how the system is used, responsibilities, elements, steps, criteria, methods, qualities of good appraisal, and types of appraisal interviews. Factors that can distort appraisals are also addressed.

1. Banadir University: School of Postgraduate
Master of Public Health
Lecturer: Abubakar Gazali
Subject: Human Resource Management
Presenters: Mohamed Sheikh Omar
Mohamed Abdullahi Diriye

2. OUTLINE
 Definition of Performance appraisal
 Comparison between PA and PM
 Importance of Performance appraisal
 Why Performance appraisal
 Objectives of Performance appraisal
 Use of performance appraisal system
 Performance appraisal responsibilities
 Elements of performance appraisal
 Step by step guide to Performance appraisal
 Criteria for reviewing performance
 Methods of appraising performance
 Qualities of good appraisal
 Types of appraisal interview

3. DEFINITION
• Performance management Series of activities designed to
ensure that the organization gets the performance it needs
from its employees.
• Performance appraisal Process of determining how well
employees do their jobs relative to a standard and
communicating that information to them.

4. Cont…
• Performance appraisals are used to assess an employee’s
performance and provide a platform for feedback about past,
current, and future performance expectations. Performance
appraisal is variously called
– employee rating,
– employee evaluation,
– performance review,
– performance evaluation, or
– results appraisal.

6. IMPORTANCE OF PERFORMANCE
APPRAISAL
• Performance appraisal has been considered as the most
significant tool for an organization.
• It provides information which is highly useful in making
decisions regarding various aspects such as promotions and
merit rating.
• It is helpful in preventing grievances because it is a definite
aid to management in promoting fairness to employees.

7. WHY APPRAISE PERFORMANCE?
There are five reasons to appraise subordinates performance:
• First, most of the employers still base pay, promotion and
retention decisions on the employers appraisal.
• Second, appraisal plays a central role in the employers
performance management process.
• Third, the appraisal lets you and the subordinates develop a
plan for correcting any deficiencies and to reinforce the thing
the subordinate does right.

8. Cont…
• Fourth, appraisal should facilitate career planning, they
provide an opportunity to review the employers career plan in
light of his or her exhibited strength and weakness.
• Finally, supervisors use appraisal to identify employers
training and development needs.

9. OBJECTIVES
• Objectives setting that results in an agreement on what the
role holder has to achieve is an important part of the per-
formance management processes of defining and managing
expectations and forms the point of reference for
performance reviews.
• When setting objectives for the performance appraisal they
should be SMART

10. Cont…
Types of objectives
• Ongoing role or work objectives – all roles have built-in
objectives that may be expressed as key result areas in a role
profile.
• Targets – these define the quantifiable results to be attained
as measured in such terms as output, throughput, income,
sales, levels of service delivery and cost reduction.
• Tasks/projects – objectives can be set for the completion of
tasks or projects by a specified date or to achieve an interim
result.

11. USE OF PERFORMANCE APPRAISAL
SYSTEM
USES FOR
PERFORMANCE
APPRAISALS
ADMINISTRATIVE ACTIONS
• Dismissal from work
• Disciplinary procedures
• Compensation adjustments
• Promotions/demotions
• Transfers
DEVELOPMENTAL ACTIONS
• Career progression
• Training opportunities
• Coaching
• Mentoring
• Identifying
strengths/weaknesses

12. TYPICAL DIVISION OF HR
RESPONSIBILITIES: PERFORMANCE
APPRAISAL
MANAGERSHR UNIT
• Designs and maintains
appraisal system
• Trains raters
• Tracks timely receipt of
appraisals
• Reviews completed
appraisals for consistency
• Typically rate performance
of employees
• Prepare formal appraisal
documents
• Review appraisals with
employees
• Identify development areas

13. WHO CONDUCTS APPRAISALS?
Performance appraisals can be conducted by anyone familiar
with the performance of individual employees. Possible rating
situations include the following:
• Supervisors rating their employees
• Employees rating their superiors
• Team members rating each other
• Employees rating themselves
• Outside sources rating employees
• A variety of parties providing multisource, or 360-degree,
feedback

14. TYPES OF APPRAISAL INTERVIEW
• Satisfactory - Promotable
• Satisfactory - Not promotable
• unsatisfactory but correctable
• Unsatisfactory - uncorrectable

15. APPRAISAL INTERVIEW HINTS FOR
APPRAISERS

16. SAMPLE TERMS FOR DEFINING
STANDARDS

17. ELEMENTS OF PERFORMANCE
APPRAISAL
Setting
performance
goals and
objectives
Determining key
competencies
Measurement of
performance
against the goals
and objectives
Measurement of
performance against
key competencies
Feedback of result
Amendment to goals and
objectives

18. STEPS IN APPRAISAL
Step-1: Establish performance standards:
Step-2: Communicate performance expectation to employees:
Step-3: Measure actual performance:
Step-4: Compare actual performance with standards:
Step-5: Discuss the appraisal with the employee:
Step-6: Initiate corrective action, if necessary:

19. CRITERIA FOR REVIEWING PERFORMANCE
The criteria for reviewing performance should be
balanced between:
• Achievements in relation to objectives;
• The level of knowledge and skills possessed and
applied (competences or technical competencies);
• Behaviour in the job as it affects performance
(competencies);
• The degree to which behaviour upholds the core values
of the organization;
• Day-to-day effectiveness.

20. Performance Matrix
High achievement, but
behaviours, attitudes
and approach needs to
improve
Positive approach but
poor level of
achievement
Not meeting
requirements
High all-round
performance
Achievementofroleobjectives
Behaviour, attitudes, overall approach to work

21. METHODS FOR APPRAISING
PERFORMANCE
• The manager generally conducts the actual
appraisal using a formal tool or method.
• The two basic questions in designing the
actual appraisal tool
– what performance dimensions to measure and
– how to measure them.

22. Traditional Methods Modern Methods
• Straight Ranking Method Appraisal by results/objectives
• Person to Person Comparison Assessment
• Grading Electronic Performance appraisal
• Graphic Scale Method 360 degree method
• Alteration Ranking method
• Forced Distribution Method
• Group Appraisals
• Field Review Methods

26. FACTORS THAT CAN DISTORT APPRAISALS

27. Qualities Of
Performance
Appraisal
ENSURE
FAIRNESS
KEEP A DIARY
KNOW THE
PERFORMANC
E APPRAISAL
PROBLEMS
GET
AGREEMENT
ON A PLAN
USE THE RIGHT
APPRAISAL
TOOL

28. Motivation
• Without proper two-way feedback about an
employee’s effort and its effect on
performance, we run the risk of decreasing his
or her motivation. However, equally important
to feedback is the issue of development. By
development, we are referring to those areas
in which an employee has a deficiency or
weakness, or an area that simply could be
improved through effort to enhance
performance,” (David A.DeCenzo, 2012).