Performance Appraisal System

Team B3

• Introduction of Performance Appraisal(PA)

• Strength and limitation of PA

• Suggestions for the performance

• Conclusion

Outline

 Introduction of PA

• a platform to assess an employee's job performance (Dessler, 2011)

Performance measurement must be consistent with the organization´s structure and culture

– Large and small organization– Western and Eastern Culture

(Ouchi, 1981; Jobber, Hooley & Shipley, 1993)

Control System of PA

• Control standards are based primarily on organizational missions or departmental goals, which reflects the role a performance appraisal plays in the organization. 

• Measurement is concerned with the actual appraisal process, including the appraiser, appraisal criteria, appraisal methods, and appraisal timing. 

• Corrective actions comprise the feedback processes after the performance appraisal is completed.

                           (Che-Ming, Dar-Hsin, 2007).

Purpose of PA

• the evaluated purpose is intended to inform people of their performance standing the collected performance data are frequently used to reward high performance 

• the development purpose is intended to identify problems in employees performance the assigned task the collected performance data are used to provide necessary skill training or professional development

Motivation

• Performance appraisal is playing a major role in the establishment and maintenance of beliefs about the behavior-reward relationship

• for individual performance appraisal systems to act as a motivator, employees must believe that their appraisal is coupled closely to their performance

 • individuals form associations between a behavior

(performance level) and the attainment of rewards

• Intrinsic motivation will increase as feelings of personal control and competence

Behavior

• PA provides employees with recognition for their work efforts.

• PA indicates to an employee that the organization is genuinely interested in their individual performance and development

 • This alone can have a positive influence on the individual's

sense of worth, commitment and relationship

Teamwork

• Many who seem to be solo performers are actually individual contributors to a group effort, regardless of whether that group is a formally constituted team.

 

Results of PA

• positive impact on performance to future well-being • encourage the employees make contribution and improve

their performance • complete reward mechanism

• On motivation and satisfaction

– Performance appraisal can have an effect on motivation and satisfaction (Benefits of Appraisal)

– Provides recognition for employee’s efforts (Benefits of Appraisal)

– Increased self-esteem (Aguinis, Joo&Gottfredson, 2011, P. 3)

• Training and Development

– An opportunity to recognize development needs (Benefits of Appraisal)

– Helps employees maximize strengths and minimize weaknesses (Aguinis, Joo&Gottfredson, 2011, P. 3)

– Measures training effectiveness

• Recruitment and Induction

– Indicator of the organization's recruitment (Benefits of Appraisal)

Strength of PA

• PA heavily relies on leadership• Bias criteria might affect the results• Emotion is possible leading to unfair judgment• Hierarchy might cause the gap within the organization• Appraisal can motivate by setting clear future objectives

these conflict with assessing past performance• Employees are reluctant to confide limitations as this could

impact on their reward or promotion.• Negative judgments on an individual’s performance as it

could be de-motivating.• Conflict avoidance may cause ‘‘central tendency’’ • Over-rating some clear competencies causes ‘‘halo effect’’,

while under-rating causes ‘‘horns effect’’ • Tendency to favor recent events ‘‘recency effects’’

Negatives & limitations of PA

(Prowse & Prowse, 2009)

• Inform the employees what are the expectations for their job performance

• Considering current situation, allow the employees to access limited resources for performing their job

• Appreciate good performance of all employees

• Review the appraisal process

• Examine and test some changes that have been recommended recently

• Determine and make clear the goals and the purpose of PA

• Focus on both results and behaviours

• Set and maintain the duration of PA process

• Involve more people in the process

• Provide training to those involved

The leaders should:

(Kondrasuk, 2011)

Source of PA-360 feedback

SELF

SUPERVISOROTHER LEADERS

EXTERNAL CUSTOMER

SUB-ORDINATOR

SUPPLIERSSKIP-LEVELREPORTER

PEERS

INTERNALCUSTOMER

(MacCathy and Garavan, 2001)

• On one hand it is a really problematic HR area but on the other hand it is really important for employees, supervisors and society.

• If the organization has the capability to implement a performance appraisal with the less bias possible, training those involved, using formats with research substantiation it might be an improvement for the organization but for the organizations that they don’t it might be harmful.

Conclusion

• Aguinis, H., Joo, H. &Gottfredson, R.K. (2011) Why we hate performance management, And why we should love it. Business Horizons, Volume 54, Issue 6, November–December 2011, Pages 503–507

• Benefits of Appraisal, Retrieved (n.d.), 7 Feb, 2012, from http://www.performance-appraisal.com/benefits.htm• Negative Aspects of Performance Appraisals. eHow. Available at: http://www.ehow.com/info_7899045_negative-aspects-

performance-appraisals.html [Accessed February 7, 2012b].• CHEN-MING, C. and CHEN, D., 2007. Performance Appraisal Systems in Service and Manufacturing Industries: Evidence from

Taiwan. International Journal of Management, 24(3), pp. 512-521,620. • ELMUTI, D., KATHAWALA, Y. and WAYLAND, R., 1992. Traditional performance appraisal systems: The Deming challenge.

Management Decision, 30(8), pp. 42-42. • KONDRASUK, J.N., 2011. So What Would An Ideal Performance Appraisal Look Like? The Journal of Applied Business and

Economics, 12(1), pp. 57-71. • KONDRASUK, J.N., 2011. The Ideal Performance Appraisal is a Format, Not a Form. Allied Academies International

Conference.Academy of Strategic Management.Proceedings, 10(1), pp. 61-75. • LIMAS, J.R., 2005. The influence of performance appraisal systems on leadership development, University of Phoenix. • McCarthy, A.M. & Garavan, T.N., 2001. 360° feedback process: performance, improvement and employee career development.

Journal of European Industrial Training, 25(1), pp.5-32.• PROWSE, P. and PROWSE, J., 2009. The dilemma of performance appraisal. Measuring Business Excellence, 13(4), pp. 69-77. • SCHOLTES, P.R., 1993. Special Focus: Reward Systems Total Quality or Performance Appraisal: Choose One. National

Productivity Review (1986-1998), 12(3), pp. 349. • Soltani, E., Van Der Meer, R. & Williams, T.M., 2005. A Contrast of HRM and TQM Approaches to Performance Management:

Some Evidence. British Journal of Management, 16(3), pp.211-230. • STARCHER, R., 1996. Individual performance appraisal systems. Production and Inventory Management Journal, 37(4), pp. 58-62.

Reference

Thanks

Q&A