EMPLOYEE PERFORMANCE

APPRAISAL

a processoften combining both written

and oral elementswhereby management
evaluates and provides feedback on
employee job performance, including
steps to improve or redirect activities as
needed.

ROLE OF HR

HR plays an essential role in performance

appraisal, but its role is more centrally
factored on the entire performance
management system, instead of just the
appraisal, which is only one small part of
the entire system.

ROLE OF HR

Ensure a fair performance system

Train managers on performance system
Manage relationship between employee
and manager
Record and store performance reviews

OBJECTIVES

Measuring and improving the

performance of employees and increase
their future potential and value to the
company
Providing feedback
Facilitating promotion decisions
Facilitating layoff or downsizing decisions

OBJECTIVES

Encouraging performance improvement

Motivating superior performance
Setting and measuring goals
Counseling poor performers

Determining compensation changes

Encouraging coaching and mentoring

OBJECTIVES

Supporting manpower planning

Determining individual/organizational
training and development needs
Providing legal defensibility for personnel
decisions
Improving overall organization
performance

DEVELOPING A PERFORMANCE
APPRAISAL SYSTEM

1. Develop an evaluation form.

2. Identify performance measures.
3. Set guidelines for feedback.

4. Create disciplinary and termination

procedures.
5. Set an evaluation schedule.

ADMINISTERING A PERFORMANCE
APPRAISAL SYSTEM

STEP 1
Announce when the performance appraisal
process will begin at least 30 days in advance.

STEP 2
Distribute a self-evaluation to employees at
the 30-day point.

ADMINISTERING A PERFORMANCE
APPRAISAL SYSTEM

STEP 3
Require all managers to have their written
evaluation completed 7 days prior to the
employee evaluation meeting.

STEP 4
Review each manager's completed employee
evaluation to ensure that it does not violate
any company policies

ADMINISTERING A PERFORMANCE
APPRAISAL SYSTEM

STEP 5
Analyze the completed appraisal after the
managers have their one-on-one meetings
with their employees and determine if the
managers' recommendations are appropriate.

METHODS OF
PERFORMANCE APPRAISAL

GRAPHIC RATING SCALES

ideal for production-oriented work environments
consists of a list of job duties, performance standards
and a scale usually from 1 to 5 for rating employee
performance
There is typically a minimum required grade an
employee must receive in order to pass appraisal

METHODS OF
PERFORMANCE APPRAISAL

MANAGEMENT BY OBJECTIVES
useful for measuring the performance of employees
in supervisory or managerial positions
Workers and managers work together to create a list
of SMART objectives for the worker to attain during
the review period.
performance is measured by how many of her goals
she accomplished within the designated time frame

METHODS OF
PERFORMANCE APPRAISAL

360-DEGREE EVALUATION
whoever conducts the appraisal interviews an
employees supervisor, peers and any direct reports
an appraiser receives in-depth feedback on the
employees behavior
Measuring areas of subjectivity, such as character
and leadership skills, allows an employer to manage
an employees development.

METHODS OF
PERFORMANCE APPRAISAL

FORCED RANKING
measures employees' achievements against those of
their peers, instead of comparing the employee's
current evaluation period against the employee's
own past performance
creates a very competitive work environment

SOURCES OF RATER ERROR

RATER ERRORS errors in judgment that occur in

a systematic manner when an individual observes
and evaluates another.
What makes these errors so difficult to correct is that
the observer is usually unaware that she or he is
making them.

SOURCES OF RATER ERROR

HALO EFFECT
when an employee is rated the same across all
performance dimensions due to a positive or
negative rater impression.
typical when the rater either likes or dislikes the
employee and allows those feelings to influence their
performance rating of them

SOURCES OF RATER ERROR

LENIENCY ERROR
tendency to evaluate all people as outstanding and to
give inflated ratings rather than true assessments of
performance
CENTRAL TENDENCY ERROR
tendency to evaluate every person as average
regardless of differences in performance

SOURCES OF RATER ERROR

STRICTNESS
tendency to rate all people at the low end of the scale
and are overly critical of performance
CONTRAST EFFECT
tendency for a rater to evaluate a person relative to
other individuals rather than on-the-job
requirements

SOURCES OF RATER ERROR

FIRST IMPRESSION ERROR

tendency for a manger to make an initial favorable or
unfavorable judgment about someone, and then
ignore subsequent information that does not support
this impression

SIMILAR-TO-ME ERROR
tendency to more favorably judge those people
perceived as similar to the manager

AVOID RATER ERRORS

ASK YOURSELF THESE QUESTIONS:

Am I basing my rating on documentation of my

observations of the Employees behavior, or am I
making judgments based on my perceptions?
Am I looking at each of this Employees
competencies separately, or have I generalized about
his or her performance?

AVOID RATER ERRORS

ASK YOURSELF THESE QUESTIONS:

Have I looked at this Employees competencies over

time, or have I generalized according to initial
perceptions of her or him?
Have I recognized any biases I may have so I do not
let them influence my judgments?
Have I rated this Employee on his or her actual
behavior or have I rated her or him compared to
other individuals?

REASONS EMPLOYEES
DISLIKE EVALUATION
RATING BIAS

managers do not always rate them on objective

criteria
occurs with the contamination of appraisal ratings
by non-performance related factors
HYPOCRISY
managers do not follow stated policies and
procedures

REASONS EMPLOYEES
DISLIKE EVALUATION

POOR INFORMAL FEEDBACK

Employees can be aggravated when feedback
sessions are superficial
In general, employees like to receive feedback
Employees seek direct feedback
RATER ERRORS

LEGAL TERMINATION
PREPARATION

A firing should never be a surprise.

Prepare documents like employment application,
employee handbook, policies describing companys
right to discipline and terminate employees,
performance appraisals, written documentation of
internal investigation findings related to termination,
etc.

Obtain a thorough and independent review of the

decision.

LEGAL TERMINATION

HOLD A TERMINATION MEETING

Keep the meeting professional, brief yet complete,
under control, and humane.
A termination meeting should be held face-to-face.
At least 2 company representatives should be present.
A script should be prepared before the meeting so that
the meeting can be kept short.
Make sure to address how the employee's final pay
check will be delivered.

LEGAL TERMINATION

FOLLOW UP AFTER FIRING

Inform remaining employees about

termination.
Handle reference requests appropriately and
consistently, in a way that will reduce lawsuit
potentials.
Deal with claims for unemployment insurance
benefits.

FRANCEMOPER
SALARIPAP

LOVENUATIA

TEARR RORER

GARTIN SABI

AGELL
AMINOTERINT