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It is defined as the method by

which, through observations of


the appraiser, the individual
workers efficiency in performing
his duties and responsibilities
during a given period is evaluated
on the basis of pre-determined
performance
standards
or
established goals mutually set by
the employee and his supervisor.

The performance of an employee on his


job is judged in terms of two factors:
1.The dimension of the job which
includes the requirements, duties and
responsibilities, and their standards of
satisfactory performance.
2. The dimension of the man and his
performance.

PERFORMANCE AS DISTINGUISHED FROM


DUTIES
Duties and responsibilities refer to what should
be done, the rendering of what is due any person
or organization and the fulfillment of moral
obligations. Performance tells how much should
be done or accomplished, its quality and the
manner in which it is done.

OBJECTIVES OF PERFORMANCE
APPRAISAL

1.Providing feedback on
employees performance
2.Basis for personnel action
a.Potentials and promotions
b.Transfer, demotion, layoff, and
discharge
c.Salary increase

OBJECTIVES OF PERFORMANCE
APPRAISAL

3. Management guide in
employee counseling and
discipline
4.Promotion of better employee
employer relations
5.Improvements of supervision
by making the supervisor
better aware if his duties

OBJECTIVES OF PERFORMANCE
APPRAISAL
6.Development of employees and
supervisors. While performance rating is
used for the development of employees,
it is likewise useful in the development of
supervisors
7.As an agent of change
8.Identification of the training needs and
management development
9.Facilitate organization diagnosis and
development

METHODS USED IN PERFORMANCE


APPRAISAL
1. Rank order method
ADVANTAGES
a) This method has a distinctive advantage of
simplicity. It facilitates the comparison of
employees by placing them on a spectrum from
the best to the poorest in terms of performance.
This method simplifies the problem of maintaining
specific standards of each quality.
DISADVANTAGES
b) It is unwieldy if many workers are to be rated and
many traits are involved.
c) The rating of one employee in one unit of the
company cannot be compared with these of the
employees in other unit.
2. Paired Comparison Method
3. Forced Distribution Method

METHODS USED IN PERFORMANCE


APPRAISAL
4. Narrative Essay
The narrative essay represents an absolute rating system in its
simplest form.
5. Graphic Rating Scale
The graphic rating scale uses a chart or graph containing a list
of traits to be considered in rating the employees.
6. Checklist Method
The rating methods provides a number of traits or factors with
their corresponding definitions written in the left-hand column of
the form such as quality of work, attitude toward the job,
judgement, reliability, functionality, and punctuality.
7. Critical incidents
The critical requirements of a job are those behaviors that make
a critical difference between doing a job effectively and
ineffectively.

METHODS USED IN PERFORMANCE


APPRAISAL
8. Rating scale method
The rating scale method of performance evaluation is a
variation of the checklist method.
9. Weighting
Some companies assign weight or numerical value to each trait,
although these values may not appear in the form.
10.Management by objectives
It is a new approach in appraising management performance
introduced by Peter Drucker in early 1950s whereby the
superior and the subordinate managers of an enterprise jointly
identify their common goals.

THE APPRAISAL INTERVIEW


Most organizational appraisal systems require supervisors to assess
employees on various aspects of their productivity, behavior or
personal traits. Examples of these 3-dimension includes (a) quality of
work, (b) quantity of output, (c) attendance and initiative, and (d)
general attitude. Some managers ask the supervisors to write essays
describing the employees performance. Others recommend that
they accumulate a record of critical incidents (both negative and
positive). Many uses graph rating scales that grade the employee
with A B C D E or 1 2 3 4 5.
Regardless of systems used, the assessment is the communicated to
the employee in an appraisal interview. This is a session in which the
supervisor provides feedback to the employee on past performance,
discusses any problem that had arisen, and invites a response. Then
the two parties set objectives for the next time period. The appraisal
interview provides a rich opportunity to motivate the employee.

COMMON ERRORS IN RATING


1. The halo error
It is an error that can be recognized quite easily on factor
scales. It takes place when the rater allows one aspect of a
persons character or performance to influence the entire
evaluation.
2. The central tendency error
This error is evidenced when the rater marks all or almost all
personnel as average.
3. The constant error
These are easy raters and tough raters in all phases of life.
These are teachers who rarely award As and those who give
them to most of the class. This is also called systematic error.
Educating the one who gives rate is the solution rather than
manipulate the ratings.

COMMON ERRORS IN RATING


4. Miscellaneous errors
a. Similar to me
Rater rates favorably those who appear to be similar to
herself. Unless corrected, individually and creativity may
ultimately be eliminated.
b. Contrast errors
Workers are likely to be rated down. If poorer performance
were rated first the average performer maybe rated highly.
c. Position errors
Those in higher position are rated highly while those in the
lower position were rated poorly . The rater must be aware
that some begin or start at the lower positions then
catapults to high positions.
d. Biases
These are raters who feel biased and rates employees badly
according to their feelings.

SUGGESTED
APPROACHES
Appraisal interviews
successful when
the appraiser......

are

most

likely

to

be

1. Is knowledgeable about the employees job.


2. Has previously set measurable performance
standards.
3. Has gathered specific evidence s frequently about
performance.
4. Seeks and uses inputs from other observers in the
organization.
5. Limits the amount of criticism to a few major items
so that the employees can focus their improvements
efforts.
6. Provides support, acceptance and praise for task well