Organizational Behavior and

performance Appraisal

Organizations require consistent levels of

high performance from their employees in
order to survive in a highly competitive
environment. Many firms use some form of
results-oriented planning control systems.
Management by Objectives (MBO)

The term “management by objectives” was

first popularized by Peter Drucker in his
1954 book “The Practice of Management”

Is a process of agreeing upon objectives

within an organization so that management
and employees agree to the objectives and
understand what they are in the organization
PERFORMANCE APPRAISAL

plays a key role in reward systems. It is

the process of evaluating the
performance of employees, sharing that
information with them, and searching for
ways to improve their performance
 appraisal is necessary in order to;

1. allocate resources in a dynamic environment,

2. motivate and reward employees,

3. give employees feedback about their work,

4. maintain fair relationship within groups,

5. coach and develop employees,

6. comply with regulations

 Appraisal Philosophy

Modern appraisal philosophy emphasizes

present performance and future goals.
Modern philosophy also stresses
employee participation in mutually setting
goals with the supervisor and knowledge
of results.
 The hallmarks of modern appraisal philosophy are as
follows;

1. Performance Orientation

2. Focus on Goals or Objectives

3. Mutual Goal Setting between Supervisor and Employee

4. Clarification of Behavioral Expectations

5. Extensive feedback Systems

 Appraisal Interview

This is a session in which the

supervisor provides feedback to the
employee on past performance,
discusses any problems that have
arisen and invites a response.
 Suggested Approaches for the Appraisal Interview

Appraisal interviews are most likely to be successful

when the appraiser;

* Is knowledgeable about the * Seeks and uses inputs from other

employee’s job, observers in the organization

* Has previously set measurable * Provides support, acceptance,

performance standards and praise for talks well done

* Has gathered specific evidence * Listens actively to the employee’s

frequently about performance input and reactions
360- Degree Feedback Programs

360- degree feedback is the process of

systematically gathering data on a
person’s skills, abilities, and behaviors
from a variety of sources- the manager,
peers, subordinates, and even customers
or clients.
 Managerial Effects

Managerial Effects Conducting performance

appraisals also has substantial impact on
the appraiser. On the positive side, a formal
appraisal system encourages managers to
do more analytical and constructive thinking
about their employees.