Page 102 - DMGT106_MANAGING_HUMAN_ELEMENTS_AT_WORK

Managing Human Element at Work

Notes Objectives

After studying this unit, you will be able to:

• Explain the performance appraisal
• Discuss the process of performance appraisal
• Describe the methods or techniques of performance appraisal
• Explain the post-appraisal analysis

• Describe the ways for improving performance appraisals
Introduction

‘Performance appraisal is a formal, structured system of measuring and evaluating an
employee’s job, related behaviours and outcomes to discover how and why the employee
is presently performing on the job and how the employee can perform more effectively in
the future so that the employee, organization, and society all benefit’.

Performance appraisal is a process of summarizing, assessing and developing the work
performance of an employee. In order to be effective and constructive, the performance
manager should make every effort to obtain as much objective information about the
employee’s performance as possible.
Performance appraisal is a review and discussion of an employee’s performance of assigned
duties and responsibilities based on results obtained by the employee in their job, not on
the employee’s personality characteristics. Personality should be considered only when it
relates to performance of assigned duties and responsibilities.
It is a structured formal interaction between a subordinate and supervisor, that usually takes
the form of a periodic interview (annual or semi-annual), in which the work performance
of the subordinate is examined and discussed, with a view to identifying weaknesses and
strengths as well as opportunities for improvement and skills development.

In many organizations – but not all – appraisal results are used, either directly or indirectly,
to help determine reward outcomes. That is, the appraisal results are used to identify the
better performing employees who should get the majority of available merit pay increases,
bonuses, and promotions.

5.1 Performance Appraisal

Definitions
According to Wendell French, performance appraisal is, “the formal, systematic assessment
of how well employees are performing their jobs in relation to established standards, and
the communication of that assessment to employees”.

According to Flippo, “Performance appraisal is the systematic, periodic and an impartial
rating of an employee’s excellence in matters pertaining to his present job and his potential
for a better job”.

According to Dale Yoder, “Performance appraisal includes all formal procedures used to
evaluate personalities and contributions and potentials of group members in a working
organization. It is a continuous process to secure information necessary for making correct
and objective decisions on employees”.

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