Page 61 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Performance Management System

Notes standards of performance are being maintained. The six primary criteria on which the value of
performance may be assessed are: quality, timeliness, cost effectiveness, need for supervision,
and interpersonal impact. If appraisals indicate that employees are not performing at acceptable
levels, steps can be taken to simply jobs, train, and motivate workers, or dismiss them, depending
upon the reasons for poor performance.
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Did u know? What is the importance on performance appraisal results?
The results of appraisal are normally used to: (1) estimate the overall effectiveness of
employees in performing their jobs, (2) identify strengths and weaknesses in job knowledge
and skills, (3) determine whether a subordinate’s responsibilities can be expanded, (4)
identify future training and development needs, (5) review progress towards goals and
objectives, (6) determine readiness for promotion, and (7) motivate and guide growth and
development.

5.2 Process of Performance Appraisal

A meaningful performance appraisal is a two-way process that benefits both the employee and
the manager. For employees, appraisal is the time to find out how the manager thinks they are

performing in the job. For a manager, a formal appraisal interview is a good time to fi nd out
how employees think they are performing on the job. The planning appraisal strategy has to be
done:
Before the Appraisal

1. Establish key task areas and performance goals.
2. Set performance goals for each key task area.
3. Get the facts.
4. Schedule each appraisal interview well in advance.

During the Appraisal

1. Encourage two-way communication.
2. Discuss and agree on performance goals for the future.
3. Think about how you can help the employee to achieve more at work.
4. Record notes of the interview.

5. End the interview on an upbeat note.

After the Appraisal

1. Prepare a formal record of the interview.
2. Monitor performance.
3. Feedback session – tell and sale, tell and listen, problem solving.
4. Developing need based training program.

5. Working out reward based incentives.

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