1. GCSE Business Studies Unit 2 Developing a Business
Human Resources: Appraisal

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Developing People
Learning outcomes to be covered:
Explain the reasons for and the importance of staff appraisal
Analyse the advantages of appraisal for employers and employees
Identify and evaluate the following methods of appraisal:
Observation
Self evaluation
Interview
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3. What is a staff appraisal?
Performance appraisal, performance review or employee appraisal
It is a way of evaluating the performance of employees to identify areas for development and their strengths
It is carried out against set criteria and the organisations objectives
It can take place monthly, quarterly, six monthly or annually depending on the organisation
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Reasons for Appraisal
To identify training requirements
To identify the skills gaps in employees
To identify training needs of employees
To identify the strengths of employees
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Reasons for Appraisal
To give the employee
feedback on their performance
To use as a basis for rewarding an employee
To review pay levels
To set and review employee targets
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Activity – 10 minutes
Working in groups identify the advantages of appraisal for the employee and employer.
You can use the table below as your template.
Employee
Employer
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7. Advantages of Appraisal
Employees
Opportunities for promotion
Identifies training needs
Opportunity to communicate with employer
Sets objectives
Employers
Human Resource planning
Increase in staff competence and productivity
Highlights strengths and weaknesses, so employee can be used most efficiently
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Methods of Appraisal
Observation – Employee is watched doing his/her job and their observation may be followed up with an interview.
Advantages
Employees are observed in usual surroundings
Gives a true picture of employee’s work
Disadvantages
Employees may find it off-putting being observed
Time consuming
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Methods of Appraisal
Interview – one to one discussion between employee and supervisor/manager
Advantages
Opportunity to discuss performance and work issues
Employees can have their say
Disadvantages
Employee and employer needs to be well briefed and prepared for the appraisal
Employees may not be open and honest
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Methods of Appraisal
Self-evaluation – looking critically at one’s own work
Advantages
Employee is given more responsibility which can be motivational
Employee evaluates their performance against a set of criteria
Disadvantages
Employee may not be the best person to assess his/her own strengths and weaknesses
If not prepared then the appraisal may not be effective
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11. Sample Questions – 15 minutes
Working individually complete the following past paper questions
June 2016 question 1f
June 2014 question 1e
May 2013 question 1e
June 2011 question1d
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Learning Check
Do you know:
The reasons for carrying out staff appraisal?
The advantages of appraisal for both employers and employees?
How to evaluate the following methods of appraisal observation, self evaluation and interviews?
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Useful websites
en.wikipedia.org/wiki/Performance_appraisal
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