Unit 6 Performance appraisal The process Explain to learners that performance appraisal is very important for their futures and that they are likely to have team and individual targets set for them throughout their working lives.

• Purpose of performance appraisal: Performance appraisal is very important for your futures and that you are likely to have team and individual targets set for you throughout your working lives. • Purpose of performance appraisal: o to set individual and group targets o to assess individual and group performance o to provide employee feedback o to identify training needs. Why do you think the above are so important? How does it link to our prior learning? Explain to learners that performance appraisal is very important for their futures and that they are likely to have team and individual targets set for them throughout their working lives.

A performance appraisal is a formal process used to assess an employee's effectiveness and productivity and serves both administrative and developmental purposes. Administratively, it helps guide decision-making regarding employment actions, personnel planning and training and development.

Types of performance appraisal Self-assessment Management by objectives/target Ratings 360 degree appraisal Although performance appraisal changes from one organisation to another in terms of how often an appraisal takes place and whether or not employees get a pay award as a result or not, there are often key common elements within it. These include an employee reviewing their own performance (self-assessment), ratings or measurements against a particular performance on a regular basis and finally by receiving feedback from others.

Although performance appraisal changes from one organisation to another in terms of how often an appraisal takes place and whether or not employees get a pay award as a result or not, there are often key common elements within it. These include an employee reviewing their own performance (self-assessment), ratings or measurements against a particular performance on a regular basis and finally by receiving feedback from others. Although performance appraisal changes from one organisation to another in terms of how often an appraisal takes place and whether or not employees get a pay award as a result or not, there are often key common elements within it. These include an employee reviewing their own performance (self-assessment), ratings or measurements against a particular performance on a regular basis and finally by receiving feedback from others.

1. Self-assessment A key element of performance appraisal is employees giving a judgement about themselves prior to meeting with their manager. Employees may be asked about their view of their own performance for the previous year. Employees may be asked about areas they wish to develop for the next year. Using self-assessment can be useful as part of performance appraisal. Employees commenting on their own performance can help managers and employees to have useful conversations about what has worked well and less well for the year. How can managers use this to motivate employees? Using self-assessment can be useful as part of performance appraisal. Employees commenting on their own performance can help managers and employees to have useful conversations about what has worked well and less well for the year.

2. Management by objectives or targets In many types of performance employees are asked to complete objectives or targets. SMART targets are commonly used to measure progress. Objectives or targets are commonly used to measure the performance of employees. Managers can use objectives set to ask employees to perform certain tasks. SMART targets: specific, measurable, achievable, realistic or time constrained targets may be used to ensure employees are completing the necessary training or tasks required for them to do a good job. Objectives or targets are commonly used to measure the performance of employees. Managers can use objectives set to ask employees to perform certain tasks. SMART targets: specific, measurable, achievable, realistic or time constrained targets may be used to ensure employees are completing the necessary training or tasks required for them to do a good job.

3. Ratings Ratings may be used by employees as part of self-assessment or by managers to rate employees. Scale: 1–5 Scale: Very poor–outstanding Scale: Below expectations, meets expectations, exceeds expectations Ratings may be used as part of performance appraisal by employees and managers. Having a rating scale means that there is something to judge the employee by compared to previous performance and against other employees. Measurement on a scale may also be used to decide if someone needs to have a pay award or not. Using a scale can seem like it is a more objective measure but if the scaling is linked to pay then this can mean that managers are under pressure to award higher scores, particularly if a person will not get paid the higher amount if they do not achieve a certain ranking. Having scales may also make employees more competitive as they compare themselves to each other. Sometimes employees may have an unrealistic view of their performance compared to the manager and having a scale may make this more difficult to challenge unless detailed examples are given with the appraisal.

Ratings may be used as part of performance appraisal by employees and managers. Having a rating scale means that there is something to judge the employee by compared to previous performance and against other employees. Measurement on a scale may also be used to decide if someone needs to have a pay award or not. Ratings may be used as part of performance appraisal by employees and managers. Having a rating scale means that there is something to judge the employee by compared to previous performance and against other employees. Measurement on a scale may also be used to decide if someone needs to have a pay award or not. Using a scale can seem like it is a more objective measure but if the scaling is linked to pay then this can mean that managers are under pressure to award higher scores, particularly if a person will not get paid the higher amount if they do not achieve a certain ranking. Having scales may also make employees more competitive as they compare themselves to each other. Sometimes employees may have an unrealistic view of their performance compared to the manager and having a scale may make this more difficult to challenge unless detailed examples are given with the appraisal.

Using a scale can seem like it is a more objective measure but if the scaling is linked to pay then this can mean that managers are under pressure to award higher scores, particularly if a person will not get paid the higher amount if they do not achieve a certain ranking. Having scales may also make employees more competitive as they compare themselves to each other. Sometimes employees may have an unrealistic view of their performance compared to the manager and having a scale may make this more difficult to challenge unless detailed examples are given with the appraisal. Ratings may be used as part of performance appraisal by employees and managers. Having a rating scale means that there is something to judge the employee by compared to previous performance and against other employees. Measurement on a scale may also be used to decide if someone needs to have a pay award or not. Using a scale can seem like it is a more objective measure but if the scaling is linked to pay then this can mean that managers are under pressure to award higher scores, particularly if a person will not get paid the higher amount if they do not achieve a certain ranking. Having scales may also make employees more competitive as they compare themselves to each other. Sometimes employees may have an unrealistic view of their performance compared to the manager and having a scale may make this more difficult to challenge unless detailed examples are given with the appraisal.

4. 360 degree appraisal Feedback from peers Feedback from line manager Feedback from direct line reports Feedback from all areas around the employee 360 degree appraisal is one that takes feedback from many different angles – above the employee through the line manager, at the same level and from the direct line reports. So this type of appraisal gives a complete view of performance. As a tool the employee gets a view of what it is like to be managed by the person and also from their line manager. Completing a 360 degree appraisal can be challenging, particularly if comments are made anonymously, and may include feedback that the employee does not like. However, if used well this type of appraisal can be very powerful.

So this type of appraisal gives a complete view of performance. 360 degree appraisal is one that takes feedback from many different angles – above the employee through the line manager, at the same level and from the direct line reports. So this type of appraisal gives a complete view of performance. As a tool the employee gets a view of what it is like to be managed by the person and also from their line manager. Completing a 360 degree appraisal can be challenging, particularly if comments are made anonymously, and may include feedback that the employee does not like. However, if used well this type of appraisal can be very powerful. 360 degree appraisal is one that takes feedback from many different angles – above the employee through the line manager, at the same level and from the direct line reports. So this type of appraisal gives a complete view of performance. As a tool the employee gets a view of what it is like to be managed by the person and also from their line manager. Completing a 360 degree appraisal can be challenging, particularly if comments are made anonymously, and may include feedback that the employee does not like. However, if used well this type of appraisal can be very powerful.

Criticisms: An issue with performance appraisals is that differentiating individual and organisational performance can be difficult. And if the evaluation's construction doesn't reflect the culture of a company or organisation, it can be detrimental. Employees report general dissatisfaction with their performance appraisal processes. Other potential issues include: 360 degree appraisal is one that takes feedback from many different angles – above the employee through the line manager, at the same level and from the direct line reports. So this type of appraisal gives a complete view of performance. As a tool the employee gets a view of what it is like to be managed by the person and also from their line manager. Completing a 360 degree appraisal can be challenging, particularly if comments are made anonymously, and may include feedback that the employee does not like. However, if used well this type of appraisal can be very powerful.

Distrust of the appraisal can lead to issues between subordinates and supervisors or a situation in which employees merely tailor their input to please their employer. Performance appraisals can lead to the adoption of unreasonable goals that demoralize workers or incentivize them to engage in unethical practices. Some labour experts believe that use of performance appraisals has led to lower use of merit- and performance-based compensation. 360 degree appraisal is one that takes feedback from many different angles – above the employee through the line manager, at the same level and from the direct line reports. So this type of appraisal gives a complete view of performance. As a tool the employee gets a view of what it is like to be managed by the person and also from their line manager. Completing a 360 degree appraisal can be challenging, particularly if comments are made anonymously, and may include feedback that the employee does not like. However, if used well this type of appraisal can be very powerful.

Performance appraisals may lead to unfair evaluations in which employees are judged not by their accomplishments but by their likeability. They can also lead to managers giving underperforming staff a good evaluation to avoid souring their relationship. Unreliable raters can introduce a number of biases that skew appraisal results toward preferred characteristics or ones that reflect the rater's preferences. Performance appraisals that work well in one culture or job function may not be useful in another. 360 degree appraisal is one that takes feedback from many different angles – above the employee through the line manager, at the same level and from the direct line reports. So this type of appraisal gives a complete view of performance. As a tool the employee gets a view of what it is like to be managed by the person and also from their line manager. Completing a 360 degree appraisal can be challenging, particularly if comments are made anonymously, and may include feedback that the employee does not like. However, if used well this type of appraisal can be very powerful.

Impact of performance appraisal: on the individual Motivation Clarity Taking responsibility Teamwork on the business Identifying strengths and weaknesses Clarify expectations Increase rapport, satisfaction and loyalty 360 degree appraisal is one that takes feedback from many different angles – above the employee through the line manager, at the same level and from the direct line reports. So this type of appraisal gives a complete view of performance. As a tool the employee gets a view of what it is like to be managed by the person and also from their line manager. Completing a 360 degree appraisal can be challenging, particularly if comments are made anonymously, and may include feedback that the employee does not like. However, if used well this type of appraisal can be very powerful.