1. Performance Appraisal
Determinants and obstacles
Definition
Importance
Uses
Process of appraisal
Methods
Goal setting
Sources
Errors

2. Performance
Refers to the effective and efficient accomplishment of objectives.
It may be stated in terms of levels of excellent, outstanding, good, and poor.
Is a result of the efforts expended by the employee and which is modified by his abilities and his perception of his role.

3. Environmental factors that may affect performance:
Conflicting demands on the employee’s time;
Inappropriate work facilities and equipment
Restrictive policies that affect the job
Lack of cooperation from co-employees
Poor supervision
Inappropriate temperature in the workplace
Poor lighting
Noisy surrounding
Improper shifting of the employee
Unsafe premises

4. Performance Appraisal
Definition:
It is the process of evaluating individual job performance as a basis for making objective personnel decisions.
Objective:
To motivate employees to adapt and maintain behavior that leads to expected performance

5. Performance Appraisal
Uses:
For performance appraisal and useful for making decision that involves:
Compensation
The major motivator of performance is financial reward.
Linking performance with pay will result to attaining expected output.
Placement
Performance appraisal is required for decisions concerning promotion, demotion and discharges .
Training and development
Potential and weakness of an employee are identified in performance appraisal, which is necessary for training and development needs.

6. Performance Appraisal
Formal and Informal:
Informal – done whenever the supervisor feels the need of it, assessment is done during conversation of supervisor and employee.
Formal - if it uses systematic appraisal system
Characterized by:
Managers and subordinates share understanding about what has to be accomplished
Performance is measured using some techniques.
Assessment of employee performance is done on a regular basis semi-annual or annually.
During the assessment proceedings, the employee is well aware that his performance is being assessed.

7. Performance Appraisal
Process:
Consist of the following:
Establishment of performance standards.
Organization’s strategic goal basis to determine performance standard.
Joint superior-subordinate setting of measurable goals.
Measurement of performance
What has been achieved must be measured
Compare performance with standard
Discuss result of appraisal with employee
When necessary, corrective action is initiated.

8. Performance Appraisal
METHODS:
Work standard approach
Critical-incident appraisal
Checklist
Essay appraisal or free-form appraisal
Graphic rating scale
Behaviorally anchored rating scale
Ranking method
Alternation
Paired comparison
Forced distribution
Forced-choice rating
Goal-setting or management by objectives.

9. METHODS of Appraisal
Work standards Approach – involves setting standard level of output and then comparing every employee’s performance with the standard.
Critical Incident Appraisal – to do a job effectively (or ineffectively), there are behaviors that are regarded as critical requirements. A description of these behaviors is referred to as critical incident.

10. METHODS of Appraisal
3. Cheklist – a list of behavioral descriptions is used by the evaluator in the checklist appraisal. 4. Essay Appraisal a.k.a. free-form appraisal – is a method where the appraiser writes a narrative about the person being appraised. 5. Graphic rating scale – uses a set of identified performance factors. 6. Behaviorally anchored rating scale – behavioral anchors are used to assess the performance of an employee.

11. METHODS of Appraisal
7.Ranking methods – comparing the performance of two or more employees.
8. Forced choice rating – where the rater must choose between two or more specific statements about an employee’s work behavior.
Goal setting or MBO – this is made possible with the use of four basic steps.

12. Performance Appraisal
GOAL SETTING or
(MBO) Management by Objective
Steps:
Employee and his superior jointly set goals.
Employee tries to meet the goal.
Performance is evaluated against the goals.
Employee and supervisor jointly set new goals for the next time.
Prerequisites:
The use of participative style of management.
Pinpointing which employee is responsible for which results; and
Providing performance feedback to concerned employees.

13. Performance Appraisal
SOURCES OF PERFORMANCE INFORMATION
Supervisors
Able to make frequent observation from day to day activities of their subordinates.
Peers
Equal ranks often work together and are provided with the opportunity of observing one another while at work.
Subordinates
Self
There is no better person to observe and employee but himself
Customers
Provides information of behavior of employee they encounter.

14. ERRORS IN PERFORMANCE EVALUATION
Halo error – committed when the result of evaluation of one trait influences the evaluator in the assessment of the other traits.
Single criterion- An error in appraisal may happen when a job consisting of several tasks is evaluated on the basis of a single criterion
Leniency error- evaluators are confronted with the tendency to use his or her own value system in appraising the performance of certain individuals.
Central tendency error – when all employees are rated within a narrow range as if the perfornamces of all employees are equal or almost equal.
Recency problem – recent performance is given greater weight than earlier performance. Primacy error is the opposite

15. OVERCOMING ERRORS Using multiple criteria
Emphasizing behavior rather than traits
Documenting performance behavior
Using multiple evaluators
Evaluating selectively
Training evaluators

16. Thank you and have a nice day
Assignment:
Performance appraisal form/checklist or evaluation form of an organization for:
1. rank and file employees
2. supervisory or managerial position
Group Work :
Make Evaluation Form for your organization
Answer Summary Question #1,
Thank you and have a nice day