Performance appraisal

PREPARED BY: MR. MAHMOUD S. ALKHATIB
SUPERVISOR: DR. WAEL MEKKY
MARCH, 2018

CONTENTS
Introduction.
Definition of controlling.
Control process and types of control.
Definition of performance appraisal.
The Purposes of a Performance Appraisal.
Who Performs the Appraisal?
What Makes an Effective Appraisal System?
Conducting an Effective Performance Appraisal Meeting.
Bias in Performance Appraisals.

INTRODUCTION
When employees have goals, they tend to be more motivated if
they also receive feedback about their progress. Feedback may
occur throughout the workday, but many organizations also have a
formal, company wide process of providing feedback to
employees, called the performance appraisal.

REMEMBER???
Controlling is the process of monitoring
performance and taking action to ensure desired
results.

5
WHAT IS THE
CONTROL PROCESS?
Steps in the control process:
Step 1 — establish objectives and standards.
Step 2 — measure actual performance.
Step 3 — compare results with objectives and standards.
Step 4 — take corrective action as needed.

6
FOUR STEPS IN THE CONTROL PROCESS.

7
TYPES OF
CONTROL?
(1) Feed forward controls …
Employed before a work activity begins.
Ensures that:
 Objectives are clear.
 Proper directions are established.
 Right resources are available.
Focuses on quality of resources.

8
(2) Concurrent controls …
Focus on what happens during work process.
Monitor ongoing operations to make sure they are being
done according to plan.
Can reduce waste in unacceptable finished products or
services.
TYPES OF
CONTROL?

9
(3) Feedback controls …
Take place after work is completed.
Focus on quality of end results.
Provide useful information for improving future
operations.
TYPES OF
CONTROL?

Performance appraisal is the process by which a rater examines and
evaluates an employee's work behavior by comparing it with preset
standards, documents the results of the comparison, and uses the results
to provide feedback to the employee to show where improvements are
needed.
The rater usually conducts a meeting with the employee to
communicate performance feedback.

During the meeting, the employee is evaluated with respect to
success in achieving last year’s goals, and new goals are set for the
next performance appraisal period.
Performance appraisal can be quite effective in motivating
employees and resolving performance problems.

Giving employees feedback is not synonymous with conducting a
performance appraisal, because employees may (and should) receive frequent
feedback.
The most effective feedback immediately follows high or low performance.
Therefore, waiting for a formal process to give feedback would be misguided.
A formal appraisal is often conducted once a year, even though there are
some organizations that conduct them more frequently.

WHAT IS THE PURPOSE OF A PERFORMANCE APPRAISAL?
Give employees feedback and aid in their development.
Used to distribute rewards such as bonuses, annual pay raises, and
promotions.
Used to document termination of employees.
Maintain organizational productivity.
Identify training needs.

WHO PERFORMS THE APPRAISAL?
Immediate Supervisor.
Higher Management.
Self-Appraisals.
Peers (Co-Workers).
Evaluation Teams.
Customers.
360° Appraisals.

Supervisor Appraisal: performance appraisal done by an employee’s
manager and often reviewed by a manager one level higher.
Self-Appraisal: performance appraisal done by the employee being
evaluated, generally on an appraisal form completed by the employee prior to
the performance review.
Subordinate Appraisal: performance appraisal of a superior by an
employee, which is more appropriate for developmental than for
administrative purposes.

Peer Appraisal: performance appraisal done by one’s fellow
employees, generally on forms that are complied into a single profile for
use in the performance interview conducted by the employee’s manager.
Team Appraisal: recognizes team accomplishment rather than
individual performance.

 It is important to note that 360-degree appraisals are not often used in determining
pay or promotion decisions and instead are treated as feedback tools.
Using 360-degree feedback in reward decisions may be problematic, because
individuals may avoid giving objective feedback if it means causing a peer to lose a
bonus.
Since not all feedback will necessarily be positive, if competition or jealousy exists
among peers, some feedback may be too negative.

WHAT MAKES AN EFFECTIVE APPRAISAL SYSTEM?
Adequate notice: involves letting employees know what criteria will be used
during the appraisal.
Fair hearing: means ensuring that there is two-way communication during the
appraisal process and the employee’s side of the story is heard.
Judgment based on evidence.

APPRAISAL TRAINING PROGRAMS NEEDS
Explain Objectives.
Review the Instrument.
Define the Performance Standards.
Understand Typical Subjective Errors.
Teach Interviewing Skills.

ABSOLUTE RATING VERSUS RELATIVE RANKING APPRAISALS
As a student, would you rather be evaluated with respect to some
objective criteria? For example, you could get an A if you correctly
answer 90% of the questions in the exam, but would get a B if you
answered only 80%. We are calling this type of appraisal an absolute
rating because the grade you get depends only on your performance
with respect to the objective criteria.

The alternative to this approach is relative ranking. In this
system, you would get A if you are one of the top 10% of the
students in class, but you would B if you are between 10% and
20%. In a relative ranking system, your rating depends on how
your objective performance (test grade) compares with the rest of
the students’ grades in your class.

CONDUCTING AN EFFECTIVE PERFORMANCE APPRAISAL
MEETING
Before the meeting:
 Ask the person to complete a self-appraisal.
Complete the performance appraisal form.
Avoid recency bias: Be sure that your review covers the entire year’s
performance, not just recent events.
Be sure that you devote sufficient time to each meeting.
Be sure that the physical location is prepared to a private conversation.

During the meeting:
Do not start the meeting with a criticism: starting with positive instances of
performance helps establish a better mood and shows that you recognize what the
employee is doing right.
Give employees lots of opportunities to talk.
Show empathy and support: remember that your job as a manager is to help the
person solve performance problems. Identify areas where you can help.
Set goals and create an action plan: the outcome of the meeting should be a written
agreement about what the employee will do in the near future and how the manager
will help.

After the meeting:
Give effective feedback immediately and do not wait until the next appraisal to
discuss important issues.
Follow through on the goals that were set.
Provide continuous support to the employee to help him or her achieve the goals.

BIAS IN PERFORMANCE APPRAISALS
Raters, intentionally or unintentionally, make mistakes or exhibit
biases. These biases trickle down into the appraisal system and can
affect other decisions that are based on appraisals, such as pay and
promotion.

Liking error: a performance appraisal does not occur between strangers. The rater
and ratee have an existing relationship. If they like or dislike each other, these
feelings may bias the ratings.
Leniency error: one of the common problems in appraisals is that managers give
employees ratings higher than warranted. There may be many reasons for this, such
as the desire to avoid confrontation with the employee, having a very agreeable
personality, the desire to avoid hurting the chances of the employee to get a bonus,
the desire to motivate employees by giving them high ratings.

Strictness Error: in which the appraiser tends to give employees unusually low
ratings.
Recency error: performance-rating error in which the appraisal is based largely on
the employee’s most recent behavior rather than on behavior throughout the
appraisal period.
Error of central tendency: performance-rating error in which all employees are
rated about average.
Stereotypes: one of the factors that create bias in appraisals is the stereotypes that
raters may have regarding the gender, race, age or another characteristic of the
person being rated.

Performance appraisal

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