PERFORMANCE AND

REVIEW APPRAISAL
Chapter 6
Introduction
• Performance – Is measured in terms of result.
Performance may be defined then as the
accomplishment of an employee or manager’s
assigned duties and outcomes produced on a
specified job function or activity during a specific
time or period.

• Performance review – or evaluation, on the other

hand refers to systematic description and review
of an individual’s job performance.
Why measure performance?
 Early approaches to Performance
appraisal

• Focusing on the employees’ past

performance
• Focusing on the employees’ development.
Objectives of Performance Appraisal
• It provides information
• It provides an opportunity
• It forms the basis in identifying training needs of
employees
• It helps in the firm’s career training process
• It allows easy monitoring and supervision
• It helps evaluate the individual share relative to
the team’s contribution
• It provides information to evaluate effectiveness
 Performance Criteria

• Relevance
• Reliability
• Freedom from contamination
Indicators or matrix that can
help measure employee
performance
Indicators or matrix that can help measure
employee performance
• Quantity
• Quality
• Timeliness
• Cost Effectiveness
• Absenteeism/Tardiness
• Creativity
• Adherence to policy
• Gossiping and other personal Habits
• Personal appearance/Grooming
Who should evaluate performance?
• Manager/Supervisor Appraisal
• Self Appraisal
• Subordinates Appraisal
• Peer Appraisal
• Customer/Supplier
• Team Appraisal
• Assessment center
• 360 degree or “Full circle” Appraisal
Performance Appraisal Methods

• Ranking method
• Paired comparison method
• Forced Distribution
 Individual Evaluation Methods
• Critical incident method
• Checklist and Weighted Checklist method
• Graphic Rating Scales
• Behaviorally Anchored Rating Scales
(BARS)
• Management by Objective (MBO)
• Multi rater assessment or the 360 degree
performance feedback
 Seven tips for Creating a World Class
Appraisal system
• Design the form first
• Build your company’s value into your form
• Assure ongoing communication during
development
• Train all appraisers
• Orient all appraises
• Use the results
• Monitor and revise the program
 Performance appraisal problems and
solutions
• Halo effect
• Recency effect
• Previous performance bias
• Leniency/Harshness/Strictness Error
• Central tendency
• Carelessness
• Bias