Performance appraisal principles will serves as a simple guide to conduct an effective performance review. Performance appraisal | Principles of performance appraisal | Guide | Leadership and Management | Learningade

1. Principles of
effective
performance
appraisals

2. 1. Describe the concepts of performance
appraisal
2. Explain the benefits of performance
appraisal
3. State the types of performance
appraisal
Learning Objectives
At the end of this session, learners should
be able to :

3. Performance appraisal relates to a systematic process that
involves employees in improving organizational effectiveness to
achieve the overall mission and goals.
Overview Of Performance Appraisal

4. Other Terms
Performance appraisal has been synonymous with
 performance review,
 performance evaluation,
 performance assessment,
 performance measurement,
 employee evaluation,
 personnel review,
 staff assessment, and
 service rating

5. planning work and setting expectations,
continually monitoring performance,
developing the capacity to perform,
periodical rating performance in a summary, and
rewarding good performance.
Concepts Of Performance Appraisal
1
General performance appraisal components are:
2
3
4
5

6. Planning work and setting expectations1
Planning sets performance expectations and goals to channel
efforts to achieve organizational objectives. An effective
organization plans work in advance. Involving employees in the
planning process will enable them to understand organizational
goal, tasks to be carried out, reasons for doing, and the standards it
should be completed. Planning employees' performance include
setting elements and standards of their performance appraisal
plans. Performance elements and standards should be measurable,
understandable, verifiable, equitable, and achievable.

7. Continually monitoring performance2
Monitoring entails consistent measuring of performance with providing
ongoing feedback on progress toward reaching organizational goals. In
an effective organization, assignments and projects are monitored
continually. Consideration for regulatory requirements includes
conducting progress reviews with employees to compare performance
against elements and standards. Ongoing monitoring offers an
opportunity to check achievement of predetermined standards . This
helps to make changes to unrealistic or problematic standards.
Monitoring continuously identifies unacceptable performance at any time
during the appraisal period. It provides assistance for addressing such
performance instead of waiting at the end of the period during allocation
of summary rating levels

8. Developing the capacity to perform3
In an effective organization, employee developmental needs are
continually evaluated and addressed. Developing means increasing the
capacity to perform through many ways of training, giving assignments
to introduce new skills or higher levels of responsibility, improving work
processes, or other methods. Training and developmental opportunities
motivates job-related skills and competencies. This helps employees
keep up with changes such as the introduction of new technology in the
workplace.
Performance appraisal process provides a timely opportunity to identify
developmental needs. For example, at the time of planning and
monitoring of work, deficiencies may become evident to be addressed.
Opportunities for improving good performance stand out to lead to action
to help successful employees improve even further

9. Periodical rating performance in a summary4
In effective organizations, employee’s performance is summarized from
time to time. The aim is to review performance over time as compare to
various employees, especially to know who best performers are. The
context of formal performance appraisal regulatory requires rating for
evaluating employee performance against the elements and standards
performance plan before assigning a summary rating of record. This
follows procedures in the organization’s appraisal program. The period
covers work performed for an entire appraisal period. Record for rating
influences other personnel actions, such as within-grade pay increases
and determining other retention service. However, group performance
may have an impact on an employee’s summary rating, although
individual ratings still prevail.

10. Rewarding good performance5
In an effective organization, rewarding means recognizing employees in
the context of individual and as members of groups. It covers
performance and acknowledgement of contributions to the organization’s
mission. Based on a basic principle of effective management about
behavior being controlled by its consequences, which are and should be
both formal and informal with positive and negative outcomes . Good
performance is recognized without nominations for formal awards .
Recognition should be ongoing as natural daily experience. Still, awards
based on regulations has a broad formal range ,such as cash, time off,
or other nonmonetary items.

11. Types of appraisal
Management By Objectives (MBO)
 A method in which managers or employers set a list of objectives
and make assessments on their performance on a regular basis, and
finally make rewards based on the results achieved
 This method mostly cares about the results achieved (goals) but not
to the way how employees can fulfill them.
360 Degree Performance Appraisal
 A method that employees will give confidential and anonymous
assessments on their colleagues.

12. Types of appraisal
Performance Ranking Method
 Used to assess the working performance of employees from the highest to lowest
levels
 Managers will make comparisons of an employee with the others, instead of making
comparison of each employee with some certain standards
Peer Review Appraisal
 A way to more effectively gauge the performance of employees by establishing
relevant evaluation criteria, using those best equipped to speak about individual’s work
to grade him / her accordingly
 Peer review can take the form of disciplinary panels or ongoing feedback between co-
workers
 This method helps to enhance employee trust and communication

13. Benefits of Performance Appraisal
Organization
 Recognize and manage staff performance
 Planning and decision making
 Improve staff retention
Appraiser
 Framework for sharing feedback
 Promote career planning for staff
 Feedback on own management style and leadership skills

14. Benefits of Performance Appraisal
Appraisee
 Reflection on areas of weakness and strengths
 Opportunity to raise issues / obstacles
 Focus on developing individual performance
 Better understanding of goals and requirements
 Identify action plan for future development
 Indication for Salary increment / incentives

15. Disadvantages of Performance
Appraisal
• If not done right, performance appraisal can create
a negative experience.
• Performance appraisals are very time consuming
and can be overwhelming to managers with many
employees.
• Performance management is based on human
assessment and are subject to rater errors and
biases.
• Some appraisees may find it a very stressful
environment for everyone involved.

16. The performance appraisal is like a central pillar of performance
management. A common misconception is to assume organisations
implement performance appraisals will have performance management.
However, this may not be so, because performance management is a
holistic process combining activities that collectively manage individuals
and teams to achieve high levels of organisational performance. Known
as a strategic process, performance management handles broader issues
and long-term goals, with integration to link various aspects of the
business, people management, individuals and teams.
On the contrary, performance appraisal is operational, short- to medium-
term and concerned mainly with individual employees and their
performance and development .It is one of the tools of performance
management, and the data produced may contribute to other elements of
performance management. Thus, an appraisal by itself does not represent
performance management.
Relationship with performance
management

17. Visuals found in this document are used as part of educational purposes
within a designated group of users. Each visual is credited to respective
copyright owners where applicable :
1. https://ictnblog.files.wordpress.com/2014/05/manager1.jpg
2. https://www.qapa.fr/news/wp-content/uploads/manager.jpg
3. http://hr.fiu.edu/eperformance/images/discussion_head.png
4. http://www.enrollmentbuilders.com/wp-
content/uploads/2012/10/Success-Coach-Performance-
Management2.jpg
Contents in this learning resource is used for educational purposes only.
Sources are adapted from
http://firstcallhr.com/app/download/5785107510/Conducting+effective+performan
ce+appraisals+-+fact+sheet.pdf.
http://www.rassweb.com/wp-content/uploads/PDF/IJMS/Vol-3/Issue-
7/Paper%203.pdf.
http://www.scribd.com/doc/237718976/Performance-Management#scribd