PERFORMANCE APPRAISAL

1. PERFORMANCE APPRAISAL TEAM B1 Gurbani Dassan Sophie Bellone Fawaz Iqbal Farhaan Mirza Nikhil Nair

2. TABLE OF CONTENTS • What is Performance Appraisal • Examples of AP techniques • Management by Objectives • 360 Evaluation • Pros & Cons • Link between Leadership theory and PA • Conclusion and references

3. PERFORMANCE APPRAISAL • What is PA? Management tool to assess people • Who do we assess ? Employees • How do we assess them ? Different approaches like MBO, 360 degree evaluation, BARS • What do we assess ? Level of performance, capacity, potential and reward • Why ? Essential to make administrative decisions such as reward allocation, salary, promotion, etc … Improve the overall performance of an organization

4. MANAGEMENT BY OBJECTIVES • Measure the employee’s performance • Evaluate someone based on the accomplishment of objectives within a specific time period • Objectives are decided upon and must be measurable, realistic and specific

5. MANAGEMENT BY OBJECTIVES • Advantages : • Flexibility in choosing the priorities • Focus on individual performance • Gives information on the employee’s personality • Easy to determine whether the objectives have been achieved • Effective motivating mechanism • Drawbacks: • Does not help for reward allocation • A specific objective can require the support of others • Results can be biased by the resources available • Can have negative impact if not used properly

6. 360 EVALUATION • Assesses employees based on two or more sources such as peers, superiors and subordinates • Derived from a job analysis of clearly identifiable tasks • Widely adopted by companies

7. 360 EVALUATION – PROS & CONS • Advantages: • Teamwork: assessment made by peers who are in the best position to comment and understand • Motivation: empowers employees by putting their feedback into the appraisal process, allowing them to influence how they are managed • Behaviour: helps to create self-awareness by self assessment • Disadvantages: • Teamwork: Can lead to office politics • Motivation: Peer reviews tend to be too lenient • Behaviour: Can lead to the person appraised becoming defensive

8. PROS AND CONS OF PERFORMANCE APPRAISAL • Pros: • Making reward decisions • Improve performance with targets • Motivate staff with positive feedback • Improve manager/subordinate communication • Identify potential • Improve the overall performance of the organization • Cons: • Subjective assessment > tensions, defensiveness • Truth from manager > provoke problematic relationship • Can be biased by personal interests • No PA method is perfect • Affects teamwork

9. WHAT NEEDS TO BE MODIFIED ? • To better align performance management approaches with leadership theory: • Setting realistic objectives • Avoid comparison of people but focus the appraisal scheme on improving skills and setting personal targets • Combine goal setting and personal development • How feedback is given > Positive way of presenting results • Commitment for a better understanding and communication

10. CONCLUSION • Powerful management tool • Help for administrative decision making • Can have great impact on an organization and employee’s behaviour • Has to be applied properly • To be efficient, any PA techniques needs to be adapted to people and corporate culture …

11. REFERENCES • King P, 1984. Performance planning & Appraisal, King. 1st ed. Mc Graw Hill (chapter 9) • Fletcher C, 2008. Appraisal, Feedback and Development. 4th ed. Routledge • Fleenor J.W., Prince J.M., 1997. Using 360 degree feedback in Organizations: an annotated bibliography. Centre for creative leadership. • Fletcher C, 1997. Appraisal routes to improves performance. 2nd ed. British Library Cataloguing in Publication Data • Wiese D., Buckley M. B, 1998. The evolution of the performance appraisal process", Journal of Management History (Archive), Vol. 4 Iss: 3, pp.233 – 249