Performance Appraisals

Anh Dang

Jan Ruecker

James Choi

Jarrett Robbins  

Sakshi Sachdev

Shan Moin

Group B1

What is Performance Appraisal It is the process of obtaining, analyzing

and recording information about the relative worth of an employee.

The focus of the P.A is measuring and improving the actual performance of the employee and also the future potential of the employee.

2

Approaches

Traditional P.A methods- quantitative tools to rate employees and are oriented to numerical or scalar ratings

Collaborative approach - management-by-objectives, work planning and review, 360°appraisals, peer review, etc.

Approaches that fall in between the traditional numerical approach and collaborative techniques

3

Benefits for the individual Gaining a better understanding of their role Understanding more clearly how and

where they fit in within the wider picture Improving understanding of their strengths

and weaknesses and developmental needs Identifying ways in which they can improve

performance Providing an opportunity to discuss and

clarify developmental and training needs

4

Benefits to Managers/Team leadersOpportunities to hear and exchange views and opinions away

from the normal pressure of work Identify any potential difficulties or weaknesses An opportunity to- plan for and set objectives

for the next period Think about and clarify their own role Plan for achieving improved performance Motivate members of the team

5

Benefits to the organisation A structured means of identifying and assessing

potential Up-to-date information regarding the

expectations and aspirations of employees Information on which to base decisions about

promotions and motivation An opportunity to review succession planning Information about training needs which can act

as a basis for developing training plans

6

Negative Aspects

The team’s target becomes secondary Teamwork suffers from unfair appraisals Energy will get lost Cooperation becomes competition The overall company’s vision does not

play a significant role

7

Negative Aspects

Monetary reward is not the best motivator

More losers than winners creates a negative atmosphere

Behaviour is according to the target People could act like they are

supposed to

8

Discrepancies with leadership theory

“Leadership is the ability to unify

participants behind common goals and

maximise their potential for

contribution.”

(MBE Group B1)

9

Discrepancies with leadership theory

“Leadership is the ability to unify

participants behind common goals

and maximise their potential for contribution.”

(MBE Group B1)

10

Leadership theories elements

Leadership grid (Psychological Theory) Holding informal meetings (PT) Developing the individual (Adair) Building and maintaining a team (Adair) Achieving the task (Adair) Help, support & understand people (EFQM)

11

Deming Evaluation of performance is a deadly disease

Point 8: Drive out fear

Point 9: Break Down the Barriers Between

Departments

Point 10: Eliminate Slogans, Exhortations and

Targets

Management should lead not supervise.

Focus on the outcome must be abolished in

favour of leadership

12

Means to combat barriers

Re-Design the appraisal process to minimise negative dynamics.

13

How Uncouple performance appraisal from

development appraisal Define specific performance & behavioural

objectives Disconnect the appraisal process from

rewards system. Recognise individual differences Communication Develop relationships Use of Self assessment in the formal appraisal

process.

14

Conclusion

Performance Appraisal system has its place

Understanding its limitations to improve the system

15

References Beer, M.,(1981) Performance appraisals dilemmas and

possibilities, Organizational Dynamics, Winter 1981. AMACOM, a division of American Management Associations.

Nicolls, Dr., (2005), Notes on Performance appraisals, Warwick Manufacturing Group, People in Organisations, course notes, [Feb. 2010].

Warwick University MBE Homepage [2011]: http://www2.warwick.ac.uk/fac/sci/wmg/ftmsc/modules/modulelist/le/

Deming, W. E. (1986) Out of the crisis Cambridge, Mass: MIT Murphy, T. & Margulies, J (2004). Performance Appraisals. ABA

Labor and Employment Law SectionEqual Employment Opportunity Committee..

16