Performance Appraisal &

Counseling
Learning Objectives
• Understand the nature, purpose, objectives, and benefits of performance
appraisal and counseling in organizations.
• Explain different methods and processes involved in performance appraisal
and counseling;
• Apply counseling techniques to address performance issues and motivate
employees.
 PERFORMANCE APPRAISAL:
Nature, Purpose, Objectives and Benefits

Performance appraisal is a systematic and periodic

process by which an organization evaluates and
documents how well an employee is performing their
job in relation to pre-established criteria and organizational
objectives. It involves assessing an employee’s skills,
achievements, behaviors, and overall contribution to
the organization over a specific period.
 Focus: measuring and
improving employees’ actual
performance and future
potential

Involve 3 steps: setting work

standards; assessing employees’ actual Also called performance
evaluations, performance
performance

performance; against set standards; &

reviews, development
reviews

provide feedback to employees to improve

deficiencies discussions, or employee
appraisals.

Performance
Appraisal
What are Performance Appraisals Used For?
Performance appraisals serve a dual purpose for both organizations and employees.

• For organizations: employee assessments

provide insight into an employee's
contribution, enabling management to
improve working conditions, address
behavioral issues, recognize employee talents,
support skill and career development, and
improve strategic decision-making.
What are Performance Appraisals Used For?
Performance appraisals serve a dual purpose for both organizations and employees.

1. Aligns Individual Effort with Organizational Goals

• Employees’ work becomes directly linked to broader strategic objectives.
• Encourages a results-oriented culture.
• 2. Supports Workforce Planning and Talent Management
• Identifies high performers for succession planning.
• Flags underperformers for further support or corrective action.
• 3. Improves Communication and Transparency
• Creates a structured environment for open dialogue between supervisors and employees.
• Builds trust and clarifies workplace dynamics.
What are Performance Appraisals Used For?
Performance appraisals serve a dual purpose for both organizations and employees.

• 4. Facilitates Decision-Making
• Informs HR decisions such as:
• Promotions
• Transfers
• Salary adjustments
• Contract renewals
• Disciplinary actions
• 5. Enhances Organizational Performance
• Continuous feedback and development lead to higher productivity, better service
delivery, and more innovation.
What are Performance Appraisals Used For?
Performance appraisals serve a dual purpose for both organizations and employees.

• For employees: performance reviews are a way

to recognize and thank them for their
achievements, find opportunities for promotions
or bonuses, help them get training or education
to advance their careers, find areas where they
can improve, encourage and involve them in their
career development, and start conversations
about long-term goals.
What are Performance Appraisals Used For?
Performance appraisals serve a dual purpose for both organizations and employees.

• 1. Clarifies Expectations
• Employees understand what is expected of them in terms of goals, competencies, and
behavior.
• Sets a clear direction for performance and career growth.
• 2. Constructive Feedback
• Regular feedback helps employees recognize their strengths and identify areas for
improvement.
• Prevents performance issues from escalating.
• 3. Career Development
• Performance reviews often lead to training, mentorship, and promotion opportunities.
• Employees can request or receive developmental support based on their performance gaps.
What are Performance Appraisals Used For?
Performance appraisals serve a dual purpose for both organizations and employees.

• 4. Motivation and Recognition

• Acknowledging high performance boosts morale, job satisfaction, and
engagement.
• Serves as a psychological reward, reinforcing positive behavior.
• 5. Improved Self-Awareness
• Through self-assessment and feedback, employees gain insight into how
they are perceived and where they stand professionally.
What are Performance Appraisals Used For?
Performance appraisals also aims to:

Provide helpful information to help make decisions

regarding transfers, promotions, terminations, etc.

Supply the necessary data to identify employee

employee

training and development program requirements.

training and development

Help make confirmation/acceptance decisions

regarding employees who have completed a
probationary period.
What are Performance Appraisals Used For?
Performance appraisals also aims to:

Help make decisions regarding raising an employee's

salary, offering incentives, or changing variable pay.

Clarify expectations and facilitate communication

between managers and subordinates.

Help employees realize their whole potential

performance level.

Collect relevant employee data and keep the records

for various future organizational purposes.
Methods of Performance Appraisals
Traditional Modern
Methods Methods
Subjective
Focus more on
manager-
objectivity
centric

Typically Employee
focusing on development
past and strategic
performance alignment
Methods of Performance Appraisals
Traditional Modern
Methods Methods
Management by Objectives (MBO)
Ranking Method Popularized by Peter Drucker.
Employees are ranked from best to worst. Employees and managers jointly set goals, which
Useful in small teams but becomes difficult and are periodically reviewed.
demotivating in larger groups. Emphasis on measurable outcomes, enhancing
motivation and accountability.

Graphic Rating Scale Behaviorally Anchored Rating Scales (BARS)

Employees are rated on traits like punctuality, Combines quantitative and qualitative
teamwork, communication, etc. using a numerical or assessments.
descriptive scale (e.g., 1 to 5). Uses specific examples of behaviors anchored to
Simple, but may be prone to rater bias. performance levels (i.e. communication skills)
Methods of Performance Appraisals
Traditional Modern
Methods Methods
360-Degree Feedback
Critical Incident Method
Input from multiple sources: peers,
Managers maintain records of positive and subordinates, supervisors, and sometimes
negative incidents related to each employee.
customers.
Supports behavior-based feedback, though it
Offers a comprehensive view, reduces bias, but
can be time-consuming and subjective.
needs careful implementation and follow-up.

Checklist and Weighted Checklist Human Resource (Cost) Accounting Method

Managers tick off pre-defined statements that Evaluates employee performance based on the
describe employee behavior. monetary contribution to the organization.
Weighted versions assign numerical value to each Often used in financially-driven decision-
item. making like promotions or restructuring.
 Methods of Performance Appraisals
Traditional Modern
Methods Methods
Psychological Appraisals
Essay Method
Conducted by trained psychologists to
Managers write a descriptive assessment
assess interpersonal skills, leadership
of employee performance.
potential, emotional intelligence, etc.
Allows qualitative feedback but lacks
Used for succession planning, high-
consistency.
potential employee programs, etc.
Performance Appraisal: Philippine Context

• Performance appraisal for Philippine government employees is primarily

governed by the Strategic Performance Management System (SPMS),
mandated by the Civil Service Commission (CSC) and adopted by all
government agencies since 2012. The SPMS is designed to objectively assess
employee performance by linking individual outputs and competencies with
organizational goals, ensuring employees contribute effectively to public
service
Performance Appraisal: Philippine Context
Key features of the performance appraisal system include:
• Individual Performance Commitment and Review (IPCR) Form: Each
employee has a performance contract specifying targeted outputs and
performance standards for the rating period, serving as the basis for
evaluation.
• Performance Monitoring: The system requires continuous monitoring and
evaluation throughout the rating period, not just at its end, allowing timely
corrective actions to keep projects on track
Performance Appraisal: Philippine Context
Key features of the performance appraisal system include:
• Competency Assessment and Development: The appraisal also assesses
employee competencies against job requirements. Identified gaps lead to
learning and development interventions to support career advancement.
• Rating Scale and Criteria: The CSC memorandum circular sets adjectival
ratings such as Outstanding, Very Satisfactory, Satisfactory, and
Unsatisfactory, based on the extent to which employees meet or exceed their
targets. For example, "Outstanding" is given when an employee exceeds
targets by at least 50%, while "Very Satisfactory" is for exceeding targets by
at least 25%
Performance Appraisal: Philippine Context
Key features of the performance appraisal system include:
• Use of Results: Performance ratings serve as objective bases for rewards,
promotions, training, and administrative actions, making the system purposive
rather than arbitrary.
• Performance-Based Incentive System (PBIS): Complementing the SPMS, the
PBIS provides financial incentives like Performance-Based Bonuses (PBB) and
Productivity Enhancement Incentives (PEI) to motivate exemplary individual and
unit performance.
• Legal and Policy Framework: The system is supported by CSC guidelines and the
Salary Standardization Law 3, which institutionalizes performance-based incentives
in the government sector
 Performance Appraisal Process
The performance appraisal process typically follows a structured cycle to ensure consistency,
fairness, and strategic alignment.

Step 1: Establishing Performance Criteria

•Define KPIs (Key Performance Indicators) and goals that align with the employee’s role and
organizational strategy.
•Should be SMART (Specific, Measurable, Achievable, Relevant, Time-bound).
Step 2: Communicating Expectations
•Managers discuss performance standards and expectations with employees.
•Encourages goal ownership and alignment.

Step 3: Monitoring and Documentation

•Ongoing observation, regular check-ins, and documentation of performance.
•Tools like performance journals and real-time feedback systems are increasingly used.
 Performance Appraisal Process
The performance appraisal process typically follows a structured cycle to ensure consistency,
fairness, and strategic alignment.

Step 4: Evaluation
Formal evaluation based on the chosen method(s): rating scales, MBO results, BARS, etc.
Can be self-assessed, manager-assessed, or 360-degree evaluated.

Step 5: Feedback and Counseling Session

A structured conversation where:
Results are shared
Strengths and gaps are discussed
Constructive feedback is given
Developmental actions are planned
 Performance Appraisal Process
The performance appraisal process typically follows a structured cycle to ensure consistency,
fairness, and strategic alignment.

Step 6: Action Planning and Goal Setting

Identify training needs, promotions, projects, or coaching based on performance.
Goals for the next review cycle are collaboratively set.

Step 7: Follow-Up and Review

Periodic check-ins to evaluate progress and provide ongoing support.
Keeps employees engaged and aligned with their performance targets.
 Performance Appraisal Process
The performance appraisal process typically follows a structured cycle to ensure consistency,
fairness, and strategic alignment.

Step 6: Action Planning and Goal Setting

Identify training needs, promotions, projects, or coaching based on performance.
Goals for the next review cycle are collaboratively set.

Step 7: Follow-Up and Review

Periodic check-ins to evaluate progress and provide ongoing support.
Keeps employees engaged and aligned with their performance targets.
 Performance Appraisal Process in the
Philippine Government
Across all government agencies, including DepEd and CHED, the Strategic Performance
Management System (SPMS) follows a 4-phase cycle:

PHASE 1: Performance Planning and Commitment

•Objective: Align individual and team goals with agency’s strategic priorities.
•Process:
• Employees, along with their immediate supervisors, define Key Result Areas
(KRAs), Objectives, Success Indicators, and Targets.
• Commitments are documented in:
• IPCRF: Individual Performance Commitment and Review Form
• OPCRF: Office Performance Commitment and Review Form
In DepEd, performance planning is aligned with the Philippine Professional Standards for
Teachers (PPST).
 Performance Appraisal Process in the
Philippine Government
Across all government agencies, including DepEd and CHED, the Strategic Performance
Management System (SPMS) follows a 4-phase cycle:

PHASE 2: Performance Monitoring and Coaching

Objective: Ensure ongoing alignment, support, and early intervention if issues arise.
Process:
Supervisors provide regular feedback, conduct coaching, and update documentation
of accomplishments.
Tools like Mid-Year Review, logs, and Monitoring Tools (e.g., classroom observations,
teacher evaluations) are used.
 Performance Appraisal Process in the
Philippine Government
Across all government agencies, including DepEd and CHED, the Strategic Performance
Management System (SPMS) follows a 4-phase cycle:

PHASE 3: Performance Review and Evaluation

Objective: Measure actual accomplishments against targets.
Process:
Employees submit accomplishment reports (e.g., MOVs – Means of Verification).
Supervisors rate the performance using the Rating Scale:
5 – Outstanding 3 – Satisfactory 1 – Poor
4 – Very Satisfactory 2 – Unsatisfactory
Final scores are reviewed by the Performance Management Team (PMT) for calibration and
fairness.
 Performance Appraisal Process in the
Philippine Government
Across all government agencies, including DepEd and CHED, the Strategic Performance
Management System (SPMS) follows a 4-phase cycle:

PHASE 4: Performance Rewarding and Development Planning

Objective: Recognize good performance and address gaps.
Process:
High performers may receive:
Step increments, awards, incentives, or scholarships.
Poor performers undergo performance improvement plans (PIP) or coaching
interventions.
Development interventions are documented in the IDP (Individual Development
Plan).
DepEd follows a Results-Based
Performance Management
System (RPMS) aligned with
PPST.
In CHED and State Universities and Colleges (SUCs), appraisal is based on
faculty roles:

Category Description
Classroom performance, student evaluations,
Instruction
peer reviews.
Research Publications, paper presentations, citations.
Extension Services Community involvement, training programs.
Creative works, innovations, income-
Production
generating projects.
Governance/Administrative Work Committee membership, leadership functions.
PERFORMANCE COUNSELING:
Nature, Purpose, Benefits, and Process

Performance Counseling is a proactive HR practice aimed

at helping employees overcome performance-related
challenges. It focuses on improving behavior, mindset, skills,
and productivity through guided conversation and support. It is
a structured and supportive process used by managers or
supervisors to help employees recognize, understand, and
improve their job performance, behaviors, or attitudes.
 PERFORMANCE COUNSELING:
Nature, Purpose, Benefits, and Process

Characteristics:
•Developmental, not punitive.
•Involves open dialogue and mutual trust.
•Focuses on behavior and outcomes, not personal traits.
•Used both for underperforming and high-potential employees (for growth planning).
It is:
•Manager-led but employee-centered.
•Aims to guide, not blame.
•Often a follow-up step after performance appraisal or regular monitoring.
 Sample Scenario
Imagine an employee, Ravi, consistently misses project deadlines. During the
performance appraisal, his manager notes this trend and gives him a below-average
rating in time management. Instead of just issuing a warning, the manager schedules
performance counseling with Ravi. In the session:
• They jointly identify the issue: Ravi is overwhelmed by multitasking.
• The manager suggests tools like time-blocking and prioritization training.
• A follow-up is scheduled to assess progress after 1 month.
• This integrated approach helps Ravi improve and feel supported rather than
punished.
 PERFORMANCE COUNSELING:
Nature, Purpose, Benefits, and Process

Primary Purposes Description

Ensure the employee understands their role,
Clarify Expectations
goals, and performance standards.
Identify specific issues affecting productivity,
Address Performance Gaps
behavior, or results.
Assist employees in setting career goals and
Support Personal Development
overcoming obstacles.
Deal with issues early before they affect morale,
Prevent Escalation
productivity, or organizational performance.
Build a stronger relationship between employee
Enhance Communication
and supervisor through honest dialogue.
 PERFORMANCE COUNSELING:
Nature, Purpose, Benefits, and Process

For the Employee:

•Improved Self-Awareness: Understands how their performance is
perceived and where to improve.
•Skill Development: Gains targeted coaching, feedback, and training plans.
•Increased Motivation: Feeling supported rather than judged can increase
morale.
•Career Growth: Sets clear direction for development and potential
promotion.
 PERFORMANCE COUNSELING:
Nature, Purpose, Benefits, and Process

For the Organization:

Higher Productivity: Resolves issues that limit performance.
Reduced Turnover: Employees feel heard and supported, improving
retention.
Improved Team Dynamics: Counseling can resolve interpersonal conflicts
or behavior issues.
Data-Driven Decisions: Counseling records help in HR decisions like
promotion, reassignment, or training.
 PERFORMANCE COUNSELING:
Nature, Purpose, Benefits, and Process

Step 1: Identify the Need for Counseling

•Triggered by:
• Poor performance (below expectations in
KPI/IPCRF)
• Behavioral issues (attendance, attitude, teamwork)
• Career planning requests
• Feedback from performance appraisal

In public service (e.g., DepEd or LGUs), an Unsatisfactory rating in SPMS or RPMS may trigger formal
counseling.
 PERFORMANCE COUNSELING:
Nature, Purpose, Benefits, and Process

Step 2: Prepare for the Session

✓ Review performance records, reports, attendance logs, or incident
reports.
✓ Define clear objectives for the session.
✓ Prepare to present facts, not opinions
 PERFORMANCE COUNSELING:
Nature, Purpose, Benefits, and Process

Step 3: Conduct the Counseling Session

Techniques Used:
Approach What It Involves
Give full attention, avoid interruption, show
Active Listening
empathy.
Encourage self-reflection (e.g., "What challenges are
Open-Ended Questions
you facing?").
Non-Judgmental Feedback Focus on behavior/outcomes, not personal faults.
Jointly identify solutions, alternatives, or training
Collaborative Problem Solving
needs.
Confidentiality must be respected—no public shaming or hallway conversations.
PERFORMANCE COUNSELING:
Nature, Purpose, Benefits, and Process

Step 4: Develop an Action Plan

•Agree on:
• Performance targets to be met
• Support mechanisms (training, mentorship, lighter workloads, etc.)
• Timeline for review
Step 5: Follow-Up and Monitor Progress
•Regular check-ins to assess:
• Has performance improved?
• Are agreed strategies working?
• Does the employee need more help?
•Document all interactions for accountability.
 Interconnection between Performance
Appraisal and Counseling

Performance Appraisal Performance Counseling

Evaluation-driven Development-driven
Focuses on past Focuses on future
Formal & periodic Informal & continuous
Measures outcomes Encourages improvement

They are often integrated processes: an appraisal might highlight a need for counseling, and counseling might
lead to better future appraisals.
 Scenario-based Application
Instructions:
Read the following scenarios carefully, choose one which you think is applicable to your current work setting (or which you can
relate more) and answer the guided questions below. This is a group-task, you can freely choose whom to work with.
• Scenario 1:
• You are the immediate supervisor of Ms. Liza, a public senior high school teacher. During the recent RPMS cycle, her
IPCRF shows a mix of ratings:
• Very Satisfactory in classroom management and lesson planning
• Satisfactory in learner engagement
• Unsatisfactory in student performance data utilization and classroom observation
• You’ve noticed she’s been late submitting performance tasks and has shown signs of disengagement during LAC sessions.
 Scenario-based Application

Guide Questions for Scenario 1:

1. Identify three key issues based on the appraisal results and observed behavior.
2. What performance appraisal method was most likely used in this scenario? Justify your
answer.
3. Based on RPMS practices, what documents or tools would be required to support your
assessment?
4. Draft one SMART goal that could be included in her development plan.
5. Recommend a coaching or performance counseling approach to address her gaps
 Scenario-based Application
• Scenario 2:
Dr. Santos is a full-time Assistant Professor at a public university. She teaches 4 undergraduate courses per semester and has
been with the institution for 5 years.
• In her latest Faculty Performance Evaluation, the following issues were noted:
• Instruction: Received low student evaluation scores (3.2/5) in terms of classroom engagement and communication skills.
• Research: Has not produced any research output in the last two years despite a minimum university expectation of one
publication per year.
• Extension: Participated in only one university outreach program over the past 3 years.
• Peer Review: Peers noted her resistance to collaborative work and reluctance to join department-initiated projects.
• Despite this, Dr. Santos maintains regular attendance, submits grades on time, and is compliant with administrative tasks.
Her overall rating was “Satisfactory”, just above the threshold for faculty development eligibility.
 Scenario-based Application

Guide Questions for Scenario 2:

1. Identify three key performance issues observed in Dr. Santos’ evaluation results and
behavior.
2. What performance appraisal method was most likely used in this scenario? Justify your
answer.
3. Based on standard SUC or CHED faculty evaluation systems, what documents or tools
would be required to support the assessment of Dr. Santos’ performance?
4. Draft one SMART goal that could be included in her performance improvement or
professional development plan.
5. Recommend a coaching or performance counseling strategy that could help Dr. Santos
address her performance gaps and regain academic engagement.
.
 References
• https://www.simplilearn.com/what-is-performance-appraisal-methods-
process-article
• https://www.researchgate.net/publication/343814014_FACULTY_PERFO
RMANCE_EVALUATION_SYSTEM_OF_STATE_UNIVERSITIES_AN
D_COLLEGES_IN_THE_PHILIPPINE_EASTERN_VISAYAS_REGIO
N
• https://www.slideshare.net/slideshow/performance-review-
counselling/100884371