Performance Appraisals
Performance Management (HRMT 3503)
Performance Appraisal
Also known as an annual review, employee appraisal,
performance review, or evaluation, a performance appraisal
refers the review of an employee’s job performance and
overall contribution to a company over a specific period of
time (usually annually).
Performance Appraisal vs Performance Management
• Performance management refers to the set of
continuous activities and tasks that make sure that the
employees meet their goals on time.
• Performance appraisal evaluates the actual
performance of the employee, but it does not focus on
the employee’s performance productivity.
Performance Appraisal vs Performance
Management
Importance of Performance Appraisal
• Improving productivity: Regular feedback helps employees understand
their strengths and areas for improvement, leading to better performance.
• Motivating employees: Recognition and constructive feedback can boost
morale and motivation.
• Providing feedback and promotion opportunities: Appraisals help identify
high performers for promotions and development opportunities.
• Improving employee confidence: Constructive feedback and recognition
can enhance employee confidence.
Importance of Performance Appraisal
• Setting goals: Appraisals help employees set and achieve SMART (Specific,
Measurable, Achievable, Relevant, Time-bound) goals.
• Recording progress: Regular appraisals track employee progress and
identify areas needing attention.
• Aiding management decisions: Appraisals provide data to support
decisions on promotions, training, and development.
• Enhancing managerial skills: Appraisals help managers become better
coaches and mentors.
Uses of Performance Appraisals
• Boosts employee performance - A performance appraisal is the perfect opportunity to
give employees feedback on their strengths and weaknesses while allowing them to
share their own thoughts
• Increases employee engagement - Employees are more likely to be engaged at work if
they feel that their efforts are recognised
• Improves decision-making for managers - performance appraisals produce a lot of
data and that data can help managers and company leaders to make smarter, better-
informed decisions.
• Enhances communication between managers and employees - performance
appraisals provide a space for both employees and managers to communicate openly
and honestly about the employee’s strengths, achievements, weaknesses and
challenges.
• Informs training requirements - Running regular performance appraisals helps
managers spot any knowledge gaps or training deficits within their teams.
Uses of Performance Appraisals
• Gives recognition to top performers - a performance appraisal is an opportunity to
reward top performers, helping to motivate them to keep up the hard work.
• Provides feedback on management - they are also an opportunity for managers to find
out how they could better support their teams.
• Contributes to a positive company culture - Conducting regular performance sends a
clear message that you care about supporting your team Over time, this creates a
culture of openness that encourages feedback.
• Supports professional growth - Performance appraisals provide an opportunity to
discuss the next steps an employee could take in their career.
Performance appraisal process
• Define the job – making sure that the manager and the subordinate
agree on his/ her duties, job standards, and appraisal method to be used
• Appraising performance – comparing your employee’s actual
performance to performance standard, which usually involves a rating form
• Feedback session – Manager and subordinate discuss his/ her
performance and progress, and makes plans for any development required
Copyright © 2011 Pearson Education, Inc. 6-9
Publishing as Prentice Hall
Who should do the appraising?
The supervisor is usually in the best position to observe and
evaluate a subordinate’s performance.
Copyright © 2011 Pearson Education, Inc.
Types of appraisals
• Rating scale
• Checklists
• Management By Objectives
• 360 feedback
• Forced Ranking (Forced Distribution)
• Self-Assessment
• Paired Comparison Method
Types of appraisals
Group assignment:
Prepare a slide presentation detailing the description and function
of the following types of appraisals:
• Peer Appraisal
• Rating scale
• Checklists
• Management By Objectives
• 360 feedback
• Forced Ranking (Forced Distribution)
• Self-Assessment
• Paired Comparison Method
Due date: Tuesday, February 25, 2025 and should be presented in
class
