Performance Appraisal

• Performance appraisal


  The process of evaluating an employee's current and/or past performance relative to his or her performance standards
• Terms related to performance appraisal

  • Employee selection
  • Performance appraisal
  • Employee orientation
  • Organizational development
• Purpose of performance appraisal feedback

  To motivate employees to remove any performance deficiencies
• Reasons for performance appraisal

  • Correcting any work-related deficiencies
  • Creating an organizational strategy map
  • Determining appropriate salary and bonuses
  • Making decisions about promotions
• Responsible for performance appraisal

  Employee's direct supervisor
• First step of performance appraisal

  Assessing the employee's performance
• Employee self-ratings in performance appraisal

  Ratings are higher than when provided by supervisors
• Upward feedback

  The process of allowing subordinates to rate their supervisor's performance anonymously
• 360-degree feedback

  A performance appraisal based on surveys from peers, supervisors, subordinates, and customers
• Supervisors should provide employees with feedback, development, and incentives necessary to help employees eliminate performance deficiencies or to continue to perform well
• The HR department monitors the performance appraisal system, but it is typically not involved in rating employees
• In order to ensure that performance appraisals are effective, Felicia, a line supervisor, should make sure to schedule a feedback session to address each subordinate's performance, progress, and future development plans
• Techniques for appraising employee performance

  • Alternation ranking
  • Graphic rating scale
  • Forced distribution
  • Constant sum rating scale
• Forced distribution


  A performance appraisal tool where a supervisor identifies a certain percentage of employees as high, above average, average, below average, and poor performers
• Alternation ranking


  Ranking of employees from best to worst on a trait or traits, choosing highest than lowest until all are ranked
• Management by objectives requires a manager to set specific measurable, organizationally relevant goals with each employee and then periodically discuss the employee's progress toward these goals