Topik 1
Topik 1
Topik 1
Performance
Appraisal
LEARNING OUTCOMES
By the end of this topic, you should be able to:
1. Define the importance of performance appraisal;
2. Differentiate between performance appraisal and performance
management;
3. Identify three important purpose of performance appraisal;
4. Describe four uses of performance appraisal; and
5. Elaborate on the benefits of having performance appraisal for various
groups of individuals and organisations.
X INTRODUCTION
This topic will introduce learners to the concept and the importance of
performance appraisal to employees and organisations. Performance appraisal
systems require a coordinated effort between an organisationÊs human resource
department and managers who are responsible for conducting the performance
appraisals. The responsibilities of managers in performance appraisals are to
evaluate the performance of employees and to try to improve the employeesÊ
performance in the future. In fact, there are many benefits that managers,
employees and organisations can gain from performance appraisals. These will
be highlighted in this topic. In addition, several definitions from several authors
are included to give learners a better understanding of the actual meaning of
performance appraisal. At the end of the topic, a brief summary of the overall
uses, purpose and benefits of performance appraisal will be provided to enhance
learnersÊ understanding of the areas discussed.
2 X TOPIC 1 INTRODUCTION TO PERFORMANCE APPRAISAL
It is a complex task that is difficult to be carried out, and it is not done well by
most organisations. However, when performance appraisal is properly
conducted, it is not only to let employees know how well they are performing
but also influences their motivation, acceptance and future level of effort and task
direction.
Efforts should be upgraded to ensure that employees are clear of the task that
they need to perform. The task of the employee should be clarified through the
establishment of a plan for improvement. Performance appraisal is in a way
considered as a management tool which is helpful in motivating and utilising
human resources capabilities effectively. Assessing human potential is not an
easy task, no matter how well designed and appropriate the performance
TOPIC 1 INTRODUCTION TO PERFORMANCE APPRAISAL W 3
planning and appraisal system are, but if it is not done carefully, it can reduce
employeesÊ satisfaction and trust towards the appraisal system.
ACTIVITY 1.1
In your own words, define performance appraisal and what are some
of the uses and benefits of having it?
ACTIVITY 1.2
1.3 DEFINITIONS
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The definitions provided were derived from various sources. Based on these, it
can be concluded that performance appraisal is as follows:
• process of evaluating employeesÊ past performance by appraisers;
• employeesÊ overall past performance will be measured against a certain set of
job-related standards and criteria; and
• employeesÊ overall past performance will later be used by the organisation to
determine their level of effectiveness in performing the assigned work.
Some supervisors may talk to their subordinates regularly about their problems
and performance at work and may not therefore see the need for a formal
appraisal system. This type of regular discussion between supervisors and their
subordinates about work performance should be encouraged by the organisation.
However, not many supervisors are willing to do this due to their other
commitments and busy schedules. Thus, a formal appraisal system can develop
a greater degree of consistency by ensuring that supervisors and subordinates
meet formally and regularly to discuss performance and potential. Research has
shown that this can encourage better performance from employees.
An appraisal can also provide information for human resource planning to assist
in succession planning and to determine the suitability of employees for
promotion, for specific types of work and training. In addition, they can improve
supervisor-subordinate relationship and communication by giving employees an
opportunity to talk about their ideas and expectations and to be told how they
are progressing. This situation can help improve the quality of work life by
increasing mutual understanding between supervisors and subordinates.
Almost universally, where performance appraisal is conducted properly, both
supervisors and subordinates have reported the experience as beneficial and
positive.
ACTIVITY 1.3
1.6.1 Development
Performance appraisal can be used in several ways to encourage development. It
plays a role in reinforcing and improving performance and in determining career
paths and training needs.
14 X TOPIC 1 INTRODUCTION TO PERFORMANCE APPRAISAL
1.6.3 Motivation
Appraisal is also said to help encourage initiative, drive, develop a sense of
responsibility, and stimulate employeesÊ efforts to perform at their maximum
with accurate assessment and fair rewards, it will motivate employees to perform
better.
1.6.4 Communications
Another usage of performance appraisal is that it serves as a basis for ongoing
discussion between subordinates and superiors about job-related matters.
Through their interaction, both parties would be able to establish good
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ACTIVITY 1.4
In your opinion, why do some organisations focus only on the
administrative uses rather than the developmental, motivation or
communication uses of performance appraisals?
• Most companies have some formal and informal means of appraising their
employeesÊ performance.
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6. Explain how you can convince the management that performance appraisal
can help achieve the organisationÊs objectives?
18 X TOPIC 1 INTRODUCTION TO PERFORMANCE APPRAISAL
6. Explain how you can convince the employees that performance appraisal is
important for their career development?