MANAGEMENT OF PERFORMANCE APPRAISAL VALIDITY- extent to which the performance

SYSTEM measure assesses all the relevant aspects of the

performance. Ratings are valid if they are
PERFORMANCE APPRAISAL accurate measures of the employees
-One of the major keys in effective performance.
management. It is a basis in determining who RELIABILITY- rating may be considered reliable if
should be promoted to a higher position. they are consistent. They are consistent if the
-Effective performance appraisal should be individual employee in a group receives
focused on the legitimate desire of employees essentially the same ratings when evaluated at
for progress in their position. least twice by the same rate at different times
by the different raters.
THE PURPOSE OF PERFORMANCE APPRAISAL
ACCEPTABILITY- refers to whether the people
STRATEGIC PURPOSE - the performance who use the performance measure accept it.
management system should link employee Many very elaborate performance measures are
activities with the organization goals and extremely valid and reliable yet many managers
objectives. These strategies are implemented and supervisors do but want to use them as
through defining results, behavior, and to some they consume so much time.
extent employee characteristics that are
necessary for carrying out the predetermined SPECIFICITY- extent to which the performance
goals and objectives. measure gives specific guidelines to employees
about what is expected of them and how they
ADMINISTRATIVE PURPOSE- performance can meet expectations.
management information relative to
performance appraisal points to the use of DEVELOPING AND ADMINISTERING AN
evaluation in decisions, for salary adjustments, APPRAISAL PLAN
promotion, retention, and termination, lay off There are certain guidelines in developing and
and recognition of individual performance. understanding an appraisal plan using the
DEVELOPMENTAL PURPOSE- it is to develop following steps;
employees who are effective in their jobs. When 1. Secure full agreement of line managers about
employees are not performing as well as they the need for a formal performance appraisal
should, performance management improve plan and for the purpose in which it will be
their performance. used.
The Criteria in the Development of a Measuring 2. Secure plans of their companies and existing
Instrument - The value of a performance rating literature on the subject to develop a plan best
depends upon the factors to be measured and suited for the needs of the particular
the extents of its validity and reliability. The organization
traits or characteristics must be clearly defined
so that the raters will have no doubt about what 3. Enlist the cooperation of the supervisor in
the traits mean. drawing up the appraisal plan, discuss the
factors to be used and the uniform descriptions c. Paired comparison method- this method
or instructions to be followed. name of each employee who is to be rated is
written on the card. Each employee to be rated
4. Make sure that the purposes and nature of is the off paired with every other employee in
the performance appraisal plan are explained to the same unit.
those who will make the appraisal. These are
the first level supervisors and department heads d. The checklist method- It provides a number
and those who will be affected by the appraisal. of traits or factors with corresponding
definitions for evaluating the employees written
5. Provide training to those who will use the in the left hand column of the form such as
instruments. Training will provide enough quantity of work done, quality of work,
knowledge on how the rating scale will be used attitudes toward work, judgement, reliability,
to avoid biases and provide uniform appraisal of cooperation, punctually and others.
the employees.
BEHAVIORAL APPROACH- attempts to define the
6. Develop and achieve staff coordination. behavior an employee exhibits to be in the job.
7. Arrange the periodic discussion of the a. The critical incident- this requires managers
performance appraisal to keep a record of a specific examples of
. 8. The appraisal system should be carefully effective and ineffective performances on the
used in selecting employees for possible part of each employee
promotions.
b. The behavioral anchored rating scale- builds
9. Provide for challenges and review of on the critical incidents approach; designed to
performance appraisal. specifically define performance dimensions by
developing behavioral anchors associated with
APPROACHES TO PERFORMANCE the different levels of performance.
MANAGEMENT
c. The organizational behavior modification- this
COMPARATIVE APPROACH- it consists of entails managing the behavior of the employees
techniques that require the rater to compare through a formal system of behavioral feedback
the individuals performance with that of others. and reinforcement.
The following are techniques under the
approach. RESULT APPROACH- this focuses on managing
the objectives, measurable results of a job or
a. Ranking- this method provides a comparison workgroup. We will examine two performance
of the relative qualities of performance among management systems that uses results;
the employees in a group or unit
a. Management by Objectives(MBO)- used in
b. Forced distribution technique- this system most companies who believe in results as bases
uses five-point job performance scale in the of performance management. The top
rating employees who are doing similar jobs. management defines the company’s strategic
goals and objectives and passes it in to the next
level of the management and down the line.
b. Productivity measurement and Evaluation 3. Central tendency – Incorrectly rated near the
system(PROMES)- the goal of this system of average or middle scale. Play safe.
management is to motivate the employees to
go for a higher level of productivity. 4. Rater’s bias – If a manager has a strong dislike
of a certain ethnic group.
Problems of Management Appraisal
5. Halo effect – rates an employee with high or
-Whatever performance appraisal the low on all items because of one characteristic.
organization decide to use, there are problems
to its implementation. Some managers are 6. Contrast error – rate people relatively with
reluctant to appraise their subordinates. The other people rather than by performance
disillusionment that is still so widespread with standards.
respect to managerial performance appraisal THE PERFORMANCE MANAGEMENT APPRAISAL
comes from the practice of measuring and FEEDBACK
evaluating, and this causes controversies and
misgivings. 1. FEEDBACK AS A SYSTEM

-Another problem measurement appraisal is the a. Data- factual information regarding

assumption of traits that is open to question. observed actions or consequences of actions.
The connection between performance and
b. Evaluation- is the way the feedback
possession of specific traits is doubtful. Others
system reacts to the fact and requires
believe that traits appraisal is vague and
performance standards.
confusing, since raters could not observe all the
time the employees traits and characteristics. c. Action- a system in which data and
evaluation influence action.
-There are many possible sources of errors in
the performance of appraisal process. One of 2. THE APPRAISAL INTERVIEW -This presents an
the major sources of error is lack of careful opportunity for the manager to talk about the
understanding rates on the real purpose of employees potential and also their weakness. It
management appraisal. could be emotional experience for the manager
and the employees because manager must
✓ To correct some of the fears in the
communicate both the praises and the
management appraisal system, the following
constructive criticisms in the evaluation
error should be studied very carefully;
EFFECTIVE PERFORMANCE MANAGEMENT
1. Problems of varying standards – the manager
SYSTEM An effective management appraisal
should avoid using different standards among
must be;
employees performing their jobs.
1. Consistent with the strategic mission and
2. Recent effect – the error which the rater gives
goals of the organization
greater weight to recent events when appraising
individual performance. Employee’s recent 2. Beneficial as a development tool.
behavior is the basis.
3. Useful as an administrative tool of
management.

4. Legal and job related.

5. Generally fair and acceptable by the

supervisor and the employees.

6. Useful as documentary evidence in all

personnel actions.