IT 311 INDUSTRIAL PSYCHOLOGY
PERFORMANCE
MANAGEMENT AND
APPRAISAL
SUMMARY OF KEY TOPICS
a. What is Performance Management and
Performance Appraisal
b. HR’s Role in Performance Management
c. Performance Management Process
d. Purpose of Performance Appraisal
e. Performance Appraisal Methods
f. Who will Appraise the Performance?
g. Performance Management Skills
PERFORMANCE MANAGEMENT
Performance management is the process of evaluating employee behavior
and using that information to enhance job performance. It is a goal oriented
process ensuring that organizational processes are in place to maximize the
productivity of employees , teams, and organizations.
PERFORMANCE APPRAISAL
Performance appraisal is the process of assessing performance to make
decisions. (ex. pay raises). It is a formal system of review and
evaluation of individual and team task performance. It is critical
to the success of Performance Management.
ROLE OF HUMAN RESOURCE
IN PERFORMANCE
MANAGEMENT
PERFORMANCE MANAGEMENT PROCEDURES ARE NORMALLY CREATED WITH THE HELP OF HR
DEPARTMENTS:
USING THEIR KNOWLEDGE, MANAGERS CAN TRUST THE PROCESS THAT HAS BEEN
FORMULATED.
HR ACTS AS A FACILITATOR IN PERFORMANCE MANAGEMENT, PROVIDING THE PEOPLE ON THE
GROUND WITH THE TOOLS THEY NEED TO BENEFIT FROM ITS PROCESSES. ENABLING SUCCESSFUL
PERFORMANCE MANAGEMENT IS A CRITICAL HR FUNCTION, ENSURING ITS VALUE TO EMPLOYEES,
MANAGEMENT AND THE ORGANIZATION ITSELF.
ROLE OF HUMAN RESOURCE
IN PERFORMANCE
MANAGEMENT
PROMOTING ORGANIZATION CULTURE AND VALUES
PROVIDING SUPPORT
CREATING PERFORMANCE MANAGEMENT SYSTEMS
DEFINING OPERATIONAL EFFICIENCY METRICS
PERFORMANCE MANAGEMENT
PROCESS
PLANNING
calls for establishing expectations and developing a strategic performance management plan for employees. Here
you should set S.M.A.R.T goals, determine deadlines, and make clear how they will impact the team and the entire
company.
MONITORING
Crucial to achieving goals is consistent monitoring of progress. The manager should frequently check in with
employees to help work through problems as they arise.
REVIEWING
This is the official place for employees and managers to share their view on how the
year went and look back on the progress and achievements.
REWARDING
Rewarding employees for their efforts and achievements throughout the year lets
them know their talents are appreciated and encourages them to continue to perform
at a high level.
PURPOSE OF
PERFORMANCE APPRAISAL
• FEEDBACK AND TRAINING
– Performance appraisal review
• DETERMINING SALARY INCREASES
• MAKING PROMOTION DECISIONS
GOAL
– Peter Principle
• MAKING TERMINATION DECISIONS
• CONDUCTING ORGANIZATIONAL RESEARCH
PERFORMANCE
APPRAISAL METHOD
360-DEGREE FEEDBACK
involves evaluation input from multiple levels within the firm as well as external sources
RATING SCALES METHOD
method that rates employees according to defined factors.
evaluators record their judgements about performance on a scale
factors are job-related & personal characteristics
CRITICAL INCIDENT METHOD
method that requires keeping written records of highly favorable & unfavorable employee work actions.
appraisal is to cover the entire evaluation period & not focus on the past weeks/months
ESSAY METHOD
raters write a narrative describing the employees performance . It focuses on extreme behaviors of
employees.
Simplest & an acceptable approach to employee evaluation.
PERFORMANCE
APPRAISAL METHOD
WORK STANDARD METHOD
method that compares each employee’s performance to predetermined standard/ expected level of output.
advantage of this as appraisal criteria is OBJECTIVITY.
RANKING METHOD
Method which the raters ranks all employees from a group in order of overall performance.
FORCED DISTRIBUTION METHOD
requires the rater to assign individuals in a work group to a limited number of categories.
BEHAVIORALLY ANCHORED RATING SCALE (BARS)
a method that combines elements of the traditional voting scale & critical incident method
RESULT-BASED SYSTEM
Managers and subordinates jointly agree on objectives for the next appraisal period in a result-based system.
WHO WILL APPRAISE PERFORMANCE?
UPPER MANAGEMENT SUPPORT STAFF
DIRECT SUPERVISOR CUSTOMERS/THE PUBLIC
PEERS VENDORS
SUBORDINATES SELF
WHAT WE TEND TO REMEMBER?
FIRST IMPRESSIONS
RECENT BEHAVIORS
UNUSUAL BEHAVIORS
EXTREME BEHAVIORS
BEHAVIOR CONSISTENT WITH OPINION
PERFORMANCE TO IMPLEMENT A SUCCESSFUL PERFORMANCE
MANAGEMENT MANAGEMENT PLAN, PERFORMANCE MANAGERS
SKILLS NEED TO DEVELOP KEY SKILLS.
LEADERSHIP
This enables them to guide employees toward set objectives, provide constructive feedback, and inspire others through
strong leadership qualities.
ORGANIZATION
Strong organizational skills help prioritize tasks, manage multiple employees' performance, and achieve the best
outcomes.
COMMUNICATION
An important part of performance management is communicating expectations to employees,
offering guidance and providing tailored feedback.
PROBLEM-SOLVING
Conflict resolution is also key, as it involves finding the best solutions to challenges. Strong problem-
solvers can effectively address performance issues through strategic approaches.
DECISION-MAKING
Effective decision-makers can evaluate the benefits and disadvantages of decisions and
select the most useful ones.
IT 311 INDUSTRIAL PSYCHOLOGY
PREPARE FOR
SHORT QUIZ
