Chapter 15:Performance appraisal
Appraisal(evaluation) is part of the system of performance management,including
goal setting,performance monitoring,feedback and improvement planning.
Appraisals have three main purposes.These are often misunderstood. The first is
to measure the extent to which an individual may be awarded a salary increase
compared with his or her peers. This is the reward review component.The second
purpose of an appraisal is to identify any training needs and, if appropriate, to
provide training and development to enable an individual to help the organisation
to achieve its objectives. This is the performance review component. Finally,
appraisals are also important to aid an individual's career development by
attempting to predict work that the individual may be capable of in the future.
This is the potential review component.
Employees often question the value and usefulness of the time and effort taken
up by an appraisal.However, it establishes key results that an individual needs to
achieve within a time period while also comparing the individual's performance
against a set and established standard. The employee is not the only beneficiary -
the organisation benefits through identifying employees for promotion,noting
areas for individual improvement, and by using the system as a basis for human
A typical appraisal system would consist of the following steps.
Step 1:Identification of criteria for assessment,perhaps based on job
analysis,performance standards and person specifications.
Step 2:The preparation by the subordinate’s manager of an appraisal report.In
some systems both the appraisee and appraiser prepare a report.These reports
are then compared.
Step 3:An appraisal interview,for an exchange of views about the appraisal
report,targets for improvement and solutions to problems.
Step 4:Review of the assessment by the assessor’s own superior,so that the
appraisee does not feel subject to one person’s prejudices.Formal appeals may be
allowed,if necessary to establish the fairness of the procedure. Step 5:The preparation and implementation of action plans to achieve
improvements and changes agreed.
Step 6:Follow-up:monitoring the progress of the action plan.
New techniques of appraisal aim to monitor the appraisee’s effectiveness from a
number of perspectives,including self-appraisal(individuals carry out their own
self-evaluation),upward appraisal(subordinates appraise the superior),customer
appraisal(feedback from customers) and 360-degree appraisal(collecting
feedback on an individual’s performance from
superior,subordinates,peers,customers and himself/herself).
The process of appraisal interview are:
(i)Prepare. At the preparation stage it is important that the appraiser ensures that
the time and place planned for the interview are appropriate and that there will
be no interruptions.The appraiser s