NATIONAL COLLEGE OF BUSINESS AND ARTS

MBA PROGRAM

AQUINO, KRISTEL-ANNE M. March 2, 2018

Human Resource Management Dr. Daquigan

PERFORMANCE APPRAISAL

A performance appraisal or performance evaluation is a systematic and periodic process that

assesses an individual employee’s job performance and productivity, in relation to certain pre-
established criteria and organizational objectives

Uses of Performance Appraisals

 Developmental Use -

 Developmental aspect of the performance appraisal is an overall performance

management system of organization.

1. Identification of Strengths
2. Identification of Weakness
3. Identification of Potentials
4. Training and Development
5. Career Planning

 Administrative Decisions –

In terms of administrative purposes, the formal performance evaluation is used to

collect information in order to make personnel decisions with regard to: determining promotion
candidates and transfers, identifying poor performance, deciding retention and/or termination and
layoffs, validating selection criteria, meeting legal requirements, evaluating training programs, personnel
planning, and reward/punishment decisions.

1. Compensation
2. Promotion
3. Termination
4. Recognition
 DEVELOPMENTAL USE
 Individual needs
 Performance feedback
 Transfers and Placements
 Strengths and Development needs

ADMINISTRATIVE DECISIONS / USE

 Salary
 Promotion
 Retention / Termination
 Recognition
 Poor Performers identification

ORGANIZATIONAL MAINTENANCE
 HR Planning Training Needs
 HR System Evaluations

DOCUMENTATION
 Validation Research
 For HR Decisions

 Objective of appraisal

1. To maintain records in order to determine compensation packages, wage structure,

salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right men on right job.
3. To maintain and assess the potential of employees for further growth and development.
4. To provide a feedback to employees regarding their performance and related status.
5. It serves as a basis for influencing working habits of the employees.
6. To review and retain the promotional and other training programs.

 MEASUREMENT OF PERFORMANCES

3 Approaches for Measurement of Performances

1. Measurement of inputs

Measurement of inputs means attempting to assess the traits of an individual. Traits are
those skills, knowledge and attitudes that the employee possesses. Assessment aims to identify
whether the staff member has the competencies (or traits) for a job, perhaps with reference to
a competency framework. Attributes such as leadership, commitment, ability to work within a
team and loyalty are traits that are typically desired.
2. Behavior in performance

This type of appraisal looks at the behavior of the employee during work, and at how
the employee applies his or her skills. Both quantitative and qualitative data is collected on a
continuous basis relating to how the employee displays the expected behavior for the position –
for example, ‘gives praise where it is due to others on the team’ might be one of the behaviors
looked for.

A common method for assessing behaviour in performance is the use of behaviour-

anchored rating scales (BARS). Descriptions of desired (and undesirable) behaviour are listed,
and the appraiser gives a score for each one. A good example of BARS is the course assessment
forms used by many ACCA tuition providers, where students are asked to rate the tutor on
various attributes, such as ‘clarity of explanations’, and ‘approachability’. Students then give the
tutor a grade for each of these attributes – for example, from 1 to 5, where 5 is excellent, and 1
is poor.

Behavioral observation scales (BOS) are where specific actions are listed, and the
appraisee is judged on how many times he performs that action.

3. Measurement of results and outcomes.

Under these types of appraisals, individuals are assessed on quantifiable outcomes – for
example, the amount of sales achieved by a salesman, the volume of production achieved, the
number of customer complaints. Where competency frameworks are used, it may also be
possible to measure the number of competencies achieved during a period.
 NATIONAL COLLEGE OF BUSINESS AND ARTS

MBA PROGRAM

AQUINO, KRISTEL-ANNE M. March 2, 2018

Human Resource Management Dr. Daquigan

A Relative Case on Appraisal

 POINT OF VIEW

Ms. Madel Canicula

HR - Manager

 TIME CONTEXT

2018

 SHORT HISTORICAL BACKGROUND

GMEDI began in 1987 as a construction company working on sub-contracts from larger and
older companies in the industry. It quickly gained a reputation for solid and dependable
performance and, in time, achieved Triple A status as a full-fledged Contractor.
In 2003, GMEDI ventured into real estate and housing development. It started with pocket-sized
developments consisting of a dozen to 30 houses in each project, mostly within the cities of
Pasay, Quezon, Pasig and nearby towns and cities of Rizal Province.
Since then, GMEDI has grown into a multi-million company that has produced and sold more
than a thousand houses in the upper low-cost and middle income Categories.
GMEDI is now among the fastest-growing and highly respected housing and real estate
development companies in the country. It is an active member of some of the largest and best-
known associations of professionals and business corporations in the Philippines today.

 COMPANY PROFILE

GMEDI VISION:
GMEDI aspires to be a leading developer of quality real estate properties at par with global
standards that provide better and more affordable homes and structures in well-planned
communities for our modern client families.
GMEDI MISSION:
GMEDI is committed to the pursuit of excellence in our business of designing and building better
and more affordable homes and communities, through dependable, honest, and competent
service to our clients, through our professional workforce who value continuous education and
training and through the practice of corporate social responsibility towards the State, our
industry, and our people.
 AREAS OF CONSIDERATION – SWOT ANALYSIS

o STRENGHTS:
 GMEDI has its stability, quality products and service strength
 In partnership with one of the well known Gen. Contractor in the Philippines.
 Faster construction of houses due to partnership.
 Projects nearby Metro Manila
 Accessible to main road
o WEAKNESS:
 Inaccurate evaluation for employee performance.
 Sensibility to media.
 Lack of unified internal marketing unit

o OPPORTUNITIES:
 More employees with higher educational attainment.
 New administrations investment priority.
 Population growth.
 High OFW remittance.

o THREATS:
 Increase of turnover rate of employees.
 Strong competition with big real estate companies
 Uncertain political landscape.

 STATEMENT OF THE PROBLEM

How can GMEDI effectively assess each employee’s performance?

 ALTERNATIVE COURSES OF ACTIONS

1. Implementation of Key Performance Indicator and Key Results Area.

Advantage:
 Alignment Toward Common Goals
 Focus on Quantifiable Result.
 Incentives for Personal Performance
 Identify the overall performance of an employee and department.

Disadvantage:
 Additional cost.
 Time consuming.
 2. Administer Management by Objectives

Advantage:
 Focus on setting and controlling goals.
 It highlights the area in which the employees need further training, leading to career
development.
 It improves communication between management and subordinates.

Disadvantage:
 MBO can only succeed if it has the complete support of the top management.
 The emphasis is more on short-term goals
 Time consuming.

3. Application of Forced Ranking

Advantage:
 The forced distribution is a simple and consistent methodology. 
 It leads to increased productivity and identify key players and encourages competition.
 The managers are required to act on low performers.

Disadvantage:
 The teamwork can be negatively impacted by the forces ranking
 It encourages unhealthy competition
 The calibration does not depend on results achieved

 CONCLUSIONS/RECOMMENDATIONS:

o I highly recommend ACA No. 1 and 2 because it both promote focusing on common goal
and have a fair evaluation among every employees. It also helps for the growth and
development of every employee.
o While the ACA no. 3 encourages unhealthy competition between employees and it can
limit creativity, risk taking and it can weaken ethics and negatively impact the corporate
culture.