Lec 11 17062023 054047pm
Lec 11 17062023 054047pm
Lec 11 17062023 054047pm
COMPENSATION MANAGEMENT
(PERFORMANCE APPRAISAL)
Outline
Introduction of Performance Appraisal
🞑 Definition and Purpose
🞑 When?
🞑 Performance appraisal steps/process
Performance Interview and Feedback
🞑 Definition
🞑 Importance Performance Interview
Performance Appraisal Methods
🞑 Appraisal Form
🞑 Traditional Methods vs Modern Methods
🞑 Type of appraisal Methods
Type of Appraiser
🞑 Supervisors, Peers, Subordinates, Self, Customers, Clients and Group
Appraiser Error
🞑 Judgmental Errors
🞑 Rater Training Program
🞑 Poor Appraisal Forms
🞑 Ineffective Organizational Policies and Practices
INTRODUCTION
Other Terms
Performance appraisal has been synonymous with
performance review,
performance evaluation,
performance assessment,
performance measurement,
employee evaluation,
personnel review,
service rating
• A semi-annual one for the employee to discuss with his manager any
needed remedial steps for his performance on an unofficial basis.
Semiannually While the second one, would be an official one held at the end of the
year for the employee to receive his appraisal results and know about
the salary increase or promotion. E.g: Japan
Classical
System Self-
performance
Inauguration appraisal
review
(Aguinis, 2009)
Example Performance Appraisal
Step
(Kumari, 2012)
Example Performance Appraisal
Step
Step l: The
Initial Step II: The Mid- Step III: The Final
(Performance) Point Review Review Session
Planning
• provide • to review and
Session feedback to rate the
• Meeting the employee performance of
individually to during the each employee
described primary during the
expectation performance entire
period performance
rating period.
The interview constitutes a discussion session between an employee and his or her
supervisor with respect to the employee’s results during the period of evaluation,
focusing especially on employee progress, aims, and needs at work (Anne Linnaa,
Elovainio, Bos, Kivimäki, & Penttia, 2012)
Human Coaching
resource (Cederblom
plan , 1982)
Feedbacks in
Pepsi- Cola
International
Development Accountability
feedback based
(Cederblom, performance
1982) appraisals
Explanation of Feedback
Staff members should not receive any surprise
feedback because informal, continuous discussion
and feedback between staff and manager throughout
the year prevents surprises (Boice & Kleiner, 1997).
PERFORMANCE APPRAISAL
METHODS
Traditional vs New Approach
Traditional Approach
New Approach
This method is based on
Performance appraisal is
studying the personal
qualities of the employees. used for developmental
It may include and motivational purposes
knowledge, initiative, loyalt in the organizations
y, leadership and judgment (Gürbüz & Dikmenli,
(Aggarwal & 2007).
Thakur, 2013).
(Nili, Ardakani &
Shekarchizadeh, 2012)
Methods and Form
• Peer:
• Must know the level of performance of the employee
Peers being evaluated.
• May be useful when the task of the work unit require
frequent working contact among peers
• Customers
• Group
APPRAISER ERROR
Appraiser Error
Appraisal error affect the objectivity of the
appraisal negatively (Boachie-Mensah &
Seidu, 2012).
The problems that affect the validity and
dependability of the Performance appraisal
systems (Kumari, 2012)
Component of Appraisal Error
(Kumari, 2012)
• People commit mistake due to biasness and inadequate
training while evaluating people and their performance.
Judgment Error • These errors are also called as Rater Errors.
Ineffective
Organizational • Very often the sincere appraisal report put in by a rater is
Policies and not suitably rewarded
Practices
Ratings Error
Unintentionally Intentional
Similar to me Leniency
Contrast
Halo Severity
Primacy Central tendency
Recency
Negatively
First impression
Spillover
Stereotype
Attribution
(Aguinis, 2009)
Rater Training Programs
The overall objective of providing raters with tools
that will allow them to implement the performance
management system effectively and effectively
(Aguinis, 2009).
To improve managers’ ability to conduct effective
performance appraisals with dealing errors to
eliminate it from ratings (Inancevich & Konopaske,
2013).
The example of training such as Rater Error
Training, Frame of Reference Training
(FOR), Behavioral Observation Training, and Self-
Leadership Training.
A Study in polytechnic in Takoradi, Ghana
(Boachie-Mensah & Seidu, 2012)
Effect from
Recommendation
Appraisal Error