Appraising Individual Performance Melinda Hesti Oktasari ( ) Dini Maysaroh ( )

DEFINITIONS  Performance Management a goal oriented process directed toward ensuring that organizational processes are in place to maximize the productivity of employees, teams, and ultimately, the organization  Performance Appraisal a formal system of review and evaluation of individual or team task performance

Performance Appraisal Process

Establish Performance Criteria Traits Behaviors Competencies Goal Achievement Improvement Potental

Responsibility for Appraisal 1. Immediate Supervisor 2. Subordinates 3. Peers and Team Members 4. Self-Appraisal 5. Customer Appraisal

360-Degree Feedback Evaluation Method  Is a popular performance appraisal method that involves evaluation input from multiple levels within the firm as well as external sources. Unlike traditional approaches, 360-degree feedback focuses on skills needed across organizational boundaries. Also, by shifting the responsibility for evaluation to more than one person, many of the common appraisal errors can be reduced or eliminated.

Rating Scales Method  is a performance appraisal method that rates employees according todefined factors. The scale includes several categories, normally 5–7 in number, defined by adjectives such asoutstanding, meets expectations, or needs improvement.

Critical Incident Method  is a performance appraisal method that requires keeping writtenrecords of highly favorable and unfavorable employee work actions.

Essay Method  is a performance appraisal method in which the rater writes a brief narrative describing the employee’s performance. This method tends to focus on extreme behavior in the employee’s work rather than onroutine day-to-day performance.

Work Standards Method  is a performance appraisal method that compares each employee’sperformance to a predetermined standard or expected level of output.

Ranking Method  is a performance appraisal method in which the rater ranks all employees from a group in order of overall performance.

Forced Distribution Method  The forced distribution method of performance appraisal requires the rater to assign individualsin a work group to a limited number of categories, similar to a normal frequency distribution. The purpose of forced distribution is to keep managers from being excessively lenient and having adisproportionate number of employees in the “superior” category.

Behaviorally Anchored Rating Scale Method  is a performance appraisal method that combines elements of the traditional rating scales and critical incident methods; various performancelevels are shown along a scale with each described in terms of an employee’s specificjob behavior.

Results-Based System  The manager and subordinate jointly agree on objectives for the next appraisal period in aresults-based system, in the past a form of management by objectives.

Problems in Performance Appraisal Appraiser DiscomfortLack of ObjectivityHalo/HornLeniency/StrictnessCentral TendencyRecent Behavior BiasPersonal Bias (Stereotyping)Manipulating the EvaluationEmployee Anxiety

Characteristics of an EffectiveAppraisal System  Job-Related Criteria  Performance Expectations  Standardization  Trained Appraisers  Continuous Open Communication  Conduct Performance Reviews

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