Performance Appraisal Prepared by Supervised by Areej Ahmed Al-Hobi Safaa S.Y. Dalloul E-Business | Level II

Elements of Lecture Performance Appraisal Definition Performance Appraisal Management Uses of Performance Appraisal

Performance appraisal It is a formal system of review and evaluation of individual or team task performance. The focus of performance appraisal in most firms remains on the individual employee. An effective appraisal system evaluates accomplishments and initiates plans for development, goals, and objectives

Performance Appraisal Management management system is consisting of all organization processes that determine how well employees, teams, and ultimately, the organization perform. PAM includes: HR planning, Employee recruitment and selection, T&D, career planning and development and compensation. An organization must have some means of assessing the level of individual and team performance in order to make appropriate development plans.

Appraiser Discomfort Conducting performance appraisals is often a frustrating human resource management task. If a performance appraisal system has a faulty design, the employees will dread receiving appraisals and the managers will despise giving them.

Uses of Performance Appraisal For many organizations, the primary goal of an appraisal system is to improve individual and organizational performance. Performance Appraisal data are potentially for virtually every human resource functional areas:

HR Planning Recruitment and Selection Training and Development Career Planning and Development Compensation Programs Internal Employee Relations Assessment of Employee Potential

HR planning Data that describe the promo ability and potential of all employees, especially key executives must be available in order to assess the firm's human resources. Management succession planning is a key concern for all firms. All-designed appraisal system provides a profile of the organization's human resource strengths and weaknesses to support this effort.

Recruitment and selection Performance evaluation rating may be helpful in predicting the performance of job applicants. Training and development: A performance appraisal should point out an employee's specific needs for training and development. Determining T&D needs is more precise when appraisal data are available.

Career planning and development Performance appraisal data are essential in assessing an employee’s strengths and weaknesses and in deterring the person’s potential.

Compensation Programs Performance appraisal result provide a basis for rational decisions regarding pay adjustment. Rewarding the behaviors is necessary for accomplishing organizational objectives which is at the heart of a firm’s strategic plan. To encourage good performance, a firm should design and implement a reliable performance appraisal system and then reward the most productive workers and teams accordingly.

Internal Employee Relations Performance appraisal data are frequently used for decisions in several areas of internal employee relations, including promotion, demotion, termination, layoff and transfer. When performance level is in unacceptable, demotion or even termination, it may be appropriate.

Assessment of Employee Potential Some organizations attempts to assess employee potential as they appraise their job performance.

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