IB Business Management Unit 2.1 Appraisals
Learning Outcomes The methods of appraisal: Formative Summative 360-degree feedback Self-appraisal (AO2) How innovation, ethical considerations and cultural differences may influence appraisal practices in an organisation (AO3)
What is an Appraisal? An Appraisal is a method of assessing an employee’s performance. Usually carried out in annual cycles Often carried out by line managers for their subordinates Can also be referred to as Performance Management
The Appraisal Process What is the key purpose of Employee Performance Appraisals?
Purposes of Appraisals Source: www.naukrihub.com
Methods of Appraisal Formative Summative 360º feedback Self Appraisal What do you think is meant by each of these methods?
Formative Appraisal Goal: to monitor employee performance and to provide ongoing feedback that can be used by employees in order to improve. Formative Appraisals: help employees to identify their strengths and weaknesses and target areas that need work help employers recognize where there are training needs Formative appraisals are generally low stakes and supportive
Summative Appraisal Goal: to evaluate employee performance at the end of an appraisal cycle by comparing it against some standard or benchmark. Summative Appraisals: Used to inform decisions regarding progression and pay rises Summative assessments are often high stakes, with rewards or sanctions based on the results
Self Appraisals Employees evaluate their their own performance What is the benefit to this? What might the problems be?
360º Feedback What is the benefit of 360 degree feedback? Which of these methods do you think would be most/least effective? Could there be any potential problems?
What are the Benefits of having an Appraisal System?
The benefit of a business having an appraisal system? Target setting and monitoring can improve performance Can help to make sure that the right decisions are made regarding employees Opportunity for employees to be recognised and praised Areas for improvement can be recognised What do you think would happen to an employee who had a bad appraisal?
Implications of a Bad Appraisal No pay rise Issue an advisory letter Offer support Monitor Performance Dismissal (eventually) What difficulty might there be with conducting appraisals in a fair and consistent way?
Task Watch the appraisal video Appraisal “Spot the gaffes” Questions: What are the potential problems it is aiming to identify with Appraisal Systems Can you think of any other problems? Can any of these problems be minimised?
Key Question If a business wants to make sure that it’s appraisal system is effective, what should it make sure it does
Appraisals and the key concepts.... How might the following factors and influence appraisal practices in an organisation? Innovation ethical considerations cultural differences