1. Anh Dang Jan Ruecker James Choi Jarrett Robbins Sakshi Sachdev Shan Moin Group B1

2. What is Performance Appraisal  It is the process of obtaining, analyzing and recording information about the relative worth of an employee.  The focus of the P.A is measuring and improving the actual performance of the employee and also the future potential of the employee. 1

3. Approaches  Traditional P.A methods- quantitative tools to rate employees and are oriented to numerical or scalar ratings  Collaborative approach - management- by-objectives, work planning and review, 360°appraisals, peer review, etc.  Approaches that fall in between the traditional numerical approach and collaborative techniques 2

4. Benefits for the individual  Gaining a better understanding of their role  Understanding more clearly how and where they fit in within the wider picture  Improving understanding of their strengths and weaknesses and developmental needs  Identifying ways in which they can improve performance  Providing an opportunity to discuss and clarify developmental and training needs 3

5. Benefits to Managers/Team leaders Opportunities  to hear and exchange views and opinions away from the normal pressure of work  Identify any potential difficulties or weaknesses  An opportunity to- plan for and set objectives for the next period  Think about and clarify their own role  Plan for achieving improved performance  Motivate members of the team 4

6. Benefits to the organisation  A structured means of identifying and assessing potential  Up-to-date information regarding the expectations and aspirations of employees  Information on which to base decisions about promotions and motivation  An opportunity to review succession planning  Information about training needs which can act as a basis for developing training plans 5

7. Negative Aspects  The team’s target becomes secondary  Teamwork suffers from unfair appraisals  Energy will get lost  Cooperation becomes competition  The overall company’s vision does not play a significant role 6

8. Negative Aspects  Monetary reward is not the best motivator  More losers than winners  creates a negative atmosphere  Behaviour is according to the target  People could act like they are supposed to 7

9. Discrepancies with leadership theory “Leadership is the ability to unify participants behind common goals and maximise their potential for contribution.” (MBE Group B1) 8

10. Discrepancies with leadership theory 9

11. Leadership theories elements  Leadership grid (Psychological Theory)  Holding informal meetings (PT)  Developing the individual (Adair)  Building and maintaining a team (Adair)  Achieving the task (Adair)  Help, support & understand people (EFQM) 10

12. Deming  Evaluation of performance is a deadly disease  Point 8: Drive out fear  Point 9: Break Down the Barriers Between Departments  Point 10: Eliminate Slogans, Exhortations and Targets  Management should lead not supervise. Focus on the outcome must be abolished in favour of leadership 11

13. Means to combat barriers  Re-Design the appraisal process to minimise negative dynamics. 12

14. How  Uncouple performance appraisal from development appraisal  Define specific performance & behavioural objectives  Disconnect the appraisal process from rewards system.  Recognise individual differences  Communication  Develop relationships  Use of Self assessment in the formal appraisal process. 13

15. Conclusion  Performance Appraisal system has its place  Understanding its limitations to improve the system 14

16. References  Beer, M.,(1981) Performance appraisals dilemmas and possibilities, Organizational Dynamics, Winter 1981. AMACOM, a division of American Management Associations.  Nicolls, Dr., (2005), Notes on Performance appraisals, Warwick Manufacturing Group, People in Organisations, course notes, [Feb. 2010].  Warwick University MBE Homepage [2011]: http://www2.warwick.ac.uk/fac/sci/wmg/ftmsc/modules/ modulelist/le/ http://www2.warwick.ac.uk/fac/sci/wmg/ftmsc/modules/ modulelist/le/  Deming, W. E. (1986) Out of the crisis Cambridge, Mass: MIT  Murphy, T. & Margulies, J (2004). Performance Appraisals. ABA Labor and Employment Law Section Equal Employment Opportunity Committee.. 15