The document discusses performance management and appraisals, outlining their purposes, processes, and key elements. It notes that appraisals should provide information for promotion and salary decisions, as well as opportunities for managers and subordinates to review work and develop improvement plans. The document also identifies common problems that can occur in appraisal processes, such as bias, lack of clear standards, and poor feedback, and provides examples of competency and performance result elements that should be evaluated.

1. 1
Employee
Performance Management

2. 2
Why Performance Appraisal?Why Performance Appraisal?
• Appraisal provide information upon which promotion and
salary decision can be made.
• Appraisal provide an opportunity for a manager and
his/her subordinates to sit down and review the
subordinate’s work-related behavior, and then develop a
plan for corrective action.
• Appraisal provide a good opportunity to review the
person’s career plans in light of his/her exhibited
strengths and weaknesses.

3. 3
Performance Management CyclePerformance Management Cycle
Performance
Planning
(Setting
Performance
Targets)
Regular
Review and
Monitoring
Feed backFeed back
CorrectiveCorrective
ActionAction
Performance
Appraisal and
Evaluation
• Training &
Development
Plan
• Salary/Bonus
Adjustment
• Career
Development

4. 4
Performance Management CyclePerformance Management Cycle
DefiningDefining
PerformancePerformance
Standard/Standard/
TargetsTargets
AppraisingAppraising
PerformancePerformance
ProvidingProviding
Feedback forFeedback for
DevelopmentDevelopment
1.1. Defining the performanceDefining the performance standards
means making sure that you and your
subordinate agree on his/her duties and
targets that you expect
2.2. Appraising performanceAppraising performance means
comparing your subordinate’s actual
performance to the standard/targets set
in step one.
3.3. Providing feedbackProviding feedback means discussing
plans for any development that is
required.

5. 5
Problems in Performance AppraisalProblems in Performance Appraisal
Lack ofLack of
standardsstandards
Irrelevant orIrrelevant or
subjectivesubjective
standardsstandards
PoorPoor
measures ofmeasures of
performanceperformance
PoorPoor
feedback tofeedback to
employeeemployee
NegativeNegative
communicationcommunication
Failure toFailure to
applyapply
evaluationevaluation
datadata
Common Performance Evaluation ProblemsCommon Performance Evaluation Problems

6. 6
Bias in the Appraisal ProcessBias in the Appraisal Process
HaloHalo
EffectEffect
The "halo" effect occurs when a supervisor’s
rating of a subordinates on one trait biases the
rating of that person on other traits
CentralCentral
TendencyTendency
A tendency to rate all employees the same
way, such as rating them all average

7. 7
LeniencyLeniency
The problem that occurs when a supervisory
has a tendency to rate all subordinates either
high or low
BiasBias
The tendency to allow individual differences
such as age, race, and sec affect the appraisal
rates these employees receives.
Bias in the Appraisal ProcessBias in the Appraisal Process

8. 8
Performance
appraisal
elements
has two main
categories: 2. Performance Result:
Hard or quantitative aspects
of performance (result)
1. Competencies: It
represents soft or qualitative
aspects of performance
(process)
Performance Appraisal ElementPerformance Appraisal Element

9. 9
1.1. Competencies ScoreCompetencies Score
2. Performance Result2. Performance Result
ScoreScore
Overall ScoreOverall Score
Will determine the employee’s
career movement, and also
the reward to be earned
Performance Appraisal ElementPerformance Appraisal Element

10. 10
Element # 1 : CompetenciesElement # 1 : Competencies
Basic Intermediate Advanced Expert
Actively listens, and clarifies
understanding where required, in
order to learn from others.
Actively listens, and clarifies
understanding where required, in
order to learn from others.
Actively listens, and clarifies
understanding where required, in
order to learn from others.
Actively listens, and clarifies understanding
where required, in order to learn from others.
Empathise with audience and
formulates messages accordingly.
Empathise with audience and
formulates messages accordingly.
Empathise with audience and
formulates messages accordingly.
Empathise with audience and formulates
messages accordingly.
Shares resources and information. Shares resources and information. Shares resources and information. Shares resources and information.
Responds promptly to other team
members’ needs.
Balances complementary strengths
in teams and seeks diverse
contributions and perspectives.
Actively builds internal and external
networks.
Builds internal and external networks and uses
them to efficiently to create value.
Involves teams in decisions that
effect them.
Uses cross functional teams to draw
upon skills and knowledge
throughout the organization.
Uses cross functional teams to draw upon
skills and knowledge throughout the
organization.
Encourages co-operation rather than
competition within the team and with
key stakeholders.
Builds and maintains relationships
across The company.
Drives and leads key relationship groups
across The company.
Manages alliance relationships through
complex issues such as points of competing
interest.
Ensures events and systems, eg IT, for
collaboration are in place and used.
Draws upon the full range of relationships
(internal, external, cross The company) at
critical points in marketing and negotiations.
Competency : CollaborationCompetency : Collaboration

11. 11
No. Main Performance Target Target to be
Achieved
1 Conduct an assessment of the All employees submit their performance assessment form
employee's performance on time
2 Improve the system for Target : completed 100 %
performance assessment in November 2008
3 Conduct training activities Target : to conduct 6 training modules
in one year
4 Carry out on the job training Target : 90 % of the total employees
activities who attend the training
experience an increase
in skill and knowledge
Element # 2 : Performance ResultsElement # 2 : Performance Results
Target should be measurable andTarget should be measurable and
specificspecific