What is Performance Management? Performance management includes the evaluation of individuals and teams so that necessary improvements shall be done in terms of work performance. The primary goal of performance management is to develop an effective Appraisal System. This system is important in employees’ self-development and productivity as well as its impact to the whole organization itself. Performance management, includes the evaluation of individuals and teams so that necessary improvements shall be done in terms of work performance. Performance Appraisal Definition 1. A performance appraisal is an evaluation of the performance of employees done systematically to be able to understand the abilities of each individual. It is done periodically and it assesses an individual employee’s job productivity in relation to pre-existing organizational objectives (Reddy 2009). It is generally conducted by line managers to their staff members in order to measure the pay of employees and compare it with targets and plans of the company. Furthermore, PA also aims to analyze the factors behind the work performances of the employees, and depending on the data gathered at the end of each performance appraisal, the employers would guide the employees accordingly to be able to further improve the latter’s performance. Objectives of Performance Appraisal 1. Performance appraisals aim to improve and make sure that the employee performance meets the pre-established standards of the particular job. It was concluded that the main factor that determines the effectiveness of a performance appraisal system is the positive reaction of employees towards it (Tziner and Kopelman, 2002). 2. To analyze other aspects of employees such as organizational behavior, strengths and weaknesses, accomplishments, and pontential for improvement. 3. To promote further growth and development of the employees which, in turn, will be beneficial to the company. Through conduction of performance appraisals, the development of the employees work performance is monitored and reinforced with measurement systems. Employee Performance Employee Performance is at the heart of every organization. It is a major concept since it denotes productivity and quality of work being rendered in connection to the objectives/goals/targets. It refers particularly to the outcomes that will be obtained from definite processes and services. This can be expressed in terms of financial and non-financial terms. Uses of Performance Appraisal Administrative Use – Performance Appraisal is use as a basis for promotions, demotions, transfers, rewards, and terminations. Developmental Use – PA is use to identify the areas of the employee that needs further training and development. Compensation – it is often use as a basis for the construction of rewards, benefits, or bonus. Improve Employee Performance – PA allows management to have tailored feedback for individual employees.

1. By: QuestWriting.com

2. What is Performance Management?
 Performance management includes the evaluation of
individuals and teams so that necessary improvements
shall be done in terms of work performance.
 The primary goal of performance management is to
develop an effective Appraisal System.
This system is important in employees’ self-development and
productivity as well as its impact to the whole organization itself.
 Performance management, includes the evaluation of
individuals and teams so that necessary improvements
shall be done in terms of work performance.

3. Performance Appraisal Definition
 A performance appraisal is an evaluation of the performance
of employees done systematically to be able to understand the
abilities of each individual. It is done periodically and it assesses
an individual employee’s job productivity in relation to pre-
existing organizational objectives (Reddy 2009).
 It is generally conducted by line managers to their staff members
in order to measure the pay of employees and compare it with
targets and plans of the company. Furthermore, PA also aims to
analyze the factors behind the work performances of the
employees, and depending on the data gathered at the end of
each performance appraisal, the employers would guide the
employees accordingly to be able to further improve the latter’s
performance (Managementstudyguide 2008-2012).

4. Objectives of Performance Appraisal
 Performance appraisals aim to improve and make sure that
the employee performance meets the pre-established
standards of the particular job. It was concluded that the
main factor that determines the effectiveness of a
performance appraisal system is the positive reaction of
employees towards it (Tziner and Kopelman, 2002).
 To analyze other aspects of employees such as
organizational behavior, strengths and weaknesses,
accomplishments, and pontential for improvement.
 To promote further growth and development of the
employees which, in turn, will be beneficial to the
company. Through conduction of performance appraisals,
the development of the employees work performance is
monitored and reinforced with measurement systems.

5. Employee Performance
 Employee Performance is at the heart of every
organization. It is a major concept since it denotes
productivity and quality of work being rendered in
connection to the objectives/goals/targets.
 It refers particularly to the outcomes that will be
obtained from definite processes and services. This can
be expressed in terms of financial and non-financial
terms.

6. Environmental Factors Affecting
Employee performance
Employee
Performance
Restrictive Policies
Type of supervision
and management
Physical
environment
including noise,
room temperature,
and work facilities
Work schedules

7. Uses of Performance Appraisal
1. Administrative Use – Performance Appraisal is use as a basis for
promotions, demotions, transfers, rewards, and terminations.
2. Developmental Use – PA is use to identify the areas of the employee
that needs further training and development.
3. Compensation – it is often use as a basis for the construction of
rewards, benefits, or bonus.
4. Improve Employee Performance – PA allows management to have
tailored feedback for individual employees. It allows them to
determine of improvement in their performance. It also reduces
grievances with the proper feedback.
5. It can serve as a database for records that may be used to protect the
employer from charges of bias or discrimination.
6. Career planning – PA provides a systematic and rational database for
the management.
7. Lastly, it motivates since it gives recognition to the capabilities of the
employees (Gurpreet 2007).

8. Importance of Performance
Appraisal (PA)
1. PA aids in administrative decision making. It helps in
determining how their employees are performing which
serves as basis for administrative decisions, firings, giving
payroll increase, promotions, types of training to be
given, etc.
2. Research have shown the positive and strong link
between performance appraisal and employee motivation
3. According to the related literatures, there’s a significant
link between maintaining employee motivation and
performance appraisal. This is another key why
companies have been trying to establish an effective
performance appraisal system.

9. 4. PA facilitates communication which aids in
minimizing employee uncertainty. It aids in
performance reinforcement and determining training
needs. It boosts the improvement of employees' trust
since issues which may distract them from are properly
communicated. These are crucial components of
organizational effectiveness and achieve strategic
initiatives (Meche 1999).

10. Process of Performance Appraisal
Setting
performance
standards
Communicating
standards set to
the employee
Measuring
performance
Comparing
performance
with standard
Discussing
result
Collective
action
Implementation
and review

11. 1. Setting Performance Standards - involves setting performance
standards that is equivalent and specific to the job description of
each employee.
2. Communicating Standards to the Employee - involves conveying the
standards previously set in the aforementioned process so that the
employee would know what is expected of him or her. This will set
the bar and would allot room for improvement as well.
3. Measuring Performance is then facilitated by the Human Resources
(HR) Department using methods that are convenient for the
company.
4. Comparing Performance with Standard involves analyzing if the
employee has satisfactorily met the standards that were previously
conveyed.
5. The HR then gives feedback to the employee focusing on the areas of
improvement.
6. In the process of Collective Action, employees are given the chance to
improve based on the feedback that was given by the HR
Department.

12. Performance Appraisal System
 It is subjective and greatly depends on organizational culture and system.
 It is patterned on the objectives/goals of the organization. These would be the basis in
developing preset standards as basis of evaluating employee performance. Performance
appraisal should therefore be a reflection of the organization’s goal.
 It is important for the management to properly communicate with the employees the
process and how their work performance affects the overall performance of the
organization.
 Performance Appraisal System should provide room for employee’s personal growth
(Boice and Kleiner, 1997).
 Training as well as frequency of appraisal are essential aspects of the PA system. This
would help employees keep track on their growth and improvement. It also assures
supervisors or managers of the outcome or the progress of the employees (Boice and
Kleiner, 1997).
 Another important aspect of the system are records. Records are significant to ensure an
effective appraisal system. These will serve as basis for analysis on the pattern of
employees’ behavior.
 Lastly, the most critical aspect of the appraisal system is its measurement or grading
system used as this is considered to be significant in rating the performance of the
employees (Boice and Kleiner, 1997).

13. What should be evaluated?
 Strategists have suggested that there are three primary options of
assessment which include behavior, traits and results (Gurpreet
2007).
 Behavior appraisal- behaviors can be directly observed and it
actually measures what an individual is doing at work.
 Traits - identify the physical and psychological characteristic of an
individual. There are evidences that suggest that particular human
traits serve valuable in jobs which require leadership and
management skills. Inquisitiveness, determination, general
cognitive abilities and conscientiousness have shown to be linked to
job performance (Berry, 2003).
 Results and Outcome - measures the goals that are achieved
throughout the work process. Management will be provided with
assessment of the goals that are achieved during the work period.
Strategists consider results as a very concrete measure of what has
happened in the organization.

14. Rating Techniques
 There are factors that distinguish rating technique and
these include the use of a rating scale, ease in
development of the technique, the type of information
to be yielded, and the purpose of the rating.
 Graphic Rating Scale (GRS)
 Behaviorally Anchored Rating Scale (BARS)
 Management by Objectives (MBO)
 Narrative Method

15. Graphic Rating Scale
 This is the most commonly used rating scale to assess
employee’s job performance.
 The scales show the performance level of the employee in a
continuum usually as excellent, good, average, fair and
poor (Berry 2003).
 GRS can be used for many different types of jobs and are
considered the kind of form that is “one all fits all” since it
requires minimal cost, minimal effort, and minimal
training too.
 On a negative side though, the problem with using a GRS
to measure performance is that ratings may not be that
accurate given its subjectivity.

16. Behaviorally Anchored Rating Scale (BARS)
 BARS are appraisals presented with a description also
along a continuum. This continuum involves
numerical scales from highest to lowest.
 It overcomes the problem of subjectivity since it
provides a description of the performance rather than
just indicating a word such as “excellent” or “fair”.
 BARS cannot be use on any job since it has to be
customized depending on what type of job
performance one is evaluating; therefore it clearly
takes a lot of time and expertise.

17. Reference/s:
 Broady-Preston, J. & Steel, L. (2002).Employees, customers, and internal marketing strategies in LIS.
Library Management, 23, 384-393.
 Jenks, J. M. (1991). Do your performance appraisals boost productivity? Management Review, 80(6),
45-47.
 Kikoski, J. F. (1999). Effective communication in the performance appraisal interview: Face-to-face
communication for public managers in the culturally diverse workplace. Public Personnel
Management,28(2), 301-322.
 Latham, G.P. &Wexley, K.N. (1977). Behavioural Observation Scales For Performance Appraisal
Purposes. Personnel Psychology, 30, 255-268
 Manasa, K. & Reddy, N. (2009).Role of Training in Improving Performance. The IUP Journal of Soft
Skills, 3, 72-80.
 Muchinsky, P. M. (2006).Psychology applied to work (8th ed.). Belmont, CA: Thomson Wadsworth.
 Schraeder, M. Becton, J., &Portis, R. (2007, Spring). A critical examination of performance appraisals.
The Journal for Quality and Participation, 20-25.
 Spinks, N., Wells, B., &Meche, M. (1999). Appraising appraisals: computerized performance appraisal
systems. Career Development International, 4(2), 94-100.
 Twomey, D. & Harris, D. (2000). From strategy to corporate outcomes: Aligning human resource
management systems with entrepreneurial intent. International Journal of Commerce and
Management, 10, 43-55.
 Tziner, A. &Kopelman, R.E. (2002). Is there a Preferred Performance Rating Format? A Non-
psychometric Perspective. Applied Psychology: An International Review, 51 (3), 479-503

18. About the author:
 Quest Writing is committed to providing high school,
college, university and master’s level students with
professional writing assistance at a very low price. Our
comprehensive services focus on superior quality,
creativity, originality, accuracy and timely delivery to satisfy
our customers.
 For more writing tips and resources, please visit our
website: http://questwriting.com/
Facebook: https://www.facebook.com/QUESTWriting
Slideshare: http://www.slideshare.net/QuestWriting
Official Blog:
https://qualityessaysandtechnicalwriting.wordpress.com/