Performance Management is regarded as a unified system that includes work planning, organization design, assessments and feedbacks which are designed to optimize performance of an individual, the unit and organizational levels and the entire team in order to inspire and develop staff.
Recognition and award systems form part of this program and offers non-monetary and monetary awards in recognition of outstanding performance and other worthwhile attainments.
Why Performance Appraisal is Important?
• This offers a good opportunity to review an individual’s career plans in order to discover her/his displayed strengths and weaknesses.
• Appraisal offers data upon which salary and promotion decision can be formulated.
• This offers an opportunity for a manager as well as her/his subordinates to tackle and review the subordinate’s work-related behavior and then come up with a plan for a corrective action.
The Performance Management Cycle
• Planning
o What must be accomplished?
o To what standard?
o What competencies are required?
o What development is required?
• Progress Review
o How am I doing?
o Can I execute better?
o Does anything need to alter?
• Evaluation
o How did I perform?
o How can I perform better?
o What have I learned?
o Defining the performance standards. This means ensuring that you and your subordinate settle on his/her targets and duties that you expect.
o Appraising performance. This refers to comparing your subordinate’s actual performance to the targets/standard that are set in step one.
o Offering feedback. This pertains to discussing plans for any development that is deemed necessary.
The Issues in Performance Appraisal
The Typical Performance Evaluation Problems include the following:
• Negative communication
• Poor feedback to employee
• Subjective or irrelevant standards
• Poor measures of performance
• Lack of standards
• Failure to apply evaluation data
Bias in the Appraisal Process
• Central tendency. This is the tendency used to rate all workers the same manner like rating them all average.
• Halo effect. This takes place when a supervisor’s rating of subordinates on one attribute biases the rating of that person on other attributes.
• Bias. This is the tendency to enable individual differences such as race; age and sec influence the appraisal rates which these workers receive.
• Leniency. The issue that takes place when a supervisory has a tendency to rate all subordinates either low or high.
The Two Main Categories in Performance Appraisal Element
• Competencies. This represents qualitative or soft aspects of process or performance.
• Performance Result: this represents quantitative or hard aspects of performance particularly the result.
Competencies Score and Performance Result Score = Overall Score – this will aid identify the worker’s career movement and the reward to be earned.
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