Lesson 7
Performance
Management &
Appraisal
AQIDAH AKHLAQ ADAB AMANAH AMALAN
Performance Appraisal Programs
• Performance Appraisal
A process, typically performed annually by a
supervisor for a subordinate, designed to help
employees understand their roles, objectives,
expectations, and performance success.
• Performance management
The process of creating a work environment in which
people can perform to the best of their abilities.
AQIDAH AKHLAQ ADAB AMANAH AMALAN
Main Purposes of Performance
Management
• Individual Rewards (Base and Incentive)
• Feedback for Sub-Ordinate (Plus and Minus)
• Recognition of Superior Performance
• Documentation of Weak Performance
• Personnel Decision-Making
• Future Goal Commitments (Planned
Achievements)
AQIDAH AKHLAQ ADAB AMANAH AMALAN
Managerial Issues Concerning Appraisals
1. There is little face-to-face discussion between the
manager and the employee being appraised.
2. The relationship between the employee’s job
description and the criteria on the appraisal form isn’t
clear.
3. The judgmental role of appraisal conflicts with the
helping role of developing employees.
4. Managers dislike the face-to-face confrontation of
appraisal interviews.
5. The appraisal is just a once-a-year event, and there is
little follow-up afterward.
AQIDAH AKHLAQ ADAB AMANAH AMALAN
Sources of Performance Appraisal
• Manager and/or Supervisor
Appraisal done by an employee’s manager and
reviewed by a manager one level higher.
• Self-Appraisal
Appraisal done by the employee being evaluated,
generally on an appraisal form completed by the
employee prior to the performance interview.
• Subordinate Appraisal
Appraisal of a superior by an employee, which is
more appropriate for developmental than for
administrative purposes.
AQIDAH AKHLAQ ADAB AMANAH AMALAN
Sources of Performance Appraisal
• Peer Appraisal
Appraisal by fellow employees, compiled into a
single profile for use in an interview conducted by
the employee’s manager.
• Team Appraisal
based on TQM concepts, that recognizes team
accomplishment rather than individual performance
• Customer Appraisal
A performance appraisal that, like team appraisal, is
based on TQM concepts and seeks evaluation from
both external and internal customers
AQIDAH AKHLAQ ADAB AMANAH AMALAN
The 360º Appraisal Feedback
Supervisor
Other Superiors Other Superiors
Individual
Peers Staff Customers
Self-Assessment
Teams Teams
Sub-Ordinates
AQIDAH AKHLAQ ADAB AMANAH AMALAN
Rater Errors
• Error of Central Tendency
A rating error in which all employees are rated about
average.
• Leniency or Strictness Error
A rating error in which the appraiser tends to give all
employees either unusually high or unusually low
ratings.
• Recency Error
A rating error in which appraisal is based largely on
an employee’s most recent behavior rather than on
behavior throughout the appraisal period.
AQIDAH AKHLAQ ADAB AMANAH AMALAN
• Contrast Error
A rating error in which an employee’s evaluation is
biased either upward or downward because of
comparison with another employee just previously
evaluated.
• Similar-to-Me Error
An error in which an appraiser inflates (change) the
evaluation of an employee because of a mutual
personal connection.
AQIDAH AKHLAQ ADAB AMANAH AMALAN
Rating Errors Example
Job Rating Scale
Halo EXCELLENT
on all factors
Job Rating Job Rating Job Rating
Job Rating Scale
Scale Scale Scale
Leniency Employee A
Employee B Employee C Employee D
EXCELLENT
EXCELLENT SUPERIOR EXCELLENT
Job Rating Job Rating Job Rating
Job Rating Scale
Central Scale Scale Scale
Employee A
Tendency AVERAGE
Employee B Employee C Employee D
AVERAGE AVERAGE AVERAGE
Job rating scale behavior
Recency
during the last month has
Bias been POOR.
AQIDAH AKHLAQ ADAB AMANAH AMALAN
Performance Appraisal Methods
• Graphic Rating-Scale Method
A trait approach to performance appraisal whereby each
employee is rated according to a scale of individual
characteristics.
• Mixed-Standard Scale Method
An approach to performance appraisal similar to other scale
methods but based on comparison with (better than, equal to, or
worse than) a standard.
• Behavior Observation Scale (BOS)
A performance appraisal that measures the frequency of
observed behavior (critical incidents).
AQIDAH AKHLAQ ADAB AMANAH AMALAN
Performance Appraisal Methods
• Forced-Choice Method
Requires the rater to choose from statements
designed to distinguish between successful and
unsuccessful performance.
1. ______ a) Works hard _____ b) Works quickly
2. ______ a) Shows initiative _____ b) Is responsive to
customers
3. ______ a) Produces poor quality _____ b) Lacks good work
habits
• Essay Method
Requires the rater to compose a statement describing
employee behavior.
AQIDAH AKHLAQ ADAB AMANAH AMALAN
Performance Appraisal Methods
• Critical Incident Method
The manager keeps a log or diary for each employee throughout
the appraisal period and notes specific critical incidents related
to how well they perform.
• Behavioral Checklist Method
The rater checks statements on a list that the rater believes are
characteristic of the employee’s performance or behavior.
• Behaviorally Anchored Rating Scale (BARS)
Consists of a series of vertical scales, one for each dimension of
job performance; typically developed by a committee that
includes both subordinates and managers.
AQIDAH AKHLAQ ADAB AMANAH AMALAN
BARS (Behaviorally Anchored Rating Scale
Characteristics of an Effective Appraisal
System
• Job Related Criteria
The criteria used for appraising employee performance
must be job related.
• Performance Expectation
Managers must clearly explain performance expectations to
their subordinates in advance of the appraisal period.
• Standardization
Employees in the same job category under the same
supervisor should be appraised using the same evaluation
instrument.
AQIDAH AKHLAQ ADAB AMANAH AMALAN
Characteristics of an Effective Appraisal
System
• Qualified Appraisers
Responsibility of evaluating employee performance should
be assigned to the individual, who directly observe of job
performance
• Open communication
Most employees have a strong need to know how well they
are performing.
A good appraisal system provides highly desired feedback
on a continuing basis.
AQIDAH AKHLAQ ADAB AMANAH AMALAN
Rater Errors: Training and Feedback
• Rating Error Training
Observe other managers making errors
Actively participate in discovering their own errors
Practice job-related tasks to reduce the errors they
tend to make
• Feedback Skills Training
Communicating effectively
Diagnosing the root causes of performance problems
Setting goals and objectives
AQIDAH AKHLAQ ADAB AMANAH AMALAN
Legal Guidelines for Appraisals
Performance ratings must be job-related.
Employees must be given a written copy of their job
standards in advance of appraisals.
Managers who conduct the appraisal must be able to
observe the behavior they are rating.
Supervisors must be trained to use the appraisal form
correctly.
Appraisals should be discussed openly with employees
and counseling or corrective guidance offered.
An appeals procedure should be established to enable
employees to express disagreement with the appraisal.
AQIDAH AKHLAQ ADAB AMANAH AMALAN
Appraisal Interview Guidelines
Invite Participation Ask for a Self-Assessment
Change Behavior Problem Solving Focus
Minimize Criticism Express Appreciation
Establish Goals Be Supportive
Follow Up Day by Day
AQIDAH AKHLAQ ADAB AMANAH AMALAN
Discussion
You have noticed that one of the Finance Officers who reports to you seems to have been late
regularly over the past few months. You have checked the records and found that this individual has
been over 10 minutes late on six occasions in the past three months, and on one of these occasions
was more than an hour late. This is beginning to present a problem as the finance department is not
'covered' first thing in the morning, which is always a busy time. On a couple of occasions you have
had a passing word with this employee about their lateness and received various excuses and a
promise that it wouldn’t happen again. The employee is a hard worker, who has worked for you for
three years and has an excellent disciplinary record. Because of this you had been reluctant to take
matters further until now, but you feel that it is time to address the issue in a more formal way.
Questions
1) Discuss about the issues in the case study above
2) Suggest FIVE (5) recommendation to solve the issues above.
3) How a proper performance appraisal determine to overcome employee’s performance issues?
AQIDAH AKHLAQ ADAB AMANAH AMALAN
AQIDAH AKHLAQ ADAB AMANAH AMALAN