Performance appraisal
Encyclopedia
A performance appraisal, employee appraisal, performance review, or (career) development discussion is a method by which the job performance
of an employee is evaluated
(generally in terms of quality, quantity, cost, and time
) typically by the corresponding manager
or supervisor
. A performance appraisal is a part of guiding and managing career development
. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization.
Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgement of an employee's performance in a job based on considerations other than productivity
alone.
rating system whereby managers are asked to score an individual against a number of objectives/attributes. In some companies, employees receive assessments from their manager
, peers, subordinates, and customer
s, while also performing a self assessment This is known as a 360-degree appraisal
and forms good communication patterns.
The most popular methods used in the performance appraisal process include the following:
Trait
-based systems, which rely on factors such as integrity
and conscientiousness
, are also used by businesses but have been replaced primarily by more objective and results-oriented methods. The scientific literature on the subject provides evidence that assessing employees on factors such as these should be avoided. The reasons for this are twofold:
1) Trait-based systems are by definition based on personality traits and as such may not be related directly to successful job performance. In addition, personality dimension
s tend to be static
, and while an employee can change a behavior
they cannot change their personality
. For example, a person who lacks integrity may stop lying to a manager because they have been caught, but they still have low integrity and are likely to lie again when the threat of being caught is gone.
2) Trait-based systems, because they are vague, are more easily influenced by office politics
, causing them to be less reliable as a source of information on an employee's true performance. The vagueness of these instruments allows managers to assess the employee based upon subjective feelings instead of objective observations about how the employee has performed his or her specific duties. These systems are also more likely to leave a company open to discrimination
claims because a manager can make bias
ed decisions without having to back them up with specific behavioral information.
Job performance
Job performance is a commonly used, yet poorly defined concept in industrial and organizational psychology, the branch of psychology that deals with the workplace. It's also part of Human Resources Management. It most commonly refers to whether a person performs their job well...
of an employee is evaluated
Evaluation
Evaluation is systematic determination of merit, worth, and significance of something or someone using criteria against a set of standards.Evaluation often is used to characterize and appraise subjects of interest in a wide range of human enterprises, including the arts, criminal justice,...
(generally in terms of quality, quantity, cost, and time
Project triangle
The Project Triangle in engineering is a triangle model of project. It is a graphic aid where the three attributes show on the corners of the triangle to show opposition. It is useful to help with intentionally choosing project biases, or analyzing the goals of your project...
) typically by the corresponding manager
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
or supervisor
Supervisor
A supervisor, foreperson, team leader, overseer, cell coach, facilitator, or area coordinator is a manager in a position of trust in business...
. A performance appraisal is a part of guiding and managing career development
Career development
In organizational development , the study of career development looks at:*how individuals manage their careers within and between organizations and,...
. It is the process of obtaining, analyzing, and recording information about the relative worth of an employee to the organization.
Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgement of an employee's performance in a job based on considerations other than productivity
Productivity
Productivity is a measure of the efficiency of production. Productivity is a ratio of what is produced to what is required to produce it. Usually this ratio is in the form of an average, expressing the total output divided by the total input...
alone.
Aims
Generally, the aims of a performance appraisal are to:- Give employees feedback on performance
- Identify employee trainingTrainingThe term training refers to the acquisition of knowledge, skills, and competencies as a result of the teaching of vocational or practical skills and knowledge that relate to specific useful competencies. It forms the core of apprenticeships and provides the backbone of content at institutes of...
needs - DocumentDocumentThe term document has multiple meanings in ordinary language and in scholarship. WordNet 3.1. lists four meanings :* document, written document, papers...
criteria used to allocate organizational rewardsBounty (reward)A bounty is a payment or reward often offered by a group as an incentive for the accomplishment of a task by someone usually not associated with the group. Bounties are most commonly issued for the capture or retrieval of a person or object. They are typically in the form of money... - Form a basis for personnel decisions: salarySalaryA salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract. It is contrasted with piece wages, where each job, hour or other unit is paid separately, rather than on a periodic basis....
increases, promotionPromotion (rank)A promotion is the advancement of an employee's rank or position in an organizational hierarchy system. Promotion may be an employee's reward for good performance i.e. positive appraisal...
s, disciplinary actionsDisciplineIn its original sense, discipline is referred to systematic instruction given to disciples to train them as students in a craft or trade, or to follow a particular code of conduct or "order". Often, the phrase "to discipline" carries a negative connotation. This is because enforcement of order –...
, bonuses, etc. - Provide the opportunity for organizational diagnosis and development
- Facilitate communication between employee and employer
- Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.
- To improve performance through counseling, coaching and development.
Methods
A common approach to assessing performance is to use a numerical or scalarScalar (mathematics)
In linear algebra, real numbers are called scalars and relate to vectors in a vector space through the operation of scalar multiplication, in which a vector can be multiplied by a number to produce another vector....
rating system whereby managers are asked to score an individual against a number of objectives/attributes. In some companies, employees receive assessments from their manager
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
, peers, subordinates, and customer
Customer
A customer is usually used to refer to a current or potential buyer or user of the products of an individual or organization, called the supplier, seller, or vendor. This is typically through purchasing or renting goods or services...
s, while also performing a self assessment This is known as a 360-degree appraisal
360-degree feedback
In human resources or industrial/organizational psychology, 360-degree feedback, also known as multi-rater feedback, multisource feedback, or multisource assessment, is feedback that comes from all around an employee. "360" refers to the 360 degrees in a circle, with an individual figuratively in...
and forms good communication patterns.
The most popular methods used in the performance appraisal process include the following:
- Management by objectivesManagement by objectivesManagement by Objectives is a process of defining objectives within an organization so that management and employees agree to the objectives and understand what they need to do in the organization....
- 360-degree appraisal360-degree feedbackIn human resources or industrial/organizational psychology, 360-degree feedback, also known as multi-rater feedback, multisource feedback, or multisource assessment, is feedback that comes from all around an employee. "360" refers to the 360 degrees in a circle, with an individual figuratively in...
- Behavioral observation scale
- Behaviorally anchored rating scalesBehaviorally anchored rating scalesBehaviorally anchored rating scales are scales used to rate performance. BARS are normally presented vertically with scale points ranging from five to nine...
Trait
Trait
Trait may refer to:* Trait, a characteristic or property of some object* Trait , which involve genes and characteristics of organisms* Trait theory, an approach to the psychological study of personality...
-based systems, which rely on factors such as integrity
Integrity
Integrity is a concept of consistency of actions, values, methods, measures, principles, expectations, and outcomes. In ethics, integrity is regarded as the honesty and truthfulness or accuracy of one's actions...
and conscientiousness
Conscientiousness
Conscientiousness is the trait of being painstaking and careful, or the quality of acting according to the dictates of one's conscience. It includes such elements as self-discipline, carefulness, thoroughness, organization, deliberation , and need for achievement. It is an aspect of what has...
, are also used by businesses but have been replaced primarily by more objective and results-oriented methods. The scientific literature on the subject provides evidence that assessing employees on factors such as these should be avoided. The reasons for this are twofold:
1) Trait-based systems are by definition based on personality traits and as such may not be related directly to successful job performance. In addition, personality dimension
Dimension
In physics and mathematics, the dimension of a space or object is informally defined as the minimum number of coordinates needed to specify any point within it. Thus a line has a dimension of one because only one coordinate is needed to specify a point on it...
s tend to be static
Static
Static has several meanings:* Static electricity, a net charge of an object** The triboelectric effect, e.g. from shoes rubbing carpet* White noise, a random signal with a flat power spectral density** Noise , a type of radio interference...
, and while an employee can change a behavior
Behavior
Behavior or behaviour refers to the actions and mannerisms made by organisms, systems, or artificial entities in conjunction with its environment, which includes the other systems or organisms around as well as the physical environment...
they cannot change their personality
Personality psychology
Personality psychology is a branch of psychology that studies personality and individual differences. Its areas of focus include:* Constructing a coherent picture of the individual and his or her major psychological processes...
. For example, a person who lacks integrity may stop lying to a manager because they have been caught, but they still have low integrity and are likely to lie again when the threat of being caught is gone.
2) Trait-based systems, because they are vague, are more easily influenced by office politics
Office politics
Workplace politics, sometimes referred to as Office politics is "the use of one's individual or assigned power within an employing organization for the purpose of obtaining advantages beyond one's legitimate authority...
, causing them to be less reliable as a source of information on an employee's true performance. The vagueness of these instruments allows managers to assess the employee based upon subjective feelings instead of objective observations about how the employee has performed his or her specific duties. These systems are also more likely to leave a company open to discrimination
Discrimination
Discrimination is the prejudicial treatment of an individual based on their membership in a certain group or category. It involves the actual behaviors towards groups such as excluding or restricting members of one group from opportunities that are available to another group. The term began to be...
claims because a manager can make bias
Bias
Bias is an inclination to present or hold a partial perspective at the expense of alternatives. Bias can come in many forms.-In judgement and decision making:...
ed decisions without having to back them up with specific behavioral information.
Sources
- 1998, Archer North & Associatiates, Introduction to Performance Appraisal, http://www.performance-appraisal.com/intro.htm
- U.S. Department of the Interior, Performance Appraisal Handbook
External links
- Negotiated Approach to Performance Appraisal, University of California