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Laura Domagala

on 9 October 2014

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Halo Effect
Recency Effect
Horns Effect
What is performance Appraisal?
The employee performance appraisal is a sensitive and important part of the management process, requiring much skill.
Performance appraisals are used to determine how well employees are performing their job. Therefore, appraisals measure actual behavior and not intent.
When accurate and appropriate appraisal assessments are performed, outcomes can be very positive.
Because of past experiences,performance appraisal interviews are highly charges, emotional events for most employees.
Factors influencing effective performace appraisal
A performance appraisal wastes time if it is merely an excuse to satisfy regulations and the goal is not employee growth.

Developing standards of Performance Appraisal
Employees should have some input into developing the standards or goals on which their performance is judged.

If employees believe the appraisal is based on their job description rather than on whether the manager approves of them, they are more likely to view the appraisal as relevant.

Coaching as part of the performance appraisal process
Management By Objectives
Types of Performance Appraisals in details - Trait Rating Scale
Effective Performace Appraisals (Cont.)
Effective Performance Apppraisals
Appraisal should be based on a standard
The appraisal tool must adequately and accurately assesses job performance.
Employee should have input into development of standard
Employee must know the standard in advance
Employee must know the sources of data gathered for the appraisal
Appraiser should be someone who has observed the employee's work
Appraiser should be someone who the employee trusts and respects

Occurs when the appraiser lets one or two positive aspects of the assessment or behavior of the employee unduly influence all other aspects of the employee's performance.

Supervisor's rating of a subordinate based on one single factor biases the rating of that same individual based on other factors (Boachie-Mensah and Seidu 2012)

Attractive people are perceived to more likeable, friendly, intelligent, successful and competent than their non-attractive counterparts (James 2000)

Employees with visible body decorations including tattoos and piercings experience more bias during performance appraisal than other employees. Perceived as unintelligent, untrustworthy and unprofessional- negatively impacting their performance appraisal (Dean 2010; Sarlak 2012)
Occurs when recent issues are weighted more heavily than past performance.

Occurs when an employee’s most recent events have a greater influence on the performance appraisal than overall performance (Boachie-Mensah and Seidu 2012)

One single unfavourable recent event has a negative impact on Performance Appraisal even if overall performance was very favourable (Cintrón and Flaniken 2011)

Very misleading as employees tend to work extremely hard leading up to a Performance Appraisal (Boachie-Mensah and Seidu 2012)
When the appraiser allows some negative aspects of the employee's performance to influnece the assessment to such an extent that other levels of job performance are not accurately recorded.

A method of rating a person against a set standard, which may be the job description, desired behaviors, or personal traits
Probably the most widely used of the many available appraisal methods

Employees must know in advance what happens if standards are not met

Employees must know how information will be obtained to determine performance level

Appraisers should be those who directly supervise the employee

The employee’s past experience with performance appraisals (negative or positive) will affect the outcome
Strategies to ensure performance appraisal accuracy
Develop self - awareness own biases and prejudices
Use appropriate consultation
Gather data adequately over time
Keep accurate anecdotal records for the length of the appraisal period.
Collect positive data and identify areas where improvement is needed.
Include employee's own appraisal of his or her performance
Guard against the halo effect, horns effect, central tendency trap, Matthew effect.
Types of Performance Appraisal Tools
Trait ratig scales:
rates an individual agains some standard
Job dimension scales:
rates the performance on job requirements
Behaviorally anchored rating scales:
rates desired job expectations on a scale of importance to the position.
rates the performance agains a set list of desirable job behaviors.
a narrative appraisal of job performance
An appraisal of performance by the employee.
Management by objectives
: employee and management agree upon goals of performance to be reached.
Peer review:
assessment of work performance carried out by peers.

Pitfalls of Performance Appraisals

Subjectivity as a factor

Tendency to be lenient

Inadequate record keeping

"Recency effect"

Planning the Appraisal Interview
Feedback, perhaps the greatest tool a manager has for changing behavior, must be given in an appropriate manner

Indirectness and ambiguity are more likely to inhibit communication than enhance it, and the employee is left unsure about the significance of the message

Strategies for becoming an effective Coach
Be specific, not general in describing behavior that needs improvement

Be descriptive, not evaluative when describing what was wrong with the performance

Be certain that the feedback is not self-serving but meets the needs of the employee

Direct the feedback toward behavior that can be changed

Use sensitivity in timing the feedback and make sure employee understand feedback

Other common pitfalls of Performance Appraisals
The performance appraisal is more likely to have a positive outcome if the appraiser is viewed with trust and professional respect

Avoid surprises in the appraisal conference

The effective leader coaches and communicates informally with staff on a continual basis, so there should be little new information at an appraisal conference

They must be based upon a standard that all employees are held accountable to, and this standard must be communicated at the time of hire - Job Description
Types of Performance Appraisals in details - Positive Feedback
Some employees look on their annual performance review as an opportunity to receive positive feedback from their supervisor, especially if the employee receives infrequent praise on a day-to-day basis

Indirectness and ambiguity are more likely to inhibit communication than enhance it, and the employee is left unsure about the significance of the message

Types of Performance Appraisals in details
The 360-degree evaluation includes an assessment by all individuals within the sphere of influence of the individual being appraised

360 Degree Evaluation
Peer Review
is the evaluation of work by one or more people of similar competence to the producers of the work (peers). It constitutes a form of self-regulation by qualified members of a profession within the relevant field. Peer review methods are employed to maintain standards of quality, improve performance, and provide credibility.
The employee and supervisor meet and agree on the principal duties and responsibilities of the employee’s job

The employee sets short-term goals and target dates in cooperation with the supervisor or manager

Both parties agree on the criteria that will be used for measuring and evaluating the accomplishment of goals

It has been proved to increase productivity and commitment in employees

The employee and supervisor meet regularly to discuss progress

The manager’s role is supportive, assisting the employee to reach goals by coaching and counseling

During the appraisal process, the manager determines whether the employee has met the goals

The entire process focuses on outcomes and results, and not on personal traits

The effective manager and astute leader are aware that day-to-day feedback regarding performance is one of the best methods for improving work performance and building a team approach

Day - to - Day Feedback
Day-to-day feedback regarding performance is one of the best methods for improving work performance and building a team approach
Clinical Coaching
In reflective practice or clinical coaching, the manager or mentor meets with an employee regularly to discuss aspects of his or her work

Both individuals determine the agenda jointly, with the goal of an environment of learning that can span the personal and professional aspects of the employee’s experience
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