Overview of Performance Appraisal
Performance appraisal and review by definition is the formal, systematic assessment of how well employees are performing their jobs in relation to established standards and the communication of that assessment to the employee. This paper will look into history, the purpose, the methods of preparing, and the techniques for conducting performance appraisal sessions. The history of the appraisal goes back to the beginning of time. ... The appraisal of motions was started by Frederick Taylor and later refined by Lillian and Frank Gilbreth. These pioneers in appraisal started with the time and motion study. ... Now we apply this basic principle to evaluating people by way of the performance appraisal. ... If an employee’s performance was good, a raise or bonus could be in order. On the other hand if the performance was not up to standard, a demotion, a pay cut, a smaller or no bonus at all could be on the employee’s horizon. At this point the link between performance appraisal and training and development was given virtually little consideration. It wasn’t until the 1950’s that the usefulness of using performance appraisals to identify training and development needs became apparent. Today, the general purpose of performance appraisal is to improve quality and productivity for the company by way of better employees. This broad purpose gives way to more specific uses of the appraisal system. A survey conducted of over 320 companies in Southern California in 1988 indicated 13 areas that the performance appraisal was used for by their organizations. These uses include compensation, performance improvement, feedback, documentation, promotion, training and transfer. ... There are several methods in appraising an employee’s performance. ... One method used in performance appraisal is the rating scale. ... This effect is where the appraiser uses one dominant trait, negative (horn) or positive (halo), on which to base the appraisal. After all, superior or poor performance in one area does not necessarily indicate that same level of performance in another area. Another method of appraising performance is the essay method. ... The appraisal also includes suggested courses of correction and time periods in which to correct any deficiencies. It is recommended that the appraisal include the consequences of continued performance, good or bad, with reference to rewards or penalties. ... A results method called Management by Objectives is an appraisal based not only on past performance but also on the results achieved on goals and objectives previously set.