Basics of Human Resource Management Chapter 7: Appraising and Managing Performance



What is Performance Appraisal


The structure of performance appraisal is made up of three major components. Those components are identification, management, and measurement:

Identification
– Identification refers to the manager identifying what aspects of the job are going to be evaluated. To serve the appraisal it must focus on performance that impacts organizational success and not performance irrelevant characteristics.

Management
– This is the overarching goal of a performance appraisal. This requires a future oriented-view on what workers can do to meet their potential in the organization

Measurement – This could be considered the main focus of the performance appraisal. It includes making managerial decisions and judgements for the evaluation of the employee. This means that managers must examine their workers in order to help them with not only themselves but with the organization. (Gomez-Mejia, Balkin and Cardy 2016, 233.)

The entire reason for a performance appraisal is to evaluate an employee for their growth as a professional and for the companies benefit
What are the uses of Performance Appraisal?

The two main purposes of performance appraisals are developmental and administrative. Developmental is geared more toward advancing and improving the performance the employees. Administrative for a basis in a decision concerning that employee. For example, the decision a promotion of a worker.

There are a variety of uses for performance appraisals for operational and strategic purposes. If done proficiently these appraisals could potentially be the key to the growth of an employee, in addition to these evaluations they provide a basis for criteria that can be used for terminations, and show that they are legally justified. This also gives the company a strategic advantage. For example, assessing the courtesy can create a basis for evaluating customer service.

Employees generally want performance feedback and generally they want it frequently than just once a year. If official performance appraisals at the very least informal appraisal should be done by discussion with workers and feedback on a regular basis. (Gomez-Mejia, Balkin and Cardy 2016, 233.)

Identifying Performance Dimensions

The very first step in creating a performance appraisal is figuring out what is going to be evaluated. What is measured is directly connected to what the company is trying to achieve. The appraisal needs to add value to the company and not be done simply as an measurement exercise. Companies choose what they will be evaluating based on their strategic missions. This ensures all employees work together to reach an overall goal.

A popular approach has bas been a focus on competencies of an individual. The specific characteristic people bring with them to complete their job efficiently and successfully. The competencies evaluated are often referred to a as a competency model. (Gomez-Mejia, Balkin and Cardy 2016, 234.)

Measuring Performance

Measuring performance is typically done using numbers or labels. For example, if a employee work proficiency is lacking, their proficiency can be labeled as poor. However, there are difficulties in measuring performance. For example, creativity may be an important part of an advertiser job. This is difficult to measure and label. Should it be done by the number of adds posted a year, or perhaps their design? This is the difficulty that companies find in their evaluation process. (Gomez-Mejia, Balkin and Cardy 2016, 235.)

Measuring Tools – Relative and Absolute Judgments

Relative judgement the supervisor to compare multiple employees’ performance that are doing the same job. A rank structure is a good example of a relative approach. This relative approach can also be conducted in a group manner. (Gomez-Mejia, Balkin and Cardy 2016, 235.)

The relative rating has a specific advantage in that is enables the differentiation between two, or a group of workers. If this system was not in place a supervisor may be forced to rate everyone the same. This results in the destruction of an appraisal system.

Unfortunately, the relative judgement does present issues. One of those is that it forces managers to find differences among workers where none may even exist. The other issue is that it does not make clear how great or small the differences between the employees are. For example, relative ranking d not tell if the top rated worker is any better or worse than another team member

Absolute judgements offer a different approach. This approach asks the supervisor to make judgment about the employee’s performance based only on performance standards. Comparisons to other employees are not even performed.

Absolute are often preferred to relative judgements. However, the absolute training system does have its shortcomings.

One of those being that all worker can potentially receive the same evaluation if the supervisor is unwilling to differentiate between the employees.

However, the absolute system has one main advantage. They generally avoid conflict among the workers. Also, absolute system are generally easier to defend from a legal perspective. This may be the reason for the prevalence of absolute systems in the U.S.A. (Gomez-Mejia, Balkin and Cardy 2016, 236.)

 
Case Study: A Performance Appraisal Horror Story (With A Happy Ending)


After reading the article I began to think about my own experience within the U.S. Military. I shared a similar experience in one of my own evaluations.

I was under the understanding that I was excelling in my job performance. I could even prove it quantitively with my own public records for how much I was getting done at work. However, because of a superior’s personal issues with my attitude my evaluation was rather negative.

I contacted his superior and asked if we could all meet so that I may have a clear understanding of what my boss wanted from me. Was I to compete the mission assigned in writing? Or the new ones given to me by a superior who wasn’t even aware what occupational specialty required?

Both myself and the author thought we were doing outstanding work but because clear goals were not given by supervisor to employee in an honest and forthcoming way it created confusion between worker and manager.

Performance Management and KPIs

This article strongly relates to the previous article in terms of performance appraisals and setting clear goals for the employee from the employer. This prevents to a large extent any confusion of what is expected by organization from the employee.

A Key Performance Indicator (KPI) is a measurement that reflects how well an organization is meeting their mission and overall goal. It links action by the employees to the organization in a practical manner.

This was also used while in the U.S. military on an semi-annual and annual timeframe. By implementing a KPI we were more proficient in accomplishing our various day to day tasks to complete the mission.




After reading the article I began to think about my own experience within the U.S. Military. I shared a similar experience in one of my own evaluations.

I was under the understanding that I was excelling in my job performance. I could even prove it quantitively with my own public records for how much I was getting done at work. However, because of a superior’s personal issues with my attitude my evaluation was rather negative.

I contacted his superior and asked if we could all meet so that I may have a clear understanding of what my boss wanted from me. Was I to compete the mission assigned in writing? Or the new ones given to me by a superior who wasn’t even aware what occupational specialty required?

Both myself and the author thought we were doing outstanding work but because clear goals were not given by supervisor to employee in an honest and forthcoming way it created confusion between worker and manager.

Performance Management and KPIs

This article strongly relates to the previous article in terms of performance appraisals and setting clear goals for the employee from the employer. This prevents to a large extent any confusion of what is expected by organization from the employee.

A Key Performance Indicator (KPI) is a measurement that reflects how well an organization is meeting their mission and overall goal. It links action by the employees to the organization in a practical manner.

This was also used while in the U.S. military on an semi-annual and annual timeframe. By implementing a KPI we were more proficient in accomplishing our various day to day tasks to complete the mission.


After reading the article I began to think about my own experience within the U.S. Military. I shared a similar experience in one of my own evaluations.

I was under the understanding that I was excelling in my job performance. I could even prove it quantitively with my own public records for how much I was getting done at work. However, because of a superior’s personal issues with my attitude my evaluation was rather negative.

I contacted his superior and asked if we could all meet so that I may have a clear understanding of what my boss wanted from me. Was I to compete the mission assigned in writing? Or the new ones given to me by a superior who wasn’t even aware what occupational specialty required?

Both myself and the author thought we were doing outstanding work but because clear goals were not given by supervisor to employee in an honest and forthcoming way it created confusion between worker and manager.

Performance Management and KPIs

This article strongly relates to the previous article in terms of performance appraisals and setting clear goals for the employee from the employer. This prevents to a large extent any confusion of what is expected by organization from the employee.

A Key Performance Indicator (KPI) is a measurement that reflects how well an organization is meeting their mission and overall goal. It links action by the employees to the organization in a practical manner.

This was also used while in the U.S. military on an semi-annual and annual timeframe. By implementing a KPI we were more proficient in accomplishing our various day to day tasks to complete the mission.

References

Gomez-Mejia, L.R. Balkin, D.B. & Cardy, R.L. 2016. Managing Human Resources. Global 8th ed. Pearson. London.

Bumgarner, J. 2011. Cascade Employers Association. A Performance Appraisal Horror Story (With A Happy Ending) URL: https://www.cascadeemployersblog.com/salarytrends/a-performance-appraisal-horror-story-with-a-happy-ending Accessed: 23 September 2020.

Mindtools. Performance Management and KPIs. URL: https://www.mindtools.com/pages/article/newTMM_87.htm. Accessed: 23 September 2020.


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