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Factors influencing management, motivation and performance of the workforce

D4 Performance Appraisal

Purpose of performance appraisal

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D4 - Key topics

Performance Appraisal

Impact of Performance Appraisal

Types of AppraisalSAMPLE POWERPOINT

Performance appraisals

Performance appraisals form an essential part of performance management as they provide vital information for the assessment of employee skills, knowledge, ability and overall job performance

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A performance appraisal is a management tool used to

monitor, review and evaluate staff performance against a set

of targets aligned with the business objectives

Performance appraisals

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Performance appraisal – key points (1)

• Two way discussion between the manager/supervisor (appraiser) and the employee (appraisee)

• Provides feedback to an employee on their performance and overall contribution

• Recognises achievement and strengths• Identifies development needs and

opportunities for improvement

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Performance appraisal – key points (2)

• Basis for changing behaviour and to tackle productivity issues to improve the effectiveness of the workforce

• Helps inform salary and bonus reviews• Conducted at any given time; tends to be on

an annual, semi-annual or quarterly basis• Performance appraisals are documented for

future reference, providing an opportunity to review

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Performance appraisal overview

To set individual

and groups targets

To assess individual and group

performance

To provide employee feedback

To identify training needs

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Purpose of performance appraisal Setting targets

• A performance appraisal will involve the setting of targets for an individual or team

• Targets aligned to business needs and objectives• Target setting will involve a review of an

individual or teams past performance compared with future goals

• Individual and team targets will provide a criteria upon which performance can be judged

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The process begins with the corporate objectives, targets are set at this point and relevant targets are

cascaded down the hierarchy

Corporate Objectives(Set by shareholders, Board of Directors)

Senior Management targets(Set by Board of Directors)

Middle Management/Departmental targets(Set by Senior Management)

Line Management Targets(Set by Middle Management)

Individual Employee targets(Set by Line Managers)

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Discuss the benefits to an employee of having targets set as part of a performance appraisal

Thinking caps on…

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Some ideas

Sense of achievement when

targets are achieved

Clarity on job role/ expectations on

performance

Feeling of belonging, working towards a common

goal

Focus for growth and development

Motivational, if targets set are

SMART

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Setting SMART targets

Targets set as part of the performance appraisal process need to be SMART, in order for the process to be effective and beneficial to both the organisation and individual

In A1, Definitions of management and leadership and B2 Management and leadership skills, you studied Management By Objectives and Setting Objectives

MA

S

RT

• What does the acronym SMART stand for when discussing objective/target setting?

• What are the possible implications of setting poor targets as part of an individual’s performance appraisal?

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Purpose of performance appraisal Employee feedback

• Constructive employee feedback, as part of the performance appraisal process, is vital to employees ongoing development

• Feedback clarifies expectations, helps staff learn from mistakes and builds confidence

• Positive feedback is important to build employee confidence and encourage a culture in which employees nurture and support one another

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• Employee feedback may involve identifying areas where the employee is underperforming and therefore requires action to improve; this will lead to further discussion on identifying support and training needs, which will benefit the individual, team and business

• Employee feedback can, reinforce positive behaviour, correct any negative performance and ensure a strong culture remains within the team

• Managers usually offer feedback, supported by work examples that the employee has demonstrated

Purpose of performance appraisal Employee feedback

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Give me three possible categories of feedback

(Which areas might an appraiser give an

appraisee feedback on?)

Give me three!

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Some ideas…

Achievement

Attendance/punctuality

Productivity

Job knowledge

Communication

Co-operation

Flexibility

Creativity

Problem solving

Level of skills

Leadership

Teamwork

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Purpose of performance appraisalIdentify training needs

• Performance appraisals are useful tools for employee training and development initiatives• The performance appraisal may reveal areas of

weakness and potential improvement in the workforce, helping to identify training needs• Updating training programmes based on

performance appraisal feedback can boost workforce productivity and efficiency over time

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• Appraisal systems allow employees and managers to work together to set targets, monitor progress toward targets and spot areas of needed improvement• An appraisal system that encourages two-way

discussion, growth and development, will encourage employees to speak up about areas of needed improvement they see in themselves, their department and the organisation as a whole

Purpose of performance appraisal Identify training needs

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New employees – appraisal and training

The first performance appraisal new employees have will indicate how effective the recruitment and selection programme is, as well as the training the employees have undertaken.

New employees' performance during their first year on the job is influenced by a mixture of their own personal characteristics and how effective the first-year training programmes are.

If first-year employee appraisals reveal that most new staff struggle in a specific area, the organisation may consider placing more emphasis on that area in future new employee training programmes.

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Homework activity – time to investigate

You are required to research the appraisal system used in an organisation of your choice. This may be at the organisation where you work or you could ask family, friends or teachers about their workplace. You should aim to find out:• What is the process for staff appraisals,

frequency and format?• What types of appraisal are used?• What is the purpose of the appraisal system?Try to find examples of documentation used as part of an organisation’s performance appraisal system. Sample documentation may include: employee self-assessment forms, performance appraisal forms, performance ratings scales etc.

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If using your place of work or asking family and friends about their appraisal system, remember to ask specifically about the employee perception of the appraisal systemYou may discover the organisation does not have an appraisal system. What are the reasons for this? Pause for thought:1. Is an appraisal system a necessity in ALL

organisations? 2. To what extent will an appraisal system

influence the performance of employees and the business?

Present your findings and thoughts to the rest of the class and discuss

Homework activity – time to investigate

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