PERFORMANCE MANAGEMENT

& PERFORMANCE APPRAISAL

By: Tanima Soni

Define Performance management &

Performance appraisal

Know purpose of Performance Appraisal

Describe different methods of

performance Appraisal

Elaborate limitations for Performance

Appraisal

PERFORMANCE
MANAGEMENT
Performance Management is A process for
establishing a shared understanding
about what is to be achieved and how it is
to be achieved, and an approach to
managing people that increases the
probability of achieving success

PM VS PA

Performance management:

Dynamic, continuous process.

Improves organizational effectiveness.
Strategic goals.

Performance appraisal:

Periodic (usually annual) event.

Formal review.
Last step in performance management
process.

Performance Management
Goals

Communication between supervisor and

employee.
Feedback on performance.
Documentation.
Development Goals.
Alignment with strategic planning goals.

HRS ROLE IN PERFORMANCE

MANAGEMENT

Participate in strategic planning.

Conduct job analysis.
Support performance management.
Design appraisal system.
Train and support managers.
Maintain documents.
Ensure integrity of the system.

Performance Appraisal

Performance appraisal is to evaluate the

performance of an employee to determine whether
he is performing his given task and duties well or to
monitor whether he has given his best effort and
performance on given job

Performance appraisal is an assessment of

individual performance, the performance is
measured against such factors as job knowledge,
quality, quantity of output, initiative, leadership,
abilities, supervision, cooperation, judgment,
analytical skills, problem solving skills, etc.

OBJECTIVES OF PERFORMANCE
APPRAISAL

Make promotion decisions based performance

To confirm services of employee on probation

To identify training and development needs of employees

To decide compensation

To inform employees of their performance and give them feedback

and guidance to improve performance

Performance appraisal helps to know the effectiveness of other HR

functions such as recruitment and selection, training, and
promotion etc.

PROCES
S OF PA

METHODS OF PERFORMANCE
APPRAISAL
TRADITIONAL METHODS

MBO

PERFORMANCE MANAGEMENT ISSUES

IN INTERNATIONAL ORGANIZATIONS

Employees and management can have different views of fair and

just pay and rewards on performance.

Cultural influences on the employees and the managements

understanding of good performance.

Cultural influences can differ from country to country and

complicate the standardization of performance management
policies in multinational companies.

Work force diversity creates problems in doing performance

management

Communication challenges