Performance Appraisal

Areej Ahmed Al-Hobi

E-Business | Level II

Safaa S.Y. Dalloul

Prepared by Supervised by

Performance Appraisal Definition Performance Appraisal Management Uses of Performance Appraisal

Elements of Lecture

It is a formal system of review and

evaluation of individual or team task performance.

The focus of performance appraisal in most firms remains on the individual employee.

An effective appraisal system evaluates accomplishments and initiates plans for development, goals, and objectives

Performance appraisal

management system is consisting of all

organization processes that determine how well employees, teams, and ultimately, the organization perform.

PAM includes: HR planning, Employee recruitment and selection, T&D, career planning and development and compensation.

An organization must have some means of assessing the level of individual and team performance in order to make appropriate development plans.

Performance Appraisal Management

Conducting performance appraisals is often a

frustrating human resource management task.

If a performance appraisal system has a faulty design, the employees will dread receiving appraisals and the managers will despise giving them.

Appraiser Discomfort

For many organizations, the primary goal of an

appraisal system is to improve individual and organizational performance.

Performance Appraisal data are potentially for virtually every human resource functional areas:

Uses of Performance Appraisal

HR Planning Recruitment and Selection Training and Development Career Planning and Development Compensation Programs Internal Employee Relations Assessment of Employee Potential

Data that describe the promo ability and

potential of all employees, especially key executives must be available in order to assess the firm's human resources.

Management succession planning is a key concern for all firms.

All-designed appraisal system provides a profile of the organization's human resource strengths and weaknesses to support this effort.

HR planning

Recruitment and selection

Performance evaluation rating may be helpful in predicting the performance of job applicants.

Training and development:

A performance appraisal should point out an employee's specific needs for training and development.

Determining T&D needs is more precise when appraisal data are available.

Performance appraisal data are essential in

assessing an employee’s strengths and weaknesses and in deterring the person’s potential.

Career planning and development

Performance appraisal result provide a basis

for rational decisions regarding pay adjustment.

Rewarding the behaviors is necessary for accomplishing organizational objectives which is at the heart of a firm’s strategic plan.

To encourage good performance, a firm should design and implement a reliable performance appraisal system and then reward the most productive workers and teams accordingly.

Compensation Programs

Performance appraisal data are frequently

used for decisions in several areas of internal employee relations, including promotion, demotion, termination, layoff and transfer.

When performance level is in unacceptable, demotion or even termination, it may be appropriate.

Internal Employee Relations

Some organizations attempts to assess

employee potential as they appraise their job performance.

Assessment of Employee Potential