Performance Appraisal

Question 1

What is a performance appraisal ?

Answer 1

Provides a way to monitor and evaluate employee performance against job role targets, carried out annually

Question 2

What is the purpose of a performance appraisal ?

Answer 2

1. Set individual and group targets
2. Assess individual and group performance
3. Provide employees with feedback
4. Identify training needs

Question 3

What should a business consider when carrying out a performance appraisal ?

Answer 3

1. clear objectives/ goal setting
2. timings
3. employee involvement
4. performance criteria
5. documentation feedback through communication
6. training for appraiser
7. consistency and continuous improvement
8. development plans/opportunities
9. flexibility
10. rewards/compensation
11. ethical/legal considerations

Question 4

Name types of appraisals

Answer 4

1. Self-assessment - own performance against others
2. MBO -setting objectives in line with organisational goals
3. Rating scales - ranking individuals on a scale of 1-5 based on capabilities
4. 360 appraisal - face to face sessions for employees to ask for feedback, ask questions and listen to others

Question 5

Self-assessment advantages/disadvantages

Answer 5

Adv - employees feel more engaged in appraisal process, gain greater insight to set future goals for improvement

Dis - Some employees may over/underestimate own performance, self-serving bias results

Question 6

MBO advantages/disadvantages

Answer 6

Adv - all parties understand expectations to achieve goals, increased productivity

Dis - time consuming to involve all members of workforce, over-emphasis on objectives

Question 7

State one MBO theory

Answer 7

Peter Drunker believes all parties of management/leadership and other employees should be involved in setting objectives :

1. Goal setting
2. Management of subordinates involved
3. Match goals/resources
4. Implement plan
5. Review and performance appraisal

Question 8

Rating scales advantages/disadvantages

Answer 8

Adv - simple to read and easy to understand, help make informed decisions about progression opportunities

Dis - too vague or subjective, personal biases and time-consuming

Question 9

360 appraisal advantages/disadvantages

Answer 9

Adv - identifies training and development needs, well-balanced view and behaviour of employees

Dis - Employees left with huge amount of data,
time-consuming

Question 10

What does 360 appraisal involve ?

Answer 10

1. Self-evaluation
2. Plan of action
3. Prepares to receive feedback
4. Accept feedback
5. Analyse feedback

Involvement of : manager, performance analysis, skill review, HR and stakeholder view

Question 11

What is the impact of appraisal ?

Answer 11

Individual - Gives them one opportunity for focused conversation with supervisor/manager. A positive experience for improvement/motivation

Business - Enables them to make face to face objective assessments of the value of an employee. Identifies where to delegate employees and whether future training/development is needed