EVALUATING EMPLOYEE

PERFORMANCE
STEP 1 - 4
 STEP 1 : DETERMINE REASON OF APPRAISAL

• Providing Employee Training and Feedback

• Determining Salary Increases
• Making Promotion Decisions
• Making Termination Decisions
• Conducting Personnel Research
 WHY WE SHOULD
DETERMINE THE REASON OF
APPRAISAL?
It is important because that kind of evaluating
performance techniques are appropriate for some
purposes but not for others.
STEP 2 : IDENTIFY ENVIRONMENTAL AND
CULTURAL LIMITATIONS
Identify environmental and cultural limitations that could affect the system.
For example :
- An environment in which employees are very cohesive, the use of peer rating might
reduce cohesiveness.
- In an environment in which there is no money available for merit pay, developing a
numerically complex system will become frustrating, and the results of the evaluation
may not be taken seriously.
STEP 3 : DETERMINE WHO WILL EVALUATE
PERFORMANCE
Employee’s performance will be evaluated by :
-> Upper management
-> Direct supervisor
-> Peers
-> Subordinates
-> Support staff
-> Customers/the public
-> Vendors
-> Self
360 FEEDBACK

• Use
- 28% of organizations (Mercer Consulting, 2005)
- 65% (William Mercer survey)
- SHRM Survey
• 18% for nonexempt positions
• 29% for exempt positions
• 32% for executive level positions.
STEP 4 : SELECT THE BEST APPRAISAL METHOD TO
ACCOMPLISH YOUR GOALS
Before developing the actual evaluating performance instrument, two
important decisions must be made : the focus of the performance appraisal
dimensions, and weather to use rankings or ratings.
Decision 1 : Focus of the Appraisal Dimensions
• Can focus on traits, competences, task type, goals
• A trait-focused system concentrates on such employee
attributes as dependability, honesty, and courtesy.
Decision 2 : Should Dimensions be Weighted
Advantage : Some dimensions might be more important to an
organization than others and reduce racial and
biases.
Decision 3 : Use of employee comparisons, objective measurer, or
rating
- Employee Comparisons
There are 3 methods :
1. Rank Order
2. Paired Comparisons
3. Forced Distribution
- Objective Measures
Common types of objective measures include quantity of work, quality of work,
attendance, and safety

- Rating Performance
Though there are many variations of how these rating scales can be created, the
two most common are the graphic rating scale and the behavioral checklist.
THANK YOU