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1. Basic concepts in performance management & appraisal

Performance management: A process that consolidates goal setting, performance appraisal and
development into a single common system, the aim of which is to ensure that the employees
performance is supporting the companys strategic aims.
Performance management therefore never just means meeting with a subordinate once or twice a
year to review your performance. It means setting goal that make sense in terms of the
companys strategic aims. It means daily or weekly interactions to ensure continuous
improvement in the employees capacity and performance. And it means ensuring that the
employees have the training he or she needs to perform the job. he distinction is the contrast
between a year end event ! the completion of the appraisal form ! and a process that starts the
year with performance planning and is integral to the way people are managed throughout the
year.
Performance appraisal is a systematic evaluation of individual with respect to his"her
performance on the job and his"her potential for development.#
$hile the idea that appraisals should improve employee and company performance is nothing
new, many managers take the integrated nature of that process ! of setting goals, training
employees and then appraising and rewarding them more seriously today then they have in the
past. hey call the total, integrated process performance management. $e may define
performance management as a process that unites goal setting, performances appraisal and
development into a single, common system whose aim is to ensure that the employees
performance is supporting the companys strategic aims. he distinguishing feature of
performance management is that it e%plicitly measures the employees training, standards
setting, appraisals and feedback relative to how his or her performance should be and is
contributing to achieving the companys goals.
2. Why appraise performance?
&mployers appraise performance for a number of reasons. Performance appraisals fre'uently are
used to support () decisions involving merit increases, promotions, termination, and layoffs.
&mployers that plan to use a merit pay plan must have a performance appraisal system that
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effectively and accurately assesses employee performance that the employer wants to reward and
is capable of differentiating among different levels of performance. *erit pay decisions not
based on an accurate and fair performance appraisal system can lead to charges of
discrimination, as well as employee dissatisfaction with the pay system.
here are following some point why appraise performance
Appraisals play an integral role employers performance management process.
Appraisals help in planning for correcting deficiencies + reinforce things done correctly.
Appraisals in identifying employee strengths + weaknesses are useful for career
planning.
Appraisals affect the employers salary raise decisions.
Performance appraisals also can be used to:
*otivate employee performance and improve productivity,
,acilitate employee growth and development, and
Identify current and future training needs.
3. The supervisor role.
Appraising performance is both a difficult + an essential supervisory skill. he supervisor not
() usually does the actual appraising + a supervisor who rates his or her employees too high or
too low is doing a disservice to them + to the company. here are some supervisor role are
following:
-sually do the actual appraising
*ust be familiar with basic appraisal techni'ues.
*ust understand + avoid problems that can cripple appraisals.
*ust know how to conduct appraisals fairly.
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he human resource team should also be responsible for training supervisors to improve their
appraisal skill for monitoring the appraisal systems effectiveness.
4. Step in Appraising performance.
Step 1: &stablish and communicate e%pectations for performance.
.ist three to five major responsibilities of each position.
,ocus the appraisal on these responsibilities.
/e sure employees know and understand what is e%pected of them.
&mployee are most likely to understand and be committed to objectives they helped develop.
Step 2: &stablish and communicate standards for measuring performance.
&ach e%pectation should be measurable.
A supervisors task includes deciding how to measure employees performance and then making
sure employees know what will be measured.
Step 3: 0bserve and measure individual performance against standards.
A supervisor should continuously gather information about each employees
performance.
$hen preparing a performance appraisal, a supervisor compares this information with
the standards for the employee being appraised.
Step 4: )einforce performance or provide remedies.
Point out to employees where they have performed well.
Asking an employee to help solve a problem is often more effective than the supervisor simply
stating a remedy1
. Behaviorally Anchore! rating Scales
/ehaviorally anchored rating scale 2/A)34 systems are designed to emphasi5e the behavior,
traits, and skills needed to successfully perform a job. A typical /A)3 form has two columns.
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he left column has a rating scale, usually in stages from 6ery Poor to &%cellent. he right
column contains behavioral anchors that are the reflections of those ratings.
If the scale were being used, for e%ample, to evaluate a telephone order taker, the statement in
one column may read 7896ery Poor,7 and the statement in the right column may read,
70ccasionally rude or abrupt to customer7 or 7*akes fre'uent mistakes on order form.7
his is a new appraisal techni'ue which has been developed its supports claim that it provides
better, more e'uitable appraisals as compared to other techni'ues. he procedure for /A)3 is
usually five steps.
8. :enerate critical incidents: Persons with knowledge of the job to be appraised2job
holder"supervisors are asked to describe specific illustrations2critical incidents4 of
effective+ ineffective performance.
;. <evelop Performance <imensions: hese people cluster the incidents into a smaller set of
performance dimensions. &ach cluster is then defined.
=. )eallocate Incidents>Any group of people who also know the job then reallocate the
original critical incidents. hey are given the cluster?s definitions, and critical accidents,
and asked to redesign each incident to the dimension it best describes. ypically a critical
incident is retained if some percentage 2usually @A lo BAC4 of this group assigns it lo the
same cluster as the previous group did.
D. 3cale of Incidents>this second group is generally asked to rate 2E or F point scales are
typical4 the behavior described in the incident as to how effectively or ineffectively it
represents performance on the appropriate dimension.
@. <evelop final instrument: a subset incidents 2usually G or E per cluster4 are used as
behavior anchors for the performance dimensions.
hough /A)3 techni'ue is more time9consuming and e%pensive than other appraisal tools, yet it
has got certain advantages such as:
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8. A more accurate gauge, since /A)3 is done by persons e%pert in the techni'ue, the
results are sufficiently accurate
;. Hlear 3tandards: he critical incidents along the scale help to clarify what is meant by
e%tremely good performance average performance + so forth.
=. ,eedback: he use of critical incidents may be more useful in providing feedback to the
people being appraised.
D. Independent dimensions: systematically clustering the critical incidents into @or G
performance dimensions helps in making the dimensions more independent of one
another.
here are some disadvantages:
<evelopment is time9consuming and e%pensive
Affected by error and bias
If anchors are too representative of a particular employees performance this may result in
rating errors
he chief drawback of /A)3 is that it is comple%, time9consuming, and costly to develop.
&%haustive job analysis is necessary to create rating scales appropriate to different aspects of
different job functions. for e%ample, a typical job might have eight to 8A such aspects, with each
one re'uiring a separate rating scale.
". #anagement $y o$%ectives
he term */0 was first populari5ed by Peter <rucker in his 8F@D book he practice of
management
*/0 can be define as a process where by the employees + the supervisor come together to
identify common goals, standards set their goals to be achieve the standard to be taken as the
criteria for measurement of their performance + contribution + deciding the course of action to
be followed
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*anagement by objectives is a rating techni'ue mainly used for managerial and professional
employees. */0 2management by objectives4, as a method of performance appraisal, is results9
oriented. his appraisal method seeks to measure the e%tent to which predetermined work
objectives have been met by the employee.
$orking from this statement of responsibilities 2broad goals4, the employee then establishes
her"his objectives or ?targets? for a specified period 2say, twelve months4. hese targets are
specific actions which the employee proposes to take. ,or e%ample:
setting up regular staff meetings to improve communication,
reorganizing the office,Completing or undertaking a certain study, etc.
he main principle behind */0 is to make sure that every body within the organi5ation has a
clear understanding of their aims or objective of the organi5ation as well as awareness of their
own rules + responsibilities in achieving those aims.
An advantage to this */0 process is that it is based on the assumption that the individual
2employee4 knows more than anyone else about her"his own capabilities, needs, strengths,
weaknesses and goals. he proper role for the *anager is to help the employee relate his"her
career planning to the goals of the company. he manager can help, associate, test and validate
soundness of the employee?s goals and the plans for achieving them. If the manager accepts this
role, the performance appraisal process moves from judging an employee?s personal worth to
advising, guiding and encouraging.
As an appraisal 2as opposed to planning4 method, the */0 approach overcomes problems that
result from assuming that all traits necessary for job success can be identified and measured
2see )ating 3cale4. Instead of rating performance on the basis of pre9established traits, */0
concentrates on actual job outcomes. Hlearly, if an employee meets or e%ceeds a set
of objectives, then he or she has demonstrated an acceptable level of job performance. -sing
*/0, employees are not judged on someone?s subjective opinion of their abilities. <irect results
can be observed, whereas the traits and attributes must be guessed at or inferred.
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3ome disadvantage of */0 re'uires more time and communication>from employees and
supervisors alike>than other evaluation techni'ues. 3etting appropriate goals and deadlines in
advance can be difficultI unknown factors and unanticipated events can make the objectives too
easy or even impossible to achieve. In addition, */0 evaluations focus only on goal
achievement, not on how goals are accomplished, so work behaviors>such as teamwork,
cooperation, or interpersonal skills>are not evaluated. his focus on outcomes makes it difficult
to use */0 as the only evaluation method for jobs re'uiring a significant degree of
e%perimentation, creativity, or innovation.
0n the downside, using */0 can lead to unrealistic e%pectations about what can and cannot be
accomplished. Also, while one of the strengths of */0 is the clarity of direction that comes
from well9articulated objectives, this can be a source of weakness. $hereas modern
organi5ations need to be fle%ible, objectives, by their very nature, impose a certain rigidity. A
solution might be to make the objectives less specific. (owever, less specificity implies less
clarity, and less clarity may lead to either employee confusion over what is to be achieved, or
attempts to hide failure in fu55y objectives.
&. 'lectronic performance monitoring
'lectronic performance monitoring7 refers to the use of technology to monitor the employees
performance. 0rgani5ations across the world are incorporating the use of various advanced
technologies for all functions at all levels. *any organi5ations have incorporated technologies in
the Performance appraisal and management processes. he electronic and computeri5ed systems
are being used to monitor and evaluate the performance of the employees.
he concept of electronic performance management has been the latest trend in performance
surveillance in the foreign countries where almost every job has the potentials of being
monitored electronically.
The main reasons for practicing electronic performance monitoring are(
It improves productivity and the 'uality of work
3ubjective work evaluation
Hompliance with the organi5ational policies and the local laws
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(elps in cost9control in the company
(elps in the security of the company information
<espite all its advantages, the arguments given against the use of electronic performance
monitoring is that such systems interfere in the privacy of the employees and some employees
may take it against their dignity.
-sing such system can have both positive and negative effects on the organi5ational health. It is
argued that, to ensure the positive effects of electronic performance monitoring:
he employees should be e%plained and communicated clearly about the system
he employees suggestions should be taken in designing the system
he employees should be involved in the implementation of the system
he organi5ation should not solely rely on the system for the data on employees?
performance.
he system should be supported by effective two way communication and feedback.
he monitoring should be restricted to the performance related activities only.
). *otential Appraisal *ro$lems
Problems in Performance Appraisal
*any performance appraisal methods have been severely critici5ed. *any of the problems
commonly mentioned are not inherent in the method but, rather, reflect improper usage.
8. .ack of 0bjectivity: 9 A potential weakness of traditional methods of performance appraisal
is that they lack objectivity. 3ome subjectivity will always e%ist in appraisal methods.
(owever, the use of job9related factors does increase objectivity.
;. (alo &rror:90ccurs when the evaluator perceives one factor as being of paramount
importance and gives a good or bad overall rating to an employee based on this factor.
=. .eniency"3trictness:9he giving of undeserved high or low ratings.
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D. Hentral endency:90ccurs when employees are incorrectly rated near the average or middle
of the scale.
@. )ecent /ehavior /ias:9It is only natural to remember recent behavior more clearly than
actions from the more distant past. (owever, performance appraisals generally cover a
specified period of time, and an individuals performance should be considered for the entire
period.
G. Personal /ias:93upervisors doing performance appraisals may have biases related to their
employees personal characteristics such as race, religion, gender, disability, or age group.
E. *anipulating the &valuation:9In some instances, supervisors control virtually every aspect of
the appraisal process and are therefore in a position to manipulate the system.
+. ,ive gui!elines for ho- to hol! effective appraisals
Its probably safe to say that problems like these can make an appraisal worse than no appraisal
at all. here are five thing to have effective appraisals.
84 Jnow the problems: first learn + understand the potential appraisal problems.
-nderstanding + anticipating the problem can help to avoid it.
;4 -se the right appraisal tool: second use the right appraisal tool or combination to tools.
&ach has its own pros + cons. ,or e%ample, the ranking method avoid central tendency
but can cause bad feelings when employees performances are in fact all high.
In practice employee choose an appraisal tool based on several criteria. Accessibility +
ease of use is probably first. hat is why graphic rating scale are still so popular, even
within computeri5ed appraisal packages. )anking produces clearer results, but many
employees prefer to avoid the push9back from employees that ranking provides. ,or
those whom accuracy is a great concern but re'uire much more time to develop and
use.
=4 Jeep a diary: whatever else you do keep a diary of employees performance over the year.
0ne study involved first time supervisors. 3ome attended a special diary9keeping training
program.
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D4 :et agreement on a plan: forth the overriding aim of the appraisal should be to improve
unsatisfactory performance. the appraisal end product should therefore always be a plan
for what the employee must do to improve his or her efforts.
@4 /e fair: fifth but perhaps most important, make sure that every appraisal you give is fair.
0ne study found that a number of best practices, such as Khave an appeal mechanism#
distinguish fair appraisals.
1.. *erformance appraisal vs. performance management
*erformance #anagement /s *erformance Appraisal
8 Performance *anagement Performance appraisal
; 3trategic 0perational
= .ong9run goals 3hort to mid9run goals
D ,orward9looking )etrospective
@ Honstant &pisodic
G Process 3ystem
E Integrated Isolated from business needs
B *anagement by agreement *anagement by command
F (olistic Individualistic
8A *anagers owned () owned
88 3upple +adaptable )igid and infle%ible
8; ,ocused on individual growth ,ocused on individual past mistakes +
misbehavior
8= Practical + effective /ureaucratic and superficial
8D *ainly focused on 'ualitative aspects of
performance
*ainly focused on 'uantitative aspects of
performance
8@ Han be linked to total reward .inked to financial reward
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In general, performance appraisal can be considered a process aiming to assess and rate or
review employees performance. Appraisal is, usually, annually carried out by the relevant
manager, whilst the design of the system and the documentation habitually filled during
performance review meeting by managers is prepared by the () ,unction. 3ince PA is usually
associated with pay, this is the occasion in which managers are supposed to play the role of
judge, accounting for the process to be deemed as a top9down process.
Performance management is, instead, considered as a management process enabling managers to
constantly stay in contact with individuals in order to clarify and eventually modify, according to
the business needs and organi5ational development changes, mutual e%pectations and putting
managers in the position to play the role of individuals coach and guide rather than of judge.
/asically P* is, then, a forward9looking process, in contrast with PA which is, instead, a
retrospective based system.
his definition of performance management is also suggests that P* aims to Kestablish a
framework in which performance by human resources can be directed, monitored, motivated and
refined, and that the link in the cycle can be audited#.
he distinctive feature of performance management and performance appraisal emerged so far is
then linked, first of all, to their different nature: where PA is seen as a system and P* is seen as
a process. *oreover, whilst PA is episodic, usually carried out once a year in occasion of the
annual performance review meeting, P* is intended to establish a constant link between
managers and individuals. <irectly conse'uence of this is that P* actually aims to build between
manager and employees a relationship based on mutual respect, trust and understanding, whilst
PA is based on a top9down relationship.
P* is forward9looking, the aim of the relationship based on it being to coach and to contribute to
the development and growth of individuals. PA can, instead, be considered as a retrospective
journey in the individuals previous working year, where managers, very often perfunctorily,
Kjudge# the performance of their staff. 3o that, whilst P* is inspired to the concept of
Kmanagement by agreement or contract#, PA is instead based on the concept of Kmanagement by
command#
P* is intended to establish and nurture a constant relationship between manager and individuals,
PA is based on forms designed and developed by the () function which, in many occasions, are
destined to be forgotten in some remote organi5ations archive.
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-ltimately P*, differently from PA, aims to combine individuals and organi5ations needs and
objectives and to find a common point where these two different needs can meet. P* has to be
intended as a means aiming to help organi5ations to determine and settle objectives individuals
are e%pected to attain, give people what it takes to achieve those objectives 2development4 and
influence individuals to behave consistently with the organi5ations culture and values.
/eing involved with the attainment of broader and long9run goals P* can clearly be considered
strategic, in contrast to PA which is concerned only with short to mid9run goals. P* is
embracing a whole range of activities aiming to improve the overall organi5ational performance,
insofar as it can definitely be considered holistic, PA is only concerned with individuals
performance and as such it represents a distinct system rather than an integrated process.
0rgani5ations carrying out annual appraisal reviews cannot actually claim to have a P* process
in place, in that PA is basically a component or rather one of the tools, arguably the main tool, of
P*. Harried out in isolation. PA is likely to produce no effects at all and to also be considered
pointless and useless by both managers and staff who see it just as a mere Kadministrative
e%ercise# or as a Kdishonest annual ritual#
PA can both focus on development, reward, motivation, identifying good potentials and poor
performers but, very often, PA turns to be an ineffective tool just because it is e%pected to cover
too many areas, making it difficult to find out its final truly aim.
A little bit more unclear and uncertain appears to be the relationship between P*, PA and pay.
$hilst a clearer connection with pay can be ascertained in PA systems, a bit more controversial
the matter appears to be, at least in theory, in the P* case.
PA systems are often used to take decisions on salary increases, bonuses or for granting other
forms of financial incentives to individuals. Although it might be perceived negatively by the
same managers, it is in fact in this occasion that they are placed in the position of judge, there are
cases in which this practice can actually, no pun intended, pay. A study of the Australian
$orkplace Industrial )elations survey carried out by /rown and (eywood 2;AA@4 revealed, in
fact, that for non9manual workers AP was more likely and effectively used when individuals
were e%pected to have shorter tenure. he same Authors consider and to some e%tent justify,
employers resort to this practice considering the circumstance that PA is much more fitting
those situations in which deferred rewards, such as promotions, are very unlikely to occur.
&nabling employers to promptly pay performance!related rewards relating to brief spells of time,
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in fact, PA can help businesses to influence staff tenure and, rather likely, to contribute
prolonging that tenure.
P* has a direct link with reward, differently from PA where this kind of link can just be limited
to financial"tangible reward, P* can, if anything, be linked to reward in its total reward concept,
albeit not completely without risks.
In conclusion it can be said that PA could turn to be, if properly designed and managed, an
effective tool of P*. It can also be argued that, in order to improve effectiveness of the overall
P* process, having crystal clear ideas about what each tool of P* is intended to achieve will
clearly help both managers and staff to welcome and appreciate a P* process. 3o that, as
suggested by Armstrong and /aron, resorting to an additional specific tool and component of
P* to deal with pay would surely be beneficial to make the dialog between manager and
individuals about development and growth more compelling and constructive. It is, in fact, easy
to imagine on which aspect an individuals mind will focus the more during a blended
discussion, managers could be speaking of growth, but individuals could be more prone to think
about pay, circumstance which should be absolutely avoided.
11. Basic $uil!ing $loc0s of performance management
8. Hompetency modeling contributes to a successful performance management program by:
Identifying the key competencies re'uired to implement the firms strategy and
operational goals.
<efining these competencies at the level of observable behaviors and ensuring that
these competencies do not look merely like a list of traits 2such as adaptability, self9
confidence, integrity, personal maturity, and so on4
Incorporating these competencies and behaviors into all other elements of the firms
performance management system 2such as selection, development, appraisal, and
compensation4
;. A clear strategic focus contributes to a successful performance management program by:
&nsuring that strategy is clearly articulated and well understood throughout the firm.
(elping each employee understand how his or her job contributes to firm success
=. 6alidated selection systems contribute to a successful performance management program
by:
Identifying job candidates who possess critical and needed competencies.
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D. :oal setting contributes to a successful performance management program by:
Identifying the e%pectations of key e%ternal and internal customers and linking those
e%pectations to goal setting.
Hommunicating performance e%pectations and standards to employees
(elping employees to participate in setting goals that are linked to organi5ational
performance, team effectiveness, and personal satisfaction
@. ,eedback contributes to a successful performance management program by:
Hreating a culture that provides constructive, ongoing, developmental feedback to all
employees
Providing multi source feedback to employees along with tools to help employees
improve in areas identified via the feedback
Honfronting, managing, and remedying poor performance
G. he training and development organi5ation contributes to a successful performance
management program by:
<elivering training and development for new and e%perienced employees that
enhances critical competencies and behaviors
Providing ongoing opportunities 2such as online assessments, third9party assessors,
and so on4 that enable employees to assess and develop their skills for current and
future assignments
Providing employees with the skills re'uired to work effectively in cross9functional,
project, or self9managed teams.
Providing supervisors with the training they need to provide 2i4 accurate and fair
appraisals, and 2ii4 conduct feedback sessions in a climate of civility and courtesy
using a cooperative, problem9solving approach
E. 3uccession planning contributes to a successful performance management program by:
Hreating career development systems that identify, prepare, and promote employees
whose e%perience and skills match the demands of higher9level positions
Providing e%ecutive coaching to key employees develop their skills and manage key
transitions
B. he performance appraisal process contributes to a successful performance management
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Program by:
Providing fair appraisals that let employees know where they stand and provide
useful information that drives employee goal setting and development
Hreating appraisal processes that enable employees to 2i4 provide input about their
performance 2via self9evaluation or discussion with the supervisor4, and 2ii4 challenge
or rebut their appraisals 2for e%ample, via a panel review by uninvolved managers4
,or employees in team settings, appraising the performance of the team as a unit as
well as each employees contribution to the teams performance
F. he reward and compensation system contributes to a successful performance
management program by:
Providing base compensation plans that retain high9talent employees
.inking meaningful levels of incentive pay to employee, team, and organi5ational
performance
&nsuring that the compensation of senior9level e%ecutives is driven by a balanced
scorecard perspective that includes financial, customer, operational, innovation, and
employee9focused 2for e%ample, learning, retention, satisfaction4 metrics
12. 1ecommen!ation to improve *erformance #anagement &
Appraisal.
1ecommen!ation to improve performance management
8. Provide employees the opportunity to assess themselves. At the same time a manager or
supervisor completes a performance appraisal. $hile you may think that an employee will gloss
over his own weaknesses. :etting their input on their own performance can open up lines of
communication and allow the manager to more easily discuss the differences in opinion and
perception between the two assessments.
;. :ather information from various sources. )ather than getting feedback + input only from the
employees direct supervisor ask those who interact with the employee to evaluate his
performance as well. his might include customers or clients, coworkers, other departmental and
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e%ecutive level managers, team members, or anyone else who regularly communicates or
collaborates with the employee and can provide information on his strengths and weaknesses.
= help employees to understand how their performance ties into the company overall vision. /y
letting an employee see the big picture reminding her often of the companys mission statement
+ clarifying how her contribution helps to fulfill the goals +strategies of the business. hat
makes it much more likely she perform her job as well as he"she can.
D. Provide opportunity for employee development. raining needs allow to determining areas
that need improvement + help the employee work toward increasing his skill and knowledge.
@. &mployee evaluations offer a strategic means for rewarding employee performance. ensuring
that employee performance evaluations are directly linked to compensation + employee rewards
provides a fair system for monitoring pay raises + company bonus.
1ecommen!ation to improve performance appraisal
8. raining appraisal are essential for achieving better result with performance appraisal. he
training should be design to improve appraisers capabilities. 3ome benefits that can be achieved
by using appraiser training are as:
Improve understanding of the system the forms and terminology to be applied.
Increase accuracy and reduce common judgment errors.
&nhance appraisers self confidence about his rating skills and improve the skill level
through practice and feedback
;. *ake sure mgrs and subordinates understand the appraisal system
he appraisal system should be e%plicitly described specific to the purpose of the appraisal.
0rgani5ations that clearly state the purpose for the appraisal reduce the confusion and ambiguity
of the process. he goal should be that everyone knows why you are conducting appraisals.
hink of it as purpose and procedure training.
=. Appraisal skills training for managers is a must
It can reasonably be concluded that the ability of the supervisor to skillfully appraise his"her
subordinate is critical to an effective appraisal. raining must focus on helping managers develop
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specific appraisal skills and confidence in their ability to effectively evaluate others. 3kills
should include 2each of these could be a book on their own4:
:oal setting
Hommunicating performance standards
0bserving subordinate performance
Hoaching and providing feedback
Hompleting the rating form
Honducting the appraisal review
D. Providing performance feedback
&mployees naturally like to know how they are performing relative to what is e%pected from
them. Performance feedback lets employees know how well they have performed in comparison
with the performance standards. (aving day9to9day employee9manager interaction, through
which the appraise is provide with constructive feedback.
@. <eveloping a positive culture
Hhanging culture re'uires leaders to understand the learning process dynamics and how the
learning and unlearning of assumptions beliefs can be manipulated to modify behavior. Hultural
aspects could be one of the areas of training. An organi5ations leadership has the responsibility
to develop a positive culture to facilitate the acceptance of performance appraisal among
managers and their employees.
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2onclusion
0rgani5ations need some means of ensuring performance standards are being achieved and
objectives are being met. hey also need to plan for the future by setting organi5ational
objectives. hese should be achieved through personal objectives agreed at the appraisal. his is
vital for all employees in order to maintain a competitive position, and it is important that the
method for doing this is successful. All the material in the L3kills of Appraisal and Performance
management resource is dedicated to that end. (owever, underlying the methods, practices and
techni'ues there must be crucial managerial thoughts, attitudes and activities.
As an introduction to the training activity, the participants work in groups to discuss what an
effective performance management scheme needs. heir suggestions for a successful scheme are
discussed and they are then given a list of re'uirements for comparison and discussion. Me%t, the
participants review what an appraiser should do to make sure a performance management
scheme is successful. he training activity closes with a review of key learning points and a final
observation of performance management appraisal.