6.

PERFORMANCE APPRAISAL
- The measurement of employee
performance
Purposes:
1. To influence, in a positive manner,
employee performance and development
2. To determine merit pay increases
3. To plan for future performance goals
4. To determine training and development
needs
5. To assess the promotional potential of
employee
Ways of Appraising Performance:
1. Rating Scale Method where each trait /
characteristic to be rated is represented
by a line or scale on which the rater
indicates the degree to which the
individual
possesses
the
trait
/
characteristic.
2. Essay Method where the evaluator
composes statements that best describe
the person evaluated.
3. Management by Objectives Method
where
specific
goals
are
set
collaboratively. Individuals, are then,
evaluated on the basis of how well they
have achieved the results specified by the
goals.
4. Assessment Center Method where one is
evaluated by persons other than the
immediate superior. This method is used
for evaluating managers.
5. Checklist Method where evaluator
checks statements on a list that are
deemed to characterize an employees
behavior or performance
6. Work
Standards
Method

where
standards are set for the realistic worker
output and later on used in evaluating the
performance
of
non-managerial
employees.
7. Ranking Method where each evaluator
arranges employees in rank order form
the best to the poorest.
8. Critical-incident Method where the
evaluator recalls and writes down specific

(but critical) incidents that indicate the

employees performance
7. EMPLOYMENT DECISIONS
- After evaluating the performance of
employees (managerial or otherwise), the
management will now be ready to make
employment decisions. These may consist of
the ff:
1. Monetary Rewards these are given to
employees whose performance is at par
or above standard requirements.
2. Promotion this refers to a movement of
a person into a position of higher pay and
greater responsibilities and which is given
as a reward for competence and
ambition.
3. Transfer this is the movement of a
person to a different job at the same or
similar level of responsibility in the org.
Transfers are made to provide growth
opportunities for the persons involved or
to get rid of a poor performing employee.
4. Demotion this is a movement from one
position to another w/c has less pay or
responsibility attached to it. It is used as
a form of punishment or as a temporary
measure to keep an employee until he is
offered a higher position.
8. SEPARATION
- is either a voluntary or involuntary
termination of an employee.
When
made
voluntarily,
the
organizations management must find out
the real reason If the presence of defect in
the org. is determined, corrective action is
necessary.
Involuntary
separation
(or
termination) is the last option that the
management exercises when an employees
performance is poor or when he/she
committed act violating the company rules
and regulations.