20 Performance & Competency Management

Notes Unit 2: Process of Performance Appraisal

Structure
2.1 Introduction
2.2 Definition & Meaning of Performance Appraisal
2.3 Step by Step Phases involved in Performance Appraisal
2.3.3 Measurement of Actual Performance
2.3.4 Compare Actual Performance with Performance Standards
2.3.5 Conducting the Performance Appraisal Meeting
2.3.6 Discuss the Appraisal with the Employee & Conduct Appraisal Meeting
2.3.7 Pledge Corrective Action
2.3.8 Follow up Action
2.4 RSDQ Model of Performance Appraisal
2.4.1 Roles of RSDQ
2.4.2 Styles of RSDQ
2.4.3 Delegation of RSDQ
2.4.4 Qualities of RSDQ
2.4.5 Applications and Variations of RSDQ
2.5 Re-engineering Performance Reviews
2.6 Concept of Performance Analysis & Its Steps
2.7 Performance Review and Discussion
2.8 Performance Monitoring and Feedback
2.9 Summary
2.10 Check Your Progress
2.11 Questions and Exercises
2.12 Key Terms
2.13 Further Readings

Objectives
After studying this unit, you should be able to:
 Describe the Process of Performance Appraisal
 Explain the Need And Methods for Performance Appraisal
 Explain the RSDQ Model of Performance Appraisal in detail
 Discuss the concept of Performance Review - Reengineering Performance
 Highlight the features of the Appraisal System, Performance Analysis,
Performance Review and Discussion and Performance Monitoring and
Feedback

2.1 Introduction
The employees who are working in the organized sector, the term appraisal process
conjure images of hope and fear simultaneously to them. Appraisal Process provides
them with a hope for a better grade and fear about potential downgrading or a bad
rating by their supervisors/ managers.
The weeks leading up to the appraisal are filled with hectic activity when the
employees get down to evaluating themselves and prepare to market their
achievements during the time for which the appraisal is being conducted. Before

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launching into the details of the appraisal process and the theory and practice of the
same, it is pertinent to understand what the term appraisal process refers to and why it
is important for the firm as well as the employees. Notes
The performance appraisal process, simply put, is the time of the year when the
employees are evaluated on their performance during the last six months or one year
depending upon the timeframe that is set for the same. The performance appraisal
process is conducted between the employee and his or her manager for the first round
and subsequently between the manager and the manager’s manager before going into
the third round which involves the above people excluding the employee but involving
the HR manager as well. The various rounds that comprise the appraisal cycle
correspond to the different stages of the process culminating in the final grading of the
employee.
Table 2.1: Difference between Traditional and
Modern Methods of Performance Appraisal

Traditional Methods Modern Methods

1. Paired Compensation 1. Assessment Centre
2. Graphic Rating Scale 2. Appraisal by Results or Management
by
Objective
3. Forced Choice Description Method 3. Human Asset Accounting
4. Forced Distribution Method 4. Behaviourally Anchored Rating Scales
5. Check Lists
6. Free Essay Method
7. Critical Incidents
8. Group Appraisal
9. Field Review Method
10. Confidential Method
11. Rankings
In this unit, we would be discussing in detail about Performance Appraisal Process
and the various steps involved in it. The unit also provides an in-depth knowledge of the
RSDQ model of the Appraisal System and the Re-engineering Performance concept as
well the need and requirement for Performance Review Discussion and Performance
Monitoring and Feedback.

2.2 Definition & Meaning of Performance Appraisal

Performance Appraisal is a periodic assessment and review of an employee’s complete
contributions to the organization by his/her respective manager.
It is also known as Annual Evaluation or Reviews as it ascertains the employee’s
abilities, achievements and progress, or any loopholes or set-ups during the performing
period. It is been done so that the organizations can provide their employees a clear
transparent and an open feedback on their work and deliverables; also to validate
salary raises and bonuses; as well as termination decisions.
The other terms associated with performance are performance review, performance
evaluation, (career) development discussion, or employee appraisal. It is a method by
which the work performance of an employee is recognized and acknowledged and
appraised.
Performance appraisals are a part of career development and consist of systematic
reviews of employee performance within organizations.

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Notes

Figure 2.1: Cycle of Performance Appraisal Process

PA is a systematic general and periodic process that assesses an individual
employee's job performance and productivity in relation to certain pre-established
criteria and organizational objectives.
Other aspects of individual employees are considered as well, such as
organizational citizenship behaviour, accomplishments, potential for future
improvement, strengths and weaknesses, etc.
Performance Appraisal is a part of performance management systems. As it is the
duty of the respective Line Managers to access the performance of their employees on
a regular periodic bases, so it in turns helps the subordinate employees to answer two
key questions: first, "What are their expectations from a Manager?" second, "How well
an employee is performing to meet his expectations?"

2.3 Step by Step Phases involved in Performance Appraisal

Process of Performance Appraisal

Setting Performance Standards

Communicating Standards set to the Employee

Measuring Performance

Comparing Performance with Standard

Discussing Result

Implementation and Review
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2.3.1 Creating Performance Standards & doing an Accurate Documentation:
This critical process of performance appraisal process starts by first creating the Notes
performance standards by involving the Line managers to regulate and ascertain the
kind of results and outputs, accomplishments and skills to be appraised. Job analysis
and Job descriptions will be required to evolved these standards.
 Performance standards should also be clear
 Performance Standards objectives must be easily understood and measured.
 Performance Standards should not be stated in an ambiguous or vague manner.
The words such as “a good job” or “a full day’s work” are some examples of vague
phrases which state nothing.

Accurate Documentation

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Notes

Accurate, complete and well stated documentation is the next crucial step to be
performed and maintained by the managers about the employees work and it must start
with the very first day of joining the organization or assigning a new role or task to an
existing employee. An efficient and effective manager will always try to help an
employee in developing his expertise and competences, Creating a Personnel file for
each employee and hence recording his accomplishments, areas for improvement and
regular feedback throughout the year will prove as an ready referral to Manager,
Employee and Organization.

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2.3.2 Conversing of Performance Expectations to Employees and Provision of
Regular Feedback
Notes
Once the performance standards are created and well established, then these
standards need to be conversed to the respective employees through their Line
Managers in order to let an employee know what is expected out of them.
It is in the Past experience of the organizations, it’s been indicated that problems
were existed when performance standards are not properly and clearly communicated
to the employees. Here, it must be noted that ordinary transmission of information
(relating to performance standards, for example) from the manager to the employees is
not communication rather it will becomes communication when the transferral of
information has taken place and has been acknowledged and agreed by the
employees.
The feedback from the employees on the standards communicated to them must be
obtained. If required, the standards may be modified or revised in the light of feedback
obtained from the employees. It is important to note that communication is a two-way
street.

Provision of Regular Feedback

Providing periodic or regular feedback is much encouraging and motivating for an
employee to deliver his best and meeting the organizational goals and requirements. It
must be at least once each quarter and more frequently.
As per the American Society for Clinical Laboratory Science, “The performance
management process starts with employee planning and ends with an evaluation of
employee progress. Managers and employees should meet to discuss planning and
goals throughout the year. If possible, formally sitting down with your supervisor or
manager on a quarterly basis is optimal. The process, at its best, is a collaborative one
which should add value for both the employee and the employer.”
Employees flourish on feedback because it ensures they are performing job duties
and responsibilities according to the company’s expectations. The feedback can be
given in a casual manner, provided the topic of the feedback is suitable for a casual
meeting. Always document any feedback you provide to employees, even if it’s just to
say “great job.”

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Example of Feedback Form

Notes

2.3.3 Measurement of Actual Performance

This is the third step involved in the appraisal process. In this stage, the actual
performance of the employee is measured on the basis of information available from
various sources such as
 personal observation,
 statistical reports,
 oral reports, and
 Written reports.
The assessor’s outlooks should not influence the performance measurement of the
employee. Measurement of the actual performance of employees must be objective and
based upon facts and findings rather on rumours and false reports. .

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2.3.4 Compare Actual Performance with Performance Standards
In this stage, the actual performance of an employee is linked and associated with the Notes
predetermined performance standards and such a comparison may disclose and
reveals the nonconformity between the performance standard and employee’s actual
performance which he has performed during the year or during his period of assigning
the task or role. This comparison will also enable the evaluator to proceed to the fifth
step in the process, i.e., the discussion of the appraisal with the concerned employees.

2.3.5 Conducting the Performance Appraisal Meeting

Management by objectives, or MBOs, is another step in the performance appraisal
process used for some employees who have defined goals and steps to achieve each
goal. These MBOs really should be reviewed quarterly to track progress or redefine the
goal if neither of you see enough progress. MBOs are also particularly helpful to
employees who are on a professional career track within your business.

2.3.6 Discuss the Appraisal with the Employee & Conduct Appraisal Meeting
The fifth step in the appraisal process is to communicate to and discuss with the
employees the results of the appraisal. This is, in fact, one of the most challenging tasks
the manager’s face to present an accurate appraisal to the employees and then make
them accept the appraisal in a constructive manner. A discussion on appraisal enables
employees to know their strengths and weaknesses. This has, in turn, impact on their
future performance. Yes, the impact may be positive or negative depending upon how
the appraisal is presented and discussed with the employees.

Performance of an employee is appraised in areas such as

 job proficiency,
 interpersonal relationships,
 communication skills and
 aptitude.
Many employers or organizations take into consideration the employee self-
evaluations and in such cases, the employee generally prepares his/her comments
about their work performance during the past year.
During the commencement of performance appraisal meeting, both the manager
and the employee should feel comfortable as tension among either one will merely
makes the meeting much more difficult and uncomfortable than it needs to be.

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2.3.7 Pledge Corrective Action

Notes Origination of corrective action is the last step of the performance appraisal. The
regions where improvements are much needed are identified and now the constructive
path is to correct or improve the performance.
The corrective action can be of two types. First one is instant and deals
predominantly with indicators and is known as “putting out fires.” And the second one is
basic and investigates into origins of deviations. It tracks to adjust the difference
permanently and it involves time to analyses deviations.
Hence, managers often opt for the immediate action, or say, “put out fires”.
Training, coaching, counselling, etc. is the common examples of corrective actions that
managers initiate to improve the employee performance.

2.3.8 Follow up Action

There will likely be follow up matters such as discussing areas for improvement,
establishing goals for the next year and confirming the employee's salary or wage
increase after the performance appraisal meeting.
In addition, the issues which remain still unresolved or need more time for
discussion and taking our corrective measures and steps that call for another meeting.
Find Below Some of the Employee Performance Appraisal Forms
Form No. 1

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Form No. 2

Notes

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Form No. 3

Notes

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Form no. 4
Notes

2.4 RSDQ Model of Performance Appraisal

This model of leadership and managerial effectiveness views effective management
and leadership as a combination of four sets of variables. These are Roles, Styles,
Delegation and Qualities. Let us explain each of them.

2.4.1 Roles of RSDQ

Every manager in order to be effective has to perform both transformation roles
(leadership roles) and transactional roles (managerial). Some of these are:
 Articulating and communicating vision and values

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 Formulating long-term policies and strategies
 Introducing and managing new technology and systems
Notes
 Inspiring, developing and motivating juniors
 Managing juniors, colleagues and seniors
 Culture building
 Internal customer management
 External customer management
 Managing unions and associations.

2.4.2 Styles of RSDQ

While effective managers recognize all the leadership roles and perform them well, it is
not only the roles or activities that determine the effectiveness but also the way in which
they are played. The model envisages that managers may play most roles well, devote
time and effort but could be insensitive to the style with which they carry out these
activities.
 A Benevolent or Paternalistic leadership style, in which the top-level manager
believes that all his employees should be constantly guided, treated with affection
like a parent treats his children.
 A Critical leadership style is characterized by the belief pattern where the
manager believes that employees should be closely and constantly supervised,
directed and reminded of their duties and responsibilities.
 A Developmental leadership style is characterized as an empowering style,
where the top manager believes in developing the competencies of his staff and
treats them as mature adults.

2.4.3 Delegation of RSDQ

The RSDQ model considers the level of delegation as an important part of a senior
executive's effectiveness. This dimension has been included because most senior
managers seem to have difficulties delegating, especially those effective managers who
get promotions fast in their career.

2.4.4 Qualities of RSDQ

The model envisages that managers should exhibit qualities of leaders and world-class
managers (e.g. proaction, listening, communication, positive approach, participative
nature, quality orientation etc.)

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2.4.5 Applications and Variations of RSDQ
The 360 degree feedback instrument based on the RSDQ model is being used in a Notes
large number of Indian organizations including the Aditya Birla Group, IL&FS, Gati
Cargo Management Services Tata Cummins, Indian Group of Hotels, Mafatlal Group,
Goodlas Nerolac, State Bank of India and in other countries like Nigeria and Egypt by
the Chanrai Group, Alexandria Carbon Black Company etc.
The model has also been used as the basis for developing customized instruments
for various organizations. Variations of the model depend on:
 Level/position to which 360 degree feedback is being provided
 Purpose of 360 degree feedback
Let us have some examples of Some variations of RSDQ Models.
1. NTPC
 In case of NTPC, the 360-degree feedback instrument was prepared and used
as part of a development centre.
 Qualities dimension was also included. Since it was the position of middle
management, delegation and leadership styles were not included as part of the
instrument. Items were generated by interviewing role incumbents as well as
their role set members (peers, subordinates, and boss).
 The basic purpose was to help in-house assessors understand the dynamics of
360-feedback and its effectiveness in providing developmental inputs to an
individual.
2. Tata Cummins
 The instrument used in Tata Cummins was RSQ for which items were
generated through individual interviews.
 The model was used not only to provide 360-degree feedback for development
but a task force is working on it to make the same a part of the on-going
appraisal by integrating the feedback in the annual performance appraisal in the
form of KPAs.
3. GVFL
 In GVFL, 360-degree feedback was used for both senior as well as lower
management levels.
 In case of senior management, the focus was mainly on helping them
understand the impact they were creating on the entire organizational culture.
 Through individual interviews, two separate instruments were designed - one
for internal customers and the other for external customers.

2.5 Re-engineering Performance Reviews

Re-engineering of Performance Reviews refers to the changes in the traditions and
existing performance review systems in context with today’s world organisation
systems. There has been much discussion of organisations killing their traditional
performance review process, only 5 per cent of organisations are considering, or
planning to, eliminate their rating scale entirely, according to recent research.
It found that managers spend more than 200 hours per year on activities related to
performance reviews, while companies with more than 10,000 employees spend around
$47 million a year on performance management related activities and technologies.
Despite this significant investment, 95 per cent of managers dissatisfied with the way
their companies conduct performance reviews and nearly 90 per cent of HR leaders say
the process doesn’t yield accurate information.
According to one the research carried in about 800 Australian employers, it is found
that 96 per cent of organisations still use a rating scale to measure employee

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performance, however, only 5 per cent of these organisations are considering, or
planning to, eliminate their rating scale entirely.
Notes
The global organisations like Accenture, Deloitte, Adobe and Microsoft have
publicly stated they are substantially changing the way they conduct performance
reviews, for most, abandoning the process won’t be the answer,” said Aaron McEwan,
HR advisory leader at CEB, which conducted the research.
The practice of reengineering started in 1993 with Mike Hammer and Jim Champy's
book, reengineering the Corporation, followed two years later by Champy's
Reengineering Management. Twenty years later, we're still reengineering things in
organizations. The latest is performance management.
Why do companies engage in the performance evaluation process? The list of
claimed objectives could contain the following:
 To provide feedback to the employee by using a formal setting for communication
between employee and supervisor;
 To provide periodic direction and set goals for the employee's work;
 To provide an opportunity to recognize or reprimand the employee;
 To parallel salary with performance by determining salary increase, decrease, and
bonuses;
 To define the employee's needs for additional training or education and to set a new
career path;
 To identify candidates for promotions, demotions, or lateral moves;
 To prevent potential legal action by providing an equitable system of evaluation;
and
 To encourage performance improvements by identifying both strengths and
weaknesses in current performance and by providing the motivational reinforcement
to encourage improvements.

Figure 2.2: Continually Crowd sourcing Performance Data provides

Fresher and more timely insights

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To accomplish these objectives, companies and government agencies develop
formal evaluation procedures in which a form, composed of the job's critical elements,
matches the job description of the individual or group within the same classification. Notes
Evaluation of these critical elements follows a scale, usually from 1 to 4 or 5, and at the
end of the form a general rating provides a global evaluation of the employee. The form
reserves space for the signatures of the supervisor, reviewing officer, and employee, as
well as space for comments. In addition to completing the form, some performance
procedures call for an interview between the employee and the supervisor. The
evaluation cycle demands a repetition of the drill every year, although some
organizations do it semi-annually.
Knowing the objectives of the performance evaluation and the general procedure
used in most organizations, a scrutiny, under the TQM philosophy and reengineering
elements, of each objective becomes imperative.
The analysis will indicate that the achievement of the above goals exists within the
essential fabric of TQM. Eighty percent of the burden of a formal and costly evaluation
system must be eliminated from the business practice to give way to improvements that
genuinely benefit customers. Let's review each of the individual objectives.
Provide feedback by channelling communication between employee and
supervisor.

Figure 2.3: Benefits of Re-Engineering in Performance Appraisal

Under TQM, the annual boss-employee "channelling" gets defeated because of the
periodicity of the performance evaluation cycle. In today's business environment, if a
manager only gets in touch, formally or informally, with an employee once a year, he or
she misses a world of possibilities for development and improvement. The TQM
manager becomes more than a boss, he or she constantly coaches the employee to
steer the employee's actions toward self-improvement and betterment of the productive
systems. When the supervision function gets transformed into coaching, teaching, and
listening, the evaluation's feedback cycle changes to weekly or biweekly contacts and
monitoring. In a competitive business, a once a year get-together does not cut it.
Management structures supported by TQM discourage the typical top-down,
supervisor-subordinate relationship and emphasize instead, an intense feedback
through teams. In this situation, the sense of top-down gives way to an interactive and
vibrant team communication.

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2.6 Concept of Performance Analysis & Its Steps

Notes Performance Analysis is a specialist discipline involving systematic observations to
enhance performance and improve decision making, primarily delivered through the
provision of objective statistical (Data Analysis) and visual feedback (Video Analysis).
Performance Analysis is the process of studying or evaluating the performance of a
particular scenario in comparison of the objective which was to be achieved.
Performance analysis can be do in finance on the basis of ROI, profits etc. In HR,
performance analysis can help to review an employee’s contribution towards a project
or assignment, which he/she was allotted.
The performance analysis step consists of 3 basic steps:
1. Data Collection: It is a process by which data related to performance of a program
is collected. They are generally collected in a file, so that it may be presented to a
real user in a real time. The basic data collection techniques are:
(a) Profiles: It records the time spent in different parts of the program. This
process in very important for highlighting performance problems. They are
gathered automatically.
(b) Counters: It records frequencies or cumulative number of events. It may
require programmer intervention.
(c) Event: It records each occurrence of various specified events. It thus produces
a large number of data. It can be produced automatically or with programmer
intervention.
2. Data Transformation: It is applied often to reduce the volume of data. For
example, a profile recording the minutes spent in each sub routine job on each
processor might be transformed to determine minutes spent in each subroutine on
each processor and the standard deviation from this mean.
3. Data Visualization: Although data reduction techniques can rescue the volume of
data, it is often necessary to explore raw data. This process can benefit much more
from the use of data visualization techniques.

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When a particular tool is selected for a particular task, the following issues are
considered:
(a) Accuracy: Performance data that we get using the sampling technique are less
Notes
accurate than data we get using counters or timers.
(b) Simplicity: The best tools are that collect data automatically without much
programmer intervention.
(c) Flexibility: A flexible tool can be extended to collect additional information or to
provide multiple views of the same data.
(d) Intrusiveness: We need to take into account the overheads when analyzing
data.
(e) Abstraction: A good performance tool allows that data to be judged at a level
of abstraction which is suitable for the programming model of parallel programs.

2.7 Performance Review and Discussion

The performance review discussion between employee and manager is at least as
important as the evaluative outcome. It makes your mutual expectations clear, sets
goals for both parties, and maintains open lines of communication.
The discussion should be just one part of a year‐ long process of performance
management. To make the written portion of performance review effective, the
supervisor should obtain as much objective information as possible about the
employee’s performance during the review period. It is a good idea to take notes during
the year on both positive and corrective events so you will have concrete examples of
behaviour to use.
Other sources of data about employee performance include performance
documentation such as attendance records, letters of complaint or commendation,
examples of poor or outstanding work, activity reports, and your notes from observing
and coaching sessions. If you have followed the process so far, by the time you write
the performance review, you will have the information to do an effective job. You will
have clear standards for goals and duties. You will have a supportable basis for making
your reviews. You will have documented the employee’s performance and given clear
feedback about the performance over the course of the review period. You will have
provided the employee with opportunities to improve performance when necessary so
there will be no surprises about performance problems. At the time of the written review,
both you and the employee will discuss the process and you will invite the employee’s
input. If you follow these steps, you will find the process of performance review to be
constructive and satisfying.

Prepare the Written Assessment

Think about how well the employee achieved goals/performed duties and demonstrated
the University’s values based on the standards or expectations you developed.
For all functions, consider these questions:
 How does the employee’s level of performance compare with the agreed-upon
performance standards?
 How was the level of performance confirmed? Did you observe it? Did the
employee report it? Are there independent measures or work products?
 What were the consequences, results and impact of the performance?

Performance Review Discussion

 Mutually review the employee’s responsibilities.
 Mutually examine the employee’s performance.

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 Mutually explore what each can do to ensure performance improvement.
 Mutually review the employee’s short-term and long-term goals.
Notes

 Give the employee sufficient notice of the time and place of the meeting. Allow at
least one hour for the discussion. Hold the review in a private place where you will
not be interrupted.
 Bring to the meeting the performance review instrument you have completed, the
employee’s self‐assessment if they have one, and any other relevant
documentation, such as the job description, work products, etc.
 Open the discussion by stating the purpose of the meeting and summarizing the
points you will be covering.
The objectives for the discussion are to:
 Review, discuss and confirm your understanding of the accomplishment of
goals/duties;
 Recognize strengths and achievements;
 Confirm previously identified areas needing improvement and agree about how
improvement is to be accomplished;
 Review the employee’s career development goals;
 Set new goals/standards for the next review period;
 Agree upon the support you will provide the employee in the coming year.
 If the employee has done a self-assessment, consider that in conjunction with your
assessment, and discuss areas of agreement and difference. Consider whether
anything raised in your discussion of the employee’s self-assessment sheds new
light on your assessment, and be prepared to modify your review if appropriate. If
performance meets or exceeds the standards, recognize these accomplishments.
 If performance needs improvement, identify specific areas for development and
jointly develop an action plan.
 Ask the employee why s/he is not meeting standards. You can offer your own input
on possible causes, but avoid health or disability issues, or other areas protected by
law. The goal of this discussion is for both of you to understand the reasons why the
standards are not being achieved. Ask the employee for potential solutions, and
brainstorm together until you both can agree on specific, practical solutions.
 Discuss previously identified areas for improvement. Ask the employee how s/he
plans to improve performance and introduce your own ideas for improvement
planning. No problems should be raised during the review that you have not
discussed with the employee during the review period. Remember to critique the

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work and specific behaviours/actions, not the person. Be as specific as possible,
relating areas of improvement to the work standards.
 Be open to employee questions and concerns. Listen carefully to be sure you
Notes
understand the issues, and avoid responding defensively. If you need more
information, meet with the employee again at a later date. Do not let yourself get
caught up in a debate or argument. When employees require corrective feedback,
give it straight. When employees merit praise, give it to them.
 Attempt to resolve differences, misunderstandings and disagreements that surface
during the review. Be sure that both of you are satisfied that all important points
have been covered.
 Write what you will do to support the employee in improving performance and
developing skills.
 Set goals and update standards for the next review period.
 Finish the discussion by summarizing what was discussed and the results of the
meeting. Reinforce work that was well done. Close on a positive note.
Finalize the Performance Review Discussion If, during the discussion, you decide to
change any of the ratings, note the changes and inform the employee that you will
provide a new copy of the review with the changes in a few days. Schedule another
meeting to go over the final version of the form. The last task is to start planning for the
coming year by deciding on the goals/duties for the next review period. Note these and
provide a copy to the employee. You may do this in the performance review discussion
or schedule another meeting at a later time for goal setting.
Obtain the employee’s signature on the form to indicate that the discussion was
held. Give the employee time to write comments or append documentation to the form.
If the employee refuses to sign the form, allow him/her some time to digest the material
and prepare any additional documentation. Assure the employee that signing the review
does not indicate agreement of the rating, just confirmation that they were given the
opportunity to review the document and that performance has been discussed. If the
employee disagrees with the review and you are not able to resolve the disagreement,
the employee could speak with your supervisor or with Employee Relations. If the
employee has not signed the form after a reasonable time, note that information on the
form, and sign it yourself. Give the employee a copy of the completed form. Refer to
state-specific grievance procedures for more information.
Conduct appropriate follow-up sessions to discuss training, set goals and standards
for the next review period, or coach for improved performance.
A well-planned performance review meeting gives both the employee and the
manager feedback to be successful. And that should be enough reason for people not
to hate the process.

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Below are some forms templates on Performance Appraisals

Notes Form no. 1

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Notes

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Form No. 2

Notes Employee Appraisal Discussion Form

Summarize your job responsibilities as you see them. How has your job changed from your current job
description?

……………………………………………………………………………………………..

What gives you the greatest job satisfaction?

Did you meet the goal(s) you and/or your supervisor set last year? (If Any)
What goals/initiatives would you like to set for the coming year?

………………………………………………………………………………………………
………………………………………………………………………………………………

What suggestions, if any, would you make to help improve effectiveness in your current position?
………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………
………………………………

What other comments, concerns, suggestions or points of discussion would you like to address?

ANNUAL PERFORMANCE REVIEW AND APPRAISAL FORM

EMPLOYEES

NAME:____________________ TITLE:_________________________

OFFICE:_________________ DIVISION:______________________

CURRENT STATUS: _____ FULL-TIME______PART-TIME

INTRODUCTION

The evaluation of an employee’s job performance is an ongoing process and occurs frequently on an informal
basis. This form supports the performance appraisal meeting, which is an addition to, or summary of, the
regular ongoing feedback process. The formal review session is scheduled annually, preferably on the staff
member’s anniversary date of employment.

PURPOSE OF THE PERFORMANCE APPRAISAL SYSTEM

To provide an opportunity for the supervisor to appraise employee strengths, job description responsibilities,
other previously determined departmental objectives and to make suggestions in areas which may need
improvement.

To provide an opportunity for the supervisor and staff member to review job performance, discuss priorities
among job tasks and, if necessary, develop strategies for job improvement. The performance appraisal shall
not be used for disciplinary reasons. It is solely for staff development purposes.

DIRECTIONS
Prior to the performance appraisal meeting, the staff member may wish to review and complete the optional
Employee Appraisal Discussion Form, and return it to the supervisor 48 hours prior to the meeting. When the
Performance Review & Appraisal Form is completed, both the supervisor and staff member should initial it.

More detailed instructions appear at the beginning of each section.

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SECTION 1: GENERAL PERFORMANCE CATEGORIES

The supervisor should complete this section before the performance appraisal meeting. Each job category
Notes
should be evaluated. If a statement is not applicable, mark it N/A.

RATINGS DEFINITIONS:

OUTSTANDING Employee makes unique and significant contributions

through superior performance

COMMENDABLE More than fulfills requirements

EFFECTIVE Fulfills requirements

NEEDS IMPROVEMENT Shows need for further training or improvement

JOB FUNCTION

Quality of Work: The employee is consistent and conscientious in producing neat,

accurate, and thorough work.
( ) Outstanding ( ) Commendable ( ) Effective
( ) Needs Improvement ( ) Not Applicable

Organization: The employee is able to plan and prioritize work to make the most
efficient use of his/her time.
( ) Outstanding ( ) Commendable ( ) Effective
( ) Needs Improvement ( ) Not Applicable

Decision Making: The employee exercises good judgment and makes decisions within
the scope of the job.
( ) Outstanding ( ) Commendable ( ) Effective
( ) Needs Improvement ( ) Not Applicable

Independence: The employee performs the requirements of the job with minimal
direction and supervision.
( ) Outstanding ( ) Commendable ( ) Effective
( ) Needs Improvement ( ) Not Applicable

Flexibility: The employee readily adjusts to new work situations or conditions.

( ) Outstanding ( ) Commendable ( ) Effective
( ) Needs Improvement ( ) Not Applicable

INTERPERSONAL SKILLS

Cooperation: The employee contributes to the climate of collaboration and team

work among co-workers, and treats others with dignity and respect.
( ) Outstanding ( ) Commendable ( ) Effective
( ) Needs Improvement ( ) Not Applicable

Attitude: The employee exhibits a positive interest in work and willingness to

perform duties as assigned.
( ) Outstanding ( ) Commendable ( ) Effective
( ) Needs Improvement ( ) Not Applicable

Initiative: The employee is “self-motivated” and pursues activities that lead to

successful attainment of department objectives without supervisor
prompting.
( ) Outstanding ( ) Commendable ( ) Effective
( ) Needs Improvement ( ) Not Applicable

Communication: The employee has the ability to interact effectively with the Marist
community and/or visitors.
( ) Outstanding ( ) Commendable ( ) Effective
( ) Needs Improvement ( ) Not Applicable

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Notes SPECIFIC TASKS/RESPONSIBILITIES

This section is based on the staff member’s job description. Before the
Performance appraisal meeting, the staff member and supervisor should
Mutually agree on the primary/critical job responsibilities (a minimum of two and a maximum of four) to be
evaluated. The supervisor should then review the agreed-upon responsibilities and evaluate performance in
preparation for the performance appraisal meeting.

1. Specific Tasks/Responsibilities:

( ) Outstanding ( ) Commendable ( ) Effective ( ) Needs Improvement

2. Specific Tasks/Responsibilities:

( ) Outstanding ( ) Commendable ( ) Effective ( ) Needs Improvement

3. Specific Tasks/Responsibilities:

( ) Outstanding ( ) Commendable ( ) Effective ( ) Needs Improvement

4. Specific Tasks/Responsibilities:

( ) Outstanding ( ) Commendable ( ) Effective ( ) Needs Improvement

SECTION II: OVERALL RATING

In summary, please give an overall rating of the performance of this employee.

Exceptional: () The extraordinary individual who always goes beyond what is required to do
the job. There is not only less management direction, but judgment, resourcefulness, and depth of knowledge
are the highest quality. It is often true that the individual’s proficiency is widely recognized by interfacing
areas. The employee often creates new ways of doing things that change the nature of the job. In short, the
employee is one whose energy, imagination and capacity to produce results clearly set him/her apart from
most workers.

Exceeds
Requirements :( ) The employee does the basics of the job with ease and excellence. Requires minimal
management direction for complex, creative, or crisis-oriented tasks. The employee
normally anticipates and adapts to change in the job environment. Performance is
convincingly better than established standards or expectations.

Meets
Requirements:( ) The employee performs well in all key job responsibilities. The employee does
what is expected at a normal pace.

Needs
Improvement:( ) Performance does not meet the standards established for the job. Work may be
of variable quantity and quality or may be consistently sub-standard. Requires
frequent direction. This rating indicates that performance improvement is
necessary.

COMMENTARIES

Supervisor Comments:

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Notes
Employee Comments:

Employee’s Initials:_______________ Date:______________________

Supervisor’s Initials:______________ Date:______________________

2.8 Performance Monitoring and Feedback

A performance monitoring and feedback is a plan to manage the collection of
performance data. This plan is the part of the regular monitoring of the employees
performance by their respective line managers and is much comprehensive in its
executive as it requires a good watch of a manager towards their subordinate’s work
deliverables as well as behaviours and attitudes at the work place. The Performance
Monitoring & Feedback plan also includes plans for data analysis, reporting, and its
usage.
The role of performance management is an increasingly popular topic in today’s
modern and high operational organization. In this highly competitive world and huge
business pressures, organizations are now required to become even more effective and
proficient, implement better on business strategy. They wanted to perform more but
want less labour or employees strength as they tried to become more cost effective.
Today with the importance of optimal performance management, there are lots of
significant internal obstacles. But the forward thinking companies are taking steps to
successfully address this negative view of performance management. Modern and far-
sighted companies are implementing innovative solutions that guarantee processes
deliver real results and improve performance.
As mentioned in the earlier section, feedback and regular monitoring of employees
performances is fruitful for both employees and the organization. Employees get highly
motivated when their performance and hard work is equally appraised by their seniors
of line manager of departmental heads. This make them instigate to deliver more and in
less time period. Rewards and recognition are always proved to be result oriented
approached.
A Properly created performance appraisals should represent a summary of an
ongoing, year-round dialogue between the employee and their managers or
organization. Focusing only on an annual appraisal form leads to misunderstanding and
under appreciation of the benefits of performance management.
An effective performance management process enables managers to evaluate and
measure individual performance and optimize productivity by:
 Aligning individual employee's day-to-day actions with strategic business objectives
 Providing visibility and clarifying accountability related to performance expectations
 Documenting individual performance to support compensation and career planning
decisions
 Establishing focus for skill development and learning activity choices
 Creating documentation for legal purposes, to support decisions and reduce
disputes.

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46 Performance & Competency Management
Constructive feedback alerts an individual to an area in which performance could
improve. It is descriptive and should always be directed to the action, not the person.
Notes The main purpose of constructive feedback is to help people understand where they
stand in relation to expected and/or productive job and workplace behaviour. If an
employee is not meeting performance expectations, managers need to provide
constructive and honest feedback. It's important to do this when an issue first arises -
before it escalates into a significant problem.
Here are a few points to consider when giving constructive feedback:
Think through what you want to address in the meeting, confirm the
facts of the performance issue and make sure you know and can
describe what happened or is happening. Be clear about what the
issue is and about the consequences if the employee's performance
does not improve. Plan to meet in a location where there will be
privacy and minimal interruptions (note that in a unionized
environment, you may have to invite a union representative to be with
the employee during the discussion).

So that you can approach the discussion objectively and with clarity

Have an ear to listen to the employee at time when he is describing

the situation from their perspective and provide an explanation. Be
open to any new insights that may arise.
Although we may sympathize with an employee’s unique personal
circumstances and their reasons for why they are not performing, it is important to
remain focused on the performance issue. If you alter what is required of one employee
(i.e. “bend the rules”) you will have to be prepared to do so for all employees. As a
performance manager, try to avoid putting yourself in the position to have to judge
which circumstances warrant “special treatment” and those that do not.
Agree on an action plan by asking the employee for their
suggestions for addressing the issue and offer your suggestions if
necessary. Including the employee what, how and when he will do
the assigned work or duties. This entire agreement need to be to
documented for future reference and copy of the say must be the
part of employee personnel file. In serious and urgent task, there
will also be need to clearly specify the consequences if the
performance issue is not resolved by the employee.
Follow up: There is need for constant and regular monitoring
of employees results and meeting periodically with employees to discuss progress. It
provides positive strengthening for improvement in the employee and if the issue has
not improved or been resolved over the specified time period, than the endorsement of
the consequences must be carried out as discussed in the action plan.

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Find below some template on Employee Performance Feedback Form
Form No. 1 Notes

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48 Performance & Competency Management
Form No. 2

Notes

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Process of Performance Appraisal 49
Form No. 3

Notes

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50 Performance & Competency Management
Form No. 4

Notes

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Form no. 5

Notes

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52 Performance & Competency Management
Form No. 6

Notes

2.9 Summary
The performance review meeting is a formal conversation based upon the informal
conversations that have happened prior. The goal is to make the meeting productive
and produce outcomes that benefit both the employee and the company.
The road to effective performance management is not always an easy one, but
progressing towards a long-term vision by making manageable changes, step-by-step,
will bring about significant results. The points below act as a reminder of some of the
key elements of a successful process.
 Communicate and understand purpose and value of process
 Set goals effectively
 Begin with performance planning
 Ensure an ongoing process
 Gather information from a number of sources
 Document, document, document
 Adequately prepare and train managers
 Deliver objective reviews that summarize an ongoing process
 Link performance management with other talent management processes
 Evaluate the process and make it easy, efficient and effective to ensure
participation

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Process of Performance Appraisal 53
 Consider the benefits of automation to save money and resources and optimize the
performance management process.
Essential to having a performance impact is the ability of the practitioner to be
Notes
integrated within the learning & coaching environment, and understanding the principles
of skill acquisition, and having a detailed understanding of the work.

2.10 Check Your Progress

Multiple Choice Questions
1. ……………..is an objective assessment of an individual's performance against well-
defined benchmarks.
(a) Performance Appraisal
(b) HR Planning
(c) Information for goal identification
(d) None of the above
2. What is linked with performance appraisal?
(a) Job Design
(b) Development
(c) Job analysis
(d) None of the above
3. Which of the following is an alternate term used for performance appraisal?
(a) Quality and quantity of output
(b) Job knowledge
(c) Employee assessment
(d) None of the above
4. Match the following general applications of performance assessment with their
specific purposes
I. Administrative Uses/ Decisions A. Performance Feedback
II. Documentation B. Lay – offs
III. Organisational Maintenance/ Objectives C. Helping to meet legal requirements
IV. Developmental Uses D. Evaluation of HR systems
(a) I-C, II-D, III-B, IV-A\
(b) I-B, II-C, III-D, IV-A
(c) I-B, II-C, III-D, IV-D
(d) I-A, II-B, III-D, IV-C
5. Which of these is the main purpose of employee assessment?
(a) Making correct decisions
(b) To effect promotions based on competence and performance
(c) Establish job expectations
(d) None of the above
6. How performance appraisal can contribute to a firm's competitive advantage?
(a) Ensures legal compliances
(b) Minimising job dissatisfaction and turnover
(c) Improves performance
(d) All of the above

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54 Performance & Competency Management
7. From the strategic point of view, in which three categories can an organisation be
grouped?
Notes (a) Defenders
(b) Prospectors
(c) Analysers
(d) All of the above
8. Successful defenders use performance appraisal for identifying ……………………
(a) Staffing needs
(b) Job behaviour
(c) Training needs
(d) None of the above
9. Analysers tend to emphasise both ………….. and …………and employee extensive
training programmes.
(a) Skill building and skill acquisition
(b) Current performance and past performance
(c) Strategy and behaviour
(d) None of the above
10. What do successful analysers tend to examine?
(a) Division and corporate performance evaluation
(b) Current performance with past performance
(c) Ideal appraisal process
(d) None of the above
11. An interview, in which supervisor and subordinate review appraisal, is called
(a) structured interview
(b) unstructured interview
(c) appraisal interview
(d) hiring interview
12. Method of keeping and reviewing, record of employees' undesirable behavior at
different time intervals is
(a) critical incident method
(b) forced distribution method
(c) alternation ranking method
(d) paired comparison method
13. Aligning and evaluating employee's performance with company's set goals is called
(a) appraisal management
(b) performance management
(c) hierarchy of management
(d) off-the-job training
14. First step in appraising process is
(a) defining job
(b) training session
(c) feedback session
(d) interview sessions

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Process of Performance Appraisal 55
2.11 Questions and Exercises
1. What is a Performance Appraisal? Notes
2. Explain the process of Performance Appraisal?
3. Mention the need and methods for performance appraisal.
4. What do you understand by RSDQ Model of Performance Appraisal?
5. Explain in length about the Reengineering Performance Appraisal.
6. What is Appraisal System?
7. Explain the Performance Review Discussion.
8. Explain how to monitor Performance Monitoring and Feedback.
9. What is a performance monitoring plan?
10. What is performance monitoring and evaluation?

2.12 Key Terms

 Compensation: Compensation for injury to an employee arising out of and in the
course of employment that is paid to the worker or dependents by an employer
whose strict liability for such compensation is established by statute. Where
established by statute, workers' compensation is generally the exclusive remedy for
injuries arising from employment, with some exceptions. Workers' compensation
statutes commonly include explicit exclusions for injury caused intentionally, by
wilful misconduct, and by voluntary intoxication from alcohol or illegal drugs.
 Competencies: ‘An underlying characteristic of a person’ ‘motive, trait, skill, aspect
of one’s self-image or social role, or a body of knowledge’.
 Administrator: Administrator have the required access that is necessary to set up
appraisals for the organization; and is the person to contact with questions
regarding the appraisal process/workflow. Administrators have the ability to change
user passwords, view notification and activity logs, re-assign a manager, view
appraisal status, rollback the process, and mark steps complete
 Appraisal Forms: This form has all of the evaluation criteria in one place.
 Development Plans: Development plans are designed to support employees while
they work towards achieving goals, demonstrating competencies, career
development, and/or higher-level organizational goals.
 Process: Refers to a review period. For example, the FY17 Appraisal Process
refers to the period of time from March 15 to June 30 of 2017 in which employees
will be reviewed for their performance during the July 1, 2016 to June 30, 2017
fiscal year.
 Rating Scale: The scale used to generate the overall performance appraisal score.
The rating scale used is: Outstanding, Exceeds Expectations, Successful,
Improvement Expected, and Unacceptable.
 Task: Task an action assigned to a user/ employee is termed as task. Each
workflow step has an associated task. The task is assigned to the appropriate user
(or users) when the workflow reaches that step.

Check Your Progress: Answers

1. (a) Performance Appraisal
2. (c) Job analysis
3. (c) Employee assessment
4. (b) I-B, II-C, III-D, IV-A
5. (b) To effect promotions based on competence and performance
6. (d) All of the above

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56 Performance & Competency Management
7. (d) All of the above
8. (c) Training needs
Notes
9. (a) Skill building and skill acquisition
10. (b) Current performance with past performance
11. (c) appraisal interview
12. (a) critical incident method
13. (b) performance management
14. (a) defining job

2.13 Further Readings

 7 Paths to Managerial Leadership: Doing Well by Doing It Right, by Fred
Mackenzie.
 The Coaching Solution: How to Drive Talent Development, Organizational Change
by Renee Robertson
 Manasa, K. & Reddy, N. (2009). Role of Training in Improving Performance.
 The Complete Guide to Performance Appraisal, by Dick Grote.
 Abu-Doleh, J. & Weir, D. (2007). Dimensions of performance appraisal systems in
Jordanian private and public organizations. International Journal of Human
Resource Management, 18(1), 75-84.
 Daniels, Aubrey C. Designing a Compensation Program That Motivates and
Produces a Profit-Driven Workplace.

Amity Directorate of Distance & Online Education