APPRAISING AND REWARDING PERFORMANCE

Performance appraisal has to do with comparing an individual’s job and performance against standards
or objectives developed for the individual’s assignment.

The task of evaluating employee performance is referred to as: performance rating, efficiency rating, merit
rating, employee evaluation, service rating, personal rating, performance received and performance
appraisal.

FACTORS FOR JUDGING PERFOMANCE

1. The requirements, duties and responsibilities and the standards of satisfactory performance.
2. The nature of the man and the extent or quality of his performance.

Performance is differentiated from duties—duties and responsibilities refer to what should be done, the
performance of which is due to a person or organization, and the fulfillment of the moral obligation.
Performance specifies how much should be done or accomplished, its quality and manner in which it is to
be undertaken. Thus, duties are performed.

OBJECTIVES OF PERFORMANCE APPRAISAL

An employee performing rating system aims to:

1. Provide feedback on employee performance.

2. Serve as a basis for personal action.
3. Serve as management’s guide in employee counseling and discipline.
4. For the improvement of the employee relations.
5. Improves supervision by making the superior better conscious of his duties in supervising
subordinate.
6. Development of the supervisors.
7. As a basis for changes.
8. To identify training needs and areas of management development.

NEEDS TO EVALUATE PERFORMANCE OF EMPLOYEES

Employees by and large will know:

1. How they are perfoming

2. What is expected of them
3. How well they are meeting those expectations
4. How they can improve
5. How their superiors gauge their performance

Employees evaluate themselves and their co-workers by comparing themselves with their peers. Through
systematic evaluation of employee’s performance , promotion in pay and in rank can be wisely and
objectively decided upon. There is a need to set up uniform criteria and methods of evaluating employees.
A formal and well-managed appraisal system of employee’s job performance will enable the employees
to know how they stand with their respective supervisors.
Methods used in Appraising Performance

The types of merit rating plans widely used are the following:

1. Rank Order Method

2. Paired Comparisons Method
3. Forces Distribution System
4. Graphic Rating Scale
5. Preference Checklist Method
6. Management by Objectives (MB) or Results Oriented Method