APPRAISAL PERFORMANCE
A. Definition of Performance Appraisal
Performance appraisal is a formal management system that provides for the
evaluation of the quality of an individual's performance in an organization (Grote, 2002).
The origin of appraisal performance began before World War 2 to be used in the military
world to measure individual personality and traits. Then in 1950, Peter Drucker and
Douglas McGregor carried out a measurement process based on goal setting. Individuals
and managers are responsible for the research process.
B. Purpose of Performance Appraisal
The main purpose of performance appraisal is to play an important role as part of
the overall performance management process, there are two general objectives, namely:
- To improve employee performance, help them realize and use their potential
in completing their tasks.
- To provide information to employees and managers, so that it can be used in
making decisions related to their work.
The specific objectives of performance appraisal include:
- Provide legal and formal policies for organizations to conduct policies for
employees.
- Used as input for test validity criteria for recruitment
- Provide feedback for employees.
- Can help to determine training needs
- Can help to analyze problems that occur in the organization.
In addition, in more detail the objectives of performance appraisal are as follows:
1. Staffing
For the purposes of recruitment, selection, placement, promotion, mutation,
termination
2. Rewards
Determination of changes in compensation (bonuses, salary structure)
3. Changing
To determine layoff/downsizing decisions and legal policies. Give feedback
on employee performance
4. Development
Help create and measure work goals, counseling, coaching and mentoring,
support training and development succession
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C. Performance Appraisal Process
1. Things that managers must pay attention to:
- Translates organizational goals into individual work objectives/requirements.
- Communicate expectations related to employee performance.
- Give feedback
- Assist employees in achieving their goals.
- Diagnose the strengths and weaknesses of employees.
2. Employees should get answers about:
- What is expected of me?
- How well am I doing?
- What are my strengths and weaknesses?
- How can I do my tasks better?
- How can I have more of a role?
3. Things the company should do:
Provide a clear understanding of what is expected of employees, provide direction of
goals and priorities, monitoring results, etc.
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D. Basic Principles of Performance Appraisal
1. Fairness
a. Open to subordinates in providing performance appraisals
b. Avoid bias
2. Empathy
a. Put yourself on the side of the employee
b. View subordinates positively / avoid prejudice against employees
3. Support
a. Provide opportunities for subordinates by learning from their experience to
carry out improvement activities
b. Provide feedback and development needs
c. Recognize and praise the achievements of subordinates
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E. Requirements for Effective Performance Appraisal
Legally and scientifically, the main requirements of Performance Appraisal are
- RELEVANCE, clearly related.
- SENSITIVITY, able to distinguish good performance, rather good, and poor
performance.
- RELIABILITY, able to provide a reference for making consistent decisions
- ACCEPTABILITY, able to be accepted by employees, so that employees
support and use it
- PRACTICALITY, must be easy to understand and use both by managers and
employees.
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F. Relationship of Performance Standard to Job Analysis and Performance Appraisal
- Job Analysis : Describes work and personal requirements of a particular job
- Performance Standards : Translate job requirements into levels of
acceptable/unacceptable performance
- Performance Appraisal : Describes the job-relevant strengths and weakness of each
individual
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G. Approach to Performance Appraisal Measurement
1. Result Based
An assessment method that has a focus on controlling work goals and measuring
work results both individually and in groups in a certain assessment period. What is
measured is what employees achieve. The basis of its evaluation is the results
achieved. The assumption is that goal achievement drives performance. The rating is
related to the level of achievement. Result-based measurement using Management by
Objective (MBO) techniques.
2. Behavior Based
An assessment method that focuses on controlling work goals through behaviors that
appear in the work process, both individually and in groups in a certain assessment
period. What is measured is what employees do. The basis of evaluation is the
frequency of important behaviors displayed. The assumption is that certain behaviors
drive the performance of specific behaviors in the work environment. The rating
relates to the rate/frequency that arises from the behavior in question. Behavior-based
measurement using the Behavioral Anchored Rating Scale (BARS) technique.
3. Competency Based
A method used to assess employee capabilities compared to predetermined demands /
company standards. What is measured is the capability that the employee brings in
relation to his role. The basis of the evaluation is the potential displayed. The
assumption is that certain capabilities drive performance. The rating is related to the
level of competence achieved.
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H. Performance Appraisal with 360 Degree System or Multi-Rater
Some companies, such as Lockheed-Martin, DuPont, & Wells Fargo Bank, use input
from all angles (managers, subordinates, peer groups, and customers) in performance
appraisals. Some causes of failure to use this system:
- Unclear / ambiguous goals
- It is only a matter of employees getting this system model
- There is a change in the ground rules once the process starts
- Each rater is unable to identify what should be assessed
- Failure to develop an action plan for post-assessment feedback
- There is a gap between the organization's expectations of the work appraisal
aspect and the development process
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I. Problems in Measurement Situations
1. Halo effect
2. Personal relationship
3. Central tendency
4. Leniency and strictness
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