MGT1101 - T8 (2): Performance Appraisal

An employee performance management system is a means to ensure that every employee works in a manner which is aligned with organizational goals, and which ensures that the employee reaches his maximum potential on the job.

• True

• False

HR system related to:

• Managing the performance of individual employees

• Training

• Reward system

• All of the following

The performance management system is implemented by employees.

• True

• False

Following are factors affecting employee performance, EXCEPT:

• Employee’s

  Knowledge

• Employee's Skill

• Employee's Attire

• Work Environment

The objectives/targets/key result areas/key performance indicators established for each employee must be:

State two (2) benefits of a Performance Appraisal System.

State any two (2) potential bias in Performance Appraisal System.

This bias occurs when recent employee performance significantly influences overall appraisal, leading managers to prioritize recent events or behaviors over earlier accomplishments or areas for improvement.

• Recency effect

• Halo effect

• Central tendency

• Fatigue

Central tendency bias is:

• when appraisers become overwhelmed during evaluation, leading to rushed or inconsistent assessments, inaccurate ratings, and overlooking important performance details.

• a management practice where managers rate all employees as average or near-average, potentially leading to inflated ratings for underperforming employees and lower ratings for high performers.

• where a manager's perception of an employee's performance can influence their evaluation of other unrelated aspects.

• a biased evaluations based on personal characteristics, with managers unknowingly favoring or discriminating against employees based on stereotypes rather than objective performance criteria.

Who gives input into an appraisal?

• Financial Institutions

• Investors

• Customers

• Employees