Performance_Appraisals

Performance Appraisals

The Role of Performance Appraisal in Motivation

Almost all of the theories and approaches to motivation assume that managers can accurately appraise-that is, evaluate-the subordinates' performance and contributions to their jobs and to the organization. In expectancy theory two of the main determinants of motivation are expectancy (the perceived connection between effort and performance) and instrumentality (the perceived connection between performance and outcomes such as pay, praise, and career opportunities). Workers are likely to have high levels of expectancy, instrumentality, and thus motivation only if their managers can accurately appraise their performance.

According to equity theory, workers will be motivated to perform at a high level only if they perceive that they are receiving outcomes in proportion to their inputs or contributions to their jobs and to the organization. Accurately appraising performance is necessary for determining workers' contributions. From the perspective of equity theory, then, workers will be motivated to perform a high level only if their performance can be and is accurately appraised.

Procedural justice theory suggests that the procedures that are used to appraise performance must be perceived as fair in order for motivation to be high. If workers think that managers' appraisals are biased or that irrelevant information is used in evaluating performance, workers' motivation is likely to suffer. More generally, no matter which approach managers use to motivate workers, workers will be motivated to contribute their inputs to the organization and perform at a high level only if they think that their managers can and do appraise their performance accurately.

Because motivation and performance have so great an impact on organizational effectiveness, many researchers have focused on how to appraise performance in organizations.

Performance appraisal has two overarching goals:

To encourage high levels of worker motivation and performance.
To provide accurate information to be used in managerial decision making.

These goals are interrelated because one of the principal ways that managers motivate workers is by making decisions about how to distribute outcomes to match different levels of performance.

Encouraging High Levels Of Motivation And Performance

All the approaches to motivation depend on the accurate assessment of a worker's performance.

An accurate appraisal gives workers two important pieces of information:

The extent to which they are contributing the appropriate level of inputs to their jobs and to the organization
The extent to which they are focusing their inputs in the right direction on the right set of tasks.

Essentially, performance appraisal gives workers feedback that contributes to intrinsic motivation.

A positive performance appraisal

Lets workers know that their current levels of motivation and performance are both adequate and appreciated.
In turn, this knowledge makes workers feel valued and competent and motivates them to sustain their current levels of inputs and performance.
Many workers consider a good performance appraisal an important outcome or reward in itself.

An inadequate performance appraisal

Tells workers that their performance is unacceptable and may signal that:

They are not motivated to contribute sufficient inputs to the job
They cannot contribute certain inputs that are required (perhaps because they lack certain key abilities)
They are misdirecting their inputs, which in and of themselves are at an adequate level.

Example:

The case of Susan England, Ramona Michaels, and Marie Nouri, salespeople in the women's clothing department of a large department store, illustrates the important role of performance appraisals in encouraging high levels of motivation and performance. England, Michaels, and Nouri have just met individually with the department supervisor, Ann Rickels, to discuss their latest performance appraisals. The performance of all three sales clerks was assessed along four dimensions: quality of customer service, dollar amount of sales, efficient handling of transactions (for example, processing sales and re- turns quickly to avoid long lines), and housekeeping (for example, keeping

merchandise neat on shelves and racks and returning "try-ons" from the dressing rooms to the racks).

England received a very positive evaluation on all four dimensions. This positive feedback on her performance helps sustain England's motivation because it lets her know that her efforts are appropriate and appreciated.

Michaels received a positive evaluation on the customer service dimension but a negative evaluation on sales, efficiency, and housekeeping. Michaels tried very hard to be a good performer and provided exceptionally high levels of service to the customers she served. Rickels noted' however, that even though her shifts tended to be on the slow side in terms of customer traffic, there was often a long line of customers waiting to be served and a backlog of clothes in the dressing room to be restocked. Rickels is judged Michaels's sales performance to be lackluster. She thought the problem might be that Michaels's attempts to help individual customers arrive at purchase decisions were consuming most of her time. Discussions with Michaels confirmed that this was the case. Michaels indicated that she was working a hard as she could, yet she knew that her performance was lacking on three of the four dimensions. She confessed to feeling frustrated that she could not get everything done even though she always seemed to be busy. Michaels' negative performance evaluation let her know that she was misdirecting her inputs. The time and effort she was spending to help customers were preventing her from performing her other job duties. Even though Michaels' performance evaluation was negative, it helped sustain her level of motivation (which had always been high) because it showed her how she could become a good performer.

Nouri received a negative evaluation on all four dimensions. Because Nouri was an experienced salesperson who had the necessary skills and abilities, the negative evaluation signaled Nouri and her manager that Nouri's level of motivation was unacceptable and in need of improvement.

Providing Information For Decision Making

Performance Appraisals aid in the following decisions:

How to distribute pay and promotions equitably
How to improve the performance of workers who are not performing as highly as they should be.
How to more effectively use the talents of organizational members
How to group people into high-performing work teams
How to assign specific tasks to individual workers.
How to improve job design
How to improve an organization's approach to motivation and the distribution of outcomes.
How to plan a career - Performance appraisal provides workers and supervisors with information for career planning. By helping managers identify a worker's strengths and weaknesses, performance appraisal sets the scene for meaningful discussions about the appropriateness of a worker's career aspirations and about how a worker can best progress toward those career goals.
Identify training needs - Performance appraisal may also signal areas in which workers need to improve and skills they may need to develop to meet their career goals.

Developing A Performance Appraisal System

Managers can use the information gained from performance appraisal for two main purposes:

Developmental purposes such as determining how to motivate a worker to perform at a high level, evaluating which of a worker's weaknesses can be corrected by additional training, and helping a worker formulate appropriate career goals.
Evaluative, decision-making purposes such as deciding whom to promote, how to set pay levels, and how to assign tasks to individual workers.

What decisions are required to develop an appraisal system?

Developing an Effective Appraisal System includes the following choices:

The Mix of Formal and Informal Appraisals.
Factors to Evaluate.
Methods of Appraisal.
Who Appraises Performance?

Choice 1: The Mix of Formal and Informal Appraisals.

Formal Appraisals

What are the defining characteristics of a formal appraisal system?

The performance dimensions and the way workers are evaluated on them are determined in advance.
Usually conducted on a fixed schedule (such as every six months or once a year). - Most other large organizations use formal appraisals
The worker is given feedback on his or her performance - In a meeting between the worker whose performance is being appraised and the person doing the evaluating.

Informal Appraisals

What are the defining characteristics of an informal appraisal system?

Managers and subordinates meet informally to discuss ongoing progress, can meet the needs of both workers and managers.
Vary in form and content and range from a supervisor commending a worker for doing an outstanding job on a project to criticizing a worker for slacking off and missing a deadline.
They often take place right after desired or undesired behaviors occur, workers immediately have a good idea of what they are doing right or wrong.

Reasons for Informal Appraisals

Why use an informal appraisal system?

Sometimes workers want feedback on a more frequent basis than that provided by the formal system.
Managers often want to use performance feedback to motivate subordinates on a day-to-day basis. If a worker is performing poorly, for example, a manager might not want to wait until the next six- or twelve-month performance review to try to rectify the problem.

Who is likely to use an informal appraisal system?

The smaller organization is, the more likely it is to rely exclusively on informal performance appraisals.

Ideally Mixed

Ideally, an organization should rely on both formal and informal performance appraisals to motivate its members to perform at a high level and make good decisions.

Contribution of Formal Appraisals

The formal appraisal ensures that performance gets assessed periodically along the dimensions important to an organization.

Contributions of Informal Appraisals

A worker who is performing poorly should not have to wait six months or a year to find out; likewise, good performers should be told that they are on the right track.
Informal performance appraisals are important for motivation and performance on a day-to-day basis because they identify and rectify problems as they arise.

Choice 2: What Factors to Evaluate.

What factors are evaluated in an appraisal?

Performance appraisal content can include: Traits, behavior, and/or results

Traits

What are traits?

Personal characteristics (such as personality, skills, or abilities) that are deemed relevant to job performance are evaluated.

Disadvantages of using traits to assess performance

What are the disadvantages of using traits to assess performance?

1. Poor predictors of performance - Interaction of individual differences such as personality traits or abilities and situational influences usually determines behavior.

For this reason, traits or individual differences alone are often poor predictors of performance because the possible effects of the situation are not taken into account.

Traits may be good indicators of what a worker is like but not very good indicators of what the worker actually does on the job.

2. Risk of lawsuits - Traits do not necessarily have clear-cut relationships with actual behaviors performed on the job, therefore workers and law courts involved in cases of potential employment discrimination are likely to view trait-based performance appraisals as unfair.

To avoid the negative effects of perceived unfairness on worker motivation, as well as costly litigation, organizations should use trait-based approaches only when they can clearly demonstrate that the traits are accurate indicators of job performance.

3. Provides little motivation - The use of traits to assess performance does little to help motivate workers because it focuses on relatively enduring characteristics that cannot be changed in the short term, if at all.

For example, telling a division manager that she lacks initiative or a hotel reservations clerk that he is impatient does not give either worker much of a clue about how to do the job differently.

Behaviors

The focus is on the actual behaviors or actions a worker displays on the job: What a worker does is appraised, not what the worker is like.

A division manager's behavior might be appraised in terms of the extent to which she has launched successful new products and scrapped unprofitable existing products. A hotel reservations clerk might be assessed on the extent to which he gathers all the information needed to make accurate reservations that accommodate guests' requests and the extent to which he satisfactorily explains unmet requests to guests.

What are the advantages of appraising behaviors?

Advantages of behaviors - Relying on behaviors to assess performance is especially useful when how workers perform their jobs is important, because it lets them know what they should do differently on the job.

For example, telling a hotel reservations clerk that he should explain why a certain request can't be met and should answer guests' questions calmly and clearly regardless of how many people are in line waiting to check in gives the clerk a lot more direction than simply telling him he needs to be more patient, polite, and calm.

What are the disadvantages of appraising behaviors?

Disadvantages of behaviors - One potential problem with relying on behaviors to assess performance is that sometimes the same level of performance can be achieved through different behaviors.

For example, two managers may be equally effective at launching new products and scrapping unprofitable ones even though one reaches decisions through careful, long-term research and deliberation while the other relies more on gut instincts.

Results

When results are used to appraise performance, the focus is not on what workers do on the job but on the effects of their behaviors or their actual output.

The performance of a hotel clerk might be assessed in terms of the number of reservations handled per day and on guests' satisfaction ratings with their check-in experience.

What are the advantages of appraising results?

Advantages of results - When there are many ways to achieve the same results and which avenue a worker chooses is not important, results can be a useful way of assessing performance.

What are the disadvantages of appraising results?

Disadvantages of results -

Sometimes results are not under a worker's control: A division's profitability might suffer because sales were lost when foreign trade regulations changed unexpectedly.
Workers may also become so results oriented that they become pressured into unethical practices such as overcharging customers or failing to perform important organizational citizenship behaviors such as helping coworkers.

Combination of Behavior and Results

It is a good idea to appraise both behavior and results when both dimensions of performance are important for organizational effectiveness.

In most sales jobs, for example, the results of a salesperson's behavior (number of items sold) are crucial, but the kinds of behaviors employed (treating customers courteously and politely and processing transactions efficiently) are often equally important.

Choice 3: Methods of Appraisal.

The measures managers use to appraise performance can be of two types: objective or subjective.

What are objective measures?

Objective measures such as numerical counts are based on facts.

When are objective measures used?

They are used primarily when results are the focus of Performance appraisal.

The number of televisions a factory worker assembles in a day, the dollar value of the sales a salesperson makes in a week, the number of patients a physician treats in a day, and the return on capital, profit margin, and growth in income of a business are all objective measures of performance.

What are subjective measures?

Subjective measures are based on individuals' perceptions, and can be used for appraisals based on traits, behaviors, and results.

What are the disadvantages of subjective measures?

Because subjective measures are based on perceptions, they are vulnerable to many of the biases and problems that can distort person perception.

Because there is no alternative to the use of subjective measures for many jobs, researchers and managers have focused considerable attention on the best way to construct subjective measures of performance.

Rating Systems

Typically, when subjective measures are used, managers identify specific dimensions of performance (traits, behaviors, or results) that are important in a job.

Then they develop some kind of rating scale or measure to assess an individual's standing on each dimension. Various rating scales can be used.

Three types of rating systems:

Graphic rating scales
Behaviorally anchored rating scales
Behavioral observation scales.

Graphic rating scale

The rater (the person responsible for the performance appraisal) assesses the performance of a worker along one or more continua with clearly specified intervals.

Advantages - Graphic rating scales are popular in organizations because they are relatively easy to construct and use.

Disadvantage - different raters may disagree about the meaning of the scale points. For example, what is "very discourteous behavior to one rater may be only "discourteous" to another.

Behaviorally anchored rating scale (BARS)

Attempts to overcome the problem of different raters disagreeing about the meaning of the scale points by careful definition of what each scale point means.

Examples of specific work-related behaviors correspond to each scale point.'

Disadvantage - sometimes workers exhibit behaviors corresponding to more than one point on the scale. For example, a salesperson may than customers for their purchases but otherwise tend to ignore them. A BARS can also take a considerable amount of time and effort to develop and use.

Behavioral observation scale (BOS)

Overcomes the BARS problem workers exhibiting behaviors corresponding to more than one scale point not only describing specific behaviors (as does a BARS) but also asking rate to indicate the frequency with which a worker performs the behaviors.

Disadvantage - A BOS, however, tends to be even more time-consuming than a BARS for raters to complete.

Choice 4: Who Appraises Performance?

Who are people who should give an appraisal?

Supervisors
Self-appraisals
Peer appraisals
Subordinate appraisals
Customer/client appraisals
Multiple raters

Supervisors

We have been assuming that supervisors are the people who appraise their subordinates' performance. This usually a fair assumption. In most organizational settings, supervisors are responsible for performance appraisal because they are generally the most familiar with their subordinates' behavior and are responsible for motivating subordinates to perform at acceptable levels.

Self-appraisal - may offer some advantages, because a worker is likely to be familiar with his or her own level of performance. But most people consider themselves to be above average, and no one likes to think of himself or her- self as a poor performer, so a self-appraisal is likely to be inflated.

Peer appraisals - are appraisals given by a worker's coworkers. Peers are often very familiar with performance levels, yet they may be reluctant to provide accurate appraisals.

A worker may not want to give his friend a poor rating. A worker may not want to give her coworker too good a rating if she thinks this rating will make her look bad in comparison.

Nevertheless, peer ratings can be useful, especially when workers are members of teams and team performance depends on each member being motivated to perform at a high level.

Under these circumstances, team members are motivated to provide accurate peer ratings because the whole team suffers if one member performs poorly. By accurately appraising each other's performance, team members can help motivate each other to perform well and can make sure that all members do their share of the work. Peer ratings help to ensure that no group members get a "free ride" and take advantage of hard-working students in the group.

Subordinate appraisals - are appraisals given to a manager by the people he or she supervises. Subordinates rate the manager on, for example, leadership behaviors. In order for subordinates to feel free to give an accurate appraisal (especially a negative one), it is often desirable for the appraisals to be anonymous so that subordinates need not fear retaliation from their supervisors. Many universities use anonymous student evaluations to appraise the quality of instructors' classroom teaching.

Customer/ client appraisals

The advantage of using these other sources of information is that each source may be familiar with important aspects of a worker's performance. But because each source has considerable disadvantages if used exclusively, some organizations rely on 360-degree appraisals.

360-degree appraisal - a worker's performance is evaluated by a variety of people who are in a position to evaluate it. A 360-degree appraisal of a manager, for example, may include evaluations made by peers, subordinates, superiors, and clients or customers who are familiar with the manager's performance. The manager would then receive feedback based on evaluations from each of these sources.

When 360- degree appraisals are used, managers have to be careful that each evaluator is familiar with the performance of the individual he or she is evaluating. While 360-degree appraisals can be used for many different kinds of workers they are most commonly used for managers.

Advantages -

Increased feedback in all directions

Disadvantages -

Performance appraisals might turn into popularity contests where people who are well liked get better evaluations than those who are not as popular but produce better results
Managers may be reluctant to make unpopular decisions or difficult choices as this may have a negative effect on how their subordinates evaluate them.
Managers may coach or threaten subordinates into giving them positive ratings
People may not give negative ratings if the results will be used to determine pay raises or if the appraisals are not anonymous. (thus 360 may be better for developmental purposes rather than decisions making).

When designing a 360 system, consider the following questions:

Should the appraisals be anonymous?
Who should be included in the set of individuals who will be appraising performance?
How can workers reconcile conflicting feedback?
Should the appraisals be used solely for developmental purposes or should they be used for managerial decision making?
Do the advantages of 360-degree appraisals outweigh any potential disadvantages?

Potential Problems In Subjective Performance Appraisal

Awareness of these perception problems can help to prevent them from leading to an inaccurate appraisal of some- one's performance.

Pay as a Motivation Tool

One area of decision making that often has profound effects on the motivation of all members of an organization, managers and workers alike, is the distribution of outcomes:

Pay
Benefits
Vacations
Perks
Promotions
Other career opportunities
Job titles
Offices
Privileges.

Pay can be used not only to motivate people to perform highly but also to motivate them to join and remain with an organization.

Outcomes should be distributed to workers contingent on their performing desired organizational behaviors:

Operant conditioning theory suggests that to encourage the learning of desired organizational behaviors, positive reinforcers or rewards should be distributed to workers contingent on performance.
Need theory suggests that when pay is contingent on performance, workers are motivated to perform because performance will help satisfy their needs.
Expectancy theory takes into account that pay is an outcome that has high valence (is highly desirable) for most workers and that instrumentality (the association between performance and outcomes) must be high for motivation to be high.
Equity theory indicates that outcomes (pay) should be distributed in proportion to inputs (performance).
Procedural justice theory suggests that the methods used to evaluate performance and distribute pay need to be fair.

Merit Pay Plans

Merit pay plan - A plan that bases pay on performance.

When pay is not based on merit, it might be based on the particular job a worker has in an organization (all workers who have this job receive the same pay) or on a worker's tenure in the organization (workers who have been with the organization for a longer period of time earn more money). Merit pay, however, is likely to be much more motivational than pay that is not based on performance.

Merit pay plans tend to be used most heavily at the upper levels in organizations but basing pay on performance has been shown to be effective for workers at lower levels in an organization's hierarchy.

Should Merit Pay Be Based On Individual, Group, Or Organizational Performance?

One of the most important choices managers face in designing an effective merit pay plan is whether to base merit pay on individual, group, or organizational performance. The following guidelines, based on the theories of learning and motivation discussed in previous chapters, can be used to make this choice:

When individual performance can be accurately assessed (for example, the number of cars a salesperson sells, the number of insurance policies an insurance agent writes, a lawyer's billable hours), the maximum motivational impact is obtained from basing pay on individual performance."
When workers are highly interdependent-when what one worker does affects the work of others-and individual performance levels cannot be accurately assessed, an individual-based pay-for-performance plan is not a viable option. In this case, managers can implement a group or organization-level pay-for-performance plan in which workers' pay levels depend on how well their group or the organization as a whole performs. It is impossible, for example, to accurately assess the performance of individual members of a group of carpenters who jointly design and construct large, elaborate pieces of custom furniture. Together they produce pieces of furniture that none of them could construct alone.
When organizational effectiveness depends on individuals working together, cooperating with each other, and helping each other out, group- or organization-based pay-for-performance plans may be more appropriate than individual-based plans." When a team of research scientists works together in a laboratory to try to come up with a cure for a disease such as AIDS, for example, it is essential for group members to share their insights and findings with each other and to be able to build off each other's findings.

Should Merit Pay Be In The Form Of A Salary Increase Or A Bonus?

There are two major ways to distribute merit pay: salary increases and bonuses.

When salary increases are used, individual salaries are increased by a certain amount based on performance.

When bonuses are used, individuals receive a lump-sum amount (in addition to their regular salary) based on performance.

Why are bonuses more motivational?

Bonus plans tend to have greater impact on motivation than do salary increase plans, for three reasons:

An individual's current salary level is based on performance level cost-of-living increases, and so on from the day the person started working in the organization; thus the absolute level of one's salary is based largely on factors not related to current performance. Increases in salary levels based on current performance tend to be small (for example, 6 percent) in comparison the total amount of the salary.
Current salary increases may be only partially based on performance, such as when across-the-board cost-of-living raises or market adjustments are given to all workers.
Organization rarely cut salaries, so salary levels across workers tend to vary less than do performance levels. Bonus plans overcome some of the limitations of salary increases because a bonus can be tied directly and exclusively to performance and because the motivational effect of a bonus is not diluted by the other factors mentioned above. Bonuses can vary considerably from time period to time ( period and from worker to worker, depending on performance levels."

Examples Of Merit Pay Plans

Two clear examples of individual-based merit pay plans are piece-rate pay and commission pay.

Piece-rate pay plan - a worker is paid for each unit he or she produces, as in the cases of a tailor who is paid for each piece of clothing he sews or alters or a factory worker who is paid for each television she assembles.

Commission pay - (often used in sales positions) salaries are a percentage of sales.

Salary levels in full commission plans fluctuate directly in proportion to sales that are made.

Salespeople in a partial commission plan receive a fixed salary plus an amount that varies with sales.

The maximum motivational impact is obtained when pay is based solely on performance, as in a full commission plan.

Disadvantage - Workers operating under such a plan, however, are not likely to develop any kind of team spirit.

Pay

Clearly, when pay is based solely on individual performance, workers are motivated to perform at a high level, and organizations may be able to attract and retain top performers because they will receive maximum levels of pay.

But such plans can result in workers adopting a highly individualized approach to their jobs and failing to take the time or effort work together as a team.

Gain-sharing plans - Pay plans that are linked strictly to organizational performance

Workers in organizations that have these kinds of plans are given a certain share of the profits that the organization makes or a certain share of the expenses that are saved during a specified time period.

Gain sharing is likely to encourage camaraderie and a team spirit among workers because all organizational members stand to benefit if the organization does well.

However, because pay is based on organizational rather than on individual performance, each individual may not be so motivated to perform at the high level or she would have achieved under a pay plan based on individual merit.

Scanlon plan - This plan focuses on reducing costs. Departmental and organization-wide commit are established to evaluate and implement cost-saving suggestions provided workers.

Workers are motivated to make suggestions, participate on the committees, and help implement the suggestions because a portion of the cost savings realized is distributed back to all workers.

Profit sharing - Workers participating in profit-sharing plans receive a certain share of an organization" profits.

Approximately 16 percent of workers in medium and large company and 25 percent of workers in small firms receive some form of profit sharing.

Rutgers University economist Douglas Kruse estimates that productivity tends to increase from 3 to 5 percent when companies institute profit sharing

Profit-sharing plans that give workers their share of profits in cash tend to be more successful than programs that use some sort of deferred payment (such as contributing workers' shares of profits to their retirement funds).

If an organization has a bad year, then no money may be available for profit sharing regardless of individual or group performance levels.

The Ethics Of Pay Differentials And Comparable Worth

The principle of comparable worth suggests that jobs of equivalent value to an organization should carry the same pay rates regardless of differences in the nature of the work itself and regardless of the personal characteristics of the persons performing the work."

Pay rates should be determined by factors such as effort, skill, and responsibility on a job and not by whether one type of person or another usually performs the job.

The gender, race, or ethnic background of jobholders is an irrelevant input that managers should not consider when they establish pay rates for different positions.

What are the advantages of comparable worth?

When pay rates are determined by comparable worth, it is more likely that all members of an organization will be motivated to perform at a high level because they are more likely to perceive that they are being paid on an equitable basis.

What are the disadvantages of comparable worth?

Although comparable worth makes a lot of sense in principle, it has been hard to put into practice. Organizations have resisted basing salaries on comparable worth because pay levels for some jobs would have to be raised (organizations rarely lower pay rates).

On a more fundamental level, however, determining what the value or worth of a job is to an organization and comparing this value to that of other very different types of jobs is difficult. Such comparisons are often value laden and the source of considerable disagreement.

Performance Appraisal Summary

Use frequent, informal performance appraisals and periodic formal ones to help motivate your subordinates and to make decisions about how to distribute outcomes, whom to promote, and how to assign tasks. Informal performance appraisals can be used to motivate and give feedback to workers on a daily basis.
Performance appraisals should focus on the assessment of behaviors or results. Performance appraisals should not focus on the assessment of traits, for traits can be difficult to assess objectively and may not be related to actual behaviors or performance.
Be aware that one or more perception problems may influence your appraisal of a person's performance. Carefully and honestly examine your evaluations to be sure that personal biases have not affected your judgements.
Develop and use performance measures that accurately assess behaviors or results. Only accurate performance appraisals result in high levels of motivation and performance and in good decisions.

Pay Summary

To have high levels of motivation, pay should be based on performance

Discussion Questions

Who has had a formal performance appraisal?

What was the process used in your case?

Did you consider the process to be fair?

Why? Why not?

What are the 2 main goals of performance appraisals?

1. To encourage high levels of worker motivation and performance.

2. To provide accurate information to be used in managerial decision making.

What factors must we consider when developing a performance appraisal system?

What is your role as a manager in the performance appraisal process?