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1. BAHIR DAR UNIVERSITY BAHIR DAR INSTITUTE OF TECHNOLOGY SCHOOL OF RESEARCH AND POSTGRADUATE STUDIES, CONSTRUCTION TECHNOLOGY AND MANAGEMENT MSC. PROGRAM Organization and Labor management Performance Appraisal By: ID No. YIHENEW ASSEFA BDU1500555 Abay Getachew BDU1500537 SINTAYEHU Abate BDU1402265 SUBMITTED TO: Betsha T. (Ph.D.) SUBMISSION DATE: MAY 2023

2. Table of Contents 1. INTRODUCTION 2. OBJECTIVES OF PERFORMANCE APPRAISAL 3. CHARACTERISTICS OF PERFORMANCE APPRAISAL 4. FACTORS CONSIDERED FOR PERFORMANCE APPRAISAL 5 STEPS OF A PERFORMANCE APPRAISAL 6. CONCLUSION

3. Introduction Performance Appraisal is the method of evaluating the behavior of the employees in the workplace, normally including both quantitative and qualitative aspect of the job. Source (S . Marawar , , 2013). PA is widely used to measure and manage employee performance in all kinds of organization, large or small . Source ( M . K. Sanyal and S. B. Biswas , 2014). PA used by the HR professionals for promotional decisions, salary administration, training and development. . Source ( M. K. Sanyal and S. B. Biswas, 2014). PA are a standard ingredient in the employer-employee relationship . Source (B . A. Bleidt and H. Meldrum , 1986).

4. Objectives of Performance Appraisal To review the performance of employees for a period of time; To assess the gap between the current and desired performance; To assist the manager in conducting the control/audit; To help in improving relationships and communication between managers and employees; To establish the strengths and weaknesses of employees, in order to identify training needs and future development;

5. Cont.….. To provide the feedback from employees regarding their performance; To ensure the clarity of expectations and responsibilities of the functions to be performed by employees; To evaluate the effectiveness of other functions of the organization's human resources such as recruitment, selection, training and development; To reduce employee grievances. To identify the employees to place right men on right job. Source (S. Marawar, , 2013, F. Osmani and G. M. (Ramolli ), 2012).

6. Purposes of Performance Appraisal PA is to improve compensations, provide opportunities for promotions, and recognize performance. To the administrative purpose and developmental purpose of the organization. Source (S. Marawar, , 2013, F. Osmani )

7. 3. CHARACTERISTICS OF PERFORMANCE APPRAISAL 1 . Outside Judgment - Using the performance standards, each employee’s individual actual work performance, behaviors, production, or traits are compared with the performance standards by someone other than the employee. 2 . Specified Time Period - Employee ratings, judgments, and assessments relate to a specific time period rather than a particular work product or project (typically quarterly and/or annually). 3 . Standardization - The process is systematically applied to all employees or class of employees .

8. Cont.… 4. Mandatory - The process is typically mandatory although certain upper-level executives may be excluded. 5 . Documented - The results of the ratings, judgments, or assessments are recorded and preserved by someone in the organization other than the rated employee. Source (S. Marawar, , 2013, F. Osmani )

9. 4. FACTORS CONSIDERED FOR PERFORMANCE APPRAISAL 4.1 Performance Factor :- 1. Initiative (origination and development of vital job procedures) 2. Quantity of Work (amount of work done during workday) 3. Job Knowledge (knowledge of duties and responsibilities of position) 4.2 Behavioral Factor 1. Attendance and Punctuality (conformity to work hours; timely attendance at meetings) 2. Responsibility and Dependability (willingness to take on assignments and be held accountable)

10. Cont.…. 4.3 Grading System Effective use of time ( ability to organize, prioritize and schedule). 4.4 Personal Effectiveness 1. Quality (correctness, completeness, and accuracy of work duties performed) 2. Interpersonal Relations (communication and cooperation with fellow employees) 3. Internal Control (performance as related to individual's internal control responsibilities).Source (S. Marawar , 2013 ).

11. Cont.…. Figure 1 Model of Individual / Organizational Performance/ Source (S. Marawar, 2013 ).

12. 5. Steps of a Performance Appraisal 5.1 Overall Performance Planning Cycle. Source (S. Marawar, 2013).

13. 5.2. Methods of Performance Appraisal

14. Cont.…. 5.2.1 Category Method 5.2.1.1 Graphic Rating Scales. A graphic scale 'assesses a person on the quality of his or her work (average; above average; outstanding; or unsatisfactory).

15. Cont.…. 5.2.1.2 Checklist Method • Is the employee really interested in the task assigned? Yes/No Does he give respect to his superiors? Yes/No Does he follow instructions properly? Yes/No 5.2.2 Comparative Method 5.2.2.1 Ranking Method This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.

16. Cont.…. 5. 2.2.2 Forced Distribution the forced-choice rating method does not involve discussion with supervisors. In this way, the assessor bias is largely eliminated and comparable standards of performance evolved for an objective. 5.2.3 Narrative Method 5.2.3.1 Critical Incidence Method These critical incidents or events represent the outstanding or poor behavior of employees on the job. 5.2.3.2 Essay appraisal method The assessor writes a brief essay providing an assessment of the strengths, weaknesses and potential of the subject.

17. Cont.…. 5.2.3.4 Field review method To overcome this assessor-related bias, essay and graphic rating techniques can be combined in a systematic review process. In the field review method, 'a member of the HRM staff meets a small group of assessors from the supervisory units to discuss each rating, systematically identifying areas of inter-assessor disagreement. Although field review assessment is considered valid and reliable, it is very time consuming. 5.2.4 Behavioral Objective Method This is a relatively new technique. It consists of sets of behavioral statements describing good or bad performance with respect to important qualities . Source (S. Marawar, 2013).

18. Conclusion We conclude and evaluate, Performance appraisal is the methodical and regular review of employees' performance, overall contribution to a company and understanding of a person's talents for future growth and development of organization. Performance appraisal is one of the most important management activities. If well implemented, performance appraisal can benefit both employees and the organization to provide opportunities for promotions, enhance revenues and recognize performance and so. All in all, through performance appraisal, organization management teams are able make effective decisions with regard to various personnel aspects. For example, they are able to formulate effective employee training and development programs, formulate reward systems, and undertake HR planning.

19. Thank you