Page 155 - Psychological Management of Individual Performance

138 performance appraisal
the same hierarchical level or when subordinates are appraising their superiors. A
combination of the possible appraisal levels that can be found in a 360-degree feedback
system will be presented from an implementation perspective.

INTRODUCTION

It is one of the most important tasks of personnel management to keep and support
highly efficient and productive employees. In this context, performance appraisal is an
important tool, which can be useful in order to evaluate an employee’s performance,
clearly encompassed in the form of an observable and describable result of that person’s
work. These results can then be compared to a nominal output. Throughout this chapter,
the term “performance appraisal” is used whenever the following criteria are met:

appraisals (of performance) take place at regular intervals

a standardized method is used, on the grounds of previously agreed upon performance

criteria
either the employee’s behaviour or outcome of performance is to be evaluated

the employee is evaluated by the next higher-ranking superior, equally ranking col-

leagues, other coworkers or makes a self-appraisal.
In this chapter, we address performance appraisal from a practitioner’s perspective.
More specifically, we describe the functions of performance appraisal systems. Partic-
ulary with this practical focus posing as a background, the introduction process of a
performance appraisal system is presented in detail. We name the core functions and
elements of such a process and describe how mistakes can be prevented.
The chapter presents an overview of the relevant quality criteria that a performance
appraisal system must meet in order to achieve a company’s main aims: the reaction
to the demands of a market that is altered and has gained in flexibility, and how the
company can ascertain its ability to compete there. We take a closer look at the different
ways to go about performance appraisal: Which methods exist? Which are put to use?
This context also allows for the presentation of the conclusion why the characteristic
or trait orientation of performance appraisals should be exchanged for a behavioural
orientation. The comments become even more specific when one takes a look at a very
recent performance appraisal system: the 360-degree feedback. On the basis of a study
performed by one of the authors of this chapter, a closer look can be taken at the chances
and risks, as well as success factors, for the introduction of this system.

DIFFERENT PURPOSES OF PERFORMANCE APPRAISAL

PERFORMANCE APPRAISAL AS A MANAGEMENT TOOL

A performance appraisal system can be used as a management tool to support personnel
development and management. It is a major task of a superior to set goals in cooperation
with the employees, to provide them with feedback about their performance and to help
them to develop their skills.