Performance Appraisal
What is performance appraisal?
This is the formal process of documenting and evaluating an employee’s job performance against predetermined standards over a set period.
What is self-evaluation?
This strategy requires the employee to reflect on their own performance, strengths, and weaknesses before a manager discussion.
What is employee observation?
In this approach, a manager watches and records an employee’s day-to-day work to gather evidence for later feedback.
What is Management by Objectives (MBO)?
This strategy involves managers and employees jointly agreeing on specific individual goals that support broader business objectives.
What are (common) methods of performance appraisal?
Performance appraisals are often conducted using methods such as graphic rating scales, ranking, or the essay method.
What is the purpose of self-evaluation?
Self-evaluation helps the employee prepare for a discussion by assessing their contribution to business objectives.
What is the purpose of employee observation?
Employee observation is used to collect real-time data before a formal performance conversation.
What is the first step of MBO?
The first step in this process is defining the overall business objectives (e.g., increase profit or market share).
What is (an advantage of) performance appraisal?
One key advantage of this strategy is that it provides documented evidence of performance for decisions on pay, promotion, or training.
What is (a disadvantage of) self-evaluation?
A disadvantage of this method is that employees may rate themselves too high or too low due to lack of objectivity.
What is (a disadvantage of) employee observation?
This method can feel intrusive to employees if they know they are being watched.
What is (an advantage of) MBO?
In this strategy, performance is monitored regularly and feedback is given throughout the goal period.
What is (a disadvantage of) performance appraisal?
A disadvantage of performance appraisals is that they can be subjective and influenced by the manager’s personal bias.
What is (a best-practice use of) self-evaluation?
Self-evaluation works best when combined with another strategy because it encourages honest reflection prior to the manager-employee meeting.
What is a strength of employee observation?
Employee observation is especially useful when the manager needs evidence of behaviours that are hard to measure with goals or forms.
What are the five steps of MBO?
This strategy follows five main steps: set business goals → negotiate individual goals → monitor progress → provide feedback → evaluate and reward.
What is (a key difference between) performance appraisal and MBO?
Performance appraisal is sometimes called a “less robust” system than MBO because it focuses more on past performance than on future goal alignment.
What are the four performance management strategies in VCE BM?
In VCE Business Management, self-evaluation is listed alongside appraisals, observation, and MBO as one of the four official performance management strategies.
What makes employee observation different from the other strategies?
Compared with the other three strategies, this one relies least on employee input and most on direct managerial recording of actions.
What is (a limitation of) MBO?
A major limitation of this strategy is that it becomes ineffective if the agreed goals are vague, unrealistic, or not reviewed regularly.