Performance Appraisal Systems

After completing this chapter, readers should be able to 

Discuss the rationale behind the implementation of a systematic performance appraisal system. 

Discuss the difficulties in implementing a performance appraisal system within a pharmacy organization. 

Identify various types of performance appraisal processes and evaluate the strengths and weaknesses of each type. 

Discuss issues of validity and reliability within the context of evaluating a performance appraisal system. 

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What is a performance appraisal system What does formal appraisal have to do with employee motivation, productivity, and turnover ... 

As Chapters 8 and 9 pointed out, human resources are among a pharmacy s most valuable assets. Employee wages can account for one of the pharmacy s greater operating expenditures (see Chapter 15). Employees, however, should not be viewed as a cost but as an essential asset for organizational success. The ramifications of executing a good performance appraisal system extend to most human resources decisions. Table 10-1 summarizes some important points about the need for performance appraisals. 

Many performance appraisal systems allow the manager to either rate employees on a given set of attributes or rank them in comparison with other... 

A number of performance appraisal systems are in use. These systems are summarized in Table 10-2. Performance appraisal methods typically are categorized into three broad types absolute, relative, and outcome-oriented (Segal, 1992). 

Three types of relative performance appraisal systems are used. One is called alternation ranking, a method in which the rater chooses the most and least valuable persons from a list of employees with similar jobs. Both names are crossed off, and then the procedure is repeated until every employee on the list has been ranked. With its ability to eliminate central tendency and leniency and with its ease of implementation, alternation ranking may appear appealing. However, aside from its failure to generate feedback, the halo effect could come into play. Moreover, employees may be concerned with the potential for bias and inaccuracy by the evaluator, especially when criteria for performance have not been delineated clearly. 

ENSURING VALID RESULTS FROM THE PERFORMANCE APPRAISAL SYSTEM... 

What types of skills do you think are necessary for selecting and implementing a performance appraisal system What about for conducting an appraisal interview ... 

Mohrman AM, Resnick-West SM, Lawler EE III. 1989. Designing Performance Appraisal Systems. San Francisco Josey-Bass. 

Mayer, R., Davis, J. (1999). The effect of the performance appraisal system on trust for management A field quasi-experiment. Journal of Applied Psychology, 84 ), 123-136. 

Recalling also the requirement in Staff Regulation 4.4(a), for contract extensions to be assessed upon, inter alia, the Secretariat staff member s performance measured in accordance with a rigorous performance appraisal system, and noting the Director-General s stated intention to maintain and continuously improve the Performance Management Appraisal System ... 

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