 An organization’s performance appraisal system is defined as a process which generates valid information about employee work effectiveness for the purpose of making informed human resource decisions. Dr.Ahmed Radwan  Employees must understand the behavioural requirements of the job.  Employees need to know where they stand in terms of their performance.  Employees’ work must be evaluated for its contributions to organizational goals. Dr.Ahmed Radwan  Valid information about performance levels of the employees should be used to make decisions about salary increases, promotion, bonuses and training needs.  Employees should have a clear understanding of what the organization expects in performance. Dr.Ahmed Radwan  Managers can use the performance appraisal system as a motivational tool.  An effective appraisal system creates many opportunities for managers to interact with their subordinates about performance standards, organizational goals and personal job interests. Dr.Ahmed Radwan Dr.Ahmed Radwan  DEFICIENCY  VALIDITY.  RELIABILITY  STABILITY  CONSISTENCY  MEASURED PERFORMANCE  ACTUAL PERFORMANCE Dr.Ahmed Radwan Performance Appraisal Problems  Deficiency:  represents actual performance that is overlooked because the evaluator ignores it or the system fails to capture.  An example : the appraisal system that tracks the frequency of calls handled by representatives& fails to capture the quality of the service . Dr.Ahmed Radwan Deficiency problem Performance overlooked by the evaluator True Assessment Deficiency ( Valid + Reliable) Actual Performance Unreliability Invalidity Measured Performance Dr.Ahmed Radwan Unreliability problems Situational factors .1 affecting the evaluator, such as mood or timing of the evaluation Disagreement .2 between evaluators or inconsistent of methods Temporary personal .3 factors, such as fatigue or ill health of the .person being evaluated Validity problem Poorly defined task performance Perf