Study on Performance Appraisal and
Evaluation System in a Company
Chang Jung Christian University
Department of International Business
Chia-Wei Chang & Tzu-Ming Tzen
Altheia University Graduate School of Management Sciences
Fortune Institute of Technology
Department of Industrial Engineering and Management
(2) 同伴們也能夠認同 並能用一致性的方法去改善他們的績效 (3) 考慮另一個新的目標或次要
的目標；及 (4) 身為管理者應幫助同伴們成長。
關鍵字：績效,團隊精神, 白領階級, 工作團隊
This study aims to increase both employees and organizations awareness for the need to develop a
useful performance evaluation or appraisal system and appreciate its benefits, as well. Performance
should be measured for it to be managed, for no one can manage what he can’t measure. And it also
follows that; no one can improve what he can’t measure. So if we are to create high-performance, we
must also understand that it requires are definition that you would know when it is present and when it
We create three models in performance standards firstly, White-collar work and it’s for the
hard-to-measure jobs, secondly, Work Teams: A four-step process for measuring team performance, and
thirdly, The Hard Stuff: Teams and other Hard-to-measure Work. Lastly, we interviewed some of white
collar work, chair of a team in a company and got a result.
In this study, we found that performance can greatly influence or impact in the following ways: (1)
the managers can determine how they can help associates overcome problems they face on the job; (2)
associates can identify ways to improve their performance; (3) to consider new objectives or
sub-objectives; and (4) for the managers to help associates grow.
Keywords: Performance, esprit de corps, white-collar work, work Teams
Since employees are the most expensive as well as the most important resource in any company, it
would be to the best advantage of both employer and employee to ensure the latter’s satisfaction
performance. But how employee productivity is maximized? This can be attained and be made possible
only when management has provided are healthy climate for individual growth and development in the
company. There should increase the good relationship between employer and employee.
The importance for the need to evaluate or appraise every employee’s job performance therefore
cannot be overemphasized. This is one of the oldest and most universal practices of personnel
management. But in many cases, the appraisal or evaluation is in informal, unsystematic and
unrecorded. Although, almost are unhappy with it. Due to companies increasing awareness of its
usefulness and benefits, training and personnel improvement professionals can find fertile ground for
improving the personnel of large numbers of employees by applying to management’s goals the basic
Generally, conscientious and concerned employees want to know how they are performing
according to the set standards – what is expected for them, how well they are meeting those
expectations, how they can improve and what their supervisors think about the way they are
performing their work. And so consciously or unconsciously the workers or employees are in are way
evaluating themselves and their co-workers and compare themselves with their colleagues. Also
supervisor may do the same, which is, passing judgement on the employees under them. Oftenly, these
are subjectively rather than objectively done.
Everyone’s performance must be measured including that of the managers. But their manager’s
own performance is measured by the performance of the workers they manage.
1.1 Scope and Purpose
Performance is the primary reason for all the ins and outs of the business activities of any
organization. All strategic planning and other management functions aim for maximum productivity or
excellent performance in their respective departments. “Performance must always be are consideration
in productivity work because of the clear relationship between the effectiveness of the work of each
individual and the output personnel management-hour of are group”¹. This paper therefore soughs to
establish the link between the performance and management areas individual an organization. What
impact would performance create individual order that the goals and objectives of the organization be
accomplished or satisfied? How could every employee’s performance really contribute or support its
This study also aims to increase both employees and organizations awareness for the need to
develop a useful performance evaluation or appraisal system and appreciate its benefits, as well.
Performance should be measured for it to be managed, for no one can manage what he can’t measure.
And it also follows that; no one can improve what he can’t measure. So if we are to create
high-performance, we must also understand that it requires are definition that you would know when it
is present and when it isn’t.
This study emphasizes the virtue of esprit de corps. Regardless of what kind of organizations you
lead, you must reserve your command authority for those instances when it is appropriate to use it, our
aim should be to build are desire individual the individuals individual your organization so that they
want to be led by you. This organization consensus for your leadership and the high feeling of spirit
associated with it is called esprit de corps. This virtue can be developed and is built on three things:
your personal integrity, mutual confidence, and are focus on contribution rather than personal gain. But
for the purpose of elucidating some principles individual this paper, it focuses on the third building
block, which refers to contribution. The late President of the United State, John F. Kennedy, when he
was sworn individual, he exhorted his countrymen to “ask not what your country can do for you. Ask
instead, what you can do for your country “². He is the person who knew how to get people to focus on
the right objective. He also pointed out that we could development great things together, if people
focused on what they could do rather than what they could get.
2. Literature Review
The goals, design and management of the organizational and process levels are part of the system
that affects erformance (Rummler, Brache, 1990). The Performance System builds on those levels by
providing a more “micro” picture of people and of the immediateenvironment that surrounds them
(Stolovich, 1992). The Human Performance System is viewed in the input-output-feedback perspective.
The quality of outputs is a function of the quality of inputs, performers, consequences, and feedback-
inputs are those raw materials, forms, assignments, and customer requests that can cause people to
perform (Stolovich, et al., 1992). It also includes the performers’ resources, systems and procedures
that represent the performer in to the process level. A factor that affects input is task interference
(Rummler, Brache, 1990). The performer must easily recognize the input that requires immediate
action. The task should be done without interference from other tasks. Also, adequate resources (time,
tools, and information) should be available for performance.
Performers are the individuals or groups who convert inputs to output (Stolovich, 1992).
Among the factors that affect the performer are the skills and knowledge required of the job. If
skills and knowledge are inadequate or missing, job performance is impaired and training may be
required for the job. Another factor that affects the performer is his or her own individual
capacity. This involves the performers’ internal capabilities. No matter how supportive their
environment or effective their training, they will not be able to do their job if they lack the
physical, mental, or emotional capacity to achieve the goals. Appraisals Feedback tells a
performer to change performance or to keep on performing the same way. Without feedback,
good performance can Fall off-track and poor performance can remain unimproved.
In order to achieve the objectives set for writing this paper and to determine the impact
performance would create individual accomplishing the organizations goals and objectives, it is
therefore necessary to adapt are particular plan that would provide practical assistance to both
management and employees individual achieving its objectives.
The difficulties inherent in this task can not be compared with the benefits or the impact if would
to the achievement of the organizations goals and objectives. Thus, we shall present here a four-step
process steps on how to create performance standards first, for the hard-to-measure jobs, second, for
measuring team performance, and third, for a team and hard-to-measure work. Then we interviewed
some of white collar work, chair of a team in a company and got a result.
Model 1: The hard-to-measure-job or white collar wok
Model 2: Team Measurement
Model 3: Team and Hard-to-measure jobs
Step 1. Draw a customer diagram showing the internal and external customers to
whom you provide products and services.
List only those products and services that your customers need to help them to their job.
Step 2. Create a list of results for your position.
Look at your customer diagram and the products and services each customer receives from you.
Reword each result using the “noun + verb in the past tense” format.
To help you identity the result of the service you listed, ask yourself, “What is left behind when I
go home at night after providing this service?’ If that doesn’t help, try asking, “What products come
from these actions?” or “what is my organization really paying me to produce here?”
Step 3. Decide how to measure each result.
For each result, determine which general measures (i.e., quantity, quality, cost and timeliness) are
important. For each general measure, ask your yourself, “How could I measure the (quantity, quality,
cost, or timeliness)?” If you can only measure the result with numbers, write down the units you would
count or track the percentage of. If you can only describe the performance, write down who would
judge the work and what factors they would look for.
Step 4 Check the performance standards using the following guidelines.
Does the list of results: Does each performance standard:
_Describe end products, not activities? _Allow verification that the performance
standard has been met? Can it be seen, or could
several knowledgeable persons agree that the
performance standard has been met?
_Account for 80 percent or more of _Have a judge, list of factors and what a
your job’s responsibilities? good job looks like for each factor, when the
measure is descriptive?
_Specify the critical results your customers _Appear practical to track and monitor?
Customers need?_ _Use a range when the measure is numeric?
_ _Leave room to exceed the standard, or require
perfection only when no errors can be tolerated?
Appraising people is not an easy job because it is judgmental, subjective, and at times
inpassionistic in nature. Any judgment given by the supervision can determine the employee’s status
and future in the company. The problems in here lies in the biases the supervision may have
considering are subordinates performance. The supervisor may be considering what he is capable of
doing which is not relevant to his job. It is task requiring skill and training. Managers and supervisors
therefore, who are required to give performance evaluation of employees should be given adequate
training so that they can give unbiased ratings. In doing so, the raters must strictly adhere to the rating
instructions and not to make their own rules to achieve uniformity of methods for all raters in the
In rating, absolute accuracy cannot be expected since; it is based mostly upon the
observation and judgment of the raters. Its objective therefore is to minimize errors
which could be achieved once the raters are equipped with proper understanding of
how should it be done; as well as help them avoid the serious pitfalls in rating.
Employees are most likely to be successful performance when they clearly understand their
assignments, know what level of performance is considered acceptable, and receive consistent
feedback. There should be a clear-cut statement of “expectations” or set standards. Performance
standards, therefore, are written statements describing how well are job should be preformed. It is an
“expectation” a statement of a condition that will exist when a job is being performed satisfactorily. It
is the range of points on the “yardstick” that represents excellent performance. The employee demands
to know what point of this yardstick represents meeting expectations which a good manager should
successfully communicate about. Other employees may also be interested in knowing what
performance will be interpreted as exceeding expectations that would make earn an extra measure of
reward or recognition.
On the other hand, measures are the yardstick used to judge how well the team or individual
produces each result. These are the factors you use to evaluate how well a result has been done. For
the purpose of discussion, there are two kinds of measures, namely: numeric and descriptive. Numeric
measures have met the criteria of verifiability. They are easily verified, so they can be used to verify
whether a standard was met, exceeded or not met. But to avoid frustration for an hour or so, you should
stop trying to measure everything with numbers. It’s not everything, which can be meaningfully
measured with numbers, and trying to would be impossible. Descriptive measures, on the other hand,
are measures you can use by describing the performance in a way that can be verified.
The task of identifying measures for a given result can be easy once you know what units you
should track. If you still have difficulty, you may use the four general measures, as a starting point.
Generally, any result can be evaluated from the standpoint of any of these four or a combination of all.
These measures which you can possibly use, quality, cost or timeliness. When you still have difficulty
identifying a measure, you may begin by asking, “When I evaluate this result, am I concerned with
quantity, quality, cost or timeless?”
4.1 Reason for measuring the Hard-stuff: Teams and other
hard to measure job.
Your job and that of others have something in common. They are all seen as hard to measure.
Nonetheless, however hard they maybe, they must also be measured for a number of reasons, many HR
professionals and most people interested in measuring performance have given:
1. You can’t manage what you can’t measure.
2. You can’t improve what you can’t measure.
3. High performance teams and individuals require clear goals.
4. Pay for performance requires metrics.
5. For job return of investment.
The reasons aforementioned answer why we need to measure performance. Without performance
measures, managers, as well as self-managing professionals and teams, can’t see clearly what is
expected of them, can’t give possibly evaluate a program or training when there’s no data before and
after to see if performance is really improving.
4.2 Difficulties of Measurement / Common Problems of
Team and Employee Measurement.
In almost every method or system of work, there are inherent difficulties which may not be
obviously observable at first but after a white, will be manifested.
4.2.1 Hard to Measure Job or the White Collar Work.
The same is true in measuring hard-to-measure jobs (or the so-called white collar)
performance. When you say, “I’m sure we can find a way to measure your job”, most people
don’t readily react positively. Commonly, denial is the initial reaction. The worker might say,
“My work can’t be measured. I’m not an assembly line making widgets. It is too creative. In fact,
I’m the only one in this organization who does this. Who, could you compare me too?”
Another, since measurement comes just before publishment in most people’s experience,
fear is also widespread. This is so because it is not usually used to identify whom among the
employees should be rewarded, or it is being used to threaten one being held accountable for
results. Of course, not everyone would be willing to be held accountable for the outcomes of
what they have done.
The nature itself of this type of work makes if difficult to measure. Since it is different from
assembly line work, it is less tangible and this often more service-oriented having power easily
A lack of know-how is another reason for difficulty. Most people are untrained when it
comes to performance measurement. They are not informed well on the meaning of each factor
used in evaluating their performance. The terms used may not be within the comprehension of
Lastly, measuring white-collar work is exhausting. This task requires thinking and calls for
hand decisions. And if the particular job of this type has never been measured, there will be few
signposts to guide you.
But this difficulty is not insurmountable. Learning a few techniques, which you can use to
get around the lack of know-how. By providing adequate training on employees on how to
evaluate their own work can eliminate the denial. And by letting supervisor’s reward their
subordinates based on their performance, you can reverse the feelings off threat that it comes just
4.2.2 Team Measurement
Unless you have a systematic process for analyzing the work of the team and measurement
methods that can handle the wide variety of work which teams undertake, team measurement can
be very difficult. But for the purpose of discussion, we shall briefly present in here at least three
reasons why team measurement is difficult.
1. It is not always obvious what result should be measured. Most teams will use the
obvious measures without asking what result they should be producing and how they
will know they’ve done a good job.
2. Even if you know what to measure, it is often not clear how the measurement should
be done. Not everything can be easily measured with numbers; thus teams give up
when faced with measuring something like “creativity” or “user friendliness”.
3. Teams are made up individuals; thus measurement must be done at both the team and
individual levels, effectively doubling the size of the measurement task. Developing
individual measures, which support the team and don’t conflict. Is difficult without
5. Finding Performance Appraisals and Evaluation
Performance Evaluation is a construction process to acknowledge the performance of a
non-probationary career employee. An employee’s evaluation shall be sufficiently specific to
inform and guide the employee in the performance of her/his duties. Performance evaluation is
not in and of itself a disciplinary procedure.
A formal performance appraisal is an important opportunity to summarize the informal
evaluations of the employee’s performance over a longer period of time. There are many good
reasons to conduct a formal performance appraisal if assignments and standards have been clear,
if coaching through informal evaluation and feedback has been ongoing, a formal performance
appraisal should be merely a summary of what has already occurred. It should include no surprise
for the employee or the supervisors. Because both should already know how successful employee
has been in meeting performance standard.
5.1 The Objectives of Performance Appraisal
Employee’s self-development is one of the objectives of good employer-employee relations.
This can only be made possible when there is a healthy climate for individual growth and
develop in the company. The objectives of an employee performance ratting system are:
1. Providing feedback on employee performance
2. Basis for personnel action
a. Potentials and promotions
b. Transfer, Demotion, Layoff, and Discharge
c. Salary increases
3. Management guide in employee counseling and discipline
4. Promotion of better employee-employer relations
5. Improvement of supervision by making the supervisor better aware of his duties
6. Development of employees and supervisors
7. As an Agent of Change
8. Identification of training needs and management development
9. Facilitate organizational diagnosis and development
5.2 Guidelines for an Effective Performance Appraisal
To support productivity management, the following guidelines for an effective performance
appraisal system have been recommended:
Current performance on the job must be rated in a numeric rating on a maximum of five gradients.
No explanation or analysis is required. The rating conclusion is fed into corporate
headquarters as part of the human resources information system.
There must be evaluation appraisal of each person to determine how his or her performance could
The PAS should do nothing but rate performance and require evaluation appraisal to determine
action steps to improve effectiveness.
Never require feedback of the results of this appraisal process unless an employee specifically
asks for it.
Don’t use a form or ask a lot of performance-related questions.
Whenever performance rating remains below a satisfactory level or decline, have human resources
people to make a through investigation and determine the cause.
These guidelines describe a system of performance appraisal that is guaranteed to contribute to
high levels of performance. This is much less costly than most of those used in business, get higher
levels of support from operating managers, is accepted by employees, and is excellent in compliance
cases. Most of all, it contributes substantially to higher productivity.
5.3 Matching Performance to Coaching Technique
Since the performance of your people is your paramount concern as a coach,
your style and actions have to change to respond to specific needs:
a. When people performed well. The adage, "different strokes for different folks" is as
true on the shop floor or the phone banks as it is on the playing fields.
b. When your people perform unevenly. You can reward the great stuff and to
encourage improvement in the "only average" but not at the same time.
c. When your people hit a slump. Not even the best performers can do their best all
the time, but sometimes they hit a slump or a lull. When this happens, remember
the classic coach's axiom, "If I traded players every time they were off, I'd wind up
without a team in a hurry.
d. When your people try and fail (and don't know why). The coach, in this case, can
function as mentor. The word today is used to describe "a wise and trusted
6. Conclusions and Recommendations
Because people like to know where they stand with their managers, it is important that periodic
performance appraisal be conducted. Many companies have merit rating systems in which the manager
rates his/her people on a variety of traits (e.g., productivity, attendance, initiative and the like.)
However, this is not very helpful in developing employees. A much more effective method is to be
results-oriented instead of trait-oriented. People will be measured on the basis of what has been
achieved rather than a subjective view by a manager on a series of factors, some of which are
measurable but most of which are not.
This writer therefore recommends the use of a Monthly Project List. This form could be the
keynote to the performance appraisal.
The employee states each month which projects will be undertaken in each of the key result areas.
These, of course, are set to reach specific goals and seek-goals. At the end of month, the achievements
in each of the KRA’s are listed for each project.
If the manager would sit down with each worker for a formal discussion of progress made once a
year, or preferably more often, these forms would established the nucleus of the discussion.
The manager could use this time to discuss with the employee how the results achieved fit into
the total picture and how it contributed to achieving departmental and organizational goals or the
knowledge management in a company. A plan of action for the next year based on the performance
evaluated could be discussed and commitments to implement them could be made.
In addition, performance can greatly influence or impact in the following ways: (1) the managers
can determine how they can help associates overcome problems they face on the job; (2) associates can
identify ways to improve their performance; (3) to consider new objectives or sub-objectives; and (4)
for the managers to help associates grow.
1. Cohen, William A., The Art of the Leader, The Manager’s Duidebooks vol. 2., 1994 by World
Executive Digest Limited, pp. 35
2. Carnegic, Dale. Leadership Training for Managers (Team-building skills for todays quality
conscious organization), 1993.
3. Landau, Sidney I., ed-in-chief, Webster Illustrated Contemporary Encyclopedic edition, 1988
by J. G. Ferguson Publishing Company, Chicago, Illinois.
4. Martinez, Esdras Production Management, 2nd edition, 1974 by G/C Enterprises and Company.
Inc. pp. 14.
5. Op. Cit. Zigon, Jack, White-collar Article pp. 1
6. Performance Appraisal and Evaluation. http://www.summitmanagement.com/pac.html pp. 1-2
7. Russell , Craig A., Perforamnce Management Basics, 1996, p. 1.
8. Rummler, B., and Brache, A. (1990). Improving Performance. San Francisco: Josey-Bass
9. Sison, Perfecto S., Personnel and Human Resources Management, 6th edition, 1991 by the
Personnel Management Association of the Philippines, pp. 224.
10. Sibson Robert E., Maximizing Employee Productivity, The Manager’s Guide, vol. 1., 1994 by
world Executive’s Digest Limited, pp. 153
11. Successful Performance and Evaluation for Classified Employees. Maintained by Human
Resource. Last Updated March 16, 2000 http://www.hr.arizona.edu/hrinfoSeries3.htm pp. 3
12. Stolovich J. (1996). Management: Responsibility for Performance. USA: The McGraw
Hill Company, Inc.
13. UCSD Human Resources Department, guide to Performance Management,
http://www.hr.ucsd/~staffeducation/guide/def.html pp. 1
14. Zigon, Jack. Is Your Performance Appraisal Team Friendly. 1998 by Zigon Performance pp. 2,
4, 7, to 8
15. Zigon, Jack. A Seven-step Process for measuring the results of work teams. 1998 by Zigon
Performance Group pp. 1
16. Zigon, Jack. How to Measure the Hard-stuff: Teams and Hard-to-measure Work. Zigon
Performance Group, 1998 pp. 1
Zigon, Jack. White Collar Article. Zigon Performance Group. 1998
http://www.zigonperf.com/article/whitecollar.htm pp. 3