PERFORMANCE APPRAISAL

OPEN UNVERSITY MALAYSIA

FACULTY OF BUSINESS MANAGEMENT
Course Code: BBNP 4103
Course Title: PERFORMANCE APPRAISAL

Name: Mohamed Shahim

Student ID: S1308021850
Telephone: +960 7876756
Email address: [email protected]

Lecturers Name: Izmeera Shiham

Learning Centre: Villa College

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PERFORMANCE APPRAISAL BBNP 4103

Table of Contents
Table of Contents .......................................................................................................................................... 1
Executive Summary ...................................................................................................................................... 2
Introduction ................................................................................................................................................... 2
Introduction of Ministry of Health ............................................................................................................ 2
Organization Structure .............................................................................................................................. 3
Analysis of Performance Appraisal System of Ministry of Health ............................................................... 3
Definition .................................................................................................................................................. 3
Performance Appraisal system of Ministry of Health............................................................................... 4
Procedure .............................................................................................................................................. 5
Challenges ............................................................................................................................................. 6
Evaluation of the Performance Appraisal system with relevant Performance Appraisal Model .................. 7
Michael and Yost (2000) performance appraisal model ........................................................................... 7
Craig et al (1986) performance appraisal process model .......................................................................... 7
Establishing Standards and Measures ................................................................................................... 8
Communicate Job Expectations ............................................................................................................ 8
Performance Planning ........................................................................................................................... 8
Monitoring Performance ....................................................................................................................... 8
Appraising ............................................................................................................................................. 8
Feedback ............................................................................................................................................... 9
Decision Making ................................................................................................................................... 9
Development Plan ................................................................................................................................. 9
Recommendations ....................................................................................................................................... 10
Giving opportunity to Self-evaluate........................................................................................................ 10
Engaging Employees in two-way communication.................................................................................. 10
Avoiding Biased Appraising ................................................................................................................... 10
Training the Appraiser ............................................................................................................................ 11
Conclusion .................................................................................................................................................. 12
References ................................................................................................................................................... 13

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Executive Summary
This report is a part of the assignment under the module Performance Appraisal.
This assignment is based on an evaluation carried on an organization in order to identify
their current performance appraisal mechanism used to evaluate its employees work
performance. This assignment mainly consists an introduction of the selected organization
followed by their performance appraisal system and a depth analysis of their performance
appraisal system with respect to the relevant performance appraisal model. Furthermore, based
on the evaluation carried out, suggestions and recommendation will be provided to improve their
current appraisal system and a brief conclusion of whole essay is followed to end the assignment.

Introduction
Introduction of Ministry of Health
Ministry of Health (MOH) is a government organization established in order for the
health, well-being and social protection of the people of the Republic of Maldives. Its mission is
to provide accessible and quality healthcare services and drug rehabilitation services and to
strengthen the mechanisms for protecting the rights of the children, women, and persons with
disabilities of the Maldives. Ministry of Healths vision is to make the Maldives a good model
society of socially protected and healthy individuals who are aware, who value their family ties
and live a healthy satisfying lives (Ministry of Health, 2016).
Ministry of Health is one of the largest government bodies that includes more than 8000
employees of both local and foreign. Ministry of Health consists of various departments and 186
Government health facilities across the country. Departments include; Health Protection Agency
and Maldives Food and Drug Authority. Health facilities includes Regional hospitals, Atoll
hospitals and Health centres.

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Organization Structure

(Ministry of Health, 2016)

Analysis of Performance Appraisal System of Ministry of Health

There is something that is much more scarce, something rarer than ability. It is the
ability to recognize ability
Robert Half

Definition
Performance Appraisal, in short PA, is one of the most extensively researched areas in
the Human Resource Management literature. Performance appraisal is directly and indirectly
linked with the employees promotions, payment, development, career progress, etc. due this
very reason, PA is one of the most key element of HRM and is one of the most vital
responsibilities for Human Resources Division of any organization.

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As it is extensively researched, there are various authors define PA in several ways. Some
of the definitions are as follows;
William B. Weather and Keith Davis said: Performance appraisal is the
process by which organization evaluate individual job performance. (Rasel,
2015)
Bellows said: Performance appraisal is defined as a systematic periodic
evaluation of the worth of an individual of an organization, usually mad by a
superior or someone in position to observe his performance. (Rasel, 2015)
According to (The Happy Manager, n.d.) A process of mini reviews
culminating in a one-to-one conversation between managers and their reports.
These are used to develop a shared understanding of the individuals performance.

Performance Appraisal system of Ministry of Health

Ministry of Health is a government organization. Hence, the performance appraisal
system to the government bodies was introduced due to the introduction of Civil Service
Commission. The Maldives Civil Service Commission (CSC) was formed by an Act of
Parliament in 2007 (Civil Service Commission, n.d.). However, according to the HR division of
MOH, the current Performance Appraisal system used in MOH was introduced in the year 2009.
Ministry of Health uses a Performance Appraisal system which consists of TEN main
sections. They are as follows;

Section 1: Information of the candidate (this includes the information of the supervisor as
well). Furthermore, job tasks and targets are also identified in this section.

Section 2: this section is filled in the mid-year. This section is mainly about the progress of
the employee and the need for improvements are discussed at this section.
Section 3,4,5,6 and 7 calculates the KPIs of the candidate.

Section 3: this area is about how the candidate has carried out the tasked works in the
evaluation period.

Section 4: this is about the knowledge and ability of the candidate in carrying out the
assigned tasks.
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Section 5: this section highlights the leadership qualities and other qualities which are
necessary for the candidate.

Section 6: candidates behavior and manners in the workplace is highlighted in this section

Section 7: this section highlights the attendance of the candidate.

Section 8: this section calculates the marks of the candidate overall or in other words the
marks gained for key performance indicators are calculated in this section.

Section 9: this section highlights the need for necessary trainings and skills for the candidate

Section 10: this is the final section of the PA form. This section is further categorized into
two more areas.
i.

Comments from both the candidate and the supervisor comments on their
views about how the works are being carried out by the candidate in the given
period

ii.

Comments from the Department/ Section Head or the Human Resource

Division

Procedure
Like any other government organization, Ministry of Health also evaluates the
performance of its staff once a year. Or it can be said as an annual process. According to the HR
of the MOH, performance of the staffs of MOH are evaluated from the 1st February to the 31
January of the coming year.
At the beginning of the February, PA form is filled by each employee in the presence of
their supervisors. This is mainly to identify their targets and what is expected from them for the
year. Five main works from the employees Job Description (JD) is identified and targets are
written for the given work. This is basically the first section of the PA form. After filling this
section, PA form is filed by the supervisor.
And when reached to mid-year, performance of the staff is reviewed by the employer or
the supervisor. During this procedure, employee and the supervisor discusses about the major
changes, improvements, need for improvements, and further changes required by the employee
in doing the work. This is the second section of the PA form. In this section, comments from the
supervisor is written in the form and both the employee and supervisor signs the form.
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And finally, at the end of the year or in case of MOH, during the January 31, the final
evaluation of the employee is carried out. During this period, overall changes of the employee is
identified. How well the employee carried out the tasks in reaching the target are identified and
marks are given as per the performance of the employee. This marks represents the performance
of the employee. During this stage, both the employee and supervisor sits separately and
discusses about the performance of the employee. And the main challenges faced are also
discussed. Employee is also given the opportunity to explain him/ herself. Required training in
order to gain further knowledge are being identified in this stage.
After filling the form, the PA forms are submitted to the HR division of the MOH.
Therefore, Performance appraisal used in MOH can be said to be a mixture of both
Numerical-Rating Scale and Objective Based appraisal system. This is because, based on the
objectives or the targets identified for a given period, employees are assessed in a numerical
scale.
Challenges
When interviewed to some of the staffs regarding the challenges which they face in
filling up the PA forms, the following challenges are being mentioned.

Lack of proper feedback from the supervisor as well as the employees. Some of the staffs
mentioned the PA, as a one-way communication process, where there is no
communication between the employee and the supervisor.

Due to the minimum staffs and the work overload, some of the employees are being
tasked with the works which are not mentioned in their PA forms or JDs and they are
being evaluated on those works.

Sometimes, the supervisor appraises the employee based on the recent activities and not
for the whole year. This is also called Appraiser Biased.

Inexperienced appraiser or lack of knowledge in filling and communicating with the

employee.

Lack of employee support. Some of the employees consider it as a way of talking about
their weaknesses and bad things they have done in their workplace rather than the good
things they have done.
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Evaluation of the Performance Appraisal system with relevant Performance

Appraisal Model
According to (Samad, 2013), the two main Performance Appraisal models are;

Michael and Yost (2000) performance appraisal model

According to (Samad, 2013) the main elements include in this model are, organizational and
human resource philosophies and goals, intended purposes, job structure, type of performance
measurement, choice of performance appraisal format, relevant content, as well as performance
appraisal policies and procedures.

Craig et al (1986) performance appraisal process model

The main elements in this model are as follows.

Establishing Standards and Measures,

Communicate Job Expectations,

Performance Planning,

Monitoring Performance,

Appraising,

Feedback,

Decision Making and

Development Plan (Samad, 2013).

Looking into the current performance appraisal system and its elements of the Ministry of
Health, it is mostly related to the Craig et al (1986) performance appraisal process model. This is
because, the type of Performance appraisal system used in Ministry of Health is a mixture of
Numerical and Objective based. Craig et al (1986) Performance Appraisal model is also basically
an objective based model. Lets have a look at each element of the Craig et al (1986)
Performance Appraisal model with respect to the Ministry of Healths Performance Appraisal
system.

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Establishing Standards and Measures

This is basically identifying the measures that are relevant to differentiate between
successful and unsuccessful performances. Ministry of Health also does the same practice.
Initially, there is a performance appraisal standards, meaning that the Performance Appraisal
form has main key areas to identify the performance of the candidate. It is classified into 10 main
section and Key Performance Indicators are also being identified in the form.
Communicate Job Expectations
Communication of job expectations or in other words, identifying the targets is one of the
main steps of the performance appraisal system. This step identifies the targets that has to be
achieved by the candidate at a given period of time. In the first section of the Performance
Appraisal form of MOH, this main category is mentioned where supervisor and the employee
should communicate and identify their five main tasks and the targets in that task.
Performance Planning
The manager plans for the realization of performance expectations, arranging for the
availability of the resources needed to attain the goals set (Samad, 2013).
This is almost same as identifying the job expectations. During this stage, supervisors
provide tools and support and knowledge in achieving the job tasks.
Monitoring Performance
Staffs of MOH are monitored twice annually. Firstly in the mid-year of the performance
appraisal as how much the employee has reached in achieving the target. This is also called
performance review. The supervisor basically monitors the staff daily. But during the mid-year,
both the employee and supervisor communicate each other with the difficulties faced and the
progress of the works. And finally, at the end of the appraisal period, there will be a final
evaluation of the performance.
Appraising
According to (Samad, 2013) during this stage, documenting performance through
observation, recall, evaluation, written communication, judgement and data analysis occurs.
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This is the final appraising in case of the Ministry of Health. The very appraising at the
end of the appraisal period. Employees performance is measured based on the tasks and
progress, improvements required and how well the tasks are carried, etc. A numerical rating
scale is used in this process. Employees are awarded marks out of a 100%.

Feedback
This is one of the essential part of any performance appraisal system. Both the employer
and employee communicate each other separately, each of the given a chance to justify
themselves as per their point of view. Lack of proper feedback or biased feedback would lead to
various consequences for both the organization and the staff.
Decision Making
Decision making is basically taking proper actions or decisions based on the feedback
and performance of the employee. These could be rewards or punishments.
In the government, the civil servants are awarded with compensation or rewards if they
reach a specific marks. For example, those who are awarded with 95% and above are awarded
with their full basic salary as a reward. And those who get between 85% to 95% marks are
awarded with 50% of their basic salary as a reward. Furthermore, these marks plays a vital role
in employee promotions as well.
Development Plan
At the very final part of the PA form of Ministry of Health, there is a section mentioned
trainings and skills. This section highlights the required trainings and knowledge in carrying out
the tasks.

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Recommendations
Based on the evaluation of the current Performance Appraisal system of Ministry of
Health, there are few things that can be recommended for the organization inorder to strengthen
the current Appraisal system.

Giving opportunity to Self-evaluate

Employees can be given a copy of the appraisal form and they could be asked to evaluate
themselves based on their point of view on how much they have reached in achieving their
targets. This will provide the employer to compare the views of both the employer and employee
at a same time.
According to (Josh, 2012), people are typically harder and more critical of themselves
than others are. Getting their input on their own performance can open up lines of
communication and allow the manager to more easily discuss the differences in opinion and
perception between the two assessments.

Engaging Employees in two-way communication

During the feedback session on the appraising, employers as well as employees ignore to
communicate about the performance of themselves. And sometimes, employees are not given
opportunities to provide justifications or their views about their performance. It is rather
considered as a one-way communication. This could be avoided in order to improve the appraisal
system. And by building a proper communication bond will enable the both the employer and the
employee to work towards achieving the tasks and ultimately in achieving the organizational
goals.

Avoiding Biased Appraising

Biased appraisal can be said to those appraisals where, performance is measured based on
the recent behaviors of the employee. Sometimes, the employer or the supervisor only considers
the employees recent behavior, and evaluates the employee based on only that period of time.
Main purpose of an appraisal system is to measure or assess the employee for his or her works
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for a specific period of time, say one year. And not only for the recent two or three weeks or not
as per a dispute occurred between the supervisor and the employee in the past week. This will
lead to various threats for the employees improvements and promotions.

Training the Appraiser

Some appraisers lack the required knowledge in appraising the staffs. Or some of the
appraisers does not take the appraisal serious enough. They consider it as a useless or not
important enough. Something that doesnt matter. Performance appraisal is the main element
that decides on the employees promotions and increments.
Some of the appraisers lack knowledge and know-how on filling an appraisal form. Due
to this, they doesnt know how to communicate with the employee or in providing the required
knowledge and feedback on the staffs work. And sometimes, employees are assigned with a
non-related employer to assess their work. This will lead to improper appraising of the
employee.

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Conclusion
Performance appraisal is one of the most important element in any organization.
Performance Appraisal decided on the future of the employee as well as the organizations
development.
Ministry of Health uses a mixture of both the Numerical-Rating Scale and Objective
Based appraisal system. Meaning that a numerical value is given to the employees performance
based on their targets or the objectives that are assigned for them to achieve in the appraisal
period. The appraisal system used in Ministry of Health is common to the Craig et al (1986)
performance appraisal process model.
Evaluation of the performance appraisal system of the Ministry of Health shows that with
some recommendations in their current evaluation system can be improved. These
recommendations include, giving the employees to self-evaluate themselves, avoiding biased
appraising, engaging and proper communication between both the employee and employer and
training the appraiser and tasking the most suitable employer to appraise the employee.

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References
Civil Service Commission. (n.d.). History. Retrieved from http://en.csc.gov.mv/history/
Josh. (2012). 5 Ways to Improve Performance Management. Retrieved from Course Park:
http://www.coursepark.com/blog/2011/09/5-ways-to-improve-performance-management/
Ministry of Health. (2016). Retrieved from Ministry of Health:
http://www.health.gov.mv/ministry.php?lang=en
Rasel. (2015, April 16). Definition of Performance Appraisal. Retrieved from Bank of Info:
http://bankofinfo.com/definition-of-performance-appraisal/
Samad, D. S. (2013). BBNP4103 Performance Appraisal. Open University Malaysia.
The Happy Manager. (n.d.). Definition of Performance Appraisal. Retrieved from The Happy
Manager: http://www.the-happy-manager.com/articles/definition-of-performanceappraisal/

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