• 10 Marks

BMIS-Nov-2024-L1-Q4b-Performance Appraisal and Employee Competence

Describes the components of performance appraisal and suggests ways to assess employee competence.

A performance appraisal is a periodic and systematic process whereby the job performance of an employee is documented and evaluated. The performance appraisal process allows employees to understand specific competencies they excel at and where they might need improvement.
Required:
i) Describe THREE components of performance appraisal.
ii) Suggest how the competence of an employee might be assessed

Components of Performance Appraisal:

  1. Reward Appraisal: Focuses on what the employee’s rewards should be, such as salary increments or bonus discussions.
  2. Performance Appraisal: Reviews the employee’s achievements and compares their performance to established targets or objectives.
  3. Potential Review: Evaluates the employee’s future potential, focusing on career growth, promotion prospects, and personal development.

ii) Assessing Employee Competence:
Employee competence can be assessed by:

  • Comparing the employee’s performance to established standards of competence.
  • Peer comparison, where the employee’s performance is measured against that of colleagues performing similar tasks.
  • Job-specific standards, ensuring that the employee meets the specific requirements for their role, such as skill, knowledge, and efficiency.
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