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PART D: LEADING AND MANAGING INDIVIDUALS AND TEAMS 
 
420
 
Study Guide 
Intellectual level
 
D7 Review and appraisal of individual performance 
 
 
(a) Explain the importance of performance assessment. 
K 
(b) Explain how organisations assess the performance of human 
resources. 
K 
(c) Define performance appraisal and describe its purposes. 
K 
(d) Describe the performance appraisal process. 
K 
(e) Explain the benefits of effective appraisal. 
K 
(f) Identify the barriers to effective appraisal and how these may 
be overcome. 
K 
 
1
Performance management and assessment 
Performance management aims to get better results for the organisation via the measurement and 
evaluation of individual performance. 
Appraisal is part of the system of performance management, including goal setting, performance 
monitoring, feedback and improvement planning. 
Performance management
is a means of getting better results by managing performance within an 
agreed framework of goals, standards and competence requirements. It is a process to establish a 
shared understanding about what is to be achieved, and an approach to managing and developing 
people in order to achieve it. 
This definition highlights key features of performance management. 
Aspect 
Comment 
Agreed framework of goals
, 
standards and competence 
requirements 
The manager and the employee agree about a standard of 
performance, goals and the skills needed. 
Performance management is a 
process
Managing people's performance is an ongoing activity involving 
continual monitoring and assessment, discussion and adjustment.