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PART D: LEADING AND MANAGING INDIVIDUALS AND TEAMS



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PART D: LEADING AND MANAGING INDIVIDUALS AND TEAMS 
 
422
 
Principles for devising performance measures include: 
Principle 
Comment 
Job related
They should be related to the actual job, and the key tasks outlined in the job 
description. 
Controllable
People should not be assessed in relation to factors which they cannot control. 
Objective and 
observable
This is contentious. Certain aspects of performance can be measured, such as 
volume sales, but matters such as courtesy or friendliness which are important to 
some businesses are harder to measure. 
Data must be 
available
There is no use identifying performance measures if the data cannot actually be 
collected. 
 
2
The purpose of performance appraisal 
2.1 Main components of appraisal 
Appraisal can be used to 
reward
but also to identify 
potential
. It is part of performance management 
and can be used to establish areas for improvement and 
training and development 
needs. 
The general purpose of any appraisal system is to improve the efficiency of the organisation by ensuring 
that the individuals within it are performing to the best of their ability and developing their potential for 
improvement. This has three main components. 
(a)
Reward review
, measuring the extent to which an employee is deserving of performance-related 
bonuses or pay increases 
(b)
Performance review
, for planning and following up training and development programmes: 
identifying training needs, validating training methods, and so on 
(c)
Potential review
, as an aid to planning career development and succession, by attempting to 
predict the level and type of work the individual will be capable of in the future 
2.2 Specific objectives of appraisal 
More specific objectives of appraisal may be summarised as follows. 
(a) Establishing 

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