Performance
appraisal- objective, process and method
Performance
appraisal is process in which in which manager and employee work together to plan,
monitor and review the work and an employee’s work objective and overhaul
contribution to the organisation.
A performance appraisal, also referred to as performance review,
performance evaluation, career development discussion. An employee appraisal is a method by which the job performance of an employee is documented and
evaluated.
Performance appraisal or performance
review is a systematic process in which employee performance at work is
evaluated in relation to the projects on which employee has worked and his
contribution to the organisation. It is also known as an annual review or
performance review.
Appraisal Review
Goal Setting- First
step in the performance appraisal is that Manager has to set the goal of his
subordinate with discussion of his subordinate. Minimum goals to be five or
maximum can be any number depends on company policy. Each goal to be given
number. This to be set as per company policy that hat minimum number and
maximum number will be assign to one goal. Goal to be measurable and easily
achievable. Goal to be set with the mutual understanding of Manager and his
subordinate.
Parts of performance
appraisal- Performance appraisal is divided in two parts review of
KRAs/Goals and review of competencies. This depends on the company policy that
how much number to be assigned to KRAs and how much number to competencies.
Most of the companies 80% number to KRAs and 20% number to competencies. Few
companies 75% number to KRAs and 25% number to competencies but this totally
depends on company policy.
Cycle of Performance appraisal- is more than just assigning ratings. It is a
continuous cycle that involves planning work in advance so that expectations
and goal can be set. Few organisations review the performance appraisal on
quarterly bases, few half yearly bases and few on annually bases. It differs
from company to company policy. Management should keep the records of all
reviews quarterly, half yearly so that at the time of final appraisal no
surprises should come. All appraisal reports to be signed by both manager and
subordinate to avoid any dispute at the time of final review.
Role of Human Resource Department plays an important role in designing and
implementing performance appraisals. Infact HR Team acts as mediator between
the Functional Head or reviewing authorities and the employees. It is the human
resource team’s responsibility to assure a smooth implementation of the
appraisal processes.
Types of employee’s
performance evaluation
1.
Numerical
rating scale- Due to its
simplicity this is the one of most widely used system and seems to be highly effective.
It is also popular because it allows employer to measure employee performance
on the bases of such as team work, communication, skill and reliability. A
numerical rating scale is beneficial because a business can customise the system
to rate whatever employees’ traits and characteristics.
2.
Objective
Base- This is another method of
evaluation system and a clear-cut way to track the progress of the individual
employee. In objective base system manager with his subordinate discuss and set
the target for achievement. They both agree for the specific goal for the
employee to meet coupled with deadline. If the employee meets the objective,
then it speaks highly of them and vice versa. This is perhaps the most black
and white of all system and is practical way to monitor the overall success of
the employee.
3.
360 –
Degree appraisal- Let me explain
90-degree appraisal is review by appraiser and appraiser (Immediate Bose) do
not discuss with appraisee.180- degree appraisal is appraisee + appraiser (Immediate
Bose)., appraiser discuss with appraisee at the time of review each and every goal.
270- degree appraisal is appraisee + appraiser
(Immediate Bose) + reviewer (HOD/Functional Head) and A 360- degree appraisal
feedback is taken from multiple parties his subordinate, co- worker, immediate
boss and even vendors. The more information you collect, the more accurate the
performance review becomes. This is time consuming comparing to first two
techniques. Most employer prefer it because of unbiased data they receive.
4.
Critical
Incidents -A method of
performance appraisal involved identifying and describing specific events or
incidents where the employee did something really well or some thing required
improvement. For a critical incidents evaluation system to be effective, it’s
important to keep detailed records.
How to Give an Employee Performance Appraisal
1. Prepare your appraisal in writing.
...
2
Deliver your feedback in person. ...
3.
Relate the appraisal to your business's goals. ...
4.
Engage in a two-way dialogue. ...
5.
Emphasize opportunities for improvement. ...
6.
Set goals for the coming year.
Appraisal Review
Needs of Performance appraisal
1.
To evaluate the performance of the employee.
2.
To give him increment.
3.
To give hie higher responsibility or promotion.
4.
For his development in the career.
5.
To guide him where he needs improvement.
Advantages
of Performance Appraisal
1. A systematic appraisal system helps the managers to properly identify
the performance of employees in a systematic .
2. It helps the management to place the right employees for the perfect
jobs depending on their skills in particular areas.
3. It helps employees identify the areas in which they need to improve.
4. Potential employees are often given promotions on the basis of or the
results of performance appraisals.
5. It creates healthy competition among employees as they will try to
improve their performance and score better than their colleagues.
6. Managers use appraisal programmed to identify the grievances of
employees and act upon them.
7. Keeping extensive records of performance appraisal will give managers a
very good idea of which employees have the highest growth rate and declining
rate of performance.
Disadvantages
of Performance Appraisal
1.
Sometimes, equal weightage is not given to
important factors when performing an appraisal.
2.
Some objective factors are very vague and difficult
to gauge like attitude and initiative. There is no scientific method to measure
these factors.
3.
Managers are sometimes not qualified enough to
correctly assess the employees and their abilities. Thus, these mistakes can be
very detrimental to the growth of the company.
4.
Sometime Managers do some favour to some employee and
neglect other do his likes and dis likes. This is not a good method of review
system. This damage the system of the organisation.
Employee evaluation are critical
component of running nearly any business and having a effective measurement
system in place helps you to get the most from your staff. Beside this evolution
helps you recognise worker achievement, objectively compare multiple employees and
identify area where improvement is needed.
It helps the managers place the
right employees for the right jobs, depending on their skills. Often, employees
are very curious to know about their performance details and compare it with
their fellow colleagues and how they can improve upon it. So, every company
needs a good performance appraisal system.
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