This document discusses performance appraisals, including their objectives, types, issues, and process. Performance appraisals are regular reviews of an employee's job performance and contribution that help determine salary/bonus allocation and employee development plans. They can involve self-appraisals, manager assessments, or 360-degree feedback. Issues include differentiating individual/organizational performance and potential distrust between subordinates and supervisors. The six-step process establishes performance standards, communicates expectations, measures/compares actual performance, discusses the appraisal with the employee, and initiates corrective actions.
2. About Performance Appraisal
A performance appraisal is a regular review of an employee's job
performance and overall contribution to a company.
Alternate terms
“Annual review,"
“Performance review or evaluation,"
or “Employee appraisal,"
3. Objectives of Performance Appraisal
1. Because companies have a limited pool of funds from which to award
raises and bonuses, performance appraisals help determine how to
allocate those funds.
2. Performance appraisals also help employees and their managers
create a plan for employee development through additional training
and increased responsibilities, as well as to identify shortcomings the
employee could work to resolve.
4. Types of Performance Appraisal
1. Self Appraisal: Individuals rate their job performance and behavior.
2. Manager’s assessment: A Manager rates the performance of team
member.
3. 360-degree feedback assessment: Includes input from an
individual, supervisor, customers and peers.
4. Negotiated appraisal: A newer trend, utilizes a mediator and attempts
to moderate the adversarial nature of performance evaluations by
allowing the subject to present first. Also focuses on what the individual is
doing right before any criticism is given. This structure tends to be
useful during conflicts between subordinates and supervisors.
5. Issues in Performance Appraisal
1. Differentiating individual and organizational performance can be
difficult.
2. Distrust of the appraisal can lead to issues between subordinates and
supervisors or a situation in which employees merely tailor their input to
please their employer.
3. Performance appraisals may lead to unfair evaluations in which
employees are judged not by their accomplishments but by their
likeability. They can also lead to managers giving underperforming staff a
good evaluation to avoid souring their relationship.
6. Performance Appraisal Process
The six steps involved in process of performance appraisal are as
follows:
1. Establish Performance Standards
2. Communicate Performance Expectation to Employee
3. Measure Actual Performance
4. Compare Actual Performance with Standards
5. Discuss the Appraisal with the Employee
6. Initiate Corrective Actions.
7. Performance Appraisal Process
1. Establish Performance Standards
The managers must determine what outputs, accomplishments and
skills will be evaluated. These standards should have evolved out of job
analysis and job descriptions. The performance standards should also
be clear and objective to be understood and measured.
2. Communicate Performance Expectations to Employees:
The need to communicate to the respective employees so that they come
to know what is expected of them. It becomes communication only when
the transference of information has taken place and has been received
and understood by the employees.
8. Performance Appraisal Process
3. Measure Actual Performance:
In this stage, the actual performance of the employee is measured on the
basis of information available from various sources such as personal
observation, statistical reports, oral reports, and written reports. The
evaluator’s feelings should not influence the performance measurement
of the employee.
4. Compare Actual Performance with Standards:
A comparison may reveal the deviation between standard performance
and actual performance
9. Performance Appraisal Process
5. Discuss the Appraisal with the Employee:
This is, in fact, one of the most challenging tasks the manager’s face to
present an accurate appraisal to the employees and then make them
accept the appraisal in a constructive manner. A discussion on appraisal
enables employees to know their strengths and weaknesses.
6. Initiate Corrective Action:
The areas needing improvement are identified and then, the measures to
correct or improve the performance are identified and initiated.
