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Your employees eagerly wait the entire year for their performance appraisal. A raise or a promotion, they feel, is the reward for their dedication and hard work they have put into your organisation. So, you should be objective and tactful in assessing the performance appraisal of your employees. Performance appraisal is a part of the overall performance management process of the company.
Let us first understand what is performance appraisal. Performance appraisal is a process that periodically reviews the job performance of your employees and their overall contribution to your company. Performance appraisal is called by many names, such as performance evaluation, performance review, employee appraisal or annual review. It is a part of the performance management process that evaluates an employee’s skills, achievements and growth or lack thereof. Employers use performance appraisals to provide detailed feedback to their employees about their performance at work which justifies their increase in pay and bonuses or reaffirms their decision to demote or terminate. The performance review can be conducted annually or biannually. It solely depends on the discretion of the company.
Performance appraisal helps the employers to place the right employees for the right jobs depending on their skills and expertise. Employees are curious about their performance in the appraisal and often compare it with other colleagues to understand how they can improve their performance further. So, make sure that you institute a good performance management cycle.
Usually, an HR professional of your organisation will offer help with the assessment of the records on physical factors or physical objectives such as attendance, efficiency and amount of work. However, things become slightly complicated while evaluating the subjective factors such as behaviours, attitude and friendliness at work. It doesn’t matter which of the many performance evaluation methods you make use of, as long as you consider both objective and subjective factors during an employee’s appraisal.
The goals of a typical performance evaluation method are as mentioned below:
The discussions and outcomes of the performance appraisal can also be documented for different administrative purposes.
The performance evaluation method can be categorised into various types, which include:
In this appraisal process, the manager conducts a one-to-one session with the staff and discusses their previous year’s performance. Usually, only one year’s performance is discussed during the appraisal. The discussion highlights the manager’s observations and employee feedback, as well as the employee’s review on their performance.
This process is followed to encourage your employees to take accountability for their performance by analysing their achievements and failures themselves. This process also helps them understand, manage and evaluate their development goals in the company.
In this process, an employer informs the employees that they could seek a review of their performance from their managers. This modern approach to the appraisal process is aimed at replacing the conventional and dull review process. It can boost self-management and create more cohesion between the manager and the employees.
The process of 360-degree feedback includes employee feedback on performance that is given by various external sources apart from managers. These external sources of evaluation include peer evaluations, external customer feedback and evaluation from different suppliers. This radical concept is being increasingly used by many companies to provide holistic performance-related feedback to their employees.
The various performance appraisal methods followed in different organisations include:
The information above provides a sneak preview of all the essential elements of a performance appraisal. Do remember, it is a significant part of the employee performance management cycle. So put your extra effort in creating robust performance evaluation methods. If you would like to strengthen your understanding with a performance appraisal form sample or would like to view a performance appraisal example, then connect with our experts to know more.
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thanks for the wonderful write up. the content is good
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Great effort ?