Performance Appraisal

figure 1 : Performance appraisal

Source : ( Sharma,2023)

A performance appraisal is a periodic evaluation of an employees job performance in relation to the competency standards established by the company. The organizational core skills and job-specific competencies are frequently both covered in the performance evaluation. Based on the evaluation, the appraiser often a manager or supervisor will provide the employee with helpful, practical criticism. The individual is then given the guidance they need to advance in their position. A performance review offers the company the chance to acknowledge the accomplishments of its employees as well as their potential for the future; depending on the sort of feedback, they get .(Valamis, 2023)

Objectives of a performance appraisal

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7 objectives of a performance Appraisal

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Help employees set goals

Helping employees develop goals is one of the most crucial aims of performance reviews. Employees need to understand what is expected of them, whether the goals are focused on operations, customer service, or professional growth. Employees may achieve and surpass their goals by creating a game plan.

Motivate high-performing employees

You can successfully explain what excellent performance looks like through performance reviews. This offers workers a goal to strive for, especially because many desire promotions or promotions that result from performing well. They will not seek out examples of their own work to use once they know what high performance means to you.

Counsel underperforming employees

One of the most important goals of performance reviews is to offer advice to workers who are not living up to the expectations set by the firm. Perhaps the underperforming employee has not established goals or needs more clarification on what is expected of them in their position. As a manager, work with them to identify the reasons behind their subpar performance and create an improvement strategy.

Support for raises and promotions

As salary is frequently correlated with performance, many organizations already link performance reviews to raises and promotions. It is much simpler to decide how much to boost an employees pay or if they are qualified for a promotion when you take the time to assess how they are performing, such as whether or not they accomplished the targets set for the previous quarter.

Plan for new hires

You can make a case for recruiting more staff if you regularly do performance reviews and see a consistent pattern, such as employees who are overworked. Determine which departments have adequate workers and which ones require extra skill to complete the assignment. Even better, you may collect certain departmental performance data points to use in your hiring procedure.

Improve organizational performance

You can teach the value of great employee performance from the top down with a robust performance assessment system that is structured and uniform across departments. This synchrony raises output and revenue.

Determine overall training needs

Determining which employees require individualized training, how to monitor their progress, how successful your present training procedures are, and how much it will cost are all steps in the performance review process.

Create a paper trail

Employees who are fired or transferred may file a lawsuit against you. An employee's performance review may serve as proof that they were treated properly, especially if they are alleging discrimination. If the employee sues the firm and the performance, review indicates, for example, that they have not been achieving sales goals that might aid the company's attorney in defending the lawsuit.

(Jotform, 2023).

Performance Appraisal Methods

Organizations may improve employee performance within the company by using the appropriate performance evaluation methodology. Effective and gratifying employee performance reviews may be achieved with the right methodology (Kissflow, 2022) .

Figure 2 : Modern performance appraisal methods

Source: (Kissflow, 2022)

Six of the most used modern performance techniques are introduced below.
Management by Objectives (MBO)
360-Degree Feedback
Assessment Centre Method
Behaviorally Anchored Rating Scale (BARS) Psychological Appraisals
Human-Resource (Cost) Accounting Method

To assess an employee's performance, managers and employers utilize a variety of techniques,

which may be divided into two categories:

Traditional Methods
Modern Methods

Conclusion

A performance appraisal is a methodical, recurring procedure for evaluating a person's work output in comparison to predetermined job standards. It is a judgment on the employee's relative value to the company, strengths, and areas for improvement in the future. Performance reviews, development conversations, performance evaluations, and employee appraisals are other names for these processes. An effective performance assessment will enable you to determine the employee's strengths and pinpoint opportunities for development. The ability to fill new roles in the organizational structure with current personnel is another benefit of appraisals.