What is a Performance Appraisal?

 

A Performance appraisal is used to measure an individual work performance against established work requirements and employee contribution for assigned job. It’s a process of planning, coaching and reviewing the job performance. Performance appraisal is also called as performance evaluation, performance review, and development discussion or employee appraisal. It is a part of an organizations performance management system.

It’s a subjective evaluation of the employee’s strengths, weaknesses, job knowledge, reliability and consistency of work, overall performance and identification of Training and development needs.

 

Why do Performance Appraisals need?

Performance appraisals help to take administrative and development decisions. Further it supports to take several manpower decisions such as recruitment, promotions and succession planning etc. Hence organization should ensure accurate reflection of the employees’ performance.

It is important time to time evaluate employee's performance levels, quality of work as this is primary way of ensuring an organization align with its primary goals of it and to develop plans to enhance the skills and knowledge of the employees while appreciate their efforts.

In addition, it is a powerful tool for create positive and productive work environment. Supervisors supposed to conduct form of face-to-face interviews to ascertain employees work performance standards. This will help to identify strengths and weakness of the employees which will help them to maximize their potentials.

 

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Types of Performance Appraisal Methods

There are different performance appraisals methods use by the company.  Few of those are as follows.

1.    Management by Objectives Method: This method has much to do with evaluator by setting up specific measurable goals with employees. Here an organization should set up their goals for a particular period. Then the departments must have set up their department goals to achieve company goals. After that it has to set up individual goals in order to achieve department goals. When review time concludes supervisor evaluates individual goals are met. 

2.   Assessment Centre Appraisal: This allows employees to understand how others perceive them. This help to understand the impact of their performances. This method divides, the review part in to 03 stages: pre-assessment, during the assessment and post assessment. During the assessment managers exercise to show how successful they are in their role.

3   Negotiated Appraisal: This involves the use of mediator during employee evaluation. The reviewer shares what employee is doing well before criticizing. This type of evaluation helpful for situations where both are in disagreement. 

4.   Behaviorally Anchored Rating Scale (BARS): This is a scale use to measure the performances by well-defined behavioral patterns using critical incident techniques. This includes collect critical incidents, identify performance dimensions, reclassify the incidents and develop final instrument. 

5.  360 Degree Performance Appraisal: In this method performance of an employee is evaluated by consulting different types of people. They may be customers, suppliers and employee peers. This is a critical analysis of once strengths and weakness, and how it can help improving their own performance.

There are five ratings used to describe the level of performance achieved buy an employee during the period.

1.   Outstanding/ Excellent: Demonstrate excellence behaviors above the proficiency level mapped to the role.

2.    Exceeds Expectations: Consistent display of expected behavior as per the proficiency level mapped to the role.

3.     Meets Expectations: Generally, demonstrates expected behaviors as per the proficiency level mapped to the role.

4.    Below Expectation: Occasionally demonstrates expected behaviors as per the proficiency level mapped to the role.

5.    Unsatisfactory: Fails to demonstrate expected behaviors as the per the proficiency level mapped to the role

 Rating Pitfalls for an Appraisal

Employees need to know how they are performing and meeting the expectations. It is appraiser’s responsibility to provide accurate feedback and not to be biased. When giving appraisal ratings following facts should avoid which often lead to common errors.

·     Halo Effect: The appraiser is impressed with one or two factors in the employee’s performance and giving overall rating base on that.

·         Leniency: In order to avoid discussion on performance problems, giving good appraisal to all.

·        Central Tendency: This often happen when the supervisor is not informed or aware about employees’ actual performance. Therefore, the supervisor gives a “middle of the road” appraisal.

·      Recency   : It’s a psychological phenomenon where people tend to remember the past which happened many months ago. This influences how a supervisor evaluates an employee. Therefore, best way to avoid this kind of problems is to keep records throughout the appraisal period.

·        Past Performance: Giving the ratings based on past records which is unfair to the employee because it does not accurately reflect the performance level of current year.

 

 The Appraisal Meeting

The appraisal discussions allow both employer and employee to openly discuss the performance level and performance gaps. Before the appraisals meeting both parties have to be well prepared for the meeting to be effective. Employees have to do a self-assessment, gathering helpful document as the proof of achievements before the meeting.

Conclusion

It is important to recognize the performance of individuals in a fair and consistent manner as it’s directly link to employee motivation, satisfaction, incentives and career path. Recognizing   top performers, helping to improve quality of work of their employees will help an organization to achieve desired results.   Further completing the appraisal process in a professional manner which is responsibility of a the supervisor.

 

References

1.     Terra, J. (2022). What is a Performance Appraisal? Methods, Process, and Everything You Should Know. [online] Simplilearn.com. Available at: https://www.simplilearn.com/what-is-performance-appraisal-methods-process-article [Accessed 16 Dec. 2023].

 

2.     Segun Akiode (2021). Best Approach To Employee Performance Appraisal | Performance Management Guide. YouTube. Available at: https://www.youtube.com/watch?v=0gh1ME1j3xA [Accessed 16 Dec. 2023].