Performance appraisal

Performance appraisal system I. Definition of Performance Appraisal: Performance appraisal / evaluation is a process that is carried out mos...

Performance appraisal system

I. Definition of Performance Appraisal:

Performance appraisal / evaluation is a process that is carried out mostly in regular and order manner with the purpose to compare the performance of a person (productivity, result, effort, etc) in relation to preset requirements/criteria and specific objectives of an organization.

The result of PA will be used as the basis to determine whether an employee is suitable for his/her job and whether he/she possesses necessary qualifications and skills. As such, a PA is conducted to measure an employee’s performance in terms of his/her, inter alia, accomplishment, skills, attitude, accuracy at work and compliance with internal organizations. PA is now a popular process adopted by almost organizations as part of their internal employee development activities. It has become both a duty of managers and right of an employee since its result is important to the employee’s improvement and advancement in his/her career.

PA is important, however, it must be conducted in conjunction with other management measures to be fully effective and practical.

Related sources:

1. Purpose of performance appraisal

2. Benefits of performance appraisal

3. Problems in performance appraisal

4. Performance appraisal criteria

5. Performance appraisal dictionary

6. Difference between performance appraisal and evaluation?

7. What is Performance improvement plan?

8. Why employees hates performance appraisal?

9. 5 advices on how to evaluate your employee’s performance

II. Objectives of Performance Appraisal

A PA is carried out for the following objectives:

1. To provide the employees with regular feedbacks on their performance at work

2. To inform the employees of their positive and negative acts and behaviors

3. To create an influence on changing an employee’s working style

4. To identify qualified and skilled employees and poor ones who need training

5. To provide data for records as part of human resource management process

6. To identify the strengths and weaknesses of an employee and inform him of the same so that he may promote strong points while correct weak points

7. To ensure a regular communication between the managers and employees within an organization for future career advancement

III. Advantages of Performance Appraisal

PA is an indispensible HRM measure that must be conducted regularly not only for its significant role but also for the following advantages:

1. Selecting the employees:

PA provides the basis for managers to consider promoting or demoting their employees. Strengths and weaknesses of each employee will be revealed by PA process, so, the managers will know the persons who make much contribution to the organization and who do not, who should be promoted and who should be demoted, who should be encouraged and who should be taken disciplinary action on.

2. Improving the employees:

PA if being conducted in a regular, order and correct manner will become a great measure to help the employees improve themselves. From the PA result, an employee can see his/her weaknesses and strengths, what he/she could do well and what he/she couldn’t. Then, improvement can be made.

3. Communicating with the employees:

Effective communication between the managers and employees of a company is one of factors making its success. PA is one of the most important tool to ensure such a smooth, regular and effective communication:

• Trust will be built up between the employees and their managers since they know that the managers pay attention to them;
• A thorough relationship can be maintained and implemented;
• Working spirit will be improved if the employees know that their performance will be appraised regularly;
• PA result is the basis for the managers to consider the employee skills and qualifications;

4. Motivating the employees:

It encourages the employees to work harder if they know that their performance is under regular supervision and evaluation all the times. As a result, they will try their best to perform well and accomplish the goals as well as self-discover their weaknesses, correct and improve them.

5. Promoting the employees:

PA result is a fundamental basis for the managers to decide whether to promote or demote an employee. If PA result shows a positive performance, an employee may be promoted, and on the contrary, he/she may be subject to disciplinary action or demotion.

6. Determining compensation level:

Compensation consists of salary, wage, bonus, allowance and other incentives. An employee with great performance is eligible to receive higher compensation than those without it. So, performance appraisal is a necessary tool for managers to consider if the compensation is suitable to an employee’s contribution.

IV. Performance appraisal methods/techniques

1. Critical incident method

2. Weighted checklist method

3. Paired comparison analysis

4. Graphic rating scales

5. Essay Evaluation method

6. Behaviorally anchored rating scales

7. Performance ranking method

8. Management By Objectives (MBO) method

9. 360 degree performance appraisal

10.Forced ranking (forced distribution)

11. Behavioral Observation Scales

You can ref all of them at:

1. 11 performance appraisal methods
2. 360 degree performance appraisal

V. Top 10 Problems in conducting a Performance Appraisal and Solutions

1. Poorly Trained Manager

Effective performance appraisal must be performed by those who know how to do it in an effective manner. And since the process may vary from companies to companies, it is important to devise a suitable PA process for each company, and it is the duties of PA manager to do that. A senior manager with experience may still be unable to perform a PA process well if he/she is not trained about the process. Such a process must envision the philosophy and HR policies of the company and be fully integrated to its internal systems such as rating, reporting forms and data collection, etc. Training is required to introduce the manager to these systems so that they may know how to conduct a PA process effectively.

2. Unaccountability

The manager in charge of conducting PA should be accountable for his job. He must provide adequate and accurate feedbacks to the employees, otherwise, the effect may be adverse if the employees think that the company wrongly acknowledges his efforts. A manager making a mistake in PA process must be dealt with strictly and announced before the staffs. So, unaccountability may become a fatal mistake in conducting any PA process.

3. No relation to reward

PA result must be fully connected to subsequent actions, among which, reward, bonus, acknowledgement or promotion will be the most important incentives for a positive result. Without such incentives (disciplinary actions on the other hand), PA result may be of no effect on the employees performance.

4. Actual Performance is neglected

Some PA process may easily fall into the trap of considering wrong factors. Some may put too much attention to personal qualifications, skills or experience and behavior at work but ignore the fact that his/her actual contribution should be the most important and decisive factor to be considered.

5. Irregular Feedback

Feedback is necessary, but irregular feedback may bring back adverse effect. The primary goal of PA process is to identify strengths to improve and weaknesses to correct, however, it is only effective if being conducted thorough the year instead of annually. The process must be functioned under a quality-related program and on real-time basis. Quarterly feedback is the least possible to be effected.

6. Assessment is not based on data

Figure tells everything while feelings or subjective opinions cannot. Therefore, such a PA process must not be dependent wholly on the manager’s subjective feelings, instead, it should be based on data collected from various methods, perhaps from a questionnaire carried out among the employees.

7. Ineffective Measurement

PA result must be quantified in terms of indicators, for example, individual percentage of completion, percentage of individual performance and average performance, and so on. Similarly, an employee’s contribution must be expressed in term of measurable indicator, for example, annual contribution in cash, product or total working hours, and so on. Forgetting to mention these but whether an employee has satisfied the requirements or not seems to be a fatal mistake.

8. No self-appraisal

PA process is only complete if it is conducted in two ways manner. One is conducted by the managers, and one is conducted by the employees themselves, or self-appraisal. Self-appraisal is more effective in terms of getting the employees to look at themselves. Thus, each employee should be provided an individual scoreboard so that he/she can rate his/her own performance.

9. The managers don’t know the employees

This is quite a problem in fact quite a serious problem, especially in larger companies where there are a lot of managers and employees. For example, a newly-appointed manager is assigned to evaluate the performance of former employees. lacking the available knowledge of the employees’ abilities, qualifications and skills, it will be difficult for the manager to conduct an effective PA process, not to mention the more difficult it will be to communicate the results with them.

10. Inconsistent Rating Scale:

A common rating scale should be adopted throughout the whole organization for PA process. In fact, it is not uncommon that a manager may use a Likert-type rating scale for an employee’s performance level while adopting another point-type scale for his skills. The result, certainly, cannot be good since various rating scales cannot be merged or combined.

VI. Performance appraisal process

1. Prepare:

Employee-related documents, job description, task assignment, performance record, minutes of completion, problem reports, and so on, must be readily available before conducting a PA process. Previous PA reports should also be included in the documents for this PA process. PA process must be conducted in a uniform format in an order manner, using templates and forms as necessary.

2. Notice:

Second step is to notice all the employees of the upcoming PA process to allow them a reasonable time for preparing themselves and perform self-appraisal. Then, communicate the objectives of the process to the staffs, inform them of the necessity of the process and their obligations and benefits related to the same; inform them to submit their records of performance and minutes at work if available and provide each of them a specific agenda for performance appraisal.

3. Meeting place:

Select a meeting place to gather all the employees to be involved in the performance appraisal process; make sure that the process will not be interrupted by the outsiders; such a place may be the canteen, meeting hall or at a specific hotel, etc.

4. Layout:

Arrange the meeting room in an order manner; provide suitable seats and make sure that other equipments have been fully and properly installed and ready in the meeting room. A professional layout of the room should create a serious feeling and can attract the employees’ attention to the process; provide a seat for the chair and a list of tables and chairs for the managers who shall evaluate the employees’ performance; seats should be arranged with 90 degree direction and avoid a face-to-face situation.

5. Introduction:

Before conducting the process, a manager is supposed to introduce about the process, its procedures and objectives. Introduction part of the process is purposed to draw the employees’ attention while relieving their pressured feelings and establish a friendly atmosphere; encourage the employees to discuss with each other or raise their questions so that they may feel comfortable and free. Tell them that the purposes of the process are for their own good, only. It is a good idea to start the process by telling a joke or talking about the company’s general performance in the past, the achievements it has made, and so on.

6. Review and measure:

All the collected information on the employees activities, tasks and objectives performance, and their achievements shall be reviewed and rated separately between employee and employee. Feedbacks to be given should be specific and avoid using stressful words. Write down anything unclear to require the employees to focus on. Pay more attention to figures and results and address them more frequently in the reports with sound arguments and evidence. Don’t state any subjective opinion but only objective statement regarding the employees’ performance.

7. Reach an action plan:

When PA results have been completed, an overall evaluation shall be made and on basis of which, an action plan shall be agreed upon among the mangers, in which specifying the duties to be improved and performance to be encouraged. Such a plan shall include strengths and weaknesses of the employee and suggest actions that the employee should take in respect of the same. Then, the plan should specify the goals for future performance, but the same must be realistic and practical.

8. Set specific objectives:

As mentioned above, specific objectives must be stated in an action plan so that the employee will know what he/she is going to focus on. As a principle, such objectives should follow the rules of S.M.A.R.T.E.R - specific, measurable, agreed, realistic, time-bound, enjoyable, recorded. But this is only a tip, so don’t worry if you forget any of those rules.

9. Provide necessary support:

Support will be assigned to each employee if necessary. That may be the support of other employees or from the managers, or in form of training courses (internal or external seminars, meetings, conferences, coaching, on-the-job training, remote-practicing, reading, video, meeting attendance or workshops and any other kinds of materials to support the employees in their future performance of the objectives).

10. Encourage the employees to give their opinions:

The employees shall then be asked their opinions on the PA result and provide any feedback or make any recommendation to the company.

11. Positive conclusion:

Say thanks to the employees for their cooperation and efforts; wish them a better performance and promise to help them if necessary.

12. Records of results and follow-up actions:

Final step is to record everything as outcome of the PA process, including questionnaires, reports, notes, forms, sheets and other documents; then forward the same to relevant departments (HR department and the employees’ own departments).

Related sources:

1. Performance appraisal process
2. Performance appraisal interview

VII. Performance appraisal forms/templates examples:

1. Performance appraisal form

2. Manager performance appraisal form

3. Employee performance appraisal form

4. Essay evaluation form

5. Forced Choice form

6. Weighted checklist form

7. Rating scale form

8. Self appraisal form

9. 360 degree performance appraisal

You can ref them at: • Performance appraisal examples.

VIII. How to improve performance appraisal

1. 5 advices on how to evaluate your employee’s performance

2. Roles of leaders in improving performance appraisal

3. 4 methods to improve performance appraisal

IX. Tools for performance appraisal

Key performance indicator examples (KPIs)

Key result areas (KRAs)

VI. Best performance appraisal resources

1. Phrases For Performance Appraisals. Benefits of this ebook include: A collection of hundreds of ready-to-use impactful appraisal comments and phrases; Phrases to highlight your key strengths and achievements; Phrases to downplay your weaknesses to soften the impact on your overall performance; A comprehensive list of phrases covering most of the categories of KPIs used by many companies; Guidebook provided in Microsoft Word softcopy for your easy copy, paste and modify in your appraisal form; Guidebook provided in Microsoft Excel spreadsheet so that you can use it also for your employees’ appraisals and easy moderation! etc

2. Employee Performance Appraisals Forms. Benefits of this ebook include: Make your “fair” help good & make your “good” help great; Improve efficiency; Save hours upon hours of time; Get what you want out of every hourly dollar you pay your employees! Even your best employees need to know they are appreciated; Impress your boss or, if you are the boss, motivate your staff by giving them the feedback they NEED to be a better employee etc

3. Employee Performance Review: Tips, Templates & Tactics. Contents of this ebook include: Probation policies and templates, performance review tips, performance appraisal tips; Performance review tips, performance appraisal tips performance review policies and templates; Performance review tips, performance appraisal tips learning & development policies and templates; Performance review tips, performance appraisal tipspoor work performance policies and templates etc

4. Managers Guide to Performance. Contents of this ebook: How to deal with an employee who displays negative behavior….help them deal with their own issues and change their behavior; How to coach an employee to higher performance….employees want your leadership and will follow a strong manager; How to be clear about what you expect from them….an employee always wants to know how to best perform; How to give your employees the opportunities to perform……if they can’t or won’t, then how to let them go.


Performance appraisal 4388353306143946620

Post a Comment


Follow Us


Hot in week