Human Resources makes a significant contribution to an organization in the act of implementing a performance appraisal. The cornerstone of an effective evaluation system is employee motivation and the elimination of behavioral problems. A “360-degrees feedback” appraises an employee by feedbacks received from different quarters including peers and subordinates as well as supervisors and the management. The actual benefit of feedback occurs when an employee takes constructive criticism in the right spirit.
5 Reasons why a company shouldn’t ignore Performance Appraisals
1)Track exceptional performance, then compensate:
Companies should go all out and monitor an employees performance with the idea of rewarding exemplary employee contribution with compensation. Employees who go beyond the call of duty attract a higher annual increase than those contributing a bare minimum. Tracking exceptional performance can only happen through an appraisal process which will include regular one-on-one discussions between the employee and his supervisor to sort out the key contributors from the rest and compensate all accordingly.
2)Keep a tab on strengths and weaknesses:
When you are handing out new assignments, you need to be on top of things like who’s best fitted for the job or who would mess it up completely? Having a formal personal appraisal system which regularly tracks an individual’s strengths and weakness will be crucial in setting up strong teams with members formally assessed for their contributing and noncontributing areas.
3)Open up and improve communication:
Silence is no effective communication. When things are not going well between employees and managers, a simple solution like communication can build bridges. An employee performance appraisal system works well as a channel for employee-manager communication. Managers should use the assessment as an opportunity to describe the criteria on which the performance is judged, with the aim of helping the employee better understand how to do his job. For example, when the Manager tells the receptionist that she needs to be customer focused, he can explain, “I want you to smile when our clients walk in. That will tell me you are keeping our philosophy of ‘Customer First’ in mind”. The employee too can open up and share any work concerns he may have.
4)Is your human resource program working?:
A human resource program is a valuable way to gain the necessary skills and knowledge for managing “human capital” which is the key competitive advantage for organizations and companies.
An employee evaluation is an instrument to evaluate the effectiveness of a human resource program.
5)Set new goals:
Productive employees are goal driven. They relentlessly pursue their goals to achieve excellence and rewards. Setting goals can be the high point of an appraisal when an employee feels charged to perform and achieve the desired goals. Meeting targets will make the employee feel confident. The appraisal is also an opportunity for managers to realign business objectives if market situations are changing and set goals realistically. Formal evaluations are also a good time to step away from the hustle and bustle of everyday work and reflect upon the overarching direction your team is heading towards.