Performance appraisals cause anxiety for a large portion of employees, this simply goes back to the traditional approach where a performance review was all about a manager finding faults to avoid paying employees more, this meant employees were put under pressure to face their managers and prove their worth. Thankfully this is mostly in the past now!
Most modern companies have removed the direct connection between performance reviews and monetary increments, performance reviews are no longer once in a year, they happen regularly, often informally, with clear communication from both sides.
This article clearly shows the importance and necessity of using performance appraisal as a planning tool for achieving business goals for the coming year. It sheds light on the objectives and process of performance evaluation, together with an insight into some modern job evaluation methods used in the evaluation process.
Performance appraisals of individuals, groups, and organizations are universal practices in all societies. An appraisal is a process of evaluating the behavior of employees at the workplace, typically including both qualitative and quantitative aspects of job performance are considered in a performance appraisal. A resulting performance report indicates how effectively the employee or team has fulfilled job requirements.
Performance appraisals are focused on building and maintaining a satisfactory level of performance. They also aim to contribute to the growth of workers and improvement through training and management development programs.
One of the most important elements of a performance appraisal is delivering clarity of expectations to both managers and employees. Unless goals are clearly communicated, evaluating performance is not going to be productive. Managers are responsible for ensuring the performance appraisal parameters for each employee correctly coincide with their jobs, the clearer the expectations laid out the more useful the performance appraisal will be.
The data gathered in performance appraisal can be used in various ways to ensure the organization can train, reward, and promote the right talent to encourage the team to perform better.
Performance Feedback The most popular complaint by employees of practically every industry is the lack of feedback. Most of the staff are curious to know how well they are performing at the moment so as to perform better in the future and get that coveted remuneration hike or promotion. Timely and clear feedback also helps employers motivate their employees and reiterate their expectations.
Training and Development Training needs are hard to qualify without a performance management system. A correctly configured system will indicate the specific KPIs where their teams are not performing, this data can be used to design a training program that targets specific individuals to impart knowledge that will help them get to a satisfactory level on their job performance. Most companies would design workshops to improve skills their teams lack and potentially hire a coach to help areas that have been found to be mentor to help improve the individual performance so that productivity goals can be achieved. A higher rating of the evaluation suggests employers that workers are capable enough to perform at a higher position and is given training to the next level position.
Validation of Selection Processes Performance appraisal is a source of validating the instruments (interviews, analytical research, etc.) used during the recruitment process which is utilized to predict the performance of an applicant during the selection procedure. A good review will help validate these tools and to improve the selection.
Transfers usually entail a change of responsibilities. Performance evaluation is used to identify the employee who can take additional responsibility or may be suited for a different set of responsibilities.
Termination Decisions There are circumstances where the organization needs to relieve some of its employees. An appraisal is one of the ways an employer gathers data. A poor performance history that’s well communicated can be a reason for dismissal.
Rewards and Benefits The better the performance, the higher the reward and benefits. Performance appraisal helps to identify the contribution of the individual in overall productivity. Therefore, the management can use performance management data to make decisions about pay and benefits.
Career Planning and Development Without knowing that they are capable enough to be promoted, demoted, transferred, or terminated, the management cannot make employment strategies for the future. The information from the performance appraisals helps the management make good decisions for employees’ career development.
