Performance evaluation is a systematic and periodic approach adopted by managers which helps them to evaluate job performance and productivity of their employees in relation to the individual and organizational objectives and goals. The results of the organization’s objectives are directly proportional to the population. The more talented people and the better they are managed and coordinated in the direction of these goals, the greater the chance of organizational and individual success. So a mature employee appraisal is essential for both individual employees and organizations.
This article gives a clear vision about the importance and necessity of the use of 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 methods used in the evaluations.
Performance appraisals of individuals, groups, and organizations are universal practices in all societies. An appraisal is a process of evaluating the behavior of employees in an office, typically including both qualitative and quantitative aspects of job performance. Performance indicates how efficiently a person can fulfill the job requirements.
Performance appraisals are focused on building and maintaining a satisfactory level of performance. They also aim at contributing to the growth of workers and improvement through training and management development programs. One of the goals is for superiors to have a good understanding of the people under them. They play an important role in guiding employees to change jobs with the help of constant ranking.
Another objective of the employee appraisal is fair and equitable compensation based on performance to facilitate easier testing and validation of selection tests. It also provides information for making decisions regarding dismissals or cuts and suggests changes in the behavior of workers, if necessary.
Features that make performance appraisal beneficial are as follows:
Performance Feedback – Most of the staff are so curious to know how well they are performing at the moment so as to perform better in the future. As a result of this feedback, they try to improve their performance in order to receive promotions in the future as well as benefits. This also helps employers to motivate their employees and improve their working abilities.
Training and Development – Reduced performance rating of an employee indicates that he needs training and guidance. Therefore the employee seeks workshops to improve their skills and employers arrange training or a 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 Selection Process – 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.
Promotion Decisions – Employee appraisal is utilized to select the low-performing and the high-performing employees thereby helping employers to select the right person for promotion and to motivate employees to improve their work performance in order to qualify.
Transfers – Transfers usually entails a change of responsibilities. Performance evaluation is used to identify the employee who can take this responsibility.
Termination Decisions – There are circumstances where the organization needs to sack some of its employees. It is wise to first dismiss the weakest performers. An appraisal is just the way the employer adopts to sort workers. A poor performance history also helps employees to take crucial decisions and avoid being targeted.
Rewards and Benefits – The better the performance, the higher the reward, and benefits. Performance appraisal helps to identify the contribution of the individual in the overall productivity. Therefore, the management helps to take the pay and benefits decisions based on merit.
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 to make good decisions for the career development of employees.