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Employee Appraisals

Appraisal Review

The performance of a company is dependent upon the ability of the employees to perform well. This performance can be evaluated based on the individual contributions of the employees to the profit margin of the company. Appraisal review through performance review is a way in which companies can evaluate the job performance of employees in terms of the cost, quality, quantity and time. This is conducted by the overseeing supervisor or manager of the employee. The appraisal review and employee evaluation are usually the processes to guide or manage the career of the employee. Hence, appraisal review is a method of analyzing, creating and recording information about the worth of the employee to the company.

After employee evaluation, the human resources department can judge which employee is contributing more or less, quarterly and annually.

Employee Performance review

The employee performance review conducts employee evaluation, the employee's recent achievements, failures, strengths and weaknesses, and ultimately the suitability of the employee for promotion. In general, after the quarterly employee appraisal review is executed, an annual performance review is also conducted.

Annual performance review and the quarterly appraisal review of the employee intend the following for the employee:

- Giving the employees feedback on their performance

- Identifying employee training needs

- Allocating rewards within the criteria

- Forming a basis for decisions to increase the salaries and awarding promotions or bonuses, even on disciplinary actions etc.

- Facilitating employee and employer communication

- Improving performance of the employee through counseling, coaching and even through development.

The employee performance review or the appraisal review process involves the usage of certain scientific methods for conducting the employee evaluation. These methods are mentioned below:

- Management using objectives: Appraisal review is performed with the usage of a numerical or scalar rating system for employee evaluation by the managers using score against objectives/ attributes that are outlined.

- 360-degree appraisal: Appraisal review is carried out by the employee's manager, peers, subordinates and the customers or clients including a self assessment.

- Behavioral observation scale: Appraisal review is also conducted to assess the employee's behavioral traits such as integrity and conscientiousness.

The annual performance review is perhaps looked upon by most employees as cumulative appraisal review from the quarterly appraisal review. Employees can expect anything from bonuses, promotions, transfers, etc. during this period.

How does the Company benefit from appraisal review?

Most companies have very progressive systems during the employee appraisal review as they try and make the process informal and less stressful for the employee.

- Whether the outcome of the appraisal review is positive or negative, it is the responsibility of the manager or the supervisor and the company as a whole, to give constructive feedback.

- Although as the population increases and companies keep expanding their employee base, they find it as their obligation to be gentle with the employees during appraisal review.

- In order to keep the employee retention figures high and the attrition rate low, the company needs to invest in employee retention techniques. Moreover, to identify such techniques; the appraisal review process is an imperative activity.

- Companies are slowly realizing that employees need to be assessed not just by their bosses or managers but also by their peers and customers to give the employees a 360 degree perspective of their performance.

Companies invest in the right HR managers and a separate department for appraisal review in order to retain the human capital of the company.