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Performance Appraisals
Performance appraisal or work appraisal is a technique employed by HR managers to evaluate the performance of the employees of the company in terms of the quality of the work, the quantity of the work, cost of the work and the time taken to complete the work.
Performance appraisals are techniques employed by the company to consistently improve the standards of work by assessing the capabilities of the workforce within the organization. Career development of the employees is enhanced by these methods with the management of the employee records. In the process of performance appraisal, the company's HR manager assesses the following:
- Employee's strengths and weaknesses
- Employee's recent achievements or failures
- Employee's suitability for a promotion or eligibility for further training
- Employee's overall contribution to the company's productivity
Performance appraisal or work appraisal methods direct towards:
- Assessing employee performance and giving the performance feedback
- Identifying the training needs for the employee
- Organizational rewards are to be given based on the documented criteria
- Assessing a base for salary increments, promotions, bonuses or disciplinary actions, etc.
- Providing opportunity for the organizational development and diagnosis
- Encouraging constructive communication between the employee and the employer
- Ensuring the adherence to human resource policies that are domestically and internationally specified.
- Improving the performance of the employee through regular counseling and coaching and career development.
Popularly used performance appraisal methods or work appraisal methods are:
- Management by objectives: In this method, the HR manager assesses whether the employee has achieved the goals designed for his/her performance and is aligned to the company's goals and objectives.
- 360-degree appraisal: Performance appraisal of the employee by this method assesses the all-round evaluation of the employee. The employee's performance is assessed by his seniors, peers, clients, self and other workers.
- Behavioral observation scale: This performance appraisal method assesses the behavior of the employee on a prescribed scale mentioned by the HR managers. The traits of the employee are assessed and evaluated based on prescribed criteria for the organization.
- Rating scales based on the behavior: The integrity, conscientiousness and leadership qualities of the employee are assessed by this method.
There are several other performance appraisal methods that can be employed by organizations such as:
- The critical incident method: Performance appraisal of this sort, evaluates the employee's specific incidents of good performance, where the employee did well or needs improvement.
- Weighted checklist method: This performance appraisal method evaluates the statements that describe the effective behavior and the ineffective behavior of the employee.
There are other such performance appraisal methods employed for the appropriate assessment of employees.
How does the company benefit from performance appraisal?
Companies ensure that performance appraisal methods are the latest and those prescribed by big companies or companies that have managed to keep their attrition rates consistently low. Companies consider maintaining good performance appraisal standards in order to be able to achieve a good standing in the industry as the best employer.
Experts or consultants are hired by companies to consistently re-evaluate the performance appraisal methods by bringing them to domestically and globally accepted standards.
MBA&Co. are consultants in the field of performance appraisal and give advice to businesses and individuals. Freelance MBA consultants can also benefit from the performance appraisal projects available on the website of MBA&Co.
