Performance appraisal is an essential part of every organization, so some organizations conduct performance appraisal yearly, and some conduct quarterly. Because every organization wants to become a successful organization, so it is necessary for organizations to conduct appraisals of their employees. Because of appraisal, employees focus on their performance and try to meet the organization’s goal.
Why conduct Performance Appraisal
An appraisal is a quarterly or yearly performance review of an organization’s employees. It is overseeing the overall performance of employees. Appraisal known as employees’ evaluation, employees’ appraisal, employees’ achievements, and employees’ growth. Organizations want to give overall feedback on employees’ performance. Because of performance appraisal, organizations increase or decrease the salary, bonuses, promotions, and termination.
Process of Performance Appraisal
The performance appraisal of employees plays an important role because it helps the organization set the value and productivity and how to contribute by employees. The most important purpose of performance appraisal, how to achieve organizational goals.
i. Standards of Appraisal
The organizations determine the standards of the performance appraisal to make sure the success of departmental goals and objectives. So not only departmental goals but ensure the achievement of the overall strategy and aim of the organization. Standards set based on the position rather than individual, it should understand as aim.
ii. Discuss performance standards with employees
Once the performance standards set, then performance standards need to be communicated to all employees. Because they aware of standards and what is expected of them, then they will try to meet the standards. If you don’t discuss the standards with employees, then you will not get the actual results.
If the manager only communicated the standards with employees, so only communication of standards is not useful. Because there need to understand the standards to employees. There is a need to get feedback from employees on standards. If an organization wants to improve the standards, then modify the standards in light of employees’ feedback.
iii. Measure employee actual performance
The actual performance of the employee measures on the fact and fingers from various sources such as personal observation, reports, written and oral reports. Performance appraisal should do on facts because performance doesn’t measure based on emotions, feelings, relations.
Although it must be based on finding and facts. The evaluation process is more critical and important for employees and organizations. So this is more important to make transparency in the performance appraisal of the employees.
iv. Comparing standards performance and actual performance
They compare the standards performance with the actual performance of the employee. This comparison shows the difference between actual performance and standard performance. If the outcome of the actual performance more than standard performance, it means actual performance is better than standard performance. If the result can show actual performance less than standard performance, it a negative sign of actual performance.
v. Discuss the result of the appraisal with the employee
The manager should discuss face to face the result of the appraisal with employees, so it is better for the future of the employee. Although Employees should listen to the result of the appraisal carefully and try to minimize the mistakes and improve the weak points in the future. The manager should encourage the employee for better results in the future and don’t discourage the employee.
vi. Action taken
Every organization conduct the employees appraisal with-out any bias because it doesn’t mean that any employee will dismissal because of poor performance. The appraisal aims to identify the weak points of the employee and employees should try to improve the weakness with the help of the organization.
The organization’s most of the decisions depend on the performance appraisal of the employees such as rewards, promotions, demotions, transfers, and sometimes dismissal/suspensions of employees.
Appraisal prepared an employee file, and it is the important factor of it, so it is an essential part of the employee during the job.
Conversation between manager and employee is important to the factor of the job and because of performance appraisal builds the relation of the conversation between both. So manager discusses the performance appraisal feedback with the employee. So It means performance appraisal creates a structure of the conversation.
Appraisal provides an opportunity for managers that discusses feedback with the employee about their performance. How the employee improves their performance and how they develop their skills.
iv. Expectations of the organization
Sometimes employees don’t aware of the expectations of the organization, so because of performance appraisal they understand the expectations that the organization expected from them.
It provides a structure of brainstorming for planning the upcoming year and developing employee objectives.
vi. Motivational process
Performance appraisal should motivate employees about rewarding them with increase and compensation.
The disadvantage of Appraisal
i. Creates Negative Experience
Sometimes appraisal creates a negative experience for the employee as well as manager when appraisal doesn’t do right.
ii. Time Consuming
It is a time-consuming process and workload for managers responsible for appraisal.
iii. Create Bias
Sometimes it creates bias, but rarely.
iv. Stressful environment
Although tt can make the environment uncomfortable for employees.
Although appraisal methods Traditional Methods and Modern Methods
|Traditional Methods||Modern Methods|
|Ranking method||Management by Objectives|
|Paired comparison||Behaviorally anchored rating scales|
|Forced choice method||360-degree appraisal|
|Checklist method||Cost accounting method|
|Critical incidents method|
|Graphic scale method|
|Field review method|
Organizations conduct appraisal for their employees because they evaluate their skills and abilities. They identify the weakness and strengths of the employees and organizations conduct training sessions to develop the weakness, but they can end some employees from their jobs because the organization doesn’t want to continue with them. Appraisal has advantages and disadvantages, It is the motivational process and also creates a stressful environment for employees.