Introduction to Performance Appraisal

A performance appraisal is a way to track the work and performance of an employee to align their ability with good results and prosperity for the company.

Every enterprise is greatly dependent on its employees for its success and credibility in the market. It is therefore essential to ensure that all their work is running smoothly and they are dedicated to a goal-oriented work discourse.

What is a Performance Appraisal? 

As the name suggests, a performance appraisal is a regular assessment of an employee’s work performance and their dedication towards the company which is reflected through their work. Performance appraisals can be conducted as per the decision of the admins of the company. Usually, they are conducted at a regulated time interval annually, semi-annually or quarterly.

A performance appraisal is also termed as an annual review, performance review or evaluation. It’s basic is to evaluate the employee’s skill set, their accomplishments in the company and their growth chart.

It allows the admin to evaluate their employees and make reasonable decisions on the rate of pay increase, bonuses, promotions, demotions, deductions and terminations. It allows the employee to have a transparent understanding of their work and role status both in terms of their pay and position in the company.

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Types of Performance Appraisal 

There are many different types of performance appraisals. However, implementing and practising these are entirely based on the discretion of the company and its protocols.

Here are some of the different types of performance appraisals – 

Top-down performance appraisal 

The supervisors evaluate the work and performance of their employees independently. But the employee being evaluated exercises no input in the process.

Self-assessment performance appraisal

The individual being evaluated is allowed to assess and rate their own performance and conduct with respect to their job.

Peer assessment performance appraisal

The employee is evaluated by their team and rated according to their feedback.

360-degree feedback assessment performance appraisal 

This is a very comprehensive inspection and includes reviews from the employee, their team and their manager. Some companies also include client feedback in their assessment program.

Negotiated performance appraisal

This is a modern approach to performance appraisals that aims at moderating the hostile examinations by allowing the subject to demonstrate their stance first. It tends to be effective while resolving ideal differences between associates and managers.

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Shortcomings of Performance Appraisal

Dissatisfaction with the appraisal process

There can be a prominent difference between the performance of an individual and the work structure of the entire organisation. This difference can be a core factor of the employees’ contribution not being reflected in the overall performance of the company. If the evaluation process does not take this difference into account, it can be unjust for the employee and lead to unfair appraisals. Employee dissatisfaction with the appraisal process is a significant shortcoming of performance appraisals.

Unethical and false practices 

Mistrust in the case of appraisal assessment and grant can cause problems between the associates and managers. It can also cause situations where the employees tailor their behaviour and outlook only to please their employer. There are some labour experts who also believe that the use of performance appraisals has dropped the quality of merit- and performance-based compensation.

It can also lead to the adoption of unfair goals that further demoralise the workers, exploit them and force them to engage in immoral pursuits.

Admin Bias

Performance appraisals can also cause irrational evaluations where the employees are judged on the basis of their likability and relationships with the manager instead of their talent. This might result in the manager giving good evaluation and appraisal to an under performing staff instead of a deserving one. Irresponsible and unprofessional managers can introduce many biases in the appraisal process and add to unreasonable factors of evaluation.

Subjective approach

Performance appraisals that work adequately in one industry or job structure may not be useful in another. This subjectivity often goes unaddressed while considering appraisals.

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Benefits of Performance Appraisal for an Organization

Employee inspections can make a huge difference in the performance of an organization. They provide insight into how employees are participating and contributing to the organizations.

Some of the benefits of performance appraisal in an organisation are –

1. It Identifies points where the management can enhance their work situations and boost productivity and work quality of their company.
2. It helps them address behavioural issues of the employees before they become a major issue and affect the productivity of their department.
3. It encourages employees to contribute to the company by acknowledging their skills and utilising them effectively.
4. It supports employees by encouraging aptitude, skill and career growth.
5. It improves strategic decision-making in circumstances that require dismissals, progression planning, or filling open roles.

Benefits of Performance Appraisal for an Employee

Performance appraisals are directed to deliver encouraging results for the employees and address their contributions to the company. The understandings developed from evaluating and examining an employee’s performance can help the organization in:

1. Recognising and appreciating the accomplishments and assistance provided by the employee.
2. Comprehending the circumstances, factors and chances for granting promotion and compensations.
3. Identifying and supporting the necessity for extra training and skill development to promote career development
4. Determining particular sectors where employee skills can be enriched.
5. Motivating employees and assisting them in getting involved and interested in career development.
6. Opening up conversations about the long-term objectives and opportunities of employees.

The Performance Appraisal process:

The examination process is usually facilitated by Human Resources, who assist managers and supervisors in inducting individual appraisals within their departments.

Here are some of the factors that must be looked upon while planning an appraisal process :

1. An assessment method should be established.
2. Required competencies and job exin expectations to be drafted for each employee.
3. Individual appraisals on employee performance need to be conducted.
4. A one on one interview must be scheduled between the manager and employee to discuss the review.
5. Future goals of an employee should be consulted with the admin.

Conclusion

Performance appraisals are instrumental in the creation of additional training and development sessions both for the managers and the employees. They allow them to reflect on the shortcomings of their work and further act on them to improve.

Juntrax Solutions will soon release a Performance Management module that will give a user-friendly and simplified outlook for managing employee performance and utilising their full potential. It will provide a holistic career plan to align employee talent with company goals.

Performance Appraisal enables the organization to intricately assess the productivity and dedication of an employee. It also creates a regulatory and disciplined environment for the employees to function efficiently and fulfil all their responsibility.