8.1 What is Performance Appraisal?
A
performance appraisal is a recurring evaluation of an employee's work
performance based on the organization's competency standards. The
organization's basic competencies as well as job-specific competencies are
frequently evaluated in the performance review. Based on the assessment, the
appraiser—typically a manager or supervisor—will give the worker constructive,
useful criticism. Consequently, this gives the worker the guidance they need to
advance in their position. Depending on the kind of feedback, a performance
review gives the company a chance to acknowledge the accomplishments and future
potential of the individual. (Terra, 2022)Performance appraisal is the process
of identification, measurement and management of human performance in organization.
8.1.1 Identification
Identifying
the areas of work that the management ought to assess in order to evaluate
performance. We investigated a measuring system based on work analysis that is
necessary for logical and legally sound identification. Therefore, rather than
performance-irrelevant traits like race, age, or sex, the appraisal system
should concentrate on performance that impacts organizational success. (Early
performance, actual performance)
8.1.2
Measurement
The
main function of the appraisal system is to allow managers to rate the overall
performance of their employees as "good" or "bad." The
organization as a whole has to use consistent performance measurement. In other
words, the organization's management must all uphold the same grading
criteria.(Use AP and EP metrics, such as Management by Objectives)
8.1.3 Management
The main objective of any appraisal system is management. An appraisal ought to be more than just a retrospective process that grades employees according to how well they performed the year before. Instead, evaluations ought to focus on how employees may reach their potential in the company by looking ahead. This implies that supervisors have to teach employees to achieve higher performance levels and give them feedback (Gap/variance between AP and EP).
8.2 Why we need of performance evaluation
Figure
01
Requirements
and Goals of Performance Evaluation
8.3 Process of Performance Appraisal
Figure
02
Steps to Performance Appraisal
8.3.1. Setting
performance appraisal Objectives
To
ensure the success of departmental goals and objectives as well as the
organization's overarching strategy and objectives, performance criteria are
established. Positions are the basis for standards; people are not. Standards
must follow the same guidelines that govern goal-setting in order to be easily
understood and regarded as objective: they must be "SMART" (specific,
measurable, attainable, relevant, and time-bound) and also diagnose the
strengths and weaknesses of individuals. Other than that,
- ·
Provide feedback to
employees
- ·
Determines the training
and development needs of staff
- ·
Determines awards and
promotions
- ·
Decides salary increments
- ·
To inspire individuals
- ·
Give subordinates
information, career planning, coaching, and counseling.
- ·
Foster goodwill and
decrease complaints
- ·
Encourages HR management
research
8.3.2.1 Purpose of Performance Appraisal Policy
The
performance review policy's goal is to inform employees about the
organization's framework, participation procedure, and performance appraisal
system.
8.3.2.2
The aim of the performance review policy is-
•
To ensure that each employee's performance is evaluated in accordance with the
company's established standards.
•
To ensure that performance evaluations are conducted on a regular basis and
that performance grading is done fairly.
• To foster employee trust in the organisation's performance review process.
8.3.2.3
Objective of Performance Appraisal policy and procedure
The
long-term objective serves as the foundation for the company's performance
appraisal system. The purpose of the performance appraisal policy is to:
•
Educate employees about their future prospects within the organization.
•
Establish a welcoming environment at work where employees can talk about their
developmental goals and career objectives.
8.3.2.1
Scope of Performance Appraisal Policy
The company's current employees' performance can be thoroughly discussed, planned for, and evaluated through the performance appraisal system. Performance reviews have a broader purview and are relevant to all employees. All employees are required by law to get performance reviews and performance-based pay increases from the corporation
8.3.3. Establishing performance appraisal criteria (KPI)
Figure
03
Key
Performance Indicators
Source-(QuestionPro,
2018)
At
the top level of a company, Key Performance Indicators (KPIs) represent the
subset of performance indicators that are most important to business. KPIs are
a useful tool for tracking your advancement toward your strategic objective. (Jackson, 2023) In
practice most common performance appraisal criteria are,
- 1. Discipline
- 2. Attendance
- 3. Leadership
- 4. Organizing
- 5. Problem
Solving
- 6. Planning
- 7. Integrity
- 8. Appearance
8.3.4. Selecting
of Evaluation Method
There
are 5 main evaluation methods to performance appraisal
- 1. Graphic
Rating Scale Method
- 2. Essay
Method
- 3. Critical
Incident Method
- 4. MBO-Management by Objectives
- 5. 360 Degree Feedback Model
Graphic Rating Scale Method
| Essay Method
| Critical Incident Method
| MBO-Management by Objectives
| 360 Degree Feedback Model
| |
The most straightforward and widely used method for evaluating performance. Traits and a range of performance levels for each trait are listed on a graphic rating scale. | When using the essay evaluation method for performance reviews, the manager writes an essay that addresses several employee-related topics. | Positive and negative instances (critical incidents) of a subordinate's work-related activities are recorded by the supervisor in a log. | This aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees. This was implemented by Peter Drucker in 1950’s | Employees that participate in the 360 Degree Feedback assessment method receive anonymous, private evaluations from their coworkers. | |
By circling or ticking the score that most accurately represents an employee's performance for each trait, the supervisor can assess each subordinate's attributes. The qualities' assigned values were then added together. | When evaluating an essay, the manager could respond to inquiries about the characteristics or actions of the worker. | Eg:
| The objectives are established jointly by the supervisor and subordinate, self-audit to identify the skills needed to achieve the objectives. | The management obtains data on the employee's performance, usually through a questionnaire, from group members, coworkers, supervisors, and self-evaluation. | |
The appraiser writes a written assessment detailing the employee's strengths and weaknesses related to their work performance. It also offers a course of action to address the issues that have been identified. | The essay's assertions might speak to an employee's strengths or weaknesses. | A key work-related conduct of the employee is identified by the supervisor. | In general, do not depend on others to identify and describe your strengths, shortcomings, self-evaluation, or to determine whether your goals have been met at the conclusion of the given period. |
|
8.3.4.1 Why is the graphic rating scale method more popular than other methods?
·
Simple to use and
comprehend
The
graphic grading scale approach is simple to use and comprehend. The majority of
individuals have probably completed a questionnaire similar to this one before,
so it doesn't really need any additional training to be implemented and is
understandable by both managers and staff. It's a well-liked option for performance
rating because of this.
·
Behavior quantification
simplifies the appraisal process.
By
quantifying behavioral attributes, this strategy makes it much simpler to
identify trends, patterns, and developments in the feedback and to analyze it.
It is simple to identify problem areas, take appropriate action, and monitor
development. The entire appraisal process is streamlined as a result.
·
inexpensive to create
It
is simple and easy to create a graphic rating scale, and many of the questions
may be used to different functions within the company. This means that
practically all firms can afford to use it as an employee performance method.
Figure 04
Graphic Rating Scale Method
(Jay, 2021)
8.3.5
Train
In a performance appraisal process there
are few persons involve to the train elevators. Those are,
- ·
Supervisors/Managers
- ·
Self-appraisal
- ·
Team
members
- ·
Subordinates
- ·
Customers
There are one way, two way and 360 degree
we can divide that person decisions that impact for performance appraisal.
For Example;
One
Way - Only the supervisor wil decide the level
of performance of the subordinate.
Two
Way- Active participation of both supervisor
and subordinate.
360
Degree-More parties are involved. Like
Supervisor, subordinate, other superiors, peers and other staff
8.3.6 Taking of Decisions
The discussion and/or execution of any further actions, such as a performance plan, termination, or a reward of some kind, such as a raise, promotion, or highly sought-after growth opportunity, constitutes the last phase of the assessment process. However, keep in mind that remedial measures that could assist a worker in meeting goals ought to wait until the following official evaluation. Supervisors and managers should take the time to find out why an employee's performance is falling short of expectations and assess whether more coaching or training will enable the worker to close the gap. It was previously noted that prompt action should be taken in the event that performance warrants termination.
8.7 Reasons for fail the Performance Appraisal programs
Conclusion
In summary, a performance review is a critical component of any organisation and an excellent means of documenting output. Every organisation must set goals and objectives, and all employees must participate in the process. Moreover, completing a performance review will boost staff morale and productivity. A manager can positively inform employee about their performance in carrying out their assigned responsibilities by conducting appraisals.
References
courses.lumenlearning.com.
(n.d.). Steps in the Appraisal Process | Human Resources Management.
[online] Available at: https://courses.lumenlearning.com/wm-humanresourcesmgmt/chapter/steps-in-the-appraisal-process/#footnote-804-1
[Accessed 17 Dec. 2023].
@HRhelpboard.
(n.d.). Sample Performance Appraisal Objective of Performance Appraisal
policy and procedure l Policy template - Hrhelpboard. [online] Available
at: https://www.hrhelpboard.com/hr-policies/performance-appraisal-policy.html.
Jay, S.
(2021). Graphic Rating Scale: Pros, Cons, Examples, and Best Practices.
[online] AIHR. Available at: https://www.aihr.com/blog/graphic-rating-scale/.
QuestionPro.
(2018). Key Performance Indicators: Definition, Metrics, Report and
Example. [online] Available at: https://www.questionpro.com/blog/key-performance-indicators/.
[Accessed 17 Dec. 2023].
Terra, J. (2022). What is a
Performance Appraisal? Methods, Process, and Everything You Should Know.
[online] Simplilearn.com. Available at: https://www.simplilearn.com/what-is-performance-appraisal-methods-process-article.
(Accessed date-17/12/2023)
