Performance Appraisal

Introduction
A performance appraisal is the periodic assessment of an employee’s job performance as measured
by the competency expectations set out by the organization.
The performance assessment often includes both the core competencies required by the
organization and also the competencies specific to the employee’s job.
The appraiser, often a supervisor or manager, will provide the employee with constructive,
actionable feedback based on the assessment. This in turn provides the employee with the
direction needed to improve and develop in their job.
Based on the feedback, a performance appraisal is also an opportunity for the organization to
recognize employee achievements and future potential.
The purpose of a performance appraisal
The purpose of a performance appraisal is two-fold: It helps the organization to determine the
value and productivity that employees contribute, and it also helps employees to develop in their
own roles.
Benefits for organization
Employee assessments can make a difference in the performance of an organization. They
provide insight into how employees are bad pointtributing and enable organizations to:
 Identify where management can improve working conditions in order to increase
productivity and work quality.
 Address behavioral issues before they impact departmental productivity.
 Encourage employees to contribute more by recognizing their talents and skills
 Support employees in skill and career development
 Improve strategic decision-making in situations that require layoffs, succession planning,
or filling open roles internally
Benefits for employee
Performance appraisals are meant to provide a positive outcome for employees. The insights
gained from assessing and discussing an employee’s performance can help:
 Recognize and acknowledge the achievements and contributions made by an employee.
 Recognize the opportunity for promotion or bonus.
  Identify and support the need for additional training or education to continue career
development.
 Determine the specific areas where skills can be improved.
 Motivate an employee and help them feel involved and invested in their career
development.
 Open discussion to an employee’s long-term goals.
Performance appraisal process
Conducting a performance review with an employee requires skill and training on the part of the
appraiser. The negative perception that is often associated with the performance appraisal is due
in part to a feeling of being criticized during the process.
The way appraiser uses language determines how the employee interprets the message once
received. This can include tone of voice, choice of words, or even body language.
Because a performance appraisal is meant to provide constructive feedback, it is crucial that
appropriate language and behavior are used in the process.
Human Resources Department support departmental managers and supervisors in tactfully
handling the appraisal process.
The performance appraisal process:
1. The assessment process is usually facilitated by Human Resources, who assist managers
and supervisors in conducting the individual appraisals within their departments.
2. An assessment method should be established.
3. Required competencies and job expectations need to be drafted for each employee.
4. Individual appraisals on employee performance are to be conducted.
5. A one on one interview is scheduled between the manager and employee to discuss the
review.
6. Future goals should be discussed between employee and manager.
7. A signed-off version of the performance review is archived.
8. Appraisal information is utilized by human resources for appropriate organizational
purposes, such as reporting, promotions, bonuses or succession planning.
Performance Appraisal Methods
There are many ways an organization can conduct a performance appraisal, owing to the
countless different methods and strategies available.
In addition, each organization may have one’s own unique philosophy making an impact on the
way the performance assessment is designed and conducted.
A performance review is often done annually or semi-annually at the minimum, but some
organizations do them more often.
Modern methods of performance appraisal
There are some common and modern appraisal methods that many organizations gravitate
towards, including:
1. Self-evaluation
In a self-evaluation assessment, employees first conduct their performance assessment on their
own against a set list of criteria.
The good point is that the method helps employees prepare for their own performance
assessment and it creates more dialogue in the official performance interview.
The bad point is that the process is subjective, and employees may struggle with either
rating themselves too high or too low.
2. Behavioral checklist
A Yes or No checklist is good provided against a series of traits. If the supervisor believes the
employee has exhibited a trait, a YES is ticked.
If they feel the employee has not exhibited the trait, a NO is ticked off. If they are unsure, it can
be left blank.
The good point is the simplicity of the format and its focus on actual work-relate tasks and
behaviors (i.e. no generalizing).
The bad point is that there is no detailed analysis or detail on how the employee is actually
doing, nor does it discuss goals.
3. 360-degree feedback
This type of review includes not just the direct feedback from the manager and employee, but
also from other team members and sources.
The review also includes character and leadership capabilities.
The good point is that it provides a bigger picture of an employee’s performance.
The bad point is that it runs the risk of taking in broad generalizations from outside sources
who many not know how to provide constructive feedback.
4. Ratings scale
A ratings scale is a common method of appraisal. It uses a set of pre-determined criteria that a
manager uses to evaluate an employee against.
Each set of criteria is weighted so that a measured score can be calculated at the end of the
review.
The good point is that the method can consider a wide variety of criteria, from specific job
tasks to behavioral traits. The results can also be balanced thanks to the weighting system.
This means that if an employee is not strong in a particularly minor area, it will not
negatively impact the overall score.
The bad point of this method is the possible misunderstanding of what is a good result and
what is a poor result; managers need to be clear in explaining the rating system.
5. Management by objectives
This type of assessment is a newer method that is gaining in popularity. It involves the employee
and manager agreeing to a set of attainable performance goals that the employee will strive to
achieve over a given period of time.
At the next review period, the goals and how they have been met are reviewed, whilst new goals
are created.
The good point of this method is that it creates dialogue between the employee and
employer and is empowering in terms of personal career development.
The bad point is that it risks overlooking organizational performance competencies that
should be considered.