Performance Evaluation or Appraisal
Performance Evaluation or Appraisal
According to Newstrom, “It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance’’.
Performance appraisal is the step where the management finds out how effective it has been at hiring and placing employees.
A “Performance appraisal” is a process of evaluating an employee’s performance of a job in terms of its requirements.
Objectives of Performance Appraisal
- To provide a formal and consistent method for documenting job performance standards.
- To facilitate communication between supervisors and employees.
- To promote and maintain job efficiency.
- To determine training needs.
- To serve as a partial basis for salary increases, promotions, terminations, etc.
Accurate Evaluation Means
- Can be a morale booster
- Allows you to keep employees on track
- Increases productivity
- Allows goal setting
- Provides means of communication
- Creates needed documentation
- Helps avoid retaliation claims
Process of Performance Appraisal
- Setting performance standards
- Communicating standards
- Measuring standards
- Comparing standards
- Discussing results
- Taking corrective standards
Methods of Performance Appraisal
Traditional Methods of Performance Appraisal
- Paired comparison
- Graphic Rating scales
- Forced choice Description method
- Forced Distribution Method
- Checks lists
- Free essay method
- Critical Incidents
- Group Appraisal
- Field Review Method
- Confidential Report
- Ranking
Modern Methods of Performance Appraisal
- Assessment Center
- Appraisal by Results or Management by Objectives
- Human Asset Accounting
- Behaviorally Anchored Rating scales
Advantages of Performance Appraisal
- Provide a record of performance over a period of time.
- provide an opportunity for a manager to meet & discuss performance
- Provide the employee with feedback about their performance
- Provide the employee with feedback about their performance
- Can be motivational with the support of a good reward and compensation
Disadvantages of Performance Appraisal
- If not done appropriately, can be a negative experience.
- very time consuming, especially for a manager
- Subject to rater errors & biases.
- If not done right can be a complete waste of time.
- Can be stressful for all involved