Performance appraisal is the process of reviewing and assessing the performance of any employee. This includes all employees from your lead employees to your front-line staff, to even including yourself in this process. Your corporate culture plays a significant role in what type of performance evaluation system you utilize for your company.
The performance appraisal system that you use should reflect how it targets specific goals and objectives for each individual employee within your company, which is why we have provided a list of ideas that get you started on developing a custom plan for each employee’s needs.
When done effectively, performance appraisals can help eliminate the need for costly and time consuming termination processes which result in unnecessary emotional stress on these employees as well as hurt morale among other employees.
Performance appraisal is the process used to determine progress towards reaching performance goals, both individual and organizational. It is a formal and structured process of review for purposes of evaluating performance against set objectives. Performance appraisals are not just for the purpose of grading an employee’s work, but also to assist managers in improving an employee’s job performance.
The main benefit of a performance appraisal system is that it allows the organization and the manager to evaluate what strengths an employee possesses, what weaknesses they exhibit, how they can improve themselves and how they can improve the organization as a whole. Performance appraisals are based on specific key performance indicators that are every person’s responsibility within every organization.
There are many different areas that can be measured through performance appraisals and these key performance indicators help establish standards in every organization. Examples of key performance indicators include:
Peer feedback – This includes evaluating the opinions of other individuals (peer evaluators) and how they view a person’s work performance. Peer evaluation helps you determine if there are any skills or abilities present within an individual that may be beneficial to the people around them, or if they may have opportunities to develop or improve their skills. You can also find out if they have any issues with their ability to complete projects as well as breakdowns in communication between team members regarding tasks due to misunderstandings of assignments.
Employee self-evaluation – This involves an employee, who is being evaluated, to perform a self-assessment of their own performance within the organization. The employee will be analyzed and rated based on the results they provide.
Peer evaluation – Two employees (or more if you’d like), who are being evaluated as well as other employees within the organization, are asked to evaluate each other on their performance and compare the results with the ratings given by the manager. This will help determine how closely they match up with each other and what areas should be improved.
Performance benchmarks – This is where the manager and employee set certain goals and objectives that need to be met before a specific time frame. These goals are then compared to the employee’s performance to see if they are meeting expectations and/or exceeding it’s expectations.
Key employees – This entails using a list of key employees within the organization who can be used as reference points when you need to give feedback on performance assessments. Using this list of employees will help you establish a more effective process for giving feedback to your workers without having direct relationships with them.
Dealing with poor performers – If there is an employee that performs very poorly in your organization, you will need to document their performance and list exactly what constitutes as poor performance. Once you have this documented and a clear picture of the situation, then you will need to come up with a plan for dealing with these employees.
A performance appraisal plan should be created and followed throughout the duration of employment for every single employee within your company. If a company is not firm on it’s guidelines, employees can easily become unsatisfied with their jobs as well as management’s ability to perform it’s duties. Performance appraisals are only successful when they are supported by specific guidelines and carried out consistently throughout the duration of employment.
Because performance appraisals are very important, it should be carried out at least once every year. Each company is different and will have different methods in evaluating each employee, but the most important thing is that they carry out these appraisals fairly and accurately.