Performance Appraisal
Performance appraisal, also referred to as performance evaluation, is a process by which organizations assess their employees performance on the job in order to identify strengths and weaknesses and to determine areas for improvement. Performance appraisal systems often involve rating employees on various criteria, such as the quality of the work they produce, how successful they are at meeting predetermined goals, or how well they interact with others, such as colleagues and customers.
Performance appraisal systems can foster an organizations productivity in a variety of ways. Having evaluation systems in place helps ensure that employees understand the performance standards required of them, as well as what they can expect in terms of feedback and rewards. Performance appraisal systems can also provide an ongoing mechanism for meaningful dialogue between supervisors and employees, helping to improve relationships and morale. Organizations looking to improve their overall performance can use performance appraisals to pinpoint which areas need improvement and then to determine appropriate solutions.
When developing a performance appraisal system, organizations should take a number of factors into consideration. These include setting goals and expectations that are both fair and achievable; establishing a timeline for reviews and evaluations; clearly defining the criteria to be used when assessing performance; and determining available rewards or incentives for employees who exceed expectations. If a performance appraisal system is to be effective, it must also be supported and encouraged by management.
Once a system is in place, it should be implemented in a consistent, thoughtful manner. Supervisors should ensure that employees are regularly assessed and given feedback on their performance. Rewards, such as increased salaries, bonuses, and promotions, should be made available according to predetermined criteria. Appraisals should also be conducted objectively and openly, taking into consideration both individual performance as well as factors that may be outside of an employees control, such as training or resources.
By taking the time to set up an effective performance appraisal system, organizations can create a positive working environment in which employees are motivated to do their best and become more productive. Furthermore, organizations can use the performance appraisal process to help identify areas of improvement to ensure that their operations are as efficient and successful as possible.
