Performance Appraisal


A performance appraisal is a tool that employers use to evaluate the work performance of employees. Employers use performance appraisals for various reasons.

Many companies use the performance review to evaluate how well their employees are doing their work. The performance appraisal interview - also referred to as appraisal by employees or appraisal of employees - takes many forms and requires a different degree of participation from managers and employees. Although many companies view performance assessments as an indispensable part of their success, some organizations leave the assessments for better forms of evaluation.

The results of a performance review can help managers determine whether an employee is retained or terminates their employment. Employers can also use performance reviews to measure the productivity of their employees and determine which employees should be promoted.

Employers often use the results of performance appraisals to determine which employees have earned a salary increase. They also use the tool to measure the effectiveness of business goals and the need for certain functions within an organization.

When conducted objectively, performance appraisals can help employees to understand their strengths and weaknesses and improve their work performance. Effective performance appraisals require a dialogue between the appraiser and the employee.

Performance assessments can motivate employees to adjust their work habits, with the aim of promotion or higher incomes. They also provide information that the employer can use to assess how well they support the needs of their employees. For example, during the assessment process, an employer can learn that his employees need more training or equipment upgrades to improve their performance.

Performance assessments usually include different aspects of an employee's work performance and can vary depending on the business goals and position of an employee. A call center can, for example, evaluate the punctuality, cooperation and customer service of its customer service. A car dealer can focus his staff appraisals on the way the staff achieves sales goals.

Normally managers perform performance assessments of their immediate subordinates. For example, a district manager for a fast food chain can conduct performance reviews of his restaurant managers. The restaurant managers can in turn conduct performance reviews with their cooks, waiters, cleaners and assistant managers.

Performance assessments also provide documentation to protect employers against lawsuits filed by employees who have demonstrated discipline or performance issues. For example, if an employee is sad too late, the employer can address the problem during the employee's performance review. If the employer later decides to terminate the employee's employment, they can use the performance appraisal to prove a history of the problem.

Most employers conduct performance appraisals once a year, often at the end of a quarter or the end of the calendar year. Some companies use end-of-year evaluations to determine who will receive bonuses and how many recipients will receive. However, some companies offer a performance assessment every quarter or even monthly.

How Do You Evaluate Staff Performance?

To evaluate staff performance, an organization must have processes and standards on which to base its assessments. For example, a company must have established working hours, sales goals, training, procedures and behavioral policies. Without established standards and processes, an organization has no basis for evaluating performance.

Performance standards must clearly define what an employer expects from employees. For example, a company may require its help desk staff in information technology to respond to at least 10 help requests per day. Similarly, a company may require its middle management to hold monthly meetings with its employees and a manager may require its employees to submit progress reports every Friday. If you want to use standards as a measure of performance, they should generally apply to each team member.

Appraisers must document the problems and performance of their employees throughout the year. For example, a manager can keep track of the amount of time an employee takes for lunch, along with cases where the employee exceeds expectations. While assessing performance, the manager can praise the employee for exceeding goals 10 times in a month while asking him to limit his lunch break to one hour.

Appraisers who notice a pattern of exceptional employee performance can use the appraisal process to recommend it for a promotion or a salary increase. Similarly, an appraiser can use the appraisal to warn a poorly performing employee that he may lose his job if his performance doesn't improve.

Managers must also set individual goals with each employee. For example, a manager can encourage a salesperson who sells $ 100,000 worth of product per month to set a goal of $ 120,000 a month. Appraisers can include individual goals in the performance appraisal process by comparing the results between current and previous assessments.

To include standards and goals in performance reviews, companies and managers must document expectations in writing. Similarly, employers must standardize training programs and provide written material to trainees. Employers usually ask employees to sign documents to indicate that they understand and comply with policies and procedures. For example, during orientation sessions, human resources professionals often include company policies with new employees and ask them to sign a document to confirm that they have received and understood the information.

Daily communication or lack of communication often influences the work performance of an employee. When employees perform well, they must immediately be praised for their efforts and when they fail to meet expectations, their managers must immediately express their disapproval. Equally important, organizations must establish standards that promote two-way communication. Meaningful communication can influence the daily working hours of employees and have a positive influence on their performance reviews.

In preparation for a performance appraisal, the appraiser must check the employee's records to refresh her memory of previous actions that may influence the appraisal. It can review the employee's attendance record, past goals, and documentation specific to the employee's position, such as sales reports. Based on registered data, the appraiser must write a performance review to give to the employee. The written assessment must contain goals, a detailed evaluation of the employee's performance and reasons why the appraiser has come to a certain conclusion.

Before writing a performance review, some managers seek input from other managers who have a professional relationship with the employee and some ask the employee to give a self-assessment of their performance.

An appraiser must present his appraisal during a private meeting with the employee. He must give the employee a copy of the written assessment and explain his reasoning orally. Appraisers must give the worker sufficient time for feedback and must listen actively to all concerns. During performance appraisals, appraisers must ask employees, ask them if they are satisfied with their work, if they like to work for the organization and if they believe they have opportunities to grow. Most appraisers take notes of performance appraisal interviews and add them to the files of their employees.

Performance assessments must contain specific information, in particular in areas that need improvement. For example, if a customer service representative falls short of calling quotas, the valuer must include a report for statistical calls in the performance review. The assessment must also describe the steps that the employee must follow to increase the call volume for a specific date.

An employer often conducts a follow-up interview with an employee a few months after a performance appraisal interview to review the assessment results and to measure the employee's progress in correcting problems.

When preparing a performance appraisal interview, a manager may not allow personal feelings to influence the process. Every employee must receive objective assessments. For example, a sales manager must address strengths and weaknesses, even when evaluating top performers. Similarly, appraisers shouldn't allow the personality of employees to influence their performance appraisal interviews, except when the personality of an employee creates discipline problems.

Appraisers must set realistic expectations and goals and understand how employees see the organizational incentives. For example, if a production company doesn't increase its assembly line employees for three years, management can't realistically expect employees to increase their production performance.

What are the Types of Performance Assessments?

Organizations use different types of employee reviews. Traditional employee assessments are based on a manager's observations and opinions about an employee's performance. This type of assessment can use a rating system - often numerically - that gives the employee individual scores in certain performance areas and an average of all individual scores. This is often managed only once a year, and traditional performance assessments often determine whether an employee has earned a wage increase. For example, a company can only offer pay increases to employees who score six or higher in a performance review that uses a 10-point scale.

Assessments initiated by employees enable employees to request a review from their supervisor at any time. This type of assessment often promotes meaningful communication between employees and managers and can help employees gain self-confidence and independence in their individual roles. Many organizations offer employee-initiated assessments, but also perform traditional assessments quarterly or annually.

Employees can evaluate their own performance with self-evaluations. Some organizations ask employees to submit their self-assessments as part of a traditional performance assessment process. A self-assessment can help a manager understand the perspective of an employee before the manager writes a formal assessment. A self-assessment can, for example, reveal to a manager that her employee isn't meeting expectations because he needs extra training.

360-degree feedback performance assessments take into account the opinions of managers, employees, employees, and in some cases, customers outside the assessment process. The method also enables an employee to provide feedback about the organization and its superiors. 360 feedback can result in a well-rounded performance review, since feedback from multiple sources often provides information that a single manager might miss, or the employee feels reluctant to share. For example, an employee may hesitate to tell his manager that he is bored in his position, while his colleagues can advise the manager to look for a more challenging job.

Estimates of management by objectives are comparable to traditional assessments that use an assessment system. The management based on objectives assesses the performance based on meeting previously defined goals. Often a manager and an employee define the goals that the employee must meet. For example, a saleswoman and her manager can set a goal to acquire five new customer contracts per quarter. To receive a favorable performance assessment, it must reach the goal.

Is a Performance Appraisal Effective?

The effectiveness of performance assessments is a mixed bag. Some companies consider performance appraisal as a valuable tool in setting long-term goals, determining staffing needs, and identifying valuable employees to promote, helping them avoid costly searches to fill positions. The key to an effective performance appraisal program often depends on how manager and employees interact with each other on a daily basis.

An effective performance assessment system depends on the daily communication between management and employees and on allowing employees to participate in determining their performance objectives. Some managers hold lunch meetings with individual employees to stimulate communication and provide meaningful feedback.

Organizations must also re-evaluate the meaning of performance. For example, while a company's sales team can't meet a new customer goal, they can significantly increase the amount of revenue generated by existing accounts.

To achieve effective performance, an organization must prevent deviations from its core values. For example, a company that's honored for its customer service may lose its revenue if it increases revenue relative to customer satisfaction. Similarly, companies must be steadfast in maintaining an internal company policy that enriches the work experience of their employees. For example, if a company reduces the year-end bonus at the end of the year, the employee's performance may decrease.

However, some organizations leave performance appraisals. Many employees don't like receiving performance appraisals because they don't believe the results adequately reflect their efforts. Some managers reject the assessment process because their assessments sometimes result in little or no performance improvements.

According to a Harvard Business Review 2016 report, many companies are scrapping their performance assessments because they cause employee dissatisfaction, which can lead to revenue. Instead, organizations use new methods to support and improve performance, including focusing on individual responsibility, improving team performance, and generating open discussion. Instead of conducting formal employee reviews, many companies have encouraged managers to hold regular group meetings, as well as individual interviews with their employees to discuss the challenges and goals of a job.

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