Performance Appraisal refers to all those procedures that are used to evaluate the personality, performance and potential of its group members. Performance Appraisals are yearly or monthly evaluations given to employees. They evaluate the needs of the employee and also the supervisor.
The performance appraisal is used as a method to evaluate possible raises, merit pay or bonus and for personnel decisions, e.g. Promotions, Transfers or Dismissal.
Also, is an important tool to evaluate the needs of trainings and/or improvements of the employee skills as this is not always clear.
In order to have a good outcome of the PDA, is important that the company follow a few steps in the application of the tool.
- Establishing Job Standards
- Designing an Appraisal Program
- Appraise Performance
- Performance Interview
- Use Appraisal data for appropriate purpose
Following these steps with a good-based job standard, it will be easy and smooth to manager and employee to have a good Performance and Developing Appraisal.
Objectives of Performance & Development Appraisal
The main goal of the PDA is to improve the performance of the employee in a way that his performance meets the targets of the company, however, from the employee perspective is a good opportunity do discuss about his future in the company.
Here are some of goals of the PDA:
- To help in current performances
- To help in the development of the employee
- To determine training and development needs
- To give employee feedback and counsel them
- To review performance for salary purposes
Process of Performance & Development Appraisal
The process of the PDA is continuous, that is, in the closing session of one period, an opening session is also hold in the same meeting to create new goals and talk about the year ahead.
The image bellow shows the stages of a good PDA process
Benefits of Performance & Development Appraisal
For the Appraisee
– Better understanding of his role in the organization, what is expected and what needs to be done to meet those expectations
– Clear Understanding of his strengths & weaknesses to develop himself into a better performer in future – Increase motivation, job satisfaction, and self-esteem
– Opportunity to discuss work problems and how they can be overcome
– Opportunity to discuss aspirations and any guidance, support or training needed to fulfill those aspirations
– Improve working relationships with supervisors
For the Management
– Identification of performers and non-performers and their development towards better performance
– Opportunity to prepare employees for assuming higher responsibilities
– Opportunity to improve communication between the employees and management
– Identification of training and development needs
– Generation of ideas for improvements
– Better identification of potential and formulation of career plans
For the Organization
– Improved performance throughout the organization
– Creation of a culture of continuous improvement and success
– Conveying the message that people are valued
Methods
There are a few methods to apply the Performance Appraisal
Individual Evaluation Methods
– Confidential report
– Essay evaluation
– Critical incidents
– Checklist
– Graphic rating scale
– Behaviorally anchored rating scale (BARS)
– Forced choice method
– Management by Objective (MBO)
Multiple Person Evaluation Methods
– Ranking- Paired Comparison
– Forced Distribution
Other Methods
– Group Appraisal
– Field Review Technique
– 360 Appraisal System
Despite all the methods and techniques, a performance appraisal might be complicate and with a lot of challenges such as biases, influence of liking, organizational politics and legal issues. The person whom is evaluating the employee must focus in the employee performance.
To avoid any possible conflict of interest and challenges, the 360 Appraisal System might be the most fair way to evaluate an employee as the evaluation comes from different levels and not by only one person.
With the 360 method, is possible to evaluate the employee from different perspectives, so in a way, the method is the best option to use, even with the impossibility to avoid the previous challenges mentioned earlier also in this method.
Appraisals are a positive way for a manager to let the employees know how well they are performing the duties that are assigned to them and also how the company can contribute for the development and growth of the employee trough courses, trainings and other needed skills that the employee need to perform better every day.
In conclusion, a performance appraisal is one of the most important factors in any organization and a great tool used to record productivity. Every organization must have goals and objectives established and every employee must be involved in the process. Also conducting a performance appraisal will improve productivity and the morale of the employees.
Case A
A performance appraisal horror story (with a happy ending) by Jerry Bumgarner is quite a good example about what to do wrong before a performance appraisal, and what to do right afterwards.
The main negative points:
- The supervisor and employee did not have the same goals prior to the appraisal. The supervisor, in his appraisal, had measured the employees performance in tasks that the employee had not known to have been a part of his job. He thought they were just extra favors for his new supervisor.
- They did not have open dialogue about the employees job performance although to him it seemed that way. His expectations were not met, and the supervisor seemed untrustworthy.
The Human Resources Director realized that the performance appraisal had gone sour and intervened. The employee had been left more motivated and engaged, and his supervisor learned to become a true mentor, managing his performance instead of making an evaluation every half a year.
How the negatives were fixed:
- Clear goals and targets were established together. They were made realistic but challenging, helping the employee to focus and achieve them efficiently.
- Regular, truthful communication was used to review his progress, both negative and positive aspects of it. It helped develop the employee fast, resulting in a promotion soon after.
References
Goméz-Mejía, Balkin & Cardy 2016. Managing Human Resources. 18th ed. Pearson education. Global edition.
A Performance Appraisal Horror Story (With A Happy Ending). Bumgarner, J. Cascade Employers Association, April 2011. URL: http://www.cascadeemployersblog.com/salarytrends/a-performance-appraisal-horror-story-with-a-happy-ending. Accessed: 05 October, 2020.
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