An Idea on Performance Appraisal

Performance appraisal is a method of assimilating the future potential and the achievements of the employees in an organisation. Every organisation conducts a periodic assessment to measure the employee’s performance on the job compared to the set competency expectations. Every method of performance appraisal furnishes the employee’s performance, which becomes the basis of the actionable feedback given to the employee by the appraiser. The feedback directs the employee to areas they need to improve on the job. 

Objectives of Performance Appraisal

The objectives of the performance appraisal can be listed as follows:

1. Basis of Promotion: The Performance Appraisal Method is a basis of promotion in every organisation. This method helps in checking the job performance of an employee. Moreover, it also checks the employee’s future potential measured by the competency expectations set by an organisation that helps in deciding the promotions of the deserving candidates. 
2. Training: The process of performance appraisal identifies if the employees need training. Performance appraisal checks the performance of the employees in their respective job as well as in the core competencies required by the organisation, following which training sessions are conducted for the employees in need.
3. Deciding on Hike: Performance appraisal determines an employee’s salary hike. The appraisal in salary is directly proportional to the employee’s job performance.
4. Developing Feedback System: The method of performance appraisal envisions creating a strong feedback system within the organisation. The feedback system flows between the employees and the appraiser.
5. Self-assessment: One of the primary objectives of the performance appraisal is to uncover the position of the employees in the organisation based on their performance. This helps the employees to understand where their work stands and what needs to be improved. 
6. Job Profiling: Performance appraisal also aims at assessing the performance of the employees during the probation period helping the organisation to list out the employees who qualify to be permanent. 

Modern Methods of Performance Appraisal 

Below listed are the seven most used modern methods of performance appraisal:

 MBO- Management by Objective: This performance appraisal method works on the objectives. Here, the employee and the managers communicate, plan, and organise the required goals to succeed. The manager sets the objective and assigns the work to the employees. The progress discussed in the touchpoint meeting becomes the basis for accessing every individual employee’s performance. The progress guides the employer to the employee’s contribution to the organisation. However, this method does not focus on intangible skills like an employee’s interpersonal skills.

1. BARS- Behaviorally Anchored Rating Scale: BARS is a scale that rates the employee’s performance based on the behavioural examples attached to the scale. This method measures both the tangible and intangible qualities of an employee. Furthermore, it is both a quantitative and qualitative measure of an employee’s performance.

1. Critical Incident Method: The method involves the evaluation of an employee based on ‘critical incidents’. Critical incidents are the events in which the performance of the employees is measured. The employees are allotted various tasks in which either they pass or fail. Their work journey throughout the test is maintained in a digital journal which is finally used as a report card of an employee’s achievements and areas of improvement.

1. Assessment Centre Method of Performance Appraisal: This method puts the social event to work. The employees are asked to participate in various social events conducted within the organisation. This method helps reveal an employee’s interpersonal and other core skills that can be used in an organisation’s success. The process also helps in deciding the various roles that a particular employee can perform in the organisation.  

1. Psychological Appraisal Method: This method is usually a costly affair involving psychological tests and sittings with psychologists. In this method, psychologists conduct tests to get an insight into the employee’s intellect, behaviour, coping strategies, cognition, IQ, and emotional intelligence. This method does not rely on past work but focuses on an employee’s present and future capabilities.

1. 360-Degree Feedback: As the name defines, the method incorporates a 360 Degree assessment of an employee’s performance. This appraisal system lets the supervisor, managers, peers, and colleagues evaluate an employee. The employee performance is assessed concerning their job description.

1. Self Assessment: This is a chance the organisation gives to the employees to do a self-assessment based on how they shall evaluate their work.  

Process of Performance Appraisal

The process of performance appraisal is as follows:

1. Human Resources initiate performance appraisal. The managers are assisted with the requirements and methods of performance appraisal in a department or the organisation. 
2. A method of assessment is decided and planned.
3. The core and other competencies of the employees are viewed and drafted.
4. The appraiser conducts the planned appraisal on the individual employee.
5. The results obtained are compared to the set standards.
6. The manager then reviews the results.
7. The progress report, future goals, areas of improvement, and methods of improvement are discussed one to one between the manager and the employee. 
8. The reports of performance appraisal are saved for future reference.

Conclusion

Every performance appraisal method measures an employee’s work performance. This is a two-fold process that benefits the organisation in identifying the right resources for their organisation and polishing them to contribute the best possible. In contrast, it also helps the employees in self-assessment and in improving their overall work and personality.