Performance appraisal is the criteria of evaluating and determining the capability and capacity of an individual. This process of reviewing performance is very important for both the employee and the employer, and thus, is meant to be unbiased. Let us get into the details of this process of employee performance evaluation.
Performance management is the term given to the evaluation process followed by organizations, to determine the level of competence of an employee and his future expected contribution in the growth of the company. It also determines his own progress in the career front and what he must expect from his employer. It is a two-way process and is equally important for both (i.e., for the employer and the employee). Performance appraisal dates back to the early 20th century, from the time of the Second World War. However, it has been practiced for a very long time and can be called the second oldest profession of the world.
Two methods or models are followed, when it comes to performance management; competitive and coaching. Competitive is the one where companies improve performance by ranking employees against each other, which drives a sense of competition and thus improves performance. Coaching, on the other hand, is completely a different way of analyzing performance. Here, employees are carefully chosen and then proper coaching and guidance is provided for optimum performance. Through the years, the second model, i.e., the coaching and development model, has seen a rise in popularity.
Purpose of Performance Appraisals
Every employer spends a major chunk of his resources in the employee performance appraisal process. Hence, it is unnecessary to mention that this process must be followed with utmost care and all possible efforts must be made such that it does not negatively affect the goodwill of the company in the eyes of the employees.
Defining Standards
One of the important purposes of performance appraisal is to define and set standards. On completion of one year, the employer can draft clearer standards of expectations and expressions.
Providing Feedback
Feedback is meant to enhance and encourage positive work culture and attitude. It is an important tool for employee motivation. The purpose of feedback is to let an individual know, in a positive way, his strengths and shortcomings. This provides a structured format for discussion as well.
Encourages Development
Effective performance appraisals definitely result in career development. Therefore, it is very important that the employer encourages the employee towards career development, which in turn, would benefit the company manifold.
Points out Training Needs
An appraisal is not only meant to evaluate employees, but is also an excellent tool for the management to find out its own areas of improvement. This helps them to find out the areas in which training has been insufficient, and planning can be done accordingly.
Administrative uses
Performance appraisals aid the management to take certain decisions related to; salary, promotion, retention/termination, recognition of performance, layoffs, identification of poor performers, etc.
Criteria of Performance Appraisals
The criteria or process followed by most employers is quite rigorous and mostly includes the following points.
Quality and Quantity
The most important and foremost criteria is analyzing the quality and the quantity of work. The accuracy and correctness of work, the ability to perform equally well during pressure and maintaining standards are very important. Other things like optimum allocation of time and resources and matching expected outcome regardless of volume is also considered.
Communication
One cannot deny the fact that communication plays a very important part in everything you do. An employee must be an active listener, must be clear in understanding and presentation, must follow all the office/senior etiquette, must be calm and in control of himself and show proper respect to seniors and juniors. This point is considered during the process of performance appraisal.
Team Spirit
One of the foremost requirements of success, team spirit is considered a very valuable attribute. A spirited employee, who maintains positive working relationship with his colleagues and seniors, ranks high in the eyes of the employer. Qualities like helping co-workers and sharing work-related information and knowledge, being open to feedback, taking instructions in an agreeable manner, being a part of group building activities and contributing to teamwork to achieve targets and objectives are highly appreciated.
Self Starter
A team player needs to have an attitude of taking initiatives. A person who sets his own targets, apart from the target already set for him, is appreciated for his efforts. A person who comes up with new methods of work, new ideas to improve work culture, suggests solutions and has innovative concepts and ideas is considered an asset. Accepting challenges and taking initiative to help others is an added quality.
Cooperation
A cooperative person, who treats his seniors and co-workers with respect, is considerate and at the same time is cautious in dealing with customers and supervisors is given credit for his efforts. Abiding by the company rules and regulations and cooperating in case of emergencies are also considered during performance appraisals.
Decision Making Ability
This is an important attribute. One must have the ability to take hold of the situation and not panic in case of emergencies, must be quick at planning and deciding further action, and must be fast and an active observer.
Dependability
Last but definitely not the least, dependability counts the most. Points like – time taken to complete an assignment, respecting the regulations pertaining to break and other time bindings, following other rules, keeping seniors informed about any development (personal or professional), attendance and punctuality, reliability, etc., are considered before awarding points for dependability.
Performance Appraisal Blunders
Though it is solely an unbiased process and most organizations take care to be purely impartial, there are certain points that sometimes are overlooked.
Comparison of employees is undesirable
It would be needless to say that this is the most common mistake that an employer can (and does) make. Comparison in any form and making unnecessary comments always brings negative competition and jealousy. Any two performers (or non-performers) cannot be compared with each other even if they belong to the same department and follow the same work procedure. The performance of an individual must be judged individually considering the conditions and circumstances.
Appraisal is not about blame
The management sometimes forgets the fact that performance appraisals are all about awarding the employees for their hard work and giving feedback for improvement. It must never be about blaming. Though it is possible that an under-performer might not be given a raise according to his expectations, one cannot deny the fact that blaming will only discourage him further to try to work better.
Rating is definitely not unbiased
It must be understood that the rating form, though the most simplest and straightforward way of performance evaluation process, is not a completely unbiased or impartial tool. A 1 – 5 rating tool can in no way judge the accomplishment, dependability or flexibility of an individual. It is also true that if two different people rate the same person, results would vary. Therefore, ratings are subjective and must not be entirely depended upon. They are faster, but in no way accurate.
Managers need to concentrate more
It is completely unbelievable to find someone judging your performance without even having an idea about what you do on a daily basis and what is usually the result of your work. It would be surprising to know that most of the managers are usually not in a position to judge an employee’s performance as they hardly put in enough efforts the whole year round to notice and evaluate day-to-day work and their outcome. A last moment research would lead him to a dead-end. A round the year observation is extremely important and many managers fail to understand this simple idea.
Dropping the bomb on D-day is annoying
It is observed that some bosses love to save up. I do not mean that they save up on time or resources, but save up feedback for the D-day. They do not bother to give feedback for making mistakes or messing up some project assigned, but save it up for the last day. They use this tool to justify and establish their biased appraisal procedure. This is a guaranteed way to encourage bad performance and in some cases, attrition.
Wastage of time on irrelevant issues is pointless
End of the year appraisal is a process in which the management must not waste too much time. My point here is that the managers must make it a point to keep track of an employee all throughout the year. He must be given feedback and suggestions at the end of a specified time period. In this way, the employee would be able to analyze what is expected of him and would perform accordingly. This way it would be easier for the managers to evaluate the performance at the end of the year and provide genuine performance evaluation comments.
Some Things to Remember
Appraisals are not only about hike in salary or increase in designation (though they are the most important reasons), but one must realize the overall impact it has on the employee, the organization and also the others. It brings out the loopholes, helps plan training strategies, gives new ideas of improvement, helps in understanding the employer-employee relationship in terms of trust and dependability, brings the staff closer to the management by building a platform for discussion and obviously is very important for the development of the organization as a whole.
Since performance appraisals are something all employees look forward to, I would like to mention here that the appraiser must be extra careful to use proper phrases to give feedback to the employees. It is also important to give relevant examples to explain each and every point. One must not forget that appraisal is a two-way process and every person has the right to ask questions and clarify doubts regarding his performance and the employer’s expectations. It will be more than once, when the two will not agree upon a given point. At times, the salary negotiation process also gets out of hand. In such a scenario, being senior and more responsible, it is the job of the appraiser to take command over the situation. The appraiser has the added responsibility of doing justice to the powers endowed upon him and must display true business intelligence when handling a critical situation. Building trust with the employees is something that all employers desire and is surely achievable through genuine and unbiased efforts and proper employee management techniques.
The employee, on the other hand, must keep in mind that the performance appraisal process is very important for the growth and development of his career, and therefore, should maintain a positive attitude towards it. He must be ready to take feedback and must respect the efforts put in by the management. An employee, in no situation, must compare his appraisal with that of a colleague as different methods of evaluation are followed for different individuals and comparison in this case is baseless. And lastly, he must keep his expectations humble, getting more than expected always brings happiness and avoids any situation of disappointment.
Performance management is the term given to the evaluation process followed by organizations, to determine the level of competence of an employee and his future expected contribution in the growth of the company. It also determines his own progress in the career front and what he must expect from his employer. It is a two-way process and is equally important for both (i.e., for the employer and the employee). Performance appraisal dates back to the early 20th century, from the time of the Second World War. However, it has been practiced for a very long time and can be called the second oldest profession of the world.
Two methods or models are followed, when it comes to performance management; competitive and coaching. Competitive is the one where companies improve performance by ranking employees against each other, which drives a sense of competition and thus improves performance. Coaching, on the other hand, is completely a different way of analyzing performance. Here, employees are carefully chosen and then proper coaching and guidance is provided for optimum performance. Through the years, the second model, i.e., the coaching and development model, has seen a rise in popularity.
- Purpose of Performance Appraisals
- Criteria of Performance Appraisals
- Performance Appraisal Blunders
- Some Things to Remember
- Performance Appraisal Forms
Defining Standards: One of the important purposes of performance appraisal is to define and set standards. On completion of one year, the employer can draft clearer standards of expectations and expressions.
Providing Feedback: Feedback is meant to enhance and encourage positive work culture and attitude. It is an important tool for employee motivation. The purpose of feedback is to let an individual know, in a positive way, his strengths and shortcomings. This provides a structured format for discussion as well.
Encourages Development: Effective performance appraisals definitely result in career development. Therefore, it is very important that the employer encourages the employee towards career development, which in turn, would benefit the company manifold.
Points out Training Needs: An appraisal is not only meant to evaluate employees, but is also an excellent tool for the management to find out its own areas of improvement. This helps them to find out the areas in which training has been insufficient, and planning can be done accordingly.
Administrative uses: Performance appraisals aid the management to take certain decisions related to; salary, promotion, retention/termination, recognition of performance, layoffs, identification of poor performers, etc.
Quality and Quantity: The most important and foremost criteria is analyzing the quality and the quantity of work. The accuracy and correctness of work, the ability to perform equally well during pressure and maintaining standards are very important. Other things like optimum allocation of time and resources and matching expected outcome regardless of volume is also considered.
Communication: One cannot deny the fact that communication plays a very important part in everything you do. An employee must be an active listener, must be clear in understanding and presentation, must follow all the office/senior etiquette, must be calm and in control of himself and show proper respect to seniors and juniors. This point is considered during the process of performance appraisal.
Team Spirit: One of the foremost requirements of success, team spirit is considered a very valuable attribute. A spirited employee, who maintains positive working relationship with his colleagues and seniors, ranks high in the eyes of the employer. Qualities like helping co-workers and sharing work-related information and knowledge, being open to feedback, taking instructions in an agreeable manner, being a part of group building activities and contributing to teamwork to achieve targets and objectives are highly appreciated.
Self Starter: A team player needs to have an attitude of taking initiatives. A person who sets his own targets, apart from the target already set for him, is appreciated for his efforts. A person who comes up with new methods of work, new ideas to improve work culture, suggests solutions and has innovative concepts and ideas is considered an asset. Accepting challenges and taking initiative to help others is an added quality.
Cooperation: A cooperative person, who treats his seniors and co-workers with respect, is considerate and at the same time is cautious in dealing with customers and supervisors is given credit for his efforts. Abiding by the company rules and regulations and cooperating in case of emergencies are also considered during performance appraisals.
Decision Making Ability: This is an important attribute. One must have the ability to take hold of the situation and not panic in case of emergencies, must be quick at planning and deciding further action, and must be fast and an active observer.
Dependability: Last but definitely not the least, dependability counts the most. Points like – time taken to complete an assignment, respecting the regulations pertaining to break and other time bindings, following other rules, keeping seniors informed about any development (personal or professional), attendance and punctuality, reliability, etc., are considered before awarding points for dependability.
Comparison of employees is undesirable: It would be needless to say that this is the most common mistake that an employer can (and does) make. Comparison in any form and making unnecessary comments always brings negative competition and jealousy. Any two performers (or non-performers) cannot be compared with each other even if they belong to the same department and follow the same work procedure. The performance of an individual must be judged individually considering the conditions and circumstances.
Appraisal is not about blame: The management sometimes forgets the fact that performance appraisals are all about awarding the employees for their hard work and giving feedback for improvement. It must never be about blaming. Though it is possible that an under-performer might not be given a raise according to his expectations, one cannot deny the fact that blaming will only discourage him further to try to work better.
Rating is definitely not unbiased: It must be understood that the rating form, though the most simplest and straightforward way of performance evaluation process, is not a completely unbiased or impartial tool. A 1 – 5 rating tool can in no way judge the accomplishment, dependability or flexibility of an individual. It is also true that if two different people rate the same person, results would vary. Therefore, ratings are subjective and must not be entirely depended upon. They are faster, but in no way accurate.
Managers need to concentrate more: It is completely unbelievable to find someone judging your performance without even having an idea about what you do on a daily basis and what is usually the result of your work. It would be surprising to know that most of the managers are usually not in a position to judge an employee’s performance as they hardly put in enough efforts the whole year round to notice and evaluate day-to-day work and their outcome. A last moment research would lead him to a dead-end. A round the year observation is extremely important and many managers fail to understand this simple idea.
Dropping the bomb on D-day is annoying: It is observed that some bosses love to save up. I do not mean that they save up on time or resources, but save up feedback for the D-day. They do not bother to give feedback for making mistakes or messing up some project assigned, but save it up for the last day. They use this tool to justify and establish their biased appraisal procedure. This is a guaranteed way to encourage bad performance and in some cases, attrition.
Wastage of time on irrelevant issues is pointless: End of the year appraisal is a process in which the management must not waste too much time. My point here is that the managers must make it a point to keep track of an employee all throughout the year. He must be given feedback and suggestions at the end of a specified time period. In this way, the employee would be able to analyze what is expected of him and would perform accordingly. This way it would be easier for the managers to evaluate the performance at the end of the year and provide genuine performance evaluation comments.
Since performance appraisals are something all employees look forward to, I would like to mention here that the appraiser must be extra careful to use proper phrases to give feedback to the employees. It is also important to give relevant examples to explain each and every point. One must not forget that appraisal is a two-way process and every person has the right to ask questions and clarify doubts regarding his performance and the employer’s expectations. It will be more than once, when the two will not agree upon a given point. At times, the salary negotiation process also gets out of hand. In such a scenario, being senior and more responsible, it is the job of the appraiser to take command over the situation. The appraiser has the added responsibility of doing justice to the powers endowed upon him and must display true business intelligence when handling a critical situation. Building trust with the employees is something that all employers desire and is surely achievable through genuine and unbiased efforts and proper employee management techniques.
The employee, on the other hand, must keep in mind that the performance appraisal process is very important for the growth and development of his career, and therefore, should maintain a positive attitude towards it. He must be ready to take feedback and must respect the efforts put in by the management. An employee, in no situation, must compare his appraisal with that of a colleague as different methods of evaluation are followed for different individuals and comparison in this case is baseless. And lastly, he must keep his expectations humble, getting more than expected always brings happiness and avoids any situation of disappointment.
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PERFORMANCE ACHIEVEMENT
Objective Performance
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