Performance Appraisal Definition and Meaning
- 1. Performance Appraisal in HRM A performance appraisal system is a crucial component of HRM. It assesses job performance and identifies areas for improvement. Let's take a closer look.
- 2. What is Performance Appraisal? Definition Performance appraisal is a systematic evaluation of an individual employee's job performance in relation to pre- established standards and criteria. Purpose It helps employees achieve work-related goals, improve their performance, and increase job satisfaction. For organizations, it helps align employee performance with company objectives and develop their workforce. Benefits It serves as a basis for making decisions about promotions, transfers, salary increases, and training needs. It also allows for constructive feedback, rewards good performance, and identifies areas for improvement.
- 3. Methods of Performance Appraisal Graphic Rating Scales A visual representation of employee performance using objective criteria 360-Degree Feedback Feedback collected from peers, subordinates, supervisors, and self- assessment Ranking Methods Comparing employee performance against others in the same department or company
- 4. Challenges of Performance Appraisal 1 Biases Non-objective evaluation due to rater's perception and attitude towards an individual 2 Timing Appraisals conducted after several months may not reflect current performance 3 Validity of ratings Validity of ratings may be questioned due to the criteria used or rater's lack of knowledge
- 5. HR's Role in Performance Appraisal 1 Preparation Develop performance standards, train supervisors and employees, and communicate expectations 2 Conducting the appraisal Discuss employee performance through feedback and set goals for improvement 3 Follow-up Document, store, and track employee progress and provide further feedback throughout the year
- 6. Data Analysis and Implementation of Results Data Analysis • Interpret the data and categorize the results • Detail the strengths and weaknesses of employee's performance Implementation of Results • Discuss the appraisal with the employee to establish an action plan • Provide support and training to develop the employee • Set goals and measure progress
- 7. Conclusion and Recommendations Conclusion Performance appraisal is a crucial element of HRM that benefits both employees and organizations. It enables improved communication, identifies areas for improvement, and helps achieve work-related goals. Recommendations Organizations should tailor their appraisal process to meet their unique needs, provide ongoing training and development, and provide employees with feedback outside of the annual appraisal cycle.