The Benefits of a Performance Appraisal System

A performance appraisal which is also known as an employee appraisal is a systematic review of an employee’s performance at work. This is important because it assists in understanding the inherent and acquired abilities of an employee for career development. Performance appraisal is carried out in the following systematic ways: 

• The evaluator identifies the employee’s pay and compares it with the expected/targeted 
• The evaluator/supervisor identifies and analyzes all the factors influencing the performance 
• The employer offers guidance and direction to the employee for improved performance 

Purpose, Goals, and Objectives 

The main purpose of this performance appraisal is to: 

• To improve the effectiveness of the staff who work in the company. 
• Assist meeting of goals and objectives of the company. 
• Help in establishing a work environment that encourages the dignity and work satisfaction of an employee. 

The performance appraisal carries out this by giving the employees periodic and standardized evaluation of work performance (Grote, 2002). The performance appraisal will benefit you and the company by achieving objectives below: 

• Encouraging open communication 
• Giving feedback to help in performance improvement 
• Encouraging good performance 
• Updating of expectations regarding specific jobs 
• Identifying training requirements and planning for individual and professional development. 
• Coming up with information on individual performance which includes salary increment, job termination, promotion as a result of good performance etc. 
• Identifying problems that can be mutually looked into by both the evaluator and employee in order to produce solutions. 
• Developing the objectives and goals to be realized prior the next review. 

Appraisal Frequency 

Performance appraisals are usually completed every year towards the anniversary date of an individual’s hiring (Grote, 2002). For individuals who are exempt and non-exempt employees, initial performance appraisal is filled in at the end of the first three months of employment. This is referred as the introductory period. In case an employee request for an appraisal from the supervisor, a special appraisal will be done within ten working days from the day of making the request. 

What to Assess 

Decisions have to be made on what aspects of an employee and the performance that are to be assessed. The best way to identify what is to be assessed is developed by carrying out an analysis of the important roles and the qualifications needed for that specific job (Grodon & Miller, 2011). These facts will then be used to develop a performance appraisal tool with measurable and easily observable indicators that will be used to measure performance. Everything that has been or not been done over a period of one year cannot be evaluated with every single detail included. That might be challenging and not achievable to some extent. This is why we have to identify what requires focus and attention because an aspect of factor cannot be measured, and then it cannot be measured. But if something can be measured, it can be measured and also evaluated. 

Appraisal Interview 

The crucial part of the whole performance appraisal process is the appraisal interview. For an appraisal to be considered constructive, communication must be two-way and consider the future perspectives (Gordon & Miller, 2011). Giving the employee a chance to review his/her performance at work in an objective manner and looking for means to improve the performance are important aspects for a constructive appraisal. 

In order to promote active involvement during the appraisal process, both the evaluator and the employee complete a draft appraisal. A discussion on the performance appraisal filed out then follows and finally a final one is prepared by the evaluator. Both the supervisor and the employee should possess an updated copy of the staff member’s job description (Grote, 2002). An appointment should then be planned at a suitable place and time for both the employee and the evaluator. It is highly proposed that the interview be done in a place different from the office. A neutral place is preferable in this case. Prior, during and after the interview the following activities should be carried out: 

The employee should be referred to the employee’s performance appraisal manual (Gordon & Miller, 2011). 

A week before the scheduled interview, the employee should be provided with an appraisal form that is blank. In addition, he/she should be given a job description copy if he/she doesn’t have one already. 

The evaluator should make sure that the employee full understands that prior the interview, both parties are expected to fill out a draft performance appraisal form. This draft should be carried out while also referring to the job description in order to make a proper comparison of performance and the expectations. This helps out in identifying any required revisions in the employee’s job description (Beyerle, 2006). 

All the ratings should be explained in the performance appraisal form. 

After the interview, the supervisor/evaluator should do the final copy and allow the employee an opportunity to do a review and sign. After signing by the employee, a copy of the performance appraisal is produced for the employee to retain while the original copy is submitted to the evaluator who then forwards it to the Human Resource Department. 

Developing Goals to Improve Performance 

A job description does not entail all the duties and roles carried out by the employee. It is therefore critical that the evaluator and the supervisor come together and analyze any added goals, roles, solutions etc. The goals specified should meet the following: 

• The goal(s) should be specific. It should provide insight on who, how, when and where of the expected performance (Grote,2006). 
• The goal(s) should be pertinent. This means it/they should link to the job performance. Therefore, both the employee and the evaluator should come to a consensus on the fact that this is a critical issue. 
• The goal(s) should be attainable. It ought to be attainable at the level expected as agreed by both parties. 
• The goal(s) should be measurable. The aspect to be measure in this case is if the required performance level is realized or not. 
• It/they should be observable. The outcomes of the employee’s performance should be recognizable. 
• The goal(s) should be supported. In case of any need for more training or any other support in order to realize the goal, it should proper communication should be done between the employee and the supervisor. 

Final appraisal 

The final appraisal should be completed as soonest as possible. In most cases, it is usually completed within five working days after the appraisal interview. The evaluator should complete it, append his/her signature and write the date for the final performance appraisal. The employee is also requested to sign the copy at this point after reviewing. Upon signing, the employee shows that he/she has been involved in the entire process and accepted a final copy of the performance appraisal. In case the employee does not agree with the final performance appraisal, he/she may ask in writing for a meeting with the evaluator in order to look into the issues that the employee does not agree with them. This should be done within a period of five days after the appraisal interview. 

OUCH test 

OUCH test is used to measure the aspects of an individual and the performance during the appraisal process. It is a useful test. It is a rule of thumb that is used when one is thinking of any employment actions. It is used to ensue equity for all the employees or job applicants. OUCH is an acronym. It stands for Objective, Uniform in application, Consistent in effect, and Has job relatedness (). The act of employment ought to be objective by all means. If something is to be seen as objective, it should first be factual and then founded on cognitive understanding. A subjective thing is founded on an individual’s emotional status or how he/she feels towards a certain issue. In this case, an evaluator ought to make his/her actions during the performance appraisal process as objective as possible. Although its challenging to make the actions totally objective, the individual should try as much as possible to make them objective. 

Furthermore, they should be applied the same way, all the times, to all and to the best of ability. In the performance appraisal process, the actions should be uniform to all the employees and every action carried out on one employee should be carried out on all the others during the entire process. In addition, the employment action should not cause an inconsistent impact on any protected individuals/groups. There are a number of protected groups by the U.S legal system. In the actions, caution should be exercised to prevent undesirable impact on these groups. This test is very useful in the performance appraisal process because it ensures equity for all the employees. 

Best forms and methods 

In most cases, the appraisal process incorporates the use of some standard forms to measure performance. The appraisers in this case are usually trained by the HR department on how to carry out the process. However, the Management by Objectives method(MBO) is one of the best ways to develop employees (). It is a process in which the supervisor/evaluator and the employee come together and develop objectives, evaluate the employee’s performance on a periodic basis and give reward according to the outcomes. Despite the fact that it is a process that will involve three steps, no standard forms are used in this method. With this method, the employee receives ongoing feedback on their progress which in most cases happen in planned meetings. Although the method is time consuming, it can be effectively applied on the employees if commitment to the activity and complete involvement of the employees are considered. 

References 

Gordon, M., & Miller, V. (2011). Conversations About Job Performance: A Communication Perspective on the Appraisal Process. doi:10.4128/9781606490754 

Grote, R. C. (2002).  The performance appraisal question and answer book: A survival guide for managers . New York: American Management Association. 

Beyerle, T. S. (2006).  The accountability of nonprofit executive directors: The performance appraisal process . New York: American Management Association.