How to create an effective appraisal program

How to create an effective appraisal program?

What is Performance Appraisal?

Performance Appraisal is defined as a systematic process, in which the personality and performance of an employee are assessed by the supervisor or manager, against predefined standards, such as knowledge of the job, quality and quantity of output, leadership abilities, attitude towards work, attendance, cooperation, judgment, versatility, health, initiative and so forth. Regular performance appraisals help you to detect and eliminate barriers to high performance. You can use appraisals to focus people’s efforts in the right direction and motivate them to work toward their goals.

An effective performance management system combined with the power of technology helps companies to grow leaps and bounds.

Certain features engineered together can make an effective performance appraisal system. Let’s take a look at a few:

Objective: The main objective is to promote the employees, on the basis of performance and competence.

The most important element is the goal-setting aspect. It is essential that your employee has absolute clarity on what is expected of their performance and is committed to these goals. Employees also learn what’s expected out of them and align their goals with the overall business objective. The goals and objectives must be very clear when the performance appraisal system is developed in the group.

The required solution or benefits should come from the assessment system. The appraisal is a chance to make plans for future growth and development. Take some time to explore how this person can develop their skills to contribute to the organization’s success and set goals accordingly.

Appraisal Programme: In designing a performance appraisal program, there are several issues that require attention- the types of personnel to be appraised, types of personnel to act as appraisers, appraisal methodology, and timing of appraisal. For a performance appraisal program to be successful, it cannot be a once-a-year event. Supervisors and managers should follow up with employees periodically to discuss the employee’s progress in relation to their appraisal.

 Be trustworthy: Appraisals only have value if you are honest in your assessment of the employee. Being honest is easy when you have something positive to say. It gets harder when your critique is negative. The longer you put off correcting an employee’s poor performance or behavior, the harder it will be to correct in the future. Not being honest with employees about their performance in appraisals may also lead to trouble if you later decide to terminate the employee for the performance failures.

An effective performance appraisal system matches the needs of the organization. Practice honest communication in all aspects of the employer-employee relationship. 

Training and development: One of the main purposes of a performance appraisal program is to help employees improve. Training supervisors and managers on conducting appraisal meetings are just one part of developing an effective performance appraisal program.

Many performance appraisal systems exist. It is the manager’s job to select the technique or combination of techniques that best serve the organization’s particular needs (and constraints). A number of problems can be identified that pose a threat to the value of appraisal techniques. Most of these problems deal with the related issues of the validity and reliability of the instruments or techniques themselves.  The development efforts will help the employee keep up with the changes in the company and industry. 

The development of an appraisal program starts from setting objectives. Keeping track of slipping performance and taking steps to remedy it is a crucial part of every employee performance process. Based on employee performance trends, organizations need to trigger a skill-specific performance improvement plan right.

Improvement In Employees:

Employees like hearing that they are improving and that it’s being noticed.

  • “Manages to grow and improve with each passing day…”
  • This gives them a chance to digest the result and come up with questions to ask during the meeting.
  • “Is continuously looking to improve upon…”
  • These are little things that will have a great impact on the employees, and also a positive work culture is built that will attract great talents in the industry. When employees are happy and engaged, they work hard to make great achievements that bring pride to the company.  

Feedback to employees:  Performance appraisals provide feedback to employees about the quantity and quality of job performance.

Ideally, the performance review should not be the first time an employee hears that he is not performing up to the expected standards. Regardless of how much an employee wants to improve; no one wants to receive negative feedback from their manager.

Whilst negative feedback focuses on what your employee is doing wrong, constructive feedback examines areas for improvement. Without this information, employees have little knowledge of how well they are doing their jobs and how they might improve their work. This continuous feedback helps employees better their performance and skills through the year, and into the future.

Conclusion: An organization’s performance appraisal method is often unique to its culture. While there’s no one size fits all, there are a few things that work – make feedback frequent instead of having a review just once a year, training managers to conduct effective appraisals, and involving employees in their own appraisal process. Irrespective of the nature of the organization, these are a few things that do get results. No performance appraisal process fits perfectly for every manager and every employee. However, following the above tips will help ensure that the process is a positive, rewarding, beneficial experience for both the manager and the employee.

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