With the right performance appraisal method, organizations can enhance employee performance within the organization. A performance appraisal procedure allows the organization to communicate performance expectations to every member of the team and assess exactly how well each person is doing. They should be made clear about how near they are to do their expectation. Performance appraisal helps motivate people to deliver superior performance in several ways. It helps to identify employee's job related behavior and outcomes. On the other hand, it helps the company in recognizing employees with potential. It allows the employee to see where he or she ranks against all the other employees in the company. Counseling Poor Performers. Some employees may have weak points as well, which if not sorted out in time, might be a liability for the company. Performance Appraisal Stephen Kitooke Muyingo En, Rn 8/2/2015kitooke muyingo 1 2. Performance appraisal helps to keep a record of each employee’s job performance, including what efforts they have made and what have they achieved. So every company needs a good performance appraisal system. If one of these is challenged, the company must be able to demonstrate that the decision it made was not based on the individual's race or handicap or any other protected aspect. Providing Legal Defensibility for Personnel Decisions. In performance management, the supervisor or manager takes up the role of a mentor or coach, while in appraisal, the supervisor acts as the judge.Some performance appraisal systems, like MBOs, allow setting up of joint targets by the employee and the supervisor. A company should also make efforts to abolish them. They need to identify the departments that are rich with talent and the ones that are suffering a talent drought. It is because #1 they want to enjoy the perk of being an excellent employee or #2 they fear negative reactions from the supervisors. Facilitating Layoff or Downsizing Decisions. All employees may not be an all-rounder. It is said that performance appraisal is an investment for the company which can be justified by following advantages: Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. Performance Appraisal Process: The Steps. Recruitment, selection, employee training, rewarding, etc. Performance appraisal for nursing staff 1. As a result, they increase their chances of promotion and lower their odds of layoff. Second, since most people want to be seen as superior performers, a performance appraisal process provides them with a means to demonstrate that they actually are. Motivating Superior Performance. Determining Organizational Training and Development Needs. Academic library - free online college e textbooks - info{at}ebrary.net - © 2014 - 2021. The performance appraisal process also serves as a tool to assist staff members struggling in roles or alignment with goals. It involves frequent reviews and hence often appears similar to performance management. c. It provides an effective basis for distributing rewards. Encouraging Performance Improvement. Only determining weak points is not enough. Providing Feedback. However, this is not enough to get good output from them. Performance appraisal makes it easier for the organization to make good decisions about making sure that the most important positions are filled by the most capable individuals. Performance reviews, also called appraisals, form part of a holistic approach to managing performance. Performance appraisal serves over a dozen different organizational purposes: - Providing feedback to employees about their performance, - Facilitating layoff or downsizing decisions, - Supporting manpower planning or succession planning, - Determining individual training and development needs, - Determining organizational training and development needs, - Confirming that good hiring decisions are being made, - Providing legal defensibility for personnel decisions, - Improving overall organizational performance. Thus, a spirit of mutuality is essential in an effective performance appraisal system. The basic purpose of performance appraisal is to identify employees worth and contribution to the company. In other words, it is the process of measuring productivity in terms of efficiency and effectiveness. Performance appraisal system is a useful management tool which helps to gain feedback, review and estimate whether the performance is effective and discuss what needs to be done for it to become so. Important factors include – attendance, efficiency, attitude, quality of work, amount of work are just a few important factors. Performance appraisal provides the mechanism to make sure that those who do better work receive more pay. It is essential for the employers to know what performance and achievements have been made by their employees. When everyone is clear on the expectations and knows exactly how he is performing against them, this will result in an overall improvement in organizational success. Such actions may be counseling or warning the poor performers to improve performance and to prevent the occurrence of undesirable results. They should also be told how well they have done their duties and how can they improve their performance. The process also meets all legal requirements. Senior management must clarify the purpose of performance appraisals. Performance appraisal works as a mirror to employees and it clearly shows what they are professionally and where they stand. Evaluation differentiates employees on the basis of their job performance, along with other factors like personality, behavior, etc. In this regard, performance appraisal serves another important purpose by making sure that the boss's expectations are clearly communicated. Other than this, performance appraisal has several other uses, which are as follows. Performance appraisal gives companies the tool they need to make sure they have the intellectual horsepower required for the future. Objective performance criteria should be based on some form of observable behavior related to the duties of the job. Finally, performance appraisal encourages employees to avoid being stigmatized as inferior performers (or, often worse, as merely "average"). They also help in identifying the employees who most deserves to be promoted. This is another classic use of performance appraisal. Every employee wants them to be told about their duties; what the organization really wants them to do. b. Only when the performance of newly hired individuals is assessed can the company learn whether it is hiring the right people. In this regards, inefficient workers can be dismissed or demoted in case. (source-wisestep) Performance Appraisal. First, the appraisal process helps them learn just what it is that the organization considers to be "superior." In this regard, Selvarajan and Cloninger (2009) have revealed that effective performance appraisal system results in improving performance of employees and … Performance appraisal serves two very important purposes. The value of annual reviews has increasingly been challenged in recent years in favour of more regular conversations, but even so, performance appraisal remains a crucial aspect of the performance management cycle. For an instance, an employee might feel that his co-worker is being paid more by the company even though both of them are posted at the same job level. Performance appraisal systematically evaluates an employee's current and past performance as well as future potentials. A performance appraisal system falls under the umbrella of performance management software and these platforms are typically used in conjunction with each other. 20 Effective or Successful Job Search Strategies & Techniques. It becomes easier for the organization to take right decision when it has complete knowledge about what’s going on in their company. Companies need to determine who and where their most talented members are. Performance is defined as the execution of an action; something accomplished; the fulfillment of a promise, claim, or request (www.merriam-webster.com, 2012).. Performance appraisal distinguishes excellent and poor performing employees. Performance appraisal forces managers to confront those whose performance is not meeting the company's expectations. a. We have touched on this with the concept of an employee evaluating personal performance before the formal session. The impressive contributors are also rewarded by the company as per the organization’s policy.eval(ez_write_tag([[468,60],'businesstopia_net-banner-1','ezslot_2',140,'0','0'])); Grievances may occur in the company when employees feel unfairly treated or biased. But when economic realities force an organization to downsize, performance appraisal helps make sure that the most talented individuals are retained and that only the organization's marginal performers are cut loose. Encouraging Coaching and Mentoring. But there are performance appraisal systems from which to choose, which use best design practices. A performance appraisal is a systematic, general and periodic process that assesses an individual employee's job performance and productivity in relation to certain pre-established criteria and organizational objectives. But such methods often fall short in the monitoring of targets and real-time administration offered by performance management. Organizations usually undertake appraisal for administrative and developmental purposes. Advantages of Performance Appraisal. How should the company decide who gets the brass rings? A good employee performance review method can make the whole experience effective and rewarding. This helps in accurate measurement of employee’s job performance which is necessary for the company to know where it is heading towards.