Employee Performance Appraisal
- Meaning of employee performance appraisal
- Importance of employee performance appraisal
- Tools used in performance appraisal
- Process of performance appraisal
- Methods of conducting employee performance appraisal
- Challenges of performance appraisal
EMPLOYEE PERFORMANCE APPRAISAL
It’s the process in the organization that to the assessments of staff e.g. managerial performance and not that of manual workers. It’s different from job evaluation
Job evaluation
It involves the determination of the worth of different jobs while performance is concerned with the measurement of the worthiness of employee performance to an organization.
In job evaluation focus is on the job while with performance appraisal the focus is on the performance potential of employees.
CATEGORIES OF APPRAISAL
There are 2 types;
a) Informal performance appraisal
It is the continuing assessment of feedback from employees informing about how well they are doing their work and it’s usually on an ad hoc uses.
b) Formal performance appraisal
It is done after a given period of time. It is more national and orderly. It aims at noting employee’s performance and identifying those employees who may require promotion further training.
Reasons for performance appraisal
1. To identify an individual’s current level or job performance.
2. To identify strengths and weaknesses of employees so that timely steps may be taken to improve the quality of employee skills.
3. To enable employees to improve their performance in future.
4. To find out the potential for employee promotion and development.
5. To provide a basis for rewarding employees in relation to that contribution towards organizational goals.
6. To provide information required for objectives and accurate information of employees.
7. To focus attention on the effectivenes of the organization and to recognize individuals achievements.
8. To let the employee know when they stand so that they are motivated to develop.
9. To test effectiveness of the selection process.
METHODS OF PERFORMANCE APPRAISAL
They are broadly divided into two Categories;
A. Result oriented
B. Trait oriented
A. TRAIT ORIENTED
Under this method, appraisal of employee is done on the basis of standards or personal trait or qualities e.g. leadership, initiative, judgment, customer relations, discipline, decision making, knowledge of the job, loyalty, experience etc.
The techniques/methods of performance appraisal based on this approach are;-
a) Ranking method
• It is the oldest method of rating.
• Evaluation picks the top and bottom employees 1st.
• Select the next highest and the nest lowest and move towards the middle.
• Employees are ranked from the best to the worst in performance.
b) Graphic method/graphic rating scale
This is when the performance is assessed using a graph or a line representing the personal traits displayed in the job.
The greats of qualities are described by phrases e.g. poor, below average, above average, excellent or using numerals e.g. nine can stand for outstanding.
c) Forced distribution method
The evaluator is required to distinguish the rating in five categories – outstanding, above average, average, below average and poor employees are rated on basis of overall performance rather than individual traits.
d) Critical Incidence/behavior rating
Managers prepare list of statements of very effective and very ineffective behavior of an employee. They are labeled as critical incidence and used to evaluate employee performance. The behavior of employee during significant or exemplary situations (critical incidence).
e) Checklist method
In this method a list of statements is prepared various types of behavior for particular jobs are listed.
For every employee the evaluator is required to tick those statements which collect distribute actual behavior of the employees on the job e.g. ticking “Yes” or “No” e.g.
Is the employee regular on his job? Yes/No
Does the employee follow instructions? Yes/No
f) Factor comparison/person to person comparison
Employees are compared with some key people in the organization, scores are then awarded e.g for leadership, and dependability etc different people are used for different factors.
It is a comparison method and is rarely used.
g) Descriptive essay
The evaluator is asked to write essays about the strong and weak points of employee behavior. This technique can be combined with graphic rating scale.
B. RESULT ORIENTED APPRAISAL
It involves the evaluation of employee performance in terms of quantity and quality. This appraisal is also known as management by objective. The employee is appraised on the basis of performance in achievement of aggrieved goals and objectives.
Characteristics of an effective appraisal system
1. It should be simple in design and easy to understand.
2. The appraiser should be selected and properly trained to avoid bias.
3. Appraisors should be more than one.
4. Appraisal plan should lay down the standards of performance in clear and precise terms.
5. It should be a continuous process.
6. It should take into consideration the appraisal practices in the industry as well as the latest Appraisal ideas.
7. A reward should follow satisfactory performance.
8. There should be a systematic procedure to address grievances arising out of the appraisal.
9. It should be reviewed and revised periodically.
10. The results of the appraisal should be communicated to employees. If the results are negative, the causes should be investigated and steps taken to prevent such a result from occurring.
11. An appraisal programme should not be costly or time consuming.
Benefits of Performance Appraisal
a) For staff
It enables them to:
(i) Have a clear understanding of goals and standards that are expected from them.
(ii) Increase confidence in awareness.
(iii) Generate solutions to problems and accept responsibility.
b) To managers
It enables them to;
(i) Gain important insight in the work being done and those who are doing well.
(ii) To access training links.
(iii) To improve the ability to plan, control and monitor wrork.
(iv) Develop a positive working climate in which effective communication on development is evident.
c) For organization
(i) Staff will better understand and work towards clearly defined objectives.
(ii) Will have staff whose abilities talents and expertee’s skills are more effectively used.
Disadvantages of Performance Appraisal
1. . The supervisor plays the conflicting role both as judge and helper
2. Poor communication can keep employee in the dark about what is expected of him.
3. . Feedback on appraisal may be unpleasant for both employees and supervisors.
4. Some supervisors may be unwilling to educate employees on how to improve their play.
5. There may be a difference in opinion between supervisor and subordinates on definition of performance.
6. Appraisal may be affected by the factors subjectivity.