THE IMPORTANCE OF EMPLOYEE APPRAISALS IN ORGANISATIONS

“If you want to build the business, build the people”

-Brownie Wise

(American Saleswoman)

Human Resource- the word itself says everything! A workforce is about humans and any business that takes care of its people takes care of itself. While it’s important to look after employees and their needs, it’s also important to evaluate, them on a regular basis. That’s performance appraisal for you!

A performance appraisal reviews an employee’s work and overall contribution to the company’s goals.

TYPES OF PERFORMANCE APPRAISALS:

Self- Assessments:

Employees rate their own performance and overall behaviour.

Peer -Review:

In this type of assessment, colleagues or co-workers of the employee rate their performance.

360 – Degree -Performance Review:
A total appraisal from the HR manager, team leader and all co-workers.

Negotiated Performance Appraisal:

Especially helpful in times of conflicts, a negotiated performance appraisal involves a third-party mediator and allows the subject to present their case first. It also focuses on what the individual is actually doing right before any feedback is given.

Technical Appraisal:

Technical appraisals are when the employees are evaluated on their skills and tasks completed.

DETAILS IN A PERFORMANCE APPRAISAL DOCUMENT:

  1. Employee name
  2. Reviewer’s name
  3. Period of work
  4. Job title
  5. Flow of review, instructions and criteria
  6. Rating section
  7. Overall feedback

SUGGESTED COMPONENTS OF A PERFORMANCE APPRAISAL:

Let’s have a look at the parameters that make up the components of performance appraisal:

  • Quality of work delivered: A performance appraisal must check the standard of work the employee is delivering on a regular basis. This can be done by taking client briefs and feedback into consideration.
  • Responsibilities shouldered: Key responsibilities that have been shouldered by employees, especially ad hoc ones e.g. In absence of other co-workers or even special responsibilities must be taken into consideration.
  • Punctual behaviour: Discipline is one of the major pillars of successful organisation and hence punctuality is a big factor to be considered when a review is being done
  • Level of communication skills: Communication is an integral part of the workplace, try to gauge whether your employee is able to effectively communicate with others. This is not limited to any language, but how well they are able to put across their thoughts to colleagues and management authorities.
  • Problem-solving attitude: Any problem, requires a solution. Therefore, it is essential that employees have a solution-oriented attitude, to deliver excellence at work.
  • Team player capabilities: When you are working with people, you have to exhibit qualities like co-operation, mutual respect, and leadership. This is probably the most important characteristic an employee should possess.
  • Compliance with company rules: Integrity and credibility are non-negotiable in an organisation. Do a close analysis of how trustworthy your employees are.
  • Progress in professional goals: Every employee will have some professional goal that they want to achieve. Your job as a company is to check whether those goals are accomplished or not.
  • Pro-activeness: As a company, you must see to it that you observe behaviour apart from measurable metrics. There will be some employees whose motivation will be very high and they could be high initiative takers.
  • Leadership skills: Employees demonstrating qualities like leadership must be acknowledged. Taking responsibility and being accountable for it, is a great characteristic that should be observed and recognized.

PERFORMANCE APPRAISAL CYCLE:

There should always be a process that should be followed in performance appraisals. Setting an outline or a structure, in the beginning, helps to set the tone for the whole procedure and makes it look credible.

  1. Set expectations
  2. Measure and Evaluate Performance
  3. Give feedback
  4. Record details

WHEN IS A PERFORMANCE APPRAISAL CONDUCTED:

Performance reviews are generally conducted on a yearly or a quarterly basis, but ideally should be done throughout the year for continuous improvement.  This helps employees keep a track of their progress and areas of improvement on a consistent basis and adds to their awareness in the area of work.

WHAT TO AVOID IN A PERFORMANCE APPRAISAL?

  1. Too much criticism
  2. Threats of disciplinary action
  3. Not taking a total view of the employee’s work
  4. Putting last-minute criteria in the appraisal process
  5. Giving feedback without examples
  6. Emphasizing personality traits of the employee rather than performance in their role.

WHY IS A PERFORMANCE APPRAISAL IMPORTANT?

There are 3 important reasons as to why a performance appraisal should be conducted:

  1. To provide employees with an unbiased reflection of their performance.
  2. To give solutions for better and higher productivity
  3. To change employee responsibilities, tasks or departments as per the results of the evaluation.

CRITICISM:

Performance appraisal is a very sensitive issue because it can be coloured by biases. Human beings tend to have personal preferences which can influence the reviews. Distrust between the reviewer and the reviewee can result into heightened tensions and conflicts. An influenced result can also lead to loss of motivation for the employee.

ON A PARTING NOTE:

Performance appraisals can be a huge source of motivation if taken positively by the subject. If conducted in an impartial and neutral way, the feedback given can improve an employee’s performance by leaps and bounds.

Performance appraisals can help set training and development goals for every employee. Each of the goals can be tailored as per individual reviews and this can lead to major career growth for that particular person. A performance review gears an employee and provides a work GPS for them to navigate through various tasks with a strategy.

The next time, your performance is reviewed we urge you to go in a with a positive mindset and make the best of it! Feedback is only a chance to improve and change the situation.  We hope you enjoyed reading the blog as much we did writing it!