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Performance Appraisal

A performance appraisal involves a formal interaction between an employee and manager where the employee's performance is assessed and discussed. The process involves 6 steps: 1) establishing clear performance standards, 2) communicating these standards to employees, 3) measuring the employee's actual performance throughout the year, 4) comparing actual performance to standards, 5) discussing the results with the employee to provide feedback and problem solve, and 6) making decisions to improve performance or take HR actions like rewards or promotions.

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Rocky Syal
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50 views

Performance Appraisal

A performance appraisal involves a formal interaction between an employee and manager where the employee's performance is assessed and discussed. The process involves 6 steps: 1) establishing clear performance standards, 2) communicating these standards to employees, 3) measuring the employee's actual performance throughout the year, 4) comparing actual performance to standards, 5) discussing the results with the employee to provide feedback and problem solve, and 6) making decisions to improve performance or take HR actions like rewards or promotions.

Uploaded by

Rocky Syal
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Performance Appraisal - Process

A performance appraisal, or performance review, is a formal interaction between an employee


and her manager. This is when the performance of the employee is assessed and discussed in
thorough detail, with the manager communicating the weaknesses and strengths observed in the
employee and also identifying opportunities for the employee to develop professionally.
Here is the process involved in performance appraisal
1. Establishing Performance Standards
In this we use as the base to compare the actual performance of the employees. In this step it requires to set the
criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their
contribution to the organizational goals and objectives. The standards set should be clear, easily understandable
and in measurable terms. If employee doesn't come up to expectance, then it should be taken extra care for it.
2. Communicating the standards
It is the responsibility of the management to communicate the standards to all the employees of the
organization. The employees should be informed and the standards should be clearly explained. This will help
them to understand their roles and to know what exactly is expected from them.
3. Measuring the actual Performance
The most difficult part of the performance appraisal process is measuring the actual performance of the
employees that is the work done by the employees during the specified period of time. It is a nonstop process
which involves monitors the performance all over the year. This stage requires the watchful selection of the
suitable techniques of measurement, taking care that individual bias does not affect the outcome of the process
and providing assistance rather than interfering in an employees work.
4. Comparing the Actual with the Desired Performance
In this the actual performance is compared with the desired or the standard performance. The comparison tells
the deviations in the performance of the employees from the standards set. The result can show the actual
performance being more than the desired performance or, the actual performance being less than the desired
performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating
and analysis of data related to the employees' performance.
5. Discussing Results
The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus
of this discussion is on communication and listening. The results, the problems and the possible solutions are
discussed with the aim of problem solving and reaching consensus. The feedback should be given with a
positive attitude as this can have an effect on the employees' future performance. The purpose of the meeting
should be to solve the problems faced and motivate the employees to perform better.
6. Decision Making

The last step of the process is to take decisions which can be taken either to improve the performance of the
employees, take the required corrective actions, or the related HR decisions like rewards, promotions,
demotions, transfers etc.

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