Performance Appraisal Process

As the name suggests, performance appraisal is a process which reviews an employees performance in a given year. Depending on the performance of an employee in his or her job, the employee receives a reward or recognition. The appraisal process is a way to identify the areas in which an employee needs to improve, besides helping in the promotion of professional growth. Many a time, it has been found that a supervisor communicates with his subordinates only during the process of performance appraisal, which in turn has a chance of creating a communication gap between the management and the employees thereby straining productivity. Effective communication throughout the year helps in creating an effective working relationship.

Process of Performance Appraisal

There are several steps which most employers follow during the appraisal process. The first step is setting performance standards, followed by setting up the proper standard of communication, measuring performance, comparison of actual performance and the kind of performance desired by the organization, discussion and feedback and then the final decision.

Setting Performance Standards
The first step which employers follow is to set a particular benchmark which they would use for comparing performance of each employee. The criterion is set, taking into consideration the contribution of an employee to the organizational objective and goals.

Communication
Once the performance standards are set, the management communicates these standards to all employees. This would help employees understand the roles they are expected to play and what exactly is expected out of them. The set standards are also communicated to the supervisors or evaluators, and in case there is any feedback from the employees or supervisors to modify the standards, it's done at this stage.

Measuring Performance
The most difficult part of performance appraisal is measuring performance of each employee which involves the quality and quantity of work done by each employee. It's a never-ending process and each employee's performance is monitored throughout the year. For monitoring employees throughout the year, the management carefully selects techniques to measure performance and takes care that there is no personal bias against any employee.

Comparing Desired Performance With Actual Performance
Every employer, when they select a new employee, clearly states the performance which is expected. At the end of a period of time, a comparison is made between his or her performance throughout a set period with what was expected out of him. This comparison gives an idea of deviation in the performance of each employee. The results can either be performing better or less than the standard set.

Discussions
Once a comparison is made, the results are discussed and communicated with each employee in a closed-door meeting. The main focus here is listening and communication between the employees and the management. Problems of each employee and the possible solutions are discussed and a consensus is reached. The feedback should be conveyed with a positive attitude, as it can affect an employee's performance in the future.

Deciding
The final step of the appraisal process is decision making, wherein the employees are given added training to improve their performance and take corrective action if they lag behind as compared to other employees. Other decisions like transfers, demotions, promotions and rewards are also decided.

Need of Performance Appraisal

Review of each employee's performance periodically, helps supervisors to understand an employee's abilities better. The whole aim of the process is not to demotivate an employee but to recognize his or her achievement, asses the progress an employee has made and to provide training, so as to further develop his or her strengths and skills.

The performance appraisal process is a critical component in the growth and development of not only the company, but also an individual in an organization. If there are any grievances or problems faced by an employee during the course of employment, he or she should bring it to the notice of the management as soon as possible.