Performance Aprraisal..

Performance Appraisal (Author:  Luis Ocampo Romero)

A performance appraisal is a method by which the job performance of an employee is evaluated generally in terms of quality, quantity, cost, and time typically by the corresponding manager or supervisor. It is the process of analyzing, obtaining, and recording information about the relative worth of an employee to the organization Performance appraisal is an analysis of an employee's recent successes and failures, personal strengths and weaknesses, and suitability for promotion or further training. It is also the judgment of an employee's performance in a job based on considerations other than productivity alone.

The process is firmly linked to material outcomes. If an employee's performance is found to be less than ideal, a cut in pay would follow. On the other hand, if their performance is better than the supervisor expected, a pay rise is in order. Whether this is an appropriate use of performance appraisal the assignment and justification of rewards and penalties is a very uncertain and contentious matter.

Objectives

Generally, the objectives of a performance appraisal are to:

• Give employees feedback on performance
• Identify employee training needs
• Document criteria used to allocate organizational rewards
• Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, bonuses, etc.
• Provide the opportunity for organizational diagnosis and development
• Facilitate communication between employee and administration
• Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.
• To improve performance through counseling, coaching and development

There are some methods to assessing performance; a common approach is to use a numerical or scalar rating system whereby managers are asked to score an individual against a number of objectives. In some companies, employees receive assessments from their manager, peers, subordinates, and customers, while also performing a self assessment. This is known as a 360-degree appraisal and forms good communication patterns.

The most popular methods

• Management by objectives
• 360-degree appraisal
• Behavioral observation scale
• Behaviorally anchored rating scales