Importance of Employee Performance Appraisal (PA)
What is PA
Appraisals are essentials for evaluating and rewarding employee performance. They provide a means of
evaluating the team across numerous performance measures and assisting in the identification of high
performers when properly applied. The performance appraisal can help employees understand their strengths
and weaknesses, correct bad behaviors, and reach their full potential.
Objective of PA
Broadly speaking, PM can be defined as “identifying, measuring, and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization” (Aguinis, 2013, pp. 2-3).
1. Provide feedback – Appraisals are an effective way to give feedback
2. Downsize or right size - The COVID pandemic is one of the many harsh realities that might force an organization to downsize. In such a situation, appraisals are a way to make sure that the most productive and talented individuals can be retained in a company.
3. Promote right person
4. Set goals & measure goals
5. Improve work performance
6. Determines compensation
7. Encourage coaching & mentoring
8. Employee training & development
9. Improve overall organization’s performance
PA Types
Self-appraisals: Offer employees a chance to look back at their performance and understand their strengths and weaknesses.
Managerial reviews: Performance reviews done by managers are a part of the traditional and basic form of appraisals.
Peer reviews: As hierarchies move out of the organizational picture, coworkers get a unique perspective on the employee’s performance making them the most relevant evaluator.
Subordinates Appraising manager: This upward appraisal component of the 360-degree feedback is a delicate and significant step
Customer or client reviews: The client component of this phase can include either internal customers such as users of products within the organization or external customers who are not a part of the company but interact with this specific employee regularly.
Advantages & Disadvantages of PA
PA process
The management has the responsibility to evaluate and provide feedback on employee job performance, including steps to improve or redirect activities as needed. Performance management (PM) is widely advocated as a way to develop employees (Aguinis, 2013; Cascio, 2014).
Figure 2: PA Process; Source: Kea HR&Recruitment
Conclusion
Appraisals are essentials for evaluating and rewarding employee performance. They provide a means of evaluating the team across numerous performance measures and assisting in the identification of high performers when properly applied. The performance appraisal can help employees understand their strengths and weaknesses, correct bad behaviors, and reach their full potential.
References
Aguinis, H. (2013). Performance management (3rd ed.). Boston, MA: Pearson.
Aguinis, H., Joo, H., Gottfredson, R. K. (2011). Why we hate performance management—And why we should love it. Business Horizons, 54, 503-507.
HR & Recruitment: Tips for introducing a Successful performance review process
Available at: https://www.kea-hr.co.uk/2015/01/top-tips-for-introducing-a-successful-performance-review-process/
[Accessed 26 July 2021]
Bizimply: What Are the Benefits of Conducting Performance Appraisals?
Available at: https://www.bizimply.com/blog/conducting-performance-appraisals/
[Accessed 26 July 2021]
ReplyDeletePerformance appraisal allows you to provide positive feedback as well as identifying areas for improvement. An employee can discuss and even create a developmental (training) plan with the manager so he can improve his skills. It motivates employees if supported by a good merit-based compensation system. There are two primary purposes of performance appraisal: evaluative and developmental. The evaluative purpose is intended to inform people of their performance standing. The collected performance data are frequently used to reward high performance and to punish poor performance. Appraisal systems exist to improve organisational efficiency by ensuring that individuals perform to the best of their ability, develop their potential, and earn appropriate reward. This in turn leads to improved organisational performance.
Thank you for your valuable comments Oshadha.
DeletePerformance appraisals are also known as the performance reviews or the performance evaluation used by the organizations to assess an employee’s performance and appreciate him/her for his/her precious and dedicated contribution to the organization’s growth. Thus, the importance of performance appraisals can be defined as the process of evaluating an employee’s performance and personality as per the organization’s set of standards like versatility, quality of work, efficiency, cooperation, and teamwork. Based on the evaluations and assessment for the performance rating, the employee is rewarded in the form of promotions, cash awards, certificates, etc. Performance appraisals/reviews benefit both employees and employers as feedback is an important part of the performance evaluation. Thanks for sharing.
ReplyDeleteThank you for your valuable comments Harsha.
DeleteAs you explained here, Whether staff are performing well or poorly, employee appraisals present an ideal opportunity for HR to identify the next stage in their development. Many organizations use personal development plans within staff appraisals, to direct and record staff development. Very important topic...thanks for sharing
ReplyDeleteThank you for your valuable comments Mihirani.
DeleteHello Jackson. Well explained. As you explained there are lots of ways for employee appraisal. The performance appraisal increases the morale of the employees and motivates them to work more on the way to achieving the goal of the organization. Performance reviews and appraisals help to analyze an individual's performance and how the individual employee's role will affect team performance.
ReplyDeleteThank you for your valuable comments Parami.
DeleteEmployee appraisal process important from employee end since it indicate whether employee are delivering what employer is expected from them. Rewarding and appreciation of employee good work will be a best motivation factor and important to achieve organization goals and objectives. Employee evaluation process further improve the efficiency level of them and deliver their full potential to the organization.
ReplyDeleteThank you for your valuable comments Sunith.
DeletePerformance appraisal is a systematic review of staff performance which help to understand person's ability to grow continuously. Performance tests are usually done in the following systematic ways:
ReplyDelete1. Managers measure employee compensation and compare them with expected and actual performance.
2. The Manager reviews the factors affect the performance of employees.
3. Managers direct employees to work better.
Thank you for your valuable comments Rukmali.
DeleteNice article Jackson, Performance appraisal is a significant human resource exercise and tool which offers information to many important human resource decisions such as training and development needs (Taylor et. al. 1995). Fletcher (2001) describes performance appraisal more largely as actions through which organizations seek to evaluate employees and build their competence, improve performance and dispense rewards.
ReplyDeleteThank you for your valuable comments Nadun.
DeleteGood article Jakson.Performance appraisals are useful tool for employee development. It can provides guidance to employees who are doing well and employees who may require improvement. Appraisals can also be used to improve employee's performance through goal setting. Performance goals aim to encourage workers to increase their productivity and efficiently.
ReplyDeleteThank you for your valuable comments Wathsala.
DeletePerformance appraisals can be highly useful for employee development purposes. Appraisals can provide guidance to employees who are doing well and employees who may require improvement. Performance appraisals can help under performing staff by identifying specific training needs and skill gaps that require focus.
ReplyDeleteA PA is a process in which management meets with an employee to discuss performance. It is a record of an employee's performance throughout a certain time period. Staff must be aware of what is expected of them, and the PA enables managers to explain expectations and discuss difficulties with their employees.
ReplyDeleteThank you for your valuable comments Nadeeshan.
DeleteImportant article.
ReplyDeleteManagers and supervisors must always strive to get the best performance out of their employees in terms of output levels and quality (Foot and Hook, 2005). Certain systems or programs, such as performance appraisal, must be put in place to accomplish this. That is employees will be assessed after a given period of time what they have been able to achieve by a target set. This will also help supervisors to know how well their subordinates are performing on their jobs.
Thank you for your valuable comments Umesh.
DeleteThe worker performance appraisal manner is vital for organizations to enhance worker productivity and enhance their results. performance value determinations are an annual procedure wherein an employee’s performance and productiveness is evaluated against a predetermined set of objectives.Thank you for sharing.
ReplyDeleteThank you for your valuable comments Bhashitha.
DeleteEveryone enjoys being appreciated, so when a company appreciates someone, it does not keep it hidden. Organizations show their appreciation through performance appraisals or reviews. Performance appraisals are used by companies to evaluate an employee's performance and thank them for their valuable and dedicated contribution to the organization's growth. The process of evaluating an employee's performance and personality against the organization's standards like quality of work, efficiency, cooperation, and teamwork.
ReplyDeleteThank you for your valuable comments Kanchana.
DeletePerformance Appraisal is a tool that employers use to determine the particular employees performance during a given period normally per year. There are several appraisal methodologies that employers use to measure the performance periodically. It helps the employer to identify and gather information in terms of feedback from interested parties, evaluate the performance, determine promotional methods, areas of improvement etc. Through the periodical appraisal structure, the employee will also be motivated to give his/her best to the organization.
ReplyDeleteThank you for your valuable comments Arun.
DeleteThe most essential benefit of the evaluation system for the manager or department head is that it provides a record of employee performance over a specific period of time. The following is a list of the benefits of the performance appraisal system:
ReplyDeleteEmployee Individual Perfomance
Employee’s role and status
Self-development
Merit-based compensation system
Approach the management
Monitor the success of the organization’s recruitment and induction practices.
promotions, transfers and rewards
Identify the under-performers
Performance appraisal records
The outcomes will not leave you indifferent if you apply the performance appraisal method effectively and intelligently.
Great article well written Jackson. Thanks for sharing
Overall a great article Jackson! I personally think it really highlights the importance of having a proper performance appraisal which would help any organization to asses their own & their employees current position in order to successfully make the necessary adjustments going forward.
ReplyDelete