Business Management -> Human resource management: performance appraisal
The level of employee performance is the key to business success. Managers are responsible for the performance of employees and should therefore establish a system whereby the performance of each employee is evaluated on a regular basis. Such an assessment will help the organisation to achieve its objectives and help it to run both efficiently and effectively.
There are many methods that may be used to assess the performance levels of employees. These methods include:
- management by objectives
- performance appraisal systems, and
- personal interaction and feedback
Performance appraisal methods include the process of establishing the performance levels of the employees, developing the criteria to be used to evaluate the performance of the employee and actually carrying out the appraisal and providing feedback to the employee. The end result will be an assessment of the performance of the employee based on the current period and a projection of expected performance over the next period.
The performance appraisal process may be carried out by an outsourced organisation, superiors or peers of the employee being appraised, or the appraisee themselves.
wages and salary assessment
feedback about current performance levels
establishing objectives for the employee for the next period
future training requirements
discipline of an employee
establishing a record to dismiss an employee
recording performance levels to warn employee of poor performance
There are many steps to a successful appraisal process. These include:
- the preparation of a written self-appraisal
- an evaluation of the employee's work performance
- a discussion between appraiser and appraisee
- a written statement of the intended outcomes of the process - personal objectives, benchmark to be achieved, assessment process to be followed
- a signing of the agreement
- a future evaluation of the outcomes of the agreed document
Management by Objectives is another method of employee performance appraisal. This method relies on the creation of a set of objectives that an employee hopes to achieve within a specified time-period. A timeline is established and an assessment of the employee's performances is based on the extent to which the employee achieves these objectives within the specified time period. New goals are established when the original goals have been attained.