Why is performance appraisal important

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I. Contents of getting why is performance appraisal important

==================As a business owner, you already know the importance of recruiting capable staff and providing the employees with the training and tools necessary to do their jobs. To ensure they're performing to your expectations calls for you to conduct annual reviews of their work product, efficiency and attitude over the course of their employment. This workplace equivalent of a report card benefits supervisors and employees by identifying how to bring out their respective best.Promotion

Performance evaluations provide a look at how and what a worker is doing compared with earlier reviews of her skill sets, knowledge, initiative and participation in the company vision. This record reflects whether an employee is prepared to assume greater responsibility. If, for example, multiple candidates are vying for promotion, but there's only one slot to fill, a supervisor must justify his choice by pointing to specific examples of outstanding achievement and professional readiness.Compensation

Employers want to feel they're getting their money's worth just as much as workers want to see fatter paychecks with each year of loyal service. While government jobs often have step increases for designated classifications, as well as across-the-board raises predicated on state budgets and aggressive union negotiations, private employers base compensation decisions on individual merit and the company's financial performance. Evaluations are used to assess whether an employee deserves a salary increase based on achievement and accrued seniority as well as whether a lump sum bonus is appropriate for solving problems and attracting new business.

Training Needs

If an employee is struggling with tasks or lagging behind quotas, the problem could be the quality of training he received. According to HR Hero, an online employment law resource, ignoring skill deficiencies can jeopardize a company's attainment of its goals. An evaluation that reveals the need for remedial instruction also defines a time line to revisit the worker's progress. It's likewise a means for employees to request classes to groom them for additional responsibilities. When management demonstrates a commitment to help employees do their best, it doesn't just contribute to company morale--it also elevates individual self-esteem. According to leading HR expert Donald Kirkpatrick in "Improving Employee Performance Through Appraisal and Coaching," a supervisor's role in evaluations is akin to a sports coach in recognizing her team can't win unless every player can perform in peak condition.Disciplinary Action

In a perfect world, every employee would be hard-working, reliable, honest and enthusiastic to excel. Not everyone, however, may be as wedded to your own expectations of commitment and success. Performance appraisals constitute a legitimate paper trail in administrative and legal proceedings to prove employee negligence, willful disobedience, harassment or criminal behavior. According to Barry Silverstein's "Best Practices: Evaluating Performance: How to Appraise, Promote, and Fire," written documentation is generally more effective than verbal reprimands in addressing underperformance issues and poor attitudes.Career Goals

Although an evaluation's primary goal is to gauge whether a worker is a good fit for that company, it serves a larger purpose of helping individuals determine if they've chosen the right career paths. The feedback a worker receives regarding strengths and weaknesses is invaluable in charting a future course in which the company and worker can put her interests and talents to the best use.

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III. Performance appraisal methods

1. Essay Method

In this method the rater writes down the employee description in detail within a number of broad categories like, overall impression of performance, promoteability of employee, existing capabilities and qualifications of performing jobs, strengths and weaknesses and training needs of the employee. Advantage It is extremely useful in filing information gaps about the employees that often occur in a better-structured checklist. Disadvantages It its highly dependent upon the writing skills of rater and most of them are not good writers. They may get confused success depends on the memory power of raters.

2. Behaviorally Anchored Rating Scales

statements of effective and ineffective behaviors determine the points. They are said to be behaviorally anchored. The rater is supposed to say, which behavior describes the employee performance. Advantages helps overcome rating errors. Disadvantages Suffers from distortions inherent in most rating techniques.

3. Rating Scale

Rating scales consists of several numerical scales representing job related performance criterions such as dependability, initiative, output, attendance, attitude etc. Each scales ranges from excellent to poor. The total numerical scores are computed and final conclusions are derived. Advantages Adaptability, easy to use, low cost, every type of job can be evaluated, large number of employees covered, no formal training required. Disadvantages Raters biases

4. Checklist method

Under this method, checklist of statements of traits of employee in the form of Yes or No based questions is prepared. Here the rater only does the reporting or checking and HR department does the actual evaluation. Advantages economy, ease of administration, limited training required, standardization. Disadvantages Raters biases, use of improper weighs by HR, does not allow rater to give relative ratings

5.Ranking Method

The ranking system requires the rater to rank his subordinates on overall performance. This consists in simply putting a man in a rank order. Under this method, the ranking of an employee in a work group is done against that of another employee. The relative position of each employee is tested in terms of his numerical rank. It may also be done by ranking a person on his job performance against another member of the competitive group.Advantages of Ranking Methodi. Employees are ranked according to their performance levels.ii. It is easier to rank the best and the worst employee.Limitations of Ranking Methodi. The whole man is compared with another whole man in this method. In practice, it is very difficult to compare individuals possessing various individual traits.ii. This method speaks only of the position where an employee stands in his group. It does not test anything about how much better or how much worse an employee is when compared to another employee.iii. When a large number of employees are working, ranking of individuals become a difficult issue.iv. There is no systematic procedure for ranking individuals in the organization. The ranking system does not eliminate the possibility of snap judgements.

6. Critical Incidents Method

The approach is focused on certain critical behaviors of employee that makes all the difference in the performance. Supervisors as and when they occur record such incidents. Advantages Evaluations are based on actual job behaviors, ratings are supported by descriptions, feedback is easy, reduces recency biases, chances of subordinate improvement are high. Disadvantages Negative incidents can be prioritized, forgetting incidents, overly close supervision; feedback may be too much and may appear to be punishment.

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