Performance Appraisal

Performance Appraisal (or evaluation) - is the HRM activity used to determine the extent on which the employees are performing the job effectively. Performance appraisal should also be viewed as a system of highly interactive processes which involve personnel at all levels in differing degrees in determining job expectations, writing job descriptions, selecting relevant appraisal criteria, developing assessment tools and procedures, and collecting interpreting, and reporting results. Performance appraisal can be either Informal, when supervisors think about how well the employees are doing and Formal, when there is a system set up by the organization to regularly and systematically evaluate employee performance.

There are three types of Performance Appraisal: (1) Trait-based Appraisal - are used to assess the personality or personal characteristics of employees, such as their ability to make decisions, loyalty to the company, communication skills, or level of initiative. Trait-based appraisal is not effective in providing feedback to employees. (2) Behavior-Based Appraisals - employees are assessed on how hey do their job. Behavior measures can be very useful for feedback purposes because hey indicate exactly what an employee should do differently and (3) Results-based appraisals - measures the result of work behavior. This approach deals with bottom-line issues.

Performance Appraisal can assist the company in many ways including : Goal Setting - manager works with employee and agree on a set goals to achieve during a specific time. Reinforcing and Sustaining Performance - supervisor encourage employees to continue on a positive trajectory. Improving Performance - employer suggest ways in which employee can perform better in the future. Supervisor can point out strengths and weaknesses and help employees identify more effective ways to accomplish important tasks. Determining Career Progression Goals - gives supervisors