The performance appraisal
A Book Extract
A performance appraisal is a formal review of employee performance. At a performance appraisal, objectives or targets are agreed between manager and employee. At each subsequent appraisal, current and past performance is compared and targets are reviewed.It is a prescribed system with a meeting arranged after a set period to review the targets set by the previous appraisal. This may be six-monthly or annually, depending on your organization. Nonetheless, the performance appraisal is not only a means to review performance standards and specific targets. It is a means to:
1. Identify current job performance levels
2. Identify individual employee strengths and weaknesses
3. Motivate and encourage the individual employee
4. Reward employees for their contribution to organizational objectives
5. Identify training and development needs
6. Identify potential performance standards
7. Plan future development of the individual
8. Discuss salary, promotion and training The performance
appraisal interview At its simplest, the appraisal interview consists of three steps:
1. setting targets or standards
2. measuring performance
3. planning the appropriate action A performance appraisal begins with an interview between manager and employee, an appraisal form is completed, and action is agreed. The action plan will specify targets to improve job performance, and indicate what is the reward for improvement. This reward may be a salary increase, job promotion, an opportunity to join a management development scheme, or to enrol in a new training programme. Methods of reviewing performance There are different methods of reviewing performance. The main types are: a management assessment of the employee, a grading system and a results-oriented approach. The most common method is results-oriented. Management assessment of employee: The manager writes a brief report commenting on the personality and characteristics of an employee. There may be a list of criteria to
check against such as behaviour, appearance, reliability and enthusiasm. The manager is asked to note the employee's ability to achieve targets. Grading system: This is similar to the assessment review. The manager is given a list of categories to be assessed. This is done by selecting a grade which matches the employee's performance. Topics are related to employee effort, enthusiasm to begin and complete new tasks, the ability to work with others and qualities of leadership. This system may ask for a simple form of grading such as:
-- Excellent
-- Very Good
-- Satisfactory
-- Poor
-- Very poor Another type of grading system uses numerical scoring. A list of criteria is assessed by assigning points to each item. The points are added together and compared to a total potential score. Disadvantages of grading and assessment: the main disadvantage of management assessment and grading is that they are subjective - there is little or no input from the employee. They are not sound
techniques to define standards of performance, or to assess and address training needs for the employee. Results-oriented appraisal: this is based on performance standards or specific targets. The manager and employee agree set targets which are relevant to the employee's job role, the department, and the organization as a whole. The targets or standards are set with a future incentive in mind. This may be a promotion, salary increase, or a transfer into another department. In a results-oriented system the targets which are set may be quantitative (measurable) goals or qualitative (motivational) goals. A quantitative target is to increase productivity by 5 per cent, reduce budgetary costs by l() per cent, or increase overall sales by 15 per cent. A qualitative target is motivational and related to behaviour. For example, to effect better relations with trade customers, to create a spirit of teamwork in a small department, or to learn how to control a short temper. The training link to the
performance appraisal Training should be closely linked to the performance appraisal system in any organization. In most organizations, there is a formal system to review employee performance at least once a year. In training terms, the performance appraisal is a platform to identify:
-- the requirements of new recruits
-- inadequate performance by individual employees
-- changes in organizational objectives
-- the individual employee's goals for personal growth and development The performance appraisal assesses individual employees in terms of their job performance. Training evaluates individual employees in terms of knowledge, skills and behaviour, and how they affect overall performance and the achievement of individual and organizational goals. A performance appraisal is looking for results, where the role of training is to direct the process of achieving results. The final stage in the performance appraisal is the action plan to achieve targets. The appropriate action may require
training to increase knowledge, improve skills or change behaviour. The informal appraisal process An informal appraisal is the continuous assessment of an individual's performance during the working year. This is where training can be helpful. The pre- and post-training meetings between manager and employee are useful appraisals of employee performance in terms of knowledge, skills and behaviour. These briefing and debriefing sessions are a useful indicator of whether formal appraisal targets will be met. They assess the current and future potential of an employee, appraise training needs, and evaluate what needs have been met through training. Who is responsible for co-ordinating appraisal data? As head of training, it would be wise to compile regular reports which analyse the overall results of employee performance appraisals. This may be a personnel function. If it is your responsibility, you may wish to delegate the analysis of appraisals to a training
administrator. ENCYCLOPAEDIA OF PRACTICAL MANAGEMENT TRAINING (Vol 14)
20 Volume Series
Crest Publishing House, New Delhi
Price: Rs 9,500 (Per Set)
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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