Performance Appraisal Procedures
Performance appraisal is the systematic evaluation of employees with respect to their performance on their job and their potential for development. A performance appraisal is an evaluation done on an employee’s job performance over a specific period of time. The works performed by the different employees differ in many aspects due to the difference in their backgrounds, experiences, knowledge, skills, abilities, and aptitudes.
Performance appraisal is a process through which performance deficiencies and actions to ratify such deficiencies. It is a continuous process of the following phases:
- Establishment of Performance Standards
It is concerned with the establishment of predetermined performance standards that will help in comparing the actual performance of the employees. The standards set should be the line with the objectives and the mission of the organization. Further the standard set must be realistic and attainable. If unrealistic and unattainable standards are set, it will demotivate and demoralize the employee. It can be done through the formulation of human resource planning and job analysis.
- Communication of Standards to Employees
Under this step, the set performance standard is communicated to the concerned employees. The expected level of performance should be communicated to the employees so that they are all well aware of what is expected of them. The employees are assigned to required duties, responsibilities, and authorities to do the tasks effectively and efficiently so that the expected standard will be met. Moreover, it provides information relating to what is to be done and how well the task is performed. The communication should be a two-way process so that the implementation can be effective.
- Measure Actual Performance
The actual performance of an individual is measured in terms of its efficiency and effectiveness. This is a crucial step in the performance appraisal process. Here the actual performances are measured. The performance is measured on the basis of predefined standards. The information related to actual performance is collected through the application of different qualitative and quantitative techniques, and the relevant criteria for comparison will be determined on the basis of such information.
- Comparison of Actual Performance with Standards
This step is concerned with the comparison of actual performance with predetermined standards. Once the standard levels of performance are set and the actual performances are measured, the next step will be the comparison of the actual with the standard performance. It is determined in terms of whether the present standard is maintained. The information provided by the report on actual performance is compared with standards in order to identify performance deviations.
- Discuss Appraisal with the Employee
This step of performance appraisal process finds out the deviation occurred in actual performance. It is essential to provide feedback to the employees on their performance. It also identifies the extent of differences and the causes of such differences. Then the finding of performance appraisal is too discussed with the concerned employees to locate the measure/solution.
- Corrective Action
If performance differs with the predetermined standards, then a corrective action is initiated in order to improve employee’s performance in future. By analyzing the reason for a gap, proper action should be taken so that the gap is bridged. When the actual and the standard performance match there is no need for any corrective action. Corrections are remedial measures which are taken to bridge the gap between predetermined and actual performance. The corrective actions can be Do Nothing, Correct Deviations, Change Standards.