Factors favoring Effective Performance Appraisal
Performance Appraisal system must be well-defined, corporately supported and monitored. It must be widely communicated and focused towards achieving corporate objectives. In essence, a performance appraisal system must be integrated achieving corporate objectives. In essence, performance appraisal system must be integrated as part of a performance management system aligned towards achieving corporate goals. Thus certain factors are necessary for ensuring effectiveness of performance appraisal as discussed below:
- Simple Rating System: The rating systems should be simple and based on job analysis for ensuring accuracy and fairness of performance evaluation of employees.
- Training in appraisal system: All employees, including mangers should be trained to use the appraisal system so that they understand the objectives, methodology and purpose of performance appraisal. This will build the credibility and transparency of the appraisal system.
- Quantifying performance: Performance appraisal should be based on accurate and up-to-date job descriptions and rating be made on observable performance. This will bring about grater objectivity in the appraisal process and outcomes.
- Freedom from biases: Evaluations should be done under standard conditions and should be free adverse impact arising due to personal biases, prejudices and gender5 discrimination. A biased appraisal system is worse than having no appraisal system as it damages the motivation, morale and productivity of employees negatively and impairs performance oriented behaviors.
- Participative: Preliminary results of performance appraisal should be shared with the employees to develop confidence of employees in the system and to provide opportunities for discussions.
- Reviewing officer: There must be some upper level review provision so that appraisal ratings are normalized and employees have an opportunity to speak against unfair treatment by their immediate superiors.
- Performance feedback: Performance counseling and feedback should provided to employees for creating joint actions pans for rectifying deficiencies in performance and seeking means and measures for improving performance in future.
- Combing absolute and relative standards: Appraisal should be carried out by combing absolute and relative performance standards so that job performance expectations are realistic and achievable.
- Using behavior based measures: Behaviors based measures should be used to correct and develop appropriate employee attitudes, motivation and behavior for directing and controlling employee efforts and outcomes.
- Identifying of performance goals: Performance appraisal of employees should also be based upon agreed performance objectives for ensuring that employees are rated for the level of performance expected from them.
- Training and development: Performance appraisal should be used for employee development purposes so that gaps in skills and competencies are addressed and removed for better performance and productivity.
- Recognize and reward achievement: Performance appraisal should recognize, reward, reinforce and publish employee achievements to motivate and serve as role model for other to emulate.
- Documentation: Appraisal process should ensure that performance goals and specific activities for developing performance of employees are documented for future reference and as legal backup.
- Identifying improvement areas: Appraisal should identify areas where performance is good and where it can be improved.
- Confidence and Acceptability of employees: Performance appraisal process should be carried out in such a way that employees response trust and confidence in the system. Without employee acceptance, performance appraisal shall serve no, organizational purpose and will get reduced to a mere ritual on paper.