Performance Appraisal In HRM
What is Performance Appraisal?
In every organization there is need to understand the abilities of the employees to perform and grow, performance appraisal acts as a tool to check the development opportunities for the employees. It is a systematic evaluation of the work performed by the employees.
The ways of Performance Appraisal Includes
The pay of employees is compared with the target given to them and the plans on which they act during daily work routine. The factors which are responsible for the performance of employees is analyzed by the supervisor. Further the better ways to improve the performance are suggested to the employees.
Types of Employee Performance Appraisal in HRM
- Self-assessment: Here the employee themselves rate their job performance and work behavior
- Peer assessment: Under this assessment the team members, co-workers and work group is responsible for the performance rating of the employee.
- 360-degree performance appraisal: In this type of appraisal the performance rating are collected from employee, their immediate supervisor and peers.
- Negotiated appraisal: In order to avoid the conflicts between employee and their supervisors a new trend of appraisal is utilized. In this type of performance appraisal a mediator evaluates the performance of the employee and put focus on the good side of performance rather than the criticism. (Jossey-Bass, 1999)
What are Different Methods of Employee Performance Appraisal?
- Rating Scales: In this scale the factors such as attitude, initiative, dependability etc is quantified. A range of excellent to poor is provided to the rater and based on the rating the performance of the employee is calculated.
- Checklist: A checklist form of performance appraisal consist of column of ‘Yes’ and ‘No’ for different employee traits. The rater has to put a tick mark based on if the traits exist of does not exist in the employee.
- Forced Choice Method: In this method different statements about the performance of the employee is provided to the rater and he/she is forced to answer the ready-made statements as true or false. Further evaluation of performance is carried on by HR department based on the answers of the rater.
What are the Advantages and Disadvantages of Performance Appraisal
Advantages of Performance Appraisal
- It helps the supervisors to chalk out the promotion for performing employee and dismiss the inefficient workers.
- It helps the organization to decide the compensation of the employee. Also, based on the performance and the additional efforts put by the employee the extra benefits and allowances can be decided using records of performance appraisal.
- Special actions can be taken for the development of the employees. The performance appraisal system will highlight the weakness of the employee based on which the training program arrangement can be carried out by the organization. (Wood, 2014)
Disadvantages of Performance Appraisal
- Performance appraisal is totally depends on the factors used for the evaluation of the performance. The use of incorrect or irrelevant factors can lead to failure of performance appraisal.
- Sometimes the vital factors responsible for the performance are ignored during performance appraisal.
- The factors like attitude, abilities and initiative are very vague and difficult to gauge.
Conclusion
Performance appraisals are more than just an evaluation of a person's performance with rewards and punishments as a result. Rather, it seeks to align and improve an individual's performance in order to achieve the overall organizational goal.
References
Jossey-Bass, 1999. Linking Human Resource Systems
to Organizational Strategies. AW: Building Robust Competencies.
Wood, G.a.K.-V.Z.,
2014. Strategic Human Resource Management. Strategic Human Resource
Management: An International Perspective, 12(2), pp.74-91.
Proper performance evaluation is important for motivating and retaining employees, as well as evaluating staff productivity. This article describes performance evaluation approaches in detail, so the reader will have a comprehensive understanding of the subject. Best wishes!
ReplyDeleteEvaluation of Staff's performance is vital fact. It is the main reason for employee retention. Without proper appraisal it's difficult achieve company goals as many reasons. You have identified the issue n described well.
ReplyDeleteAll the best !!!
As clearly explained by you, performance evaluation is an important function of HRM. It is essential to carry out an efficient and transparent performance evaluation process in order to motivate employees, identify areas of improvement and to recognise good performance. All the Best!
ReplyDeleteWell knowledgeable article about performance appraisal. You have clearly explained performance appraisal includes, types of employee performance appraisal and methods of employee performance. Good luck.
ReplyDeleteNice article about performance appraisal. Performance evaluation is an supreme function of HRM. Good Luck!
ReplyDeletePerformance appraisal is one of most important topic for the all organizations. Bcz according to the employee their continuous successful career depends on their employee performance and evaluation.
ReplyDeleteAppraise the performance of employees will be directly effect to the success of organisations goals. And also recognition of employee performance is more helpful to the employee career growth.
ReplyDelete