For what reason are appraisals by supervisors effective

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Objectives of Performance Appraisal
Advantages of Performance Appraisal
Authorship/Referencing - About the Author(s)

Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. Performance appraisal is generally done in systematic ways which are as follows:

The supervisors measure the pay of employees and compare it with targets and plans.

The supervisor analyses the factors behind work performances of employees.

The employers are in position to guide the employees for a better performance.

Objectives of Performance Appraisal

Performance Appraisal can be done with following objectives in mind:

To maintain records in order to determine compensation packages, wage structure, salaries raises, etc.

To identify the strengths and weaknesses of employees to place right men on right job.

To maintain and assess the potential in a person for growth and development.

To provide a feedback to employees regarding their performance and related status.

It serves as a basis for influencing working habits of the employees.

To review and retain the promotional and other training programmes.

Advantages of Performance Appraisal

It is said that performance appraisal is an investment for the company which can be justified by following advantages:

Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case.

Compensation: Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. Compensation packages which includes bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority.

Employees Development: The systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programmes.

Selection Validation: Performance Appraisal helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard.

Communication: For an organization, effective communication between employees and employers is very important. Through performance appraisal, communication can be sought for in the following ways:

Through performance appraisal, the employers can understand and accept skills of subordinates.
The subordinates can also understand and create a trust and confidence in superiors.
It also helps in maintaining cordial and congenial labour management relationship.
It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication.

Motivation: Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a person’s efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the future.

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Authorship/Referencing - About the Author(s)

The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link(s) to ManagementStudyGuide.com and the content page url.

Human Resource management makes a significant contribution to the business organizational unit. HR’s primary function is to manage everything to do with the employee, from the hiring, onboarding, and performance appraisal management.

The successful HR department is one that motivates employees and eliminates employee behavioral challenges. The cornerstone of this HR department is an effective evaluation system or performance review system. For example, 360-degrees feedback appraises an employee through feedback received from different quarters, including peers and subordinates, as well as supervisors and managers.

5 reasons why a company shouldn’t ignore Performance Appraisals

1) Adjusting compensation for high performing employeesCompanies should monitor employee performance with the idea of compensating exemplary employees. Employees who go beyond the call of duty should be recognized with higher pay & awards. The net effect of this is, not only do high achieving employees continue to work hard, but other employees see that good performance is rewarded. And, they will up their game as it were. Tracking exceptional performance can only happen through an appraisal process. This should include elements such as regular one-on-one discussions between the employee and manager, 360-degree evaluations, and formal evaluations based on a role-specific list of KPIs.By tracking employee performance regularly, managers and administrators will gain access to data for establishing fair compensation guidelines based on sound performance deliverables.

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2) Keep a tab on strengths and weaknesses

When you hand out new assignments, you need to be on top of things like who is best or least suited for the job. A formal personal appraisal system that regularly tracks an individual’s strengths and weaknesses are crucial in setting up teams that can consistently accomplish goals.

An individual is not solely responsible for the success of an organization. This is why it is crucial to stay on top of what each employee brings to the table. Different workers have their own strengths and weaknesses, and identifying these areas can help managers assign tasks effectively.

3) Open up and improve communication

Silence is not an effective communication method. When things are not going well between employees and managers, communication can build bridges. An employee performance appraisal system that is designed to facilitate employee-manager communication is an essential part of the productive organization. Managers should use the appraisal as an opportunity to describe the criteria on which the performance is judged, with the aim of helping the employees better understand how to do their job.

4) Effective human resource model

An effective human resource model is a valuable tool for successfully managing the company’s greatest asset, its human capital. Effectively managed employees translate into the primary competitive advantage for organizations and companies.

Employee evaluation is a useful instrument to evaluate the effectiveness of the implemented human resource program.

This enables management to find ways to manage their employees better. Ways to achieve this goal include introducing continuing education training programs to improve employee skill sets and making knowledgebase articles available for quick and easy employee access. Continuing education is valuable for both the employee’s professional development and the organization’s ability to remain competitive.

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5) Set up clear actionable goals

Productive employees are goal-driven. They relentlessly pursue their goals to achieve excellence and rewards. Setting goals can be the high point of an appraisal when an employee feels charged to perform and achieve the desired goals. Meeting targets will make the employee feel confident. The appraisal is also an opportunity for managers to realign business objectives if market situations are changing and set realistic goals. Formal evaluations are also a good time to step away from the hustle and bustle of everyday work and reflect upon your team’s overarching direction.

Performance appraisals are most effective with the right employee evaluation tools. AssessTEAM is a reliable, easy-to-use, and comprehensive cloud-based employee performance management and productivity analysis software designed to provide organizations the right tools and resources to assess, analyze and improve individual and team performance through consistent and timely input and real-time evaluations.