Performance appraisal is an important tool in an organization. Humans are the resources required by industries and so performance appraisal has become a crucial tool. The different organizations have different methods and strategies to build performance appraisals as per their requirements. Nowadays the organization has its unique way of making an impact on the way the appraisals are designed. Generally, a performance appraisal is done quarterly, half-yearly, and annually. It depends on the organization how often they need to do it.
Performance appraisal system gives a boost to most of the employees. They know their strength and weakness. What is the training required to improve their skills? Companies also see the development of every employee.
1 Personalized For Each Employee
An organization should involve all employees in the project work. Everybody should be able to contribute to the success of the project. They should be given the power to make a decision, even if they make a wrong decision doesn’t matter allow them to learn from their mistakes.
There are a lot of factors that come into action when it comes to the satisfaction and engagement of the employees. Employee's role and their recognition play an important role. Every employee is given a certain task or goal to achieve in his/her field. The employee takes that extra effort to contribute towards the success of the organization. In return, their only desire is that their hard work is recognized and appreciated by the organization. This can be done by email, face to face, star of the month/year, an employee of the month/year, or just a word of “Thank-you”. It will not only increase the turnover of the organization but also the employee is motivated, work will be more effective and will stay for the long term in the organization. Monetary compensation doesn’t boost their morale, though an open and transparent recognition program does.
It is sad sometimes employers fail to understand that a little motivation and appreciation can double their productivity. Not only that they will have more trusted and loyal employees.
2 Focus On Long Term For Employee Career
The appraisal of an employee depends directly on the performance over a long period of time. Every business organization wants to earn maximum profits and to achieve these the employee's contribution plays an important role. It’s the employees who work hard day and night to achieve their goals. Some of the employees perform beyond expectation and achieve better results. Employees who go all out in their respective jobs take initiative, more excited, have a positive attitude and self-belief, active, and come up with creative ideas are always looked up to by their superiors.
They are respected by the organization and rewarded also. The superiors should not be biased with their subordinates. Each individual appraisal should be sat with discussed and see which areas need improvement. The superior's encouragement and motivation play a vital role. The colleges themselves appreciating and motivating each other, helping each other out with good intentions creates good teamwork. Such employees also come in the eyes of the management.
When an employee has a good atmosphere to work and the organization also motivates the employees often, these factors help in the retention of good employees for a long period of time. When an employee knows his long-term goal and his career advancement in the organization, they would definitely settle down for the long term.
The evaluation results are the key consideration for promotion, raises, and bonuses. For effective evaluation, the companies should have a standard evaluation framework in place, so that they can review each individual as per the standard metrics set.
3 How Performance Will Be Measured or Evaluated
There are various tools to evaluate performance. But there are few things that need attention:
- Appreciate employee in the area that he/she has performed well. Give suggestions/advice in the area that needs improvement.
- Encourage them to grow better in their career keeping in mind the objectives or goals of the company.
- An employee whose performance is not up to the mark has a discussion and comes to an agreement on where and how the improvement can be done. What type of training should be given etc. There should be a mutual understanding.
- The employee should be aware of the Key Result Area as per their job profile. For E.g. a technical person would be evaluated as per his criteria designed by the organization. Criteria such as planning, productivity, decision making, communication, problem-solving, taking initiatives, etc. They should be aware of the ratings so that they can do better.
- Motivate and encourage them at timely intervals so they perform better.
- Better Communication and transparency should be maintained between the management and employees.
- Having the right reporting structure in the organization is very important. The mentors assigned should guide the employee in their tasks.
- The employees should feel free to bring up concerns regarding the job assigned to them.
- Attendance also plays a major role as it shows how much concerned or serious the employee is about his/her job or getting work done.
- The performance evaluation helps to assess the employee's contribution towards the organization and is an essential tool to make a powerful team.
- A performance appraisal should be conducted fairly, objectively, and consistently to protect the employees as well as the organizational practice.
- An effective appraisal should have a standardized evaluation form, identify the performance measures, proper feedback guidelines should be set and disciplinary procedures.
- Measuring the attendance of employees in a timely way helps to know how serious and effective the employee is towards his work and career goal.
- Time management also plays an important role, as it shows how the employee has managed his time in achieving his deadlines.
- Measuring their initiatives and innovative ideas are taken during their job process cannot be quantifiable, but the superiors in charge should highlight these points.
- Communicating the results of performance on a quarterly basis with the team helps them to get motivated and they will keep their performance goal as a priority on daily basis.
4 Provide Ample Opportunities For Learning And Development
Training and Development is a part of Human Resources which plays an integral role for the employees and the company. Many corporate companies spend a lot of money on grooming their employees, providing them training through which their overall development takes place.
Firstly the department's mentors should identify which are the areas that their subordinates need training and how they can develop in their career enhancement. Once these training needs are identified for each employee, when and how the training will take place and all the required arrangements will be done by the training and development section in the Human Resource department.
Wherever on-the-job training is required can be given by superiors. Also, the training programs should be such that it would help the employee develop his/her skills and bring in more efficiency in their work, which eventually builds success to the organization.
A member who has attained the training can give training to his team members. It not only helps the person to rewind on his learnings but also sharing his thoughts to his team members helps and builds a good environment.
The mentors should discuss with employees their training requirements and also see in what other areas the employee needs improvement. It should be a face-to-face discussion where they come to an understanding that these training requirements would improve in his/her career advancement.
The companies should create ample amount of opportunities for employees that their learning always continues while on the job. It would refresh the employee from his daily routine and his efficiency to do the assigned job or his/her alertness and the output of their work would be outstanding.
Many times even the employees who have good knowledge of his work are sent for a refresher course, just to divert them from their daily routine work were over a certain period of time the efficiency goes lower. By refreshing not only their efficiency increase but also at times they come up with superb ideas to achieve their goals.
Training not only on the job criteria but also other areas an employee needs to develop. It creates better employee morale. It helps them to contribute towards the success of the organization, it attracts talents among themselves, and to remain in this competitive edge training and development is a requirement.
- A training program presents an opportunity to instill the needed skill in the employee.
- Conducting training programs not only boosts the employees but also the organization as they have smart people to face their competitors.
- The training programs makes the employee more independent and create new ideas in their workspace.
- The importance of training your employees both new and experienced are an effective contribution to the organization. It not only boosts the reputation of the company but also reduces employee turnover.
5 Effective Feedback
It is important for the organization to provide effective feedback to employees as it helps them to know their performance and also gives motivation. A feedback form should be simple, clear, specific, and written in detail. It not only helps the employee know their strength and weakness but also it helps them to identify their knowledge gaps compared to the current knowledge. It identifies the training needs and developmental opportunities.
An organization should have clear and solid performance rating scales which are accepted by all in the organization. Performance feedback is a particular aspect of the process where training and scales are measured of an individual.
Continuous feedback creates awareness and open communication. By providing some suggestions through the year also helps in the acceptance of appraisal ratings. While rating it should be explained clearly in order to avoid any friction. Even the negative ratings are put in such a way that the improvement can be done by providing training by the organization.
Should avoid any misunderstandings, communicate openly and in a fair manner. The connections between their behavior and workspace effectiveness should be clearly communicated. Remember an appraisal form is to improve the employee and keeping that in mind makes them relaxed and open communication helps in better understanding. Try to listen to them from their perspective and show that you genuinely understand it. Then put an open and honest question that will help you to see the insights of the situation. Ultimately the goal is to have improved outcomes and relations between the mentor and employee. Being frank with each other and coming to solutions to problems is the ultimate aim here. Since giving and accepting feedback is vital and helps you to achieve the target.
A performance appraisal is an important factor of any organization. It is a record of all employees their strength and weakness are measured. It also is a positive approach for the managers towards employees where they appreciate their job well done and in the process talk about their development. Nobody is perfect, everyone needs room for improvement. Creating and maintaining a good relationship with respect helps in sharing information easier and is followed too.
Firstly every organization should have a performance appraisal for each and every individual in the organization. The goal should be set at every level. Secondly, the performance appraisal and goal should be discussed by the managers to the employees so there should be an acceptance from both sides (employer and employee). It clearly states the targets to be achieved and what is the training required in order to get more knowledge in the same field. The motivational speech and action are taken really upgrade the employee's level of working output and his commitment towards the organization.
There are many benefits to the organization and also the employee if they are implemented in a regular and systematic way. To have full benefits out of performance appraisal the system should be developed in consultation with managers and workers and also a proper link should be established on appraisal, bonuses, promotion, rewards, etc. Having an effective performance appraisal not only helps the employee but also the organization to succeed in their targets. It brings a positive vibe between the employee and employer and also motivates employee morale.
When a performance evaluation system is implemented in the organization, it ensures accountability, fairness, growth, and development, motivation, and encouragement. It brings a sense of pride among the employees working in the organization.