Formal
performance appraisal of employees is a useful tool for evaluating how well
employees are performing their duties and ensuring that productivity and
efficiency goals are realized by the organization. It is more likely to be used
by larger organizations.
Performance appraisals are put in
place so that goals are established by both the employer and the employee,
within the scope of the employee’s responsibilities as set out in a statement
of duties. These goals should be reasonable and consistent with the objectives
of the organization.
Equal Employment Opportunity
A formal performance appraisal,
which covers all aspects of an employer’s work, has important influences on
decision about:
- Salary reviews
- Promotional
opportunities
- Transfer requests
- Dismissal
- Grievance
- Appeal and demotion
Therefore, it is essential that any
performance appraisal be made accurately and fairly, and in accordance with
equal employment opportunity legislation.
Appraisal should focus on
performance rather than personality issues. Due to consideration should be
given to anti-discrimination and related legislation. Appraisal of performance
takes place over a set period of time, such as there, six, or 12-monthly
intervals. It may take the form of:
- A written report
- A disciplinary
interview
- Counseling
- A verbal report
Performance appraisal forms
An employer’s immediate supervisor
or manager takes responsibility for assessing an employee’s performance. Most
organizations have designated and prepared formal evaluation forms. These set
out clearly the objectives of the performance appraisal. Documents are usually
distributed by and returned to the Personnel or Human Resources section after the
process is completed. They are then filed for future reference. The performance
appraisal forms are standardized and can be include checklists, rating scales
and space for comments.
The appraisal interview
The appraisal interview takes place
after the formal performance appraisal has been completed.
The
purpose of an appraisal interview is to:
- Mutually consider and
resolve any problems that may exist
- Strengthen workplace
relationships by considering job responsibilities
- Seek to improve
performance
- Acknowledge
high-level performance
- Plan remedial action, if appropriate
Employees are usually supplied with
a blank copy of the evaluation forms before the appraisal interview. This gives
them an opportunity to evaluate themselves.
At the end of set period the
employee’s performance is measured against the predetermined goals. The goals
are re-examined to ensure that they are still appropriate and relevant.
Sometimes a comparison is made between the employee’s immediate supervisor’s evaluation
forms and his or her own, and the differences are discussed.
If the set goals have not been met
within a specified time, discussions take place and the reasons for the
deficiencies are explored.
The next step is to establish
training needs and set a further period for review. Further follow-up may occur
after the set period to see if the new goals and strategies have been attained.
Informal performance appraisals
Informal performance appraisals can
take place at any time throughout the year. Smaller businesses tend to conduct
performance appraisals on an informal basis.
Employees are given feedback about
good performances at work and poor performances that need improvement.
An
informal performance appraisal allows for:
- A less structured appraisal
- Greater flexibility
- Immediate feedback
- A face-to-face
interview
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