“A Performance Appraisal that is conducted effectively leads to greater employee morale, higher productivity, creating a positive culture and improved overall performance and effectiveness of an organisation.”– Kumar Parakala
As we are human beings we love to get recognition, rewards and appreciation. Everyone loves appreciation and want to get appreciated from someone. This is what we call as Performance Appraisal in Human Resource Management. Performance Appraisal is a method of evaluating the behaviour and performance of employees and to understand the present job capabilities, abilities and potential of a person for further growth and development. Performance Appraisal is also known as performance evaluation or performance review. Performance Appraisal is a systematic process. The performance of an employee can be observed by immediate supervisor, subordinate, self-appraisal and customers served. Performance Appraisal is an evaluating process as it tries to find out that how well the employee is performing the job. It is a periodic process as it is carried out periodically according to a set definite plan. Performance Appraisal is a future – oriented activity and not a past- oriented. It helps in determining the employees potentialities which refers to that how well an employee is doing his task which is assigned to him. It helps in development of employees as it forces the managers to become coach of employee rather than judges. Performance Appraisal can be formal or informal depending on the organisation. Informal evaluation is more subjective while formal evaluation is likely to be more fair and objective, as it is done in a systematic manner. Formal performance appraisal reduces the chances of biasedness but it is based to yield better results. The Performance Appraisal system should be simple and understandable so that the employees don’t find any complications in understanding the system. If it has any complication, the organisation should take some measure inorder to avoid this. It helps to create the atmosphere of mutual understanding and confidence. Performance Appraisal system should be fair and equitable justice should be provided to all employees. The main purpose of performance appraisal is to fulfill their desired goals by providing promotion, placement, increment and transfer to employees according to their performance. Special training should be provided to all the employees inorder to win their trust and to motivate them to achieve the goals. Performance Appraisal also helps in identifying the weakness and strength of employees, providing them training according to needs and aspirations, making them feel that everyone is there to support them and helping them in their career planning. Some of the objective of performance appraisal are –
- Feedback – Providing feedback to the employee regarding their work and performance is the most important justification for an organisation to have a performance appraisal system. As this shows that whether they have met the expectation of their boss or superior or not.
- Encouraging Coaching and Mentoring – Managers are expected to be good coaches to their employees rather than judges. They should mentor there employees.
- Setting and Measuring Goals – Performance Appraisal helps in ensuring that every member or employee of the organisation set and achieve their goals effectively and efficiently.
- Improving Performance – It is the most important reason for any organisation to have a performance appraisal system as this system only helps in achieving the overall organisational goals and performance of an organisation. This system helps the organisation to communicate the expectation and goals to each and every employee and to ensure that they do the same to achieve it.
- Promotion and Motivation – Performance Appraisal helps an employee to get a promotion if he do the assigned work according to the expectation of his superiors. And if an employee gets a promotion definitely he will get motivated to do such task again.
Last But Not the Least
So, Performance Appraisal is very important and crucial for both employer and employee as it helps in achieving goals of both the parties.