Performance Appraisal Method And Process

Performance Appraisal Process:

Understanding of the performance appraisal process can lead to a fruitful result towards appraisal and can influence in the overall improvement of organizations. The process includes:

Before providing any performance appraisal like promotion or salary increment, the first thing that companies need to do is to establish the performance standards against which the performance of employees will be measured.

In the second step, it is important to explain the standard to all employees, so that, they can understand and work according to the standard for getting a performance appraisal.

The third step includes the measurement and comparison of performance of employees with the established standards. Meeting with the standard will lead to performance appraisal and reward for the employee.

After a while, half yearly or annually, organizations need to conduct a special meeting to discuss about appraisal where those who have met with the standards will get promotion, salary increment or other compensation and benefits and others will not.

Performance Appraisal Methods:

There are different types of performance appraisal methods like individual oriented or multi-person oriented appraisal methods. They are also divided into various steps.

Individual Oriented:

This method includes the process like confidential report, essay evaluation, critical incident process, graphic rating, behavior rating, forced choice and management by objective method. These methods are typically used for evaluating the performance of an individual to the expectations of a company towards him/her. Successful in fulfilling the requirements, an employee is bound to have a performance appraisal in the form of promotion in rank or increment in salary or wages.

Multi-Person Oriented:

Apart from individual oriented methods, there are performance appraisal methods that are aimed at evaluating the performance of employees’ altogether. Multi-person oriented methods include forced distribution, paired comparison and ranking in accordance with the established standards and performance. The multi-person methods bring out the best performing employee from a group of employees.

The performance appraisal process and methods are very important for the overall growth of an organization as performance appraisal encourage and motivate employees to work properly. However, it is important to identify the best performing employee as based on the selection, employee retention, employee turnover depends, and on employee turnover, the productivity and performance of an organization lies.