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HomeBusiness IdeasThe role of the performance appraisal system in the organization

The role of the performance appraisal system in the organization

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A performance appraisal system evaluates job performance of an employee and a tea. It is a way to gain insight of the team working quality and to set the output and monitoring goals. It also includes capturing quantitative and qualitative feedback, thereby turning into fruitful actions.

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What Is a Performance Appraisal system?

Performance appraisal is to review the job performance of an employee and to get the clarity of their contribution to the organization. It is an evaluation of performance of an employee that results in employee appraisal. Organizations or companies using performance appraisals evaluate the achievements, skills, and growth. Companies give feedback to their employees and justify paying bonuses and hikes in salary.

How Performance Appraisals Work?

Performance appraisal process is designed for the HR departments and paves way for career development. It provides individuals an insight on their performance of job and the feedback they receive is the steering pilot. The employees meet and manage goals, and learn through the guidance, even if they lack something.

Performance appraisals help the managers and employees to create a development plan for employees. It is given through increasing responsibilities and additional training. Thus, it allows employees to move ahead and improve their career. The performance appraisal is done once a year and it is the report card of employees showing his contributions.

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Process of performance appraisal system

Process of performance appraisal system

  •  Establishing performance standards

In the performance appraisal process the first step is to set up a standard. It is the base to compare employee’s actual performance. It requires judging the employees performance. The set standard should be easy to understand and clear in measurable terms. The employee performance cannot be measured always, if so, great care must be taken to explain the standards.

  •  Measuring actual performance

The tough part in the performance appraisal system is in measuring the employee’s actual performance. It reveals the work done actually by the employees in a particular time. This process is continuous involving performance monitoring throughout the year.  It requires using appropriate techniques to measure and to take care so that there is no personal bias.  The process outcome should not appear partial. It should provide assistance and not interfere in the work of the employees.

  •  Communicating the standards

It is the management responsibility to set standards and to communicate the same to the employees. The employees must stay well informed of the set standards and if not they should get a clear explanation from their seniors. It will assist them in understanding their roles and in knowing what is expected of them. The set standards are also communicated to the evaluators or appraisers, if required. The standards are modified as per feedback from the evaluators or employees.

  •  Comparing desired and actual performance

The performance desired and actual is compared on the basis of standard set performance. The result will show actual performance and its comparisons will inform the performance deviations. The performance showing less than the desired depicts negative deviation. Such performances are evaluated and the data analysis is rechecked to verify the performance of the employee or employees.

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  • Discussing feedback

The appraisal result is discussed and communicated on one-to-one basis with employees. Getting into the discussion shows how the performance appraisal system works. The focus of appraisal system is in listening and communication. The possible solutions based on the feedback are discussed and solutions of actions help reaching the consensus. Feedback on performance appraisal helps correct mistakes of the employees and motivates them for better.

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