Performance Appraisal in HRM: What You Need to Know in 2022
Posted on Feb 27, 2022 at 10:02 AM
If you are an HRM employee or manager, you are undoubtedly familiar with the term performance appraisal.
Performance appraisal is not just an HR function. It is a necessary part of the management process in any organisation. It can be highly effective in ensuring that employees are productive, engaged, and happy in their jobs.
If you are unfamiliar with the specifics of performance appraisal and how it can benefit your company and staff, here is what you need to know about this essential aspect of HRM.
What is Performance Appraisal?
Performance appraisal is defined as a designed process to evaluate and understand an employee's job performance, contribution, skills, and development. Moreover, compare all these indicators with their position's requirements and the organisation policy.
Performance appraisal is a popular method by the HR management team to evaluate employees' performance and give formal feedback on the job process, which helps the supervisor or the team manager set employees' reviews based on performance appraisal reports.
Performance appraisal processes are a regular, systematic program with annual, semi-annual, or quarterly evaluations to evaluate employees' work performance, salary raises, and position promotions.
Also, since these performance appraisals are most likely shared with employees, this will provide them with helpful reviews to evaluate their performance and productivity and improve their skills and positions in the company itself.
On the other hand, although performance management is essential, it differs from performance appraisal as it includes activities to guarantee the organization's processes executive is effective and efficient.
Performance Appraisals Working Process:
Performance appraisal focuses on evaluating employees, giving the staff feedback to develop, and improving their weak points, which is a continuous developing opportunity for the whole company.
Let us introduce you to the main 5 points of the performance appraisal process:
1- Standards:
Usually, performance appraisals for any company's staff are done by the manager or executive supervisor on each department level with the help of the HR team.
The performance appraisal process should start with defined standards and measure the employee's job performance. Moreover, such forms are set based on the employee's job description.
2- Measurable Goals:
Since the appraisal system works on measurement basics for the employee's job performance and what they achieve compared to the position requirements, performance appraisal needs goals to be set and compared to provide a detailed review.
The performance of an employee appraisal will be measured by achievements, productivity, progress, deadlines meeting, behaviour, and overall performance.
3- Communicate and Meet:
Employee performance training courses in Dubai will help you to benefit from the performance appraisal process when contacting your employees is done in the right way to discuss their evaluation, strengths, and weaknesses to help them improve and reach a higher position in the company.
4- Measure Actual Performance:
One of the most significant advantages of performance appraisal reports is that it gives actual performance indicators about the employees' job performance, which will guide the whole company's evaluation for performance, management, and achievements.
5- Feedback and Action:
After the performance appraisal process and handling the feedback to all employees, now, it is time for each employee to take the promotion action and be a stronger team player, so, although performance appraisal will not give you a promotion, yet it will clear the road for you to get a promotion.
5 Performance Appraisal Methods:
Nowadays, companies are always looking for improvement opportunities, and performance appraisal reports have a good and effective impact on it, with traditional and modern methods to follow:
1- Graphic Rating Scale Method:
This is a fast, cost-effective, and often used performance appraisal method that rates employees based on individual characteristics set on a scale (1 to 10) for the required criteria for every employee from the working staff.
2- Checklist Method:
The most detailed and direct feedback an employee can get from a performance appraisal with a simple Yes/No designed checklist, set by the HR team for behavioural use and achievements. Then the evaluation will be done by supervisors and managers with points according to each employee department.
3- 360 Degree Feedback Appraisal:
A group performance appraisal method as a meeting is conducted at every department. Each employee is evaluated with a performance appraisal by their direct-relation colleagues on different levels that the managers or supervisors may not be aware of, which help to create an open and healthy company culture.
4- Ranking Method:
This is a simple and effective performance appraisal process to rank employees' job performance with a list, depending on the HR team managers' systematic factors.
5- Management by Objectives:
MBO is the most extended performance appraisal method with a set of objectives that need to be achieved by employees. However, these performance appraisals will give the company and employees clear benchmarks and tools for growth.
Finally, Performance Appraisals are essential for any company and organization aiming to be part of the business world's future and improve and develop the whole employee's team.
So, start your performance appraisal and be part of the future.
