Business Login

The efficiency of persons employed in the business is ascertained by evaluating their performance in terms of results achieved. Performance Appraisal is a systematic process of measuring the effectiveness of employees and their potential for development. The benefits derived – Performance appraisal assists in assessing the present as well as future potential of an employee.

Plus, their training and development needs can be determined. A comprehensive appraisal process helps in assessing the reliability of the selection policy and to decide matters related to promotion and increments.

Requisites for an effective Appraisal Policy-

Fair and unbiased – The primary intention of the appraisal policy is the motivation of employees by assessing their past contribution with pre-defined objectives. Now, when every employee has to be rated in comparison to fellow team members, unprejudiced implementation of the appraisal policy should be ensured. The Manager responsible for the accomplishment of the policy must strictly stay away from biased and favorable frame of mind. The parameters and basis for the evaluation of performance should be equitable for every employee.

Adequate backups – Though appraisals are conducted after a defined period of time, managers should ensure that the members of the team receive feedback on a regular basis. This becomes even more important when appraisals are scheduled yearly. To make sure that short-term goals are achieved efficiently, frequent meetings and one-to-one discussions should be encouraged. Plus, when the minutes of meetings are recorded properly, these become adequate backups at the time of appraisals.

Clear and acknowledged process – The procedures laid down in the Appraisal Policy should be precise. The Line Managers and team members must be aware of the process. Also, new employees should be briefed about the policy well in advance. Roles and responsibilities of the appraiser and the employee under evaluation should be properly defined. Answers to the below enumerated questions should be clear.

  1. Who shall conduct the appraisal?
  2. When would the next appraisal happen?
  3. What will be the methodology followed (Traits Approach, or Appraisal by Results Approach)?
  4. How will the feedback be conveyed to the employee?
  5. Which department will be responsible for the evaluation of the effectiveness of the Appraisal Policy?

Confidentiality – None of us wants our results to be declared publicly. The inefficiency of an employee must not be publicized or discussed within the team. The prime motive of every appraisal policy is the motivation of employees and recognition of their training needs. Confidentiality of the results would ensure that every employee preserves his/her dignity and still upgrades skills to score better the next time.

Satisfactory dispute resolution mechanism – Disputes and differences are likely to arise. Hence, an effective mechanism should be in place to handle tough situations. Employees may feel discontent and may ask for the review of the appraisal results. The dispute resolution committee must ensure that timely review of unaccepted results is conducted and conveyed properly to the concerned employee.

No postponements – Appraisals and feedback are the right of every employee. Plus, businesses profit by the implementation of an effective appraisal process. Training and development needs of employees are identified so as to ensure that the long-term objective of the organization is within easy reach. Profitability increases by the motivation of employees on one hand and bridging of gaps on the other. Timely accomplishment of the Appraisal Process is thus the need of the hour.

How can we help?

Our experts are well-versed with numerous methods of implementing the performance appraisal process. We rely on the most suitable methodology by recognizing the organizational structure, and the results looked for at the end of the process. Enumerated below are the methods by which the performance appraisal process can be carried out.

Traits Approach (Evaluation on basis of knowledge, skills, experience, etc.)

Ranking Method – You can opt for this method if the number of employees is less and performance can be easily measurable. Employees are ranked as more or less efficient by inter-personal evaluation of attributes.

Rating-scale Method – A rating scale is designed so as to list the characteristics that may apply to the person under assessment. For instance, ‘Production Quality’ can be assessed by selecting from – ‘Exceptional’, ‘Above Average’, ‘Average’, ‘Below Average’, and ‘Needs Improvement’.

Check-list Method – This involves framing numerous descriptive statements in reference to a particular parameter. The assessor selects the most appropriate statement and the overall score is determined by providing values to different statements.

Forced Distribution Method – It is assumed that employees can be categorized as ‘Outstanding’, ‘Above Average’, ‘Average’, ‘Below Average’, and ‘Not Satisfactory’. Plus, a standard is set stating that 10% of employees will be placed in the highest and lowest categories, 20% in the ‘Above Average’ and ‘Below Average’ categories, and the remaining 40% in the ‘Average’ category.

Appraisal by Results Approach

Evaluation of managerial performance needs special care. ‘Appraisal by Results’ or ‘Management by Objectives’ method provides effective outcomes while appraising the employees on parameters like, ‘What were the actionable objectives set by the management?’, and ‘What are the actual achievements?’

This technique emphasizes on setting of targets in advance and then evaluating the achievements. On the completion of the period, the employee undertakes a self appraisal task. Post this, the manager records his comments based on factual data and a rating is assigned to the employee. Participation and transparency are the benefits achieved.

Business Login

Newsletter Signup


Vivek Gaur, Pacific Ventures
2013-10-29, 09:42
Impressive guys. I visited few webpages prior to landing at your website. I beli...
Mohit Goyal , DCG & Co
2013-10-29, 09:42
You have made Human Resource solutions look so easy. We have started using your ...