Performance Appraisal

Description

Performance Appraisal (Final Project Report)

Page Length : 66

Executive Summary  

What Is a Performance Appraisal?

A performance appraisal is a regular review of an employee’s job performance and overall contribution to a company. Also known as an annual review, performance review or evaluation, or employee appraisal, a performance appraisal evaluates an employee’s skills, achievements, and growth–or lack thereof.

How Performance Appraisals Work

Because companies have a limited pool of funds from which to award raises and bonuses, performance appraisals help determine how to allocate those funds. They provide a way for companies to determine which employees have contributed the most to the company’s growth so companies can reward their top-performing employees accordingly.

Performance appraisals also help employees and their managers create a plan for employee development through additional training and increased responsibilities, as well as to identify shortcomings the employee could work to resolve.

Ideally, the performance appraisal is not the only time during the year that managers and employees communicate about the employee’s contributions. More frequent conversations help keep everyone on the same page, develop stronger relationships between employees and managers, and make annual reviews less stressful.

Performance Appraisal Types

Most performance appraisals are top-down, meaning supervisors evaluate their staff with no input from the subject. But there are other types:

• Self assessment: Individuals rate their job performance and behavior.
• Peer assessment: An individual’s workgroup or coworkers rate their performance.
• 360-degree feedback assessment: Includes input from an individual, supervisor, and peers.
• Negotiated appraisal: A newer trend that utilizes a mediator and attempts to moderate the adversarial nature of performance evaluations by allowing the subject to present first. Also focuses on what the individual is doing right before any criticism is given. This structure tends to be useful during conflicts between subordinates and supervisors.

Performance Appraisal Criticisms

An issue with performance appraisals is that differentiating individual and organizational performance can be difficult. If the evaluation’s construction doesn’t reflect the culture of a company or organization, it can be detrimental. Employees report general dissatisfaction with their performance appraisal processes. Other potential issues include:

• Distrust of the appraisal can lead to issues between subordinates and supervisors or a situation in which employees merely tailor their input to please their employer.
• Performance appraisals can lead to the adoption of unreasonable goals that demoralize workers or incentivize them to engage in unethical practices.
• Some labor experts believe that use of performance appraisals has led to lower use of merit- and performance-based compensation.
• Performance appraisals may lead to unfair evaluations in which employees are judged not by their accomplishments but by their likability. They can also lead to managers giving underperforming staff a good evaluation to avoid souring their relationship.
• Unreliable raters can introduce a number of biases that skew appraisal results toward preferred characteristics or ones that reflect the rater’s preferences.
• Performance appraisals that work well in one culture or job function may not be useful in another.

Frequently Asked Questions

What are performance appraisals used for?

Performance appraisals are used to review the job performance of an employee over some period of time. These reviews are used to highlight both strengths and weaknesses in order to improve future performance.

When should a performance appraisal take place?

Performance management is an ongoing process. Throughout the year, managers are encouraged to engage with employees to establish goals, note progress, and provide feedback. Formal reviews or appraisals often take place on a yearly or quarterly basis.

What is a 360-degree appraisal?

Standard performance reviews include an employee and their manager or supervisor. The 360-degree version also solicits input from the employee’s colleagues or coworkers.

Content

1. Company Profile
2. Importance and Purpose
3. Performance Structure in the Organization
4. Research Study
   1. Research Methodology
   2. Data Collection
   3. Tools of Data Collection
   4. Technique of Data Collection
5. Data Analysis
6. Limitations
7. Findings and conclusions
8. Annexure