A company's performance depends to a great extent on effective performance appraisal of its workforce. An effective evaluation leads a company to competitive advantage; it motivates the employees to perform better, gain self confidence and improve their work quality.
Some specific essentials to help companies improve their employees' performance appraisal are:
Understanding the need of a performance measurement
For an evaluation to be effective, it is useful for everyone in the organisation to understand its importance. Usually employees look at a performance appraisal with hostility. A sound understanding of why a performance review is needed may help the employees to look at it with more enthusiasm. Awareness about the performance assessment may instill a sense of ownership and responsibility among the employees. This may help the employers to conduct a performance evaluation easily and effectively.
Planning for the performance appraisal
One of the important ways that may lead to an effectual performance review is planning it well. When a performance appraisal is planned well, the formats are decided, the people to be appraised are listed and the time and venue for discussion is communicated beforehand. Moreover, the seriousness shown by the employers in planning an appraisal may change the outlook of the employees towards it. This will help the assessment to attain its goal more effectively.
Focus on the prime issues and objectives of the company
One of the major objectives of performance evaluation is for the company to understand its employees' issues and for the employees' to realise the company's objectives. While conducting a performance appraisal, in many cases, the employers tend to deviate from the prime issues. A performance review is believed to be effective when all the issues related to it are discussed with particular attention to those where there is scope for improvement with the job description and the company's objectives in clear view.
Understanding attitudes
Different people have different attitudes towards their work. If the employers know the attitudes of their employees, it is easy to conduct an appraisal. A realisation that some attitudes and lifestyles cannot be changed and have to be dealt with in a special way may help improve a performance appraisal. A positive approach of the employers towards performance appraisal improves the attitude of the employees towards the organisation.
Open and two-way communication
A performance review may turn out to be ineffective if the communication is dominated by the employers and not two-way. A two-way communication may lead to revelation of suppressed feelings, thoughts and ideas. The communication also needs to be honest and frank without which a performance appraisal often turns out to be futile.
Smaller details, greater effect
When an organisation takes care of the minute details in evaluation, employees realise the importance of such a practice. Details like a private venue, convenient time, avoiding heated arguments, professional and smooth-tempered tone of communication, equal rating criteria as well as encouraging words every now and then may lead to a very successfully accomplished performance appraisal. A badly conducted performance appraisal may offend or hurt some employees which may affect the efficiency of the appraisal.
The documentation and use of appraisal results
The results of an effective performance appraisal system may be carefully registered and used for making credible records. The value and credibility of an appraisal system is considered strong when it is used to decide promotions, career growth, employee development practices and rewards.
An effective appraisal is aligned with the objectives of the organisation. It is believed to be able to boost the company's profitability by improving the quality of the performance of its employees.
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