Performance appraisal is a nine-step process. At the first stage,
performance standards are established based on job description and job
specification. The standards should be clear, objective and incorporate
all the factors. The second stage is to inform these standards to all
the employees including appraisers. The third stage is following the
instructions given for appraisal measurement of employee performance by
the appraisers through observation, interview, records and reports.
The
fourth stage is finding out the influence of various internal and
external factors on actual performance. The influence of these factors
may be either inducing or hindering the employee performance. The
measured performance may be adjusted according to the influence of
external and internal factors. The performance derived at this stage may
be taken as actual performance. The fifth stage is comparing the actual
performance with that of other employees and previous performance of
the employee and others. This gives an idea where the employee stands.
If performance of all the employees is ranked either too high or too
low, there may be something wrong with the standards and job analysis.
The sixth stage is comparing the actual performance with the standard and finding out the deviations. Deviations may be positive or negative. If employee performance is more than the standards, it is positive deviation and vice versa is negative deviation. The seventh stage is communicating, the actual performance of the employee and other employees doing the same job and discuss with him about the reasons for positive or negative deviations from the pre-set standard as the case may be.
The eighth stage is suggesting necessary changes in standards, job analysis in internal and external environment. Lastly, there is follow up of performance appraisal report. This stage includes guiding, counseling, coaching and directing the employee or making arrangements for training and development of the employee in order to ensure improved performance. If the actual performance is very poor and beyond the scope of improvement, it may be necessary to take steps for demotion, retrenchment or any other suitable measure.
The sixth stage is comparing the actual performance with the standard and finding out the deviations. Deviations may be positive or negative. If employee performance is more than the standards, it is positive deviation and vice versa is negative deviation. The seventh stage is communicating, the actual performance of the employee and other employees doing the same job and discuss with him about the reasons for positive or negative deviations from the pre-set standard as the case may be.
The eighth stage is suggesting necessary changes in standards, job analysis in internal and external environment. Lastly, there is follow up of performance appraisal report. This stage includes guiding, counseling, coaching and directing the employee or making arrangements for training and development of the employee in order to ensure improved performance. If the actual performance is very poor and beyond the scope of improvement, it may be necessary to take steps for demotion, retrenchment or any other suitable measure.
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