D4 Performance Appraisal
Purpose of performance appraisal:
to set individual and group targets
to assess individual and group performance
to provide employee feedback
to identify training needs.
Types of Appraisal
Self-assessment is a method of an employee evaluating their own performance against expectations. They may identify their own strengths, weaknesses and areas for improvement. This is often done using a form or questionnaire. Self-assessment may be one stage of the appraisal process followed by a meeting with their manager
Ratings scales are methods of quantifying the level of skill, quality of work or performance of an employee as part of an appraisal process.
Management by objectives is a method of a manager and subordinate agreeing on targets to achieve in a specified time frame and meeting regularly to discuss whether these targets have been met. This method can inform discussions of training needs.
360° appraisal involves gathering feedback from the circle of people that an employees engages with in their job role. This may involves managers, subordinates, colleagues and clients or customers. An employee may also include a self-assessment as part of a 360 degree appraisal.
Impact of Performance Appraisal
The individual may feel more motivated as they feel listened to by their manager. It may also give the manager a chance to acknowledge the performance of members of their team which can improve self esteem. An appraisal meeting may identify changes that need to be made to better support the employee such as training and findings from the appraisal in terms of performance and targets met can support an application for promotion or a payrise.
The business may see improvements to productivity as a result of more motivated staff and an improved understanding of training needs leading to effective investment in staff development. Appraisals give an opportunity for employees to communicate with management which can give managers a clearer picture on the issues in different areas of the organisation and devise timely solutions. Better decisions on who to promote into senior positions may be made due to a better awareness of the strengths and weaknesses of all staff.
Drawbacks of appraisals are that they can be time consuming, some people may not take the process seriously, they are subject to appraiser bias and if the appraiser is not properly trained, it can be a very uncomfortable meeting for the employee.