Performance appraisal, sometimes also called performance review, is a method of evaluating the performance of employees in the current run of the organization. More often than not, these performance appraisals or performance reviews are part of the individual career and organization's internal record. Most of the organizations prefer an annual or six-month performance review for employees though some use monthly and even weekly reviews to track performance from employers. The primary purpose of these performance reviews in organizations is to have uniformity for pay raise, salary hike, and promotional structure between employees in shorter terms. However, goals and objectives play a more significant role in the longer-term.
Individuals are evaluated on their ability to work under pressure, adaptation to working style, skill acquisition, and motivation to perform for the organization. Team leaders, supervisors, or managers perform analysis of employees working under them depending on several factors such as daily activities, roles, targets, plan, and overall their value to the organization- so that they can consider a pay raise or position hike for them.
Objectives of Employee Performance Review
Performance reviews can be graded with any alphabets, numerals, or any ranking based review system, for instance, total marks out of 100, etc. Sometimes they are also grouped with a positive or negative sign such as an A+ or B- employee performance group. These performance review measures are then used strategically to benefit organizations and to provide a satisfactory pay raise to the existing employees.
Performance appraisals are done with the main aim of accomplishing organizational goals. Every organization may have different objectives:
- Maintain a standard employee review system within an organization.
- Performance appraisal systematically towards achieving short term targets and long term goals within an organization.
- To assess the value of current employee potential.
- Maintain a salary appraisal structure within an organization.
- Maintaining records of employee performance periodically to compare.
- Maintain a high-performance review system to motivate employees to achieve higher.
- Rewarding employees with a hierarchical promotion or salary hike.
Types of Performance Appraisal
Information can be collected in different ways to fill employee performance reviews or appraisal based on organization preference. Reviewers will often ask specific questions related to Appraisal with limited answers to build more organized reviews from the employees.
Here are the main types of performance appraisal used in the organization that will help you understand the performance appraisal system:
1. General Performance Appraisal
In this method, the employee and his supervisor will interact directly to know about individual performance and contribution of the organization. Employees must be able to justify their role to assist supervisors with their evaluation.
2. 360-degree Appraisal
In this method, each employee provides feedback for their superiors, colleagues, and self, for evaluating performance from all perspectives. These are then used by top hierarchical administration to make a strategic decision for evaluating others.
In this method, employees rate themselves to define their contribution to the organization. These are then used with a combination of the supervisor's feedback to evaluate employee's performance.
4. Project-based Appraisal
In this method, individuals are given Appraisal after every project completion. Though the process is time taking, it makes the process more efficient and result-oriented.
5. Technological Performance Appraisal
In this method, the technical aspects of employees are given more preference and are judged based on their technical output. Individual skills here play a significant role in getting more promotional results.
6. Manager Performance Appraisal
In this method, managers or supervisors are evaluated based on teamwork and their ability to complete projects with the desired output. These appraisals define the need and role of team leaders in the organization.
7. Sales Performance Appraisal
In this method, employees are evaluated based on achieving specific goals or targets. Then individuals are then reviewed on these results to assess their performance.
An organization may use a combination of two or more performance appraisal systems to evaluate the individual contribution to their goals and objectives.
Know Your Appraisal Goals
In this competitive age, each employee is hired to do a specific set of tasks, and are given roles and responsibilities they should perform while working in the organization. Managers and supervising staff need to provide thorough instruction to employees in understanding the goals they need to establish in a given time. Each individual must be able to define their skills to the task and perform exceptionally to get more positive reviews from supervisors. Employees need to assess the requirements carefully to work in cohesion with other team members to achieve organizational goals. In practical life, an employee might have to face unforeseen challenges and complexities in their day-to-day activities. Employees need to communicate these problems and issues to their supervisors in solving them with effective measures.
Today, projects have shorter deadlines and demand more efficient results. The demand for skilled individuals is higher than ever before, as newer technologies are now being implemented across multiple industries. Employees have to bring perfection in each task to be more productive and earn at their potential. Professionals looking for a swift pay raise must give importance to these reviews and prepare themselves to answer the right answers with these top tips for performance appraisal.
An appraisal goal is set by an employer that has a mention of the tasks an employee has to carry out with clear instructions to get an appraisal. The goals can be different as per one's profile and are usually intended to push an employee's performance and job satisfaction. An attainable and best-in-interest appraisal goal must be created by keeping in mind the goal of the organization, along with the capacity of the employee. A good appraisal goal consists of clear instructions mentioning the quantity and quality of the required work, challenging yet attainable work, and time frame of the work- along with the percentage of the Appraisal.
An appraisal goal is a golden opportunity to establish yourself in the organization, enhance your skillset, check your professional strength, and get the salary hike. One must start with accepting their drawbacks and working on them along with indulging in the work with more attentiveness- as, after all, you have nothing to lose in the end. Either you are getting an appraisal or good experience - so this phase is eventually improving your efficiency.
Rise and Shine During Your Performance Review
A performance review or performance appraisal gives an insight into the current potential of your working employees and their scope for future ability to perform specific projects. Employees need to be proactive and motivated about their performance to upskill themselves to offer more value to the organization. Higher an employee contributes to the organization more, and the chances are they will get positive reviews back to gain topmost positions.
These review and appraisal systems create a uniform standard for employees to work in an organization to get promotions based on their performance. Owners, managers, and supervisors will often recommend several changes to their operations after careful consideration of reviews. These reviews help the organization to establish future goals, work, and deliver proficiently and get more productive in every aspect.
You can always prove your worth to your organization by focusing on improving your skills or learning new technologies. Working throughout the financial year is paramount; however, being ahead of time is another way to rise and shine during your appraisals.