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5 Methods For Employee Performance Appraisal

April 12, 2022
HRMS(Human Resource Management System)

Who wants to see a great performance by their employees? Let us tell you, it is each and every individual who is an employer!

And why not? It is one of the key ingredients to the ultimate success of your company. Right?

To boost employee productivity and improve their outcomes the employee performance appraisal is very crucial.

Before we begin to get into the details of employee performance appraisal, let us understand the basics of the same!

Employee Performance Appraisal

What Is Employee Performance Appraisal?

It is a process where the performance & productivity of employees is checked.

Employee performance Appraisal management is important as it opens the gate for salary increment and promotion. It also checks employee’s strengths, skills, and weaknesses accurately.

Employees are the pillar that holds every company.

Employee Performance Appraisal

Managing and directing employees is a key factor in determining the success or failure of the business.

For that reason, every manager understands the importance of measuring their employee’s performance and making sure that they are performing in accordance with the pre-set standards.

With this in mind, managers apply performance appraisal techniques in order to examine their employees’ capabilities.

What Are The Different Methods Of Employee Performance Appraisal?

Let’s take a look at the top 5 ways to measure employee performance appraisal.

  • Define clear objectives
  • Ensure objectives are SMART
  • Assessment Centric Method
  • Sync performance criteria, goals, and progress
  • Offer regular feedback

1. Define Clear Objectives

Create an appraisal method where managers and employees together plan, identify, organize, and communicate objectives.

This has to be done during a particular appraisal period. Managers and assistants must have periodical discussions. When the discussion is over, progress will be made to control and debate the feasibility of achieving those pre-defined objectives.

Define Clear Objectives

The performance appraisal method is used to match the organizational goal.

At the end of the review period (quarterly, half-yearly, or annual), employees are reviewed by their results.

Success is rewarded with promotion and increment in salary whereas failure is dealt with transfer or further training. To ensure the successful completion of goals, the objectives need to be defined clearly.

The Toolkit for Self-Appraisal Process!

2. Ensure Objectives Are SMART

When it comes to businesses and organizations, SMART means Specific, measurable, achievable, realistic, and time-sensitive.

Make sure the employee agrees with company policies before finalizing the objective. They might have a different view of certain tasks.

Ensure Objectives Are SMART

Objectives need to be aligned to business goals so that employees can see where they can fit into the company projects.

This will help them to gauge and process a positive approach towards the company goals.

3. Assessment Centric Method

The assessment centric method enables employees to get a bright & clear picture of how others observe & look at them.

It also tracks the impact it may have on their performance.

Centric Method

The advantage of this method is that it will not only assess the existing performance of an individual but also predict future job performance.

It is ideal for manufacturing organizations, service-based companies, and consulting firms. The biggest achievements of the assessment center method are as follows:

  • Improved employee efficiency, smart thought process, enhancement in skills. 
  • The employee will be ready to fit in any role given by the organization.
  • Improves personality of the employee (Good problem-solving skills, adaptability, ethics, etc.)

4. Sync Performance criteria, Goals, and Progress

Effective communication plays a major role for employees and managers.

If the communication is not clear and understandable then it might result in poor productivity. Syncing performance criteria can help managers and employees in:

Sync Performance criteria, Goals, and Progress

Managers should approach performance reviews with a coaching mindset. Try highlighting and extracting information to make it easier for employees.

5. Offer regular feedback

There should be 360-degree feedback. It is a multi-dimensional performance appraisal method that evaluates using feedback collected from each individual in the organization.

This method will not only eliminate bias in performance reviews but also offer a clear understanding of an individual’s competence.

This appraisal method works with five integral components like:

self-appraisals, managerial reviews, peer reviews, subordinate reviews, and customer reviews.

The main advantage of this appraisal method is it increases the individual’s awareness of how they perform. It encourages employees to invest in self-development.

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What Are The Benefits Of Employee Performance Appraisal?

After seeing all of the different ways of enhancing employee performance appraisal, let’s see the benefits they bring in!

Performance appraisals help employees stay motivated.

You can easily increase the productivity of each and everyone on the team by creating evaluation systems and using them on a regular basis, providing constructive feedback and offering competitive rewards.

The key is to hold performance appraisals frequently and make them part of the company culture.

Benefits Of Employee Performance Appraisal

Apart from consistency, you should have a say in their evaluation and provide their own feedback to the company as part of the process.

Using ideas and insight from employees can help the company build more effective and productive processes and systems.

An employee performance appraisal is a commitment to make time for conversations to benefit both employees and the business. Here are some of the benefits of a great appraisal!

Benefits Of A Great Appraisal

Benefits Of A Great Appraisal

1. Personal And Professional Development

Performance appraisal is an aspect that helps you to measure employees’ performance. It allows them to identify their points of strengths and weaknesses.

Employee appraisal helps in employees’ personal growth, as they will try to overcome their weaknesses and enhance their strengths.

This will result in improving their performance and gaining new skills and experience.

2. Effective Organizational Planning

One of the best ways to utilize performance appraisals is by examining previous results to understand how the company is currently performing.

This can help managers determine future organizational goals and objectives.

Effective Organizational Planning

YES! And as it helps you determine this, you can also assign and reallocate employees to the most suitable positions based on their abilities and skills.

3. Highly Motivated Employees

Performance appraisals leave a positive impact on the employee. They feel extremely motivated by identifying hard-working and high performing employees and rewarding them for their effort.

Employee recognition gives them a sense of appreciation and significance to employees.

Similarly, identifying high performers would also allow the company to efficiently allocate the promotions, bonuses, awards, and raises to those who truly deserve it. 

In addition, performance appraisal is a key feedback and communication tool. Employee recognition programs are a fantastic way to boost motivation.

4. Design Training And Development

The employee performance data is obtained from reports which help with appraisals to design training programs that are well suited for each employee’s needs.

This will result in improving employees’ skills and increasing their chances to get promoted in the company.

Employee performance appraisals can also be used to determine the effectiveness of the training by measuring employees’ performance and comparing results before and after implementing the program.

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To Conclude!

The employee performance appraisal is a large part when calculating annual work for an organization.

By establishing the above-mentioned procedures a smooth employee performance appraisal can be managed.

We’ve been providing services to many clients with HRMS Software/Project management software solutions to help them grow. 

Feel free to contact us. Subscribe to us for information on relevant topics!!

Alpesh Vaghasiya

Alpesh Vaghasiya

The founder & CEO of Ultimate Business System Pvt. Ltd. (UBS), I'm on a mission to help small and medium-sized companies to grow to the next level of accomplishments. With a distinctive knowledge of authentic strategies and team-leading skills, my mission has always been to grow businesses digitally. The core mission of UBS is Connecting people, Optimizing the process, Enhancing performance.

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