The Process of Performance Appraisal
The performance appraisal process follows a set pattern and it consists of the following steps:
1.Establishing Performance Standards
•The appraisal process begins with the setting up of criteria to be used for appraising the performance of employees.
•The criteria is specified with the help of job analysis which reveals the content of a job.
•This criteria should be clear, objective and in writing.
•It should be discussed with the supervisors to ensure that all the relevant factors have been included.
•Where the output can be measured the criteria is clear. If work performance cannot be measured the personal characteristics which contribute to employee performance must be determined.
•Who is to do the appraisal and how frequently appraisal is to be done should also be decided.
2.Communicating the Standards
•The performance standards specified in the first step are communicated and explained to the employees so that they come to know what is expected of them.
•The reactions of employees to the standards should be obtained.
•Once the performance standards are specified and accepted, the next stage is the measurement of actual performance.
•This requires choosing the right technique of measurement. identifying the internal and external factors influencing performance and collecting information on results achieved.
•Personal observations, written reports and-face-to-face contacts are the means of collecting data on performance.
•The performance of different employees should be so measured that it is comparable.
4.Comparing the Actual with the Standards
•Actual performance is compared with the predetermined performance standards.
•Such comparison will reveal the deviations which may be positive or negative. Positive deviations occur when the performance exceeds the standards. On the other hand, excess of standard performance over the actual performance represents negative deviation.
5.Discussing the Appraisal
•The results of the appraisal are communicated to and discussed with the employees.
•Along with the deviations, the reasons behind them are also-analysed and discussed. Such discussion will enable an employee to know his weaknesses and strengths. Therefore, he will be motivated to improve himself.
6.Taking Corrective Actions
•Through mutual discussions with employees, the steps required to improve performance are identified and initiated.
•Training, coaching, counseling, etc. are examples of corrective actions that help to improve performance.