Performance appraisals are systematic processes where employers and managers periodically review and evaluate the performance or productivity of employees against predetermined indicators or objectives. Performance management or appraisal is not simply about bringing attention to poor performance or rewarding good performance. It is a comprehensive process that begins with recruiting the right workers, coaching them to deliver high-quality work, and setting the right expectations for the employees.
Although staff evaluations are mostly seen as documenting or reviewing past performance, the process should include mechanisms of motivating and rewarding employees. The appraisal process creates a constructive atmosphere where management meets employees to discuss performance. Some businesses do appraisals monthly and use the data and information gathered to review employee development. When completed properly and systematically, staff reviews often improve the employee's understanding of professional and personal goals.
For the department head or manager, a key benefit of the employee evaluation is that it provides documentation of staff performance over the review period. Performance evaluations provide an opportunity for the supervisor and employee to identify areas where there is room for improvement. The employer or manager also gets the chance to reinforce or clarify expectations. The appraisal process also informs management of staff training needs.
Managers can help employees with their career development goals through performance evaluation feedback. An unbiased evaluation points out where employees need to improve or are excelling. Managers can develop suitable plans with specific tasks that help employees grow and develop to meet company goals. Regular evaluations can be instrumental in helping employees increase their dedication and commitment to the organization and boost productivity if their efforts are recognized in the appraisal reports. This includes considering them for promotions and upgrades when promoting from within.
Employees generally like to receive feedback from their employers. When planned and well-executed, staff appraisals offer an important opportunity for management to provide workers with constructive feedback. The feedback helps them in their career aspirations and growth in the present and the long term. It is also an excellent time to discuss opportunities for employee development within the company.
For the employee, the self-appraisal component in most staff evaluation systems is good for self-development. They can constructively look inward to identify weak areas that need more attention. An employer can openly discuss a developmental or training plan with their employee so they can improve their skills. The appraisal provides an employee with a structured way to approach the management to have candid discussions, clarify expectations, identify problems, and plan for the future. It’s also a chance for parties to set up short and long-term goals.
When companies and organizations review the performance at periodic intervals, employees will better understand how their roles contribute to company goals, and they are likely to become more enthusiastic about outcomes. Performance evaluations are used by management to recognize and compensate outstanding employees during the reviewed period. This recognition builds staff morale, which in turn boosts productivity. If after the staff appraisals employees are awarded bonuses or given raises, they have tangible evidence that shows their employer appreciates their hard work. In addition, the employees can list the achievements or awards on their resumes.
