effective performance appraisal

1. Effective performance appraisal
A company's performance depends to a great extent on effective performance appraisal of
its workforce. An effective evaluation leads a company to competitive advantage; it
motivates the employees to perform better, gain self confidence and improve their work
quality.
An evaluation needs to be objective and focused on the features of the job to be effective.
The performance criterion on which it is designed has to be accurate and as far as
possible, measurable. Strategies which assess team management and performance can
form a part of the evaluation.
Some specific essentials to help companies improve their employees' performance
appraisal are:
Understanding the need of a performance measurement
For an evaluation to be effective, it is useful for everyone in the organisation to
understand its importance. Usually employees look at a performance appraisal with
hostility. A sound understanding of why a performance review is needed may help the
employees to look at it with more enthusiasm. Awareness about the performance
assessment may instill a sense of ownership and responsibility among the employees.
This may help the employers to conduct a performance evaluation easily and effectively.
Planning for the performance appraisal
One of the important ways that may lead to an effectual performance review is planning
it well. When a performance appraisal is planned well, the formats are decided, the
people to be appraised are listed and the time and venue for discussion is communicated
beforehand. Moreover, the seriousness shown by the employers in planning an appraisal
may change the outlook of the employees towards it. This will help the assessment to
attain its goal more effectively.
Focus on the prime issues and objectives of the company
One of the major objectives of performance evaluation is for the company to understand
its employees' issues and for the employees' to realise the company's objectives. While
conducting a performance appraisal, in many cases, the employers tend to deviate from
the prime issues. A performance review is believed to be effective when all the issues
related to it are discussed with particular attention to those where there is scope for
improvement with the job description and the company's objectives in clear view.
Understanding attitudes

2. Different people have different attitudes towards their work. If the employers know the
attitudes of their employees, it is easy to conduct an appraisal. A realisation that some
attitudes and lifestyles cannot be changed and have to be dealt with in a special way may
help improve a performance appraisal. A positive approach of the employers towards
performance appraisal improves the attitude of the employees towards the organisation.
Open and two-way communication
A performance review may turn out to be ineffective if the communication is dominated
by the employers and not two-way. A two-way communication may lead to revelation of
suppressed feelings, thoughts and ideas. The communication also needs to be honest and
frank without which a performance appraisal often turns out to be futile.
Smaller details, greater effect
When an organisation takes care of the minute details in evaluation, employees realise the
importance of such a practice. Details like a private venue, convenient time, avoiding
heated arguments, professional and smooth-tempered tone of communication, equal
rating criteria as well as encouraging words every now and then may lead to a very
successfully accomplished performance appraisal. A badly conducted performance
appraisal may offend or hurt some employees which may affect the efficiency of the
appraisal.
The documentation and use of appraisal results
The results of an effective performance appraisal system may be carefully registered and
used for making credible records. The value and credibility of an appraisal system is
considered strong when it is used to decide promotions, career growth, employee
development practices and rewards.
An effective appraisal is aligned with the objectives of the organisation. It is believed to
be able to boost the company's profitability by improving the quality of the performance
of its employees.
All the best,
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