Understanding performance management
The value of assessing performance
Describe the value of formal and informal performance assessment in the workplace
An appraisal is one of the most commonly used methods of formal assessment and is used to evaluate and assess the performance of an employee against agreed targets and objectives, with the aim of improving employee performance. Where an employee has been able to achieve their targets, the appraisal can be used to recognise successes. This often helps to increase an employee’s confidence and motivation and can lead to better organisational performance. Many organisations will use the outcomes of an appraisal to identify potential candidates for promotions or even an increase in pay. At the same time, an appraisal meeting may include discussions on underperformance, identifying why this has occurred and how this can be avoided in the future.
An important element of the appraisal process is the setting of targets and objectives for the next period. An employee cannot be expected to perform well if they do not have a clear understanding of what is expected.
Performance management is a process which should happen on a continuous cycle. Managers must communicate with employees on a regular basis, ensuring they do not limit discussion to an annual appraisal meeting. Informal communication ensures that an employee can let a manager know if they are having difficulties completing a task, allowing the manager to offer support and
A performance appraisal helps with developing information on an employee, which will help determine if the objectives that were set forth have been met, and what needs to be improved to help with the success of the company. This evaluation happens once a year to help the employer determine whether or not an employee is a great asset for the company. Performance appraisal is very important for staff motivation, communicating, and an individual’s contribution towards the company success. Each performance appraisal must be accurate, and thought through to ensure that appraisals is effective, and to help
* Set performance goals with each employee. These goals focus on the employee’s specific performance on the job, such as his productivity, output, results, competencies, and behaviors. As you set and follow up on these goals you will be helping your employees to see that the performance appraisal is not a once a year activity but instead is a way to measure their success and course correct any shortcomings throughout the year.
Appraisals are carried out on an annual basis and actively involve employees understanding of what is expected of them. By setting agreed objectives with your line manager and then reviewing the results at an agreed later time, the staff member is made responsible for their own performance. Appraisal is an opportunity to review strengths and weaknesses, to take an overall assessment of work content, loads and volume and to look back on what has been achieved already and to set realistic goals and objectives for the following period.
The annual performance review seems ineffective, a waste of time, or it becomes demotivating for employees and thus counterproductive. Employee appraisal is a method of measuring and evaluating employee job performance. The employee evaluation consists of regular reviews at different intervals every six months or yearly reviews. The evaluations are a pre-determined set of criteria centered on organizational goals. A manager conducts performance evaluations and discusses the employee’s strengths, weaknesses, employee behaviors, productivity. A performance appraisal is essential for refinement, maintaining, or increasing job performance. These reports give the employee insight to where improvement is needed, and it provides an opportunity for development.
“Performance management is an ongoing process of communication between a supervisor and an employee that occurs throughout the year, in support of accomplishing the strategic objectives of the organization. The communication process includes clarifying expectations, setting objectives, identifying goals, providing feedback, and reviewing results.” (UC Berkeley Human Resources, 2016)
One of the most important things in a company or organization is the performance appraisals that are given to the employees, some management and upper management. A performance appraisal can give so much information not only to the employer but also to the employee. There are many different types of performance appraisal out there, also because every job is different the performance for the different. A performance appraisal is important in any company because the employee knows how they are doing well as the management staff. Performance appraisal are also great because it shows it an employee need additional training or show improvement in certain areas that they was having trouble in also if they are ready to go to the next step like a promotion or a raise.
Employee performance management is the yearlong continuous collaboration between the supervisor and employee to develop agreed upon employee goals that meet company expectations and support organizational objectives. During this continuous planning time discussions are focused on clarifying responsibilities, establishing objectives, setting goals, conferring feedback, and appraising results.
Component of an Effective Performance Appraisal Program. Communication and training are the basic elements of nearly all human resource a activities; however, they are especially important for an appraisal program to be deemed effective. The key components of an effective performance appraisal program include setting job expectations and performance standards, training leadership and employees and developing performance based rewards. An effective performance appraisal program can impact job satisfaction, productively and employee morale. Therefore, implementing a program that meets employer and employee needs affect s overall business success. Job expectations are the performance management begins long before an employee’s first performance appraisal. An employee’s first day on the job is the first chance to establish job expectations. Clarifying job
Critical elements of any performance appraisal are its reliability, validity, and objectivity. Reliability is the consistency with which something is measured; validity is the extent to which an instrument measures whatever it is intended to measure (Saal & Knight, 1995). In terms of performance appraisal, questions addressed are if the appraisal is consistent across employees and those doing the appraising, as well as ensuring the appraisal is actually measuring employee performance and not an outlying characteristic. It is in this area that the 360-degree appraisal is effective. Several authors have agreed that one observer does not effectively provide a thorough performance assessment (Rothstein, 1990). Employees possess valid information and insight regarding performance, and are useful because they have an
An organizational goals can be attained only when people put their greatest efforts. So the organization has to ascertain whether an employee has contributed his or her best performance. Performance appraisal is an objective assessment of an individual’s performance against well-defined benchmarks. The other terms used for performance appraisal are: performance rating, employee assessment, employee performance review, personnel appraisal, performance evaluation, employee evaluation and merit rating. The performance being measured against such factors as job knowledge, quality and quantity of output , initiative, leadership abilities, supervision, dependability, co-operation, judgement, versatility, health, and the like. Assessment
Performance appraisals are needed in the healthcare facility to ensure that the staff members can perform according to the organization’s standards. Performance appraisals help managers prepare their staff to walk in excellence. The performance appraisal process is one that few look forward to. However, understanding the process can help managers and employees conduct a more fruitful appraisal. At the University of Texas at Dallas, managers are taught that "A chief purpose of any performance appraisal program is employee development. This goal is accomplished by helping the employee to do a better job and by developing in the employee the knowledge and skill to meet the future needs of the work unit and the institution." (Mayhew, 2014)
With reference to different types of performance appraisal, discuss how effectively performance appraisal meets the needs of the employer and the employee.
The process of conducting performance appraisals plays a crucial role in helping employee to meet job-related objectives. This process can largely be conducted through informal and formal settings but is mainly dependent on communications. Actually, the effectiveness of the performance appraisal process is dependent on communications to a large extent. The informal performance appraisal process is carried out in the daily operations of an organization since informal discussions take place and offer immediate performance feedback (Richman, 2011).
Performance is a measure of whether or not the employee is achieving company goals effectively and efficiently provided that it contributes to the overall objectives of the organization. Management should have a strong understanding of the role of each employee as well as the ability to convey their expectations to the work force. Historically, Performance Management began as a means of income justification and was used to determine employee wages based on individual performance. Organizations using Performance Management did so in order to encourage behaviors that derive desired results from employees. In practice,
Appraisal performance of individual, groups and organizations is something important for all organizations to succeed and achieve its objectives. Also it is used to evaluate the performance of the employees and monitor them to achieve the desired goal.