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In: Operations Management

What is the performance appraisal process? Discuss on the popular techniques of performance eveluation

What is the performance appraisal process? Discuss on the popular techniques of performance eveluation

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Answer:

Performance appraisal process:

-Setting the performance standards:

The first step is to set the performance standards that is expected from employees.The standards should be set inline with the mission and goals of the organization.These standards should be set realistic and attainable.If they are very diificult to achieve then it will demotivate the employees.So standards should be set correctly based on objectives

-Communicating the performance standards to the employees:

The standards that are set should be clearly communicated to the employees of what is expected from them.The expected level of perfomance should be clearly stated and every employee must be aware of it

-Measuring the actual performance:

The actual performance of the employees are measured by monitoring them regularly and evaluating their performances based on various factors or methods

-Comparing the actual with the standard performance:

Once the standard performance level is set and the actual performance is measured then next step is to compare both and determine the gap between actual and desired performance.These gaps can be bridged through training and development programs

-Providing feedback:

The performace of the employee that is monitored and evaluated should be communicated to the employees as feedback on their performance.This will helps the employees to identify their weakness and areas of improvement.Providing feedback helps the employees to develop themselves for future

-Initiating corrective actions:

When there is a gap between acutal and desired performance,then corrective actions should be taken.The gap should be analysed and proper action should be taken inorder to bridge the gap.When the actual and desired performance level matches and there is no gap then corrective actions need not be taken

Techniques of performance evaluation:

-Peer review:

This method is used to evaluate the performance of an employee by taking anonymous feedback from collegues,teammates,peers on specific aspects of an employee's performance.It helps to assess the employees skills and abilities and also it determines the individual's networking skills,leadership,collaboration skills within an organization.

-Self evaluation:

In this method the employees are given the power to evaluate themselves rather than receiving managers feedback.It helps the employees to evaluate themselves and know their weakness and responsibilities within the organization.This method can provide several key inputs to the organization and employees can develop themselves based on their own evaluation process

-360 degree feedback:

This method provides the chance for all employees to submit their views and contribute towards the business goals.The employee is rated by peers,superiors,subordinates,even clients and customers.As an employee is evaluated fromall sides it is called 360 degree feedback.This feedback helps the employees to gain insight on other employees on how they percieve their work and motivates them to work hard inorder to achieve organization's objectives

-Graphic scale method:

This method is used to evaluate the employees performance based on various areas of job duties and they are graded on a scale.The grades can be represented using letters or numbers or from unsatisfactory to outstanding.This method allows employers to simultaneously evaluate several employees.Each factor regarding the job like productivity,team work,quality fo work etc are evaluated

-Critical incident method:

This method helps the managers to maintain a log throughout the year of an employee's performance.They record a list of good and bad incidents of employees performance that occured in a year


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