Performance Appraisal
Purpose of performance appraisal
Performance appraisal is used to set group and individual targets and to assess performance against them. Feedback can be provided to employees based on this and the appraisal may lead to the identification of training needs.
Performance appraisal is carried out for a business to try to measure the qualities, usefulness or 'value' of employees.
It can be used to see which employees are performing well, who might get promoted, who might benefit from training and so on.
Self-assessment
In a self-assessment process, the employees will assess their own performance, often on the basis of a questionnaire or in collaboration with their managers.
Management by Objectives
Gradient scale
A gradient scale allows people to rate themselves or peers based on scale.
These are often used in appraisal systems. There are a number of different gradients that can be used depending on the type of question.
Some of the best-known scales are:
Dual scale
A simple scale that uses positive or negative answers.
e.g.
Was the person present for each team meeting?
Yes / No
Rating scale
Respondents give a number that matches their views along a continuum.
e.g.
Rate the employee's ability to demonstrate leadership skills.
from 1 (weak) to 5 (excellent)
Likert scale
Agree or disagree with a statement.
e.g.
The employee collaborates effectively with colleagues.
Strongly disagree - disagree - neutral - agree - strongly agree
360oAppraisal
A 360o appraisal is an employee appraisal carried out from multiple perspectives. For example, if the appraisal involves a manager, they may be required to be appraised by the employees working under them, other managers working at the same level and senior managers working at a higher level. This leads to a comprehensive appraisal from a number of different points of view.
An appraisal can be beneficial to both an individual and a business. An individual is able to show what their strengths are and highlight areas that need improvement. However, if not done sensitively, it can lead to dissatisfaction and a lack of motivation.
For the business, it can highlight training needs and drive planning. It is important to ensure that people can give an honest appraisal, so appraisals are often conducted anonymously.