Performance Appraisals: Key to Employee Development

 

Introduction

Employee development is the process by which employees become even more valuable by building their skills and expanding their capabilities. The better their skills and abilities, the more likely it is that employees will succeed in their jobs and progress in their careers.

Performance evaluations are a tool for determining how quickly and well an employee is developing. They are also an opportunity to discover employees’ untapped strengths and interests, and to fill gaps in employee training that can lead to mistakes or lower productivity. (Learning, L no date)

Formal Employee Development Strategies

Formal employee development strategies are often planned and implemented by HR and/or consultants, On-site or off-site workshops to train employees in areas such as business ethics, communication, management skills, business writing, public speaking, and management techniques.

· Online training programs to build skills in areas such as international business law, marketing or sales techniques.

· Certification programs in areas ranging from software proficiency to legal knowledge to management in specific areas such as human resources and manufacturing

· Funding for formal coursework in pursuit of postsecondary degrees or certifications in areas such as business administration, finance, or related fields.

· Opportunities to attend conventions and conferences at which employees may attend workshops and build their professional networks (or in some industries, present their research, products, or ideas).

Informal Employee Development Strategies

In addition to formal employee development, many corporations offer informal development options.

· On the job training may involve a newer employee watching and then imitating a more experienced colleague. As an example in sales, a more experienced representative might make a sale using specific techniques and then allow the newer representative to try using that same technique with another potential client. After the interaction is complete, the more experienced individual might provide constructive feedback.

· Shadowing is a technique in which a newer employee literally "shadows" or follows a more experienced colleague to watch and learn from his or her techniques. It is usually followed by a conversation, during which the learner asks question to better understand the technique demonstrated.

· Mentorship and coaching are generally offered noy by peers but by managers who have the experience and knowledge to advise promising employees. Coaching is usually provided by a direct manager who may, for example, wish to support an employee so that he or she can successfully navigate a tricky or challenging project. (Learning, L, no date)    

What is a Performance Appraisal?

A performance appraisal is a systematic and periodic process of measuring an individual’s work performance against the established requirements of the job. It’s a subjective evaluation of the employee’s strengths and weaknesses, relative worth to the organization, and future development potential.

A effective performance appraisal allows you to understand what the individual performs well and identify areas for growth. Appraisals are also useful for determining how to fill new roles within the firm structure with existing personnel.

Types of Performance Appraisals

1. 360-Degree Appraisal

The manager gathers information on the employee’s performance, typically by questionnaire, from supervisors, co-workers, group members, and self-assessment.

2. Negotiated Appraisal

This type of appraisal uses a mediator to help evaluate the employee’s performance, with a greater emphasis on the better parts of the employee’s performance.

3. Peer Assessment

The team members, workgroup, and co-workers are responsible for rating the employee’s performance.

4. Self-Assessment

The employees rate themselves in categories such as work behavior, attitude, and job performance.

How Performance Appraisals Work?

Human resources (HR) departments typically create performance appraisals as a tool for employees to advance in their careers. They give people feedback on how well they are doing in their jobs, ensuring that they are managing and achieving the goals set for them and assisting them if they fall short.

Performance evaluations help determine how to share a company's limited budget for incentives like increases and bonuses. Furthermore, they provide organizations with a tool for identifying the employees who have made the most significant contributions to company growth, allowing them to properly reward their top performers.

Performance reviews also assist employees and their managers in identifying areas for improvement and career advancement, as well as in developing a strategy for the employee's development through extra training and more responsibility.

Methods of Performance Appraisals

1. 720-Degree Feedback

Collecting information not only from within the organization but also from the outside, from customers, investors, suppliers, and other financial-related groups.

2. The Assessment Center Method

Employees are evaluated based on communication skills, confidence, emotional intelligence, mental alertness, and administrative abilities.

3. Behaviorally Anchored Rating Scale (BARS)

This appraisal measures the employee’s performance by comparing it with specific established behavior examples. Each example has a rating to help collect the data.

4. Checklist Method

This simple method consists of a checklist with a series of questions that have yes/no answers for different traits.

5. Critical Incidents Method

Critical incidents could be good or bad. In either case, the supervisor takes the employee’s critical behavior into account.

6. Customer/Client Reviews

This method fits best for employees who offer goods and services to customers. The manager asks clients and customers for feedback, especially how they perceive the employee and, by extension, the business.

7. Field Review Method

HR department or corporate office representative conducts the employee's performance evaluation.

8. Forced Choice Method

This method is usually a series of prepared True/False questions.

9. General Performance Appraisal

This method involves continuous interaction between the manager and the employee, including setting goals and seeing how they are met.

10. Human Resource Accounting Method

Alternately called the “accounting method” or “cost accounting method,” this method looks at the monetary value the employee brings to the company. It also includes the company’s costs to retain the employee.

11. Management By Objective (MBO)

This process involves the employee and manager working as a team to identify goals for the former to work on. Once the goals are established, both parties discuss the progress the employee is making to meet those goals. This process concludes with the manager evaluating whether the employee achieved the goal.

12. Performance Tests and Observations

This method consists of an oral test that measures employees’ skills and knowledge in their respective fields. Sometimes, the tester poses a challenge to the employee as they must demonstrate their skills in solving the problem.

13. Project Evaluation Review

This method involves appraising team members at the end of every project, not the end of the business year.

14. Rating Scales

These ratings measure dependability, initiative, attitude, etc., ranging from Excellent to Poor or some similar scale. These results are used to calculate the employee's overall performance.

Summary

Today, the performance appraisal system is more vital than ever. It displays the management’s attitude toward its employees and how much it cares about their morale.

Once you’ve identified the best sort of performance appraisal system for your company’s needs, the next most crucial step is to properly execute it. This is to close any gaps that are impeding the organization’s progress and to address any urgent performance issues that influence the task.

Effective performance management is essential to ensure that a business operates efficiently and is on track to achieving strategic goals.

Performance appraisals are assessments of an employee’s performance against predetermined goals. They evaluate an employee’s strengths and weaknesses and discuss ways to enhance or grow those areas. Furthermore, they seek to encourage employees by providing them with suitable tasks and responsibilities that align with corporate objectives.

 

Reference

Learning, L. (no date) Principles of Management, Introduction to Employee Development and Performance Evaluations | Principles of Management. Available at: https://courses.lumenlearning.com/suny-principlesmanagement/chapter/introduction-to-employee-development-and-performance-evaluations/ [Online] (Accessed: 27 March 2024).