Appraisal, also known as performance appraisal, evaluation, or review is a process executed to assess the performance or contribution of each employee over a given period of time against the predefined goals.
In simpler words, performance appraisal is a process carried out to reward the best employees with promotions/ pay increases or both and provide more direction to the low performing employees to improve.
Performance appraisal process is considered to be most effective when employees and managers meet and talk at regular intervals of time (frequently) to share work progress and feedback with each other. Here are the steps that an ideal performance appraisal process has-
- Identify scope of improvement including behavior and results so that employees can perform to the best of their capability
- Set goals that benefit the business and the employee- both. For instance- setting a goal to upskill. The same will help in their growth professionally and also help them do better for your business
- Show appreciation for great work and share constructive feedback for areas that need work
- Provide opportunities for improvement through training and learning
- Review the work and progress so far formally once
- Reward great performance and performer with rewards
There are two approaches to assess every employee’s performance, i.e. traditional and modern. While traditional methods are quite passé now, most of the performance management software use at least one of the below mentioned modern and credible appraisal methods.
- 360 degree feedback
- Peer assessment
- Employee-initiated appraisals
Using a mix of these methods or even one helps keep a record of performance so that every small, big failure or achievement can be recalled at the time of semi-annual, annual and quarterly meetings.