Don't let your performance appraisal program fail

 

In every organization, success depends on employee performance. So there should be reliable and unbiased ways to evaluate employees and the company should understand the value of a successful evaluation system.

"Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development." (Juneja, 2022)

Importance of reliable and unbiased performance Appraisal

01.Identifying training needs

Mwema and Gacunga (2014, 324-337), identified that PA helps to identify the training needs of staff and accordingly organization can provide required training to improve the employee’s performances. This will add value to the company and can consider training as a long-term investment also. After reviewing data if the company identified that all the employees in one section are relatively weak for same area company can arrange common training for that section rather than giving individual one.

02.Providing feedback

After the performance appraisal organization can give feedback on the employee’s performance and can point out the areas in which he or she is strong and weak. An employee can use this information to do a self-evaluation and can take necessary action to overcome his/her weaknesses. The company can record and use the information collected from PA for future use.

03.Getting information for promotion

Everyone in the company is expecting a promotion as a benefit. So successful PA provides a lot of information regarding the employee’s past year's performance and it helps to make good decisions to fill the most important positions with the most capable employees. Most of the time immediate supervisors recommend to the top management about their subordinates if he or she is having the capacity for being promoted.

04.Giving motivation

PA consider as a motivational tool. If the target is achieved companies arrange extra benefits for the employee.  Most companies use the score that gets in PA, to decide annual increments and bonuses.

05.Develop positive relationship between employee and employer

Most companies use a two-way method for performance evaluation. (Both supervisor and subordinate actively participated). Here supervisor can appreciate his subordinate’s last year performance, can give genuine feedback to improve the subordinate’s KAS (Knowledge, Attitudes and Skills), Can give guidance to move forward in his or her career path and can build trust.

Apart from reasons the benefits of effective PA organizations can determine compensation changes, arrange to counsel for poor performers, set the most effective individual and team targets, can develop healthy competition between employees these data can use for manpower planning.

Reasons for performance appraisal programs fails

01.Lack of top management information and support

Top management should support to drive the performance appraisal. For that, they should know about the value of a great PA process. On the other hand, this process may be having a lot of discussions that are consuming more time. So that top managers may reluctant to evaluate their employees properly and just fill out the evaluation form sometime even without asking the relevant employee.

02.Lack of designing PA systems and standards

If the company fails to develop a successful PA system, it is difficult to collect the correct information. As a result of this decisions that are taken based on this information also be wasted. On the other hand, KPI (Key performance indicators) should be matched with the employee’s competencies. If top management assigns KPIs that are beyond their capacity that also is a reason to fail, the PA program.

03.Barriers in communication

Sometimes mangers failed to communicate their expectation at the starting point to the employees. On the other hand, it is very important to communicate the benefits of performance appraisal programs and KPIs with the employees. After having the PA program manager should exchange the correct feedback with the subordinates. The appraisal process should not disturb to employee’s daily schedule. But if the management creates unnecessary hype about PA that will affect employee’s schedules.

04.Managers personal judgement or assessment based on preferences

Other than using standard PA parameters managers use personal views, judgments and opinions to evaluate the performances. These personal judgments may be biased and against the PA goals and objectives. In the evaluation process yes, managers can use their experience to some extent to evaluate. But he or she can’t totally depend on it.

05.Lack of simplicity

Some of the companies have very complex PA systems. This will confuse, unaligned and demotivate both employee and employer. Both parties doesn’t like to spend much time understanding the PA system and programs. So that those should be simple and easy to handle. If the PA system includes too many forms to fill out for evaluations that also be ultimately affected to the PA program's failure.

06.Lack of strategically focus

To add real value to the business objectives of PA programs should be integrated with the company’s overall strategy and goals. Objectives of PA programs should be simple. Then only employees can understand how their everyday work and individual goals will help to achieve these objectives.

07.No employee recognition and reward

Recognition and rewards are the main elements for motivating and inspiring employee performance and productivity. If the PA system doesn’t include recognition and rewards, it will affect to employee morale. As a result of this, employees felt demotivated and losses their confidence in the PA programs.

Conclusion

According to Armstrong (2009) managing performance is the means of getting better results within an agreed certain time period while upholding the organization standards and competency. Most of the companies conducted PA programs six month or annual basis. Although it is a time consuming that should be done in proper manner.   PA system very crucial for enhancing employee productivity, engagement and diversity in the company. Some of the companies using software like Trastar, Performyard, Leapsome to do the PA effectively. If the employee feel dissatisfaction with the PA programs they may tend to resign also. So have a unbiased PA system is very important to every business.

This video will take through some appraisal meeting tips for an Employee. It is worth to watch.

                                                  

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Reference

Armstrong, M. (2009) Amstrong’s Handbook of Performance Management; An Evidence-Based Guide to delivering High Performance. 4th Edition. London : Kogan page

Juneja, P. (2022) Performance Appraisal. [online] Avaialble at : https://www.managementstudyguide.com/performance-appraisal.htm [Accessed 01.04.2023]

Mwema, N. W. & Gachunga, H. G. (2014). The Influence of Performance appraisal on employee productivity in organizations: A case study of selected WHO offices in East Africa. International Journal of Social Sciences and Entrepreneurship, i(11), 324-337

Simplilearn, (2022) Appraisal Discussion With Employee And Manager | Appraisal Meeting Tips For Employee | Simplilearn [online video] Available at : https://www.youtube.com/watch?v=FJ-Xu-VoyAc&t=55s [Accessed 01.04.2023]