Performance appraisal, also known as employee evaluation, is a process through which a company assesses an employee's performance in a given period. It is a crucial aspect of performance management that enables employers to identify areas where their employees need improvement, give feedback, and set objectives for the future.
Performance appraisal refers to the systematic evaluation of an employee's performance in their job. It involves reviewing objectives set at the beginning of the year or quarter, assessing work output, examining behavioral aspects on the job, and giving feedback to employees. It serves as a tool for measuring job effectiveness and identifying areas for improvement.
Performance appraisal plays a significant role in keeping employees motivated and engaged in their work. It helps them focus on improving their work output, boosts their self-esteem and morale, builds better relationships between managers and employees, and forms the basis for promotions or salary increases.
360 feedback is a type of performance appraisal that gathers input from peers, subordinates, supervisors, and other stakeholders in evaluating an employee's overall performance. It entails collecting unbiased feedback from various sources to get a holistic perspective of how an employee performs on their job.
Performance metrics are quantitative measures used to track progress towards specific goals or objectives within an organization. They are typically used in evaluating an employee's productivity, efficiency, quality of work output, customer satisfaction rates or sales figures.
Performance review involves conducting a one-on-one meeting between managers and employees to discuss their performance throughout the year or quarter. During this meeting, aspirations are discussed for the future as well as insights into how to improve upon work-related challenges.
Some commonly used methods in performance appraisals include ranking employees against each other from highest to lowest performance, rating scales that use a numerical or word-based system to evaluate employee performance, behaviorally anchored rating scales, which assess job-specific competencies and the critical incidents method, which evaluates employee performance based on critical incidents that occurred during the period under review.
The benefits of performance appraisal include boosting employee morale and motivation, enhancing communication between managers and employees, identifying areas where employees need training or support, providing an avenue for feedback and setting achievable goals for future growth.
