ALT-2 What is an Employee Performance Appraisal
An employee performance appraisal is a career development tool which is used by employers to determine employee dedication and improvement. This evaluation is done periodically, usually annually, by a direct supervisor to ascertain, based on the employee’s performance over the assessment period, whether he/she has excelled in the position held or whether there have been weaknesses in the performance that should be reviewed.
The performance appraisal usually gathers information in two categories. The first looks at the employee’s abilities as it pertains to the employee’s suitability in his position within the organization and the second category evaluates his/her personality and development potential. The reason for the first part of the evaluation is to determine how well the person accomplishes the tasks assigned to him/her. The second part of the appraisal provides the Human Resources Department and the relevant superiors with pertinent insight into the employee’s goals and ambitions.
This appraisal system is also a good way to assess a person’s “fit” in his current position within the organization. For example, there might be two loan officers employed within a bank environment who perform the same day-to-day duties. However, following an annual assessment, it might be deemed that one officer records significantly more loans than the other. The other loans officer might however, make a lot less mistakes, and show more organized and precise habits in carrying out his/her duties. The appraisal system is a good way to pinpoint the specific talents of the individual worker so that, if possible, the responsibilities of the workers can be amended to capitalize on those skills.
There are several benefits to the implementation of such a system, especially in a large workplace. Some of the main benefits are as follows:
The appraisal gives employees and supervisors a much needed opportunity to discuss certain aspects of the job and the organization. This is also a good time to discuss and resolve any problems or issues including those relating to professional development.
Performance appraisal is a good opportunity for the company itself to review its staff periodically as they contribute to achieving corporate strategies. By examining the goals and talents of the employees the company executives might be able to make clearer decisions towards succession planning and future expansions without having to do any external headhunting. Performance Appraisal time is usually seen as an opportunity to motivate staff and express appreciation for their work over the past year.
At many firms the performance appraisal system provides rewards in the form of productivity bonuses, promotion or merit increases based on the results of the evaluation. During the appraisal, supervisors and employees have an opportunity to discuss potential training and development needs. Based on any weaknesses observed in the employee’s skills a training program can be recommended which will benefit both the employee and the company. Since the performance appraisal system is usually done using a numeric and therefore non-discriminatory evaluation, it is considered by many a fair way to make decisions about promotions and pay increases.
As with any other system, there will be some issues and disagreements regarding the performance appraisal system. However, there are also many benefits to be seen, both to the employee and the employer.
