Performance Appraisal System

Performance management is the process of ensuring that a set of activities and outputs meets an organization’s goals in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, an employee, or the processes in place to manage particular tasks. Performance management includes a set of activities such as learning, communicating and continuous improvement using performance measures. Performance management standards are generally organized and disseminated by senior leadership at an organization and by task owners. It can include specifying tasks and outcomes of a job, providing timely feedback and coaching, comparing employee’s actual performance and behaviors with desired performance and behaviors, instituting rewards, etc.

There are a number of potential benefits of organizational performance management conducting formal performance appraisals. There has been a general belief that performance appraisals lead to positive implications of organizations. Performance appraisals are considered to be a performance feedback for individual employees.

Components of a Performance Management System –

Setting goals: Setting realistic goals for employees inspires them to strive for better results which impact positively on the company’s overall productivity.

Planning: The qualities and degree of expertise the employee should develop in order to meet objectives are set out for him or her.

Communication and collaboration: A good performance management system aids in building an atmosphere of free open ongoing communication about the team, tasks assigned, and challenges encountered to keep the team motivated and proactive.

Performance evaluations: These are regular short term ‘check-ins’ to assess how well an employee is performing on tasks or assignments allocated to him or her.

Performance reviews: These reviews can be annual or quarterly, enabling employees to self-evaluate themselves before the supervisor rate their performance.

Good performance recognition: Recognition and reward for high performers creates an atmosphere of fair play and a level playing field within the organization.

Feedback: This component of a performance management system points out an employee’s areas of weakness, room for improvement, and strategies on how to achieve it.

Learning and Development: Active learning and development is an integral part of a performance management system and should be ongoing to help the employee attain their performance potential.