Thursday, August 6, 2009

How to Conduct Employee Performance Appraisals

Regular performance appraisals are vital for the development of both the employer and the employee. Performance appraisals ensure that the needs and expectations of the employer are met properly by the employees. These reviews also maintain productivity and harmony within the organization. As for the employees, appraisals provide them with a clear understanding of their roles and responsibilities to the company. It also maintains healthy working relationships between superiors and subordinates. During performance reviews, employees also gain a deeper knowledge on their strengths and weaknesses which they can use to further develop their talents and skills.

Typical Performance Appraisal Process

Phase 1: Set the performance standards

The performance standards must be legally valid, unbiased, and in accordance with the industry’s qualifications. However, such should also be designed according to the actual needs of the company with regards to the organizational setup and work distribution. Through surveys and studies, the management must be able to formulate a primary set of performance expectations.

Phase II: Spreading the news

A comprehensive set of performance standards cannot be created without the essential feedback of the employees. Thus, after the management creates a primary set of performance expectations, such standards must be discussed during one-on-one meetings with every employee. These meetings will provide the employees with the chance to provide feedback regarding the matter. Meetings also ensure proper communication within the organization. The entire performance process must be explained properly to the employees, along with possible consequences. After incorporating relevant feedback to the management’s proposed standards, appropriate employee appraisal forms must be created. Other materials such as tests, team evaluation forms, and attendance sheets must also be prepared.

Phase III: Assessing the employees

Employees must be assessed every six months. Assessments must not be subjected to personal biases. Documents which can strengthen claims relevant to the appraisal must be filled out properly and compiled with the general employee appraisal form.

Phase IV: Discussing the results

Again, one-to-one meetings must be held in order to discuss the results of the appraisal process to each of the employees. Discussions must be constructive and critical and employees must be allowed to reason, and provide feedback. The managers should discuss the employee’s strengths and weakness, with emphasis on how they can further develop themselves. Corresponding rewards and penalties must also be discussed.