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Performance appraisal allows you to provide positive feedback as well as identifying areas for improvement. An employee can discuss and even create a developmental (training) plan with the manager so he can improve his skills. It motivates employees if supported by a good merit-based compensation system.
The term performance appraisal refers to the regular review of an employee's job performance and overall contribution to a company. Also known as an annual review, performance review or evaluation, or employee appraisal, a performance appraisal evaluates an employee's skills, achievements, and growth, or lack thereof.
10 Tips for Conducting a Productive Performance AppraisalActually do them.Be prepared.Set an agenda (and get your employee to contribute to the agenda)Do them in a comfortable, safe space.Be positive.Be honest.Set SMART goals.Discuss their career development (the future, not just the past)More items...
Performance appraisal has three basic functions: (1) to provide adequate feedback to each person on his or her performance; (2) to serve as a basis for modifying or changing behavior toward more effective working habits; and (3) to provide data to managers with which they may judge future job assignments and
Human Resources ManagementStep 1: Establish performance standards.Step 2: Communicate performance standards.Step 3: Measure performance.Step 4: Compare actual performance to performance standards.Step 5: Discuss the appraisal with the employee.Step 6: Implement personnel action.
Beatty and Schneier have categorised various methods of appraisal into four groups: comparative methods, absolute methods, goal setting, and direct indices. A more widely used classification of appraisal methods into two categories, viz., traditional methods and modem methods, is given by Strauss and Sayles.
Here are some types of performance appraisals:Negotiated appraisal.Management by objective (MBO)Assessment center method.Self-appraisal.Peer reviews.Customer or client reviews.Behaviorally anchored rating scale (BARS)Human resource accounting method.
7 Best Practices for an Effective Employee Performance ReviewPrepare Beforehand.Use Tactful Communication.Provide Concrete Examples.Try 360 Degree Feedback.Put Performance Requirements In Your Employee Handbook.Make Performance Reviews an Ongoing Process.Track the Impact of Reviews.
This helps them understand the impact of their performance. The assessment center method divides the review into three stages: pre-assessment, during assessment and post-assessment.