Performance appraisal is a continuous process by which an employees understanding of a company’s goals and his or her progress toward contributing to them are measured.
Performance measurement uses the following indicators of performance, as well as assessments of those indicators
1. Quantity: The number of units produced, processed or sold is a good objective indicator of performance. Be careful of placing too much emphasis on quantity, lest quality suffer 2. Quality: The quality of work performed can be measured by several means. The percentage of work output that must be redone or is rejected is one such indicator. In a sales environment, the percentage of inquiries converted to sales is an indicator of salesmanship quality.
3. Timeliness: How fast work is performed is another performance indicator that should be used with caution. In field service, the average customer’s downtime is a good indicator of timeliness. In manufacturing, it might be the number of units produced per hour. 4. Cost-Effectiveness: The cost of work performed should be used as a measure of performance only if the employee has some degree of control over costs. For example, a customer-service representative’s performance is indicated by the percentage of calls that he or she must escalate to more experienced and expensive reps. 5. Absenteeism/Tardiness: An employee is obviously not performing when he or she is not at work. Other employees’ performance may be adversely impacted by absences, too. 6. Creativity: It can be difficult to quantify creativity as a performance indicator, but in many white-collar jobs, it is vitally important. Supervisors and employees should keep track of creative work examples and attempt to quantify them. 7. Adherence to Policy: This may seem to be the opposite of creativity, but it is merely a boundary on creativity. Deviations from policy indicate an employee whose performance goals are not well aligned with...