A good performance appraisal system should have the following objectives: * Help the employee to overcome his weaknesses, improve over his strengths, and thus enable him to improve his performance and that of the department. * Generate adequate feedback and guidance from the reporting officers to the employee. * Contribute to the growth and development of the employee through helping him in realistic goal setting. * Provide inputs to: (i) System of rewards comprising salary increments, appreciations, additional responsibilities, promotions, etc., and (ii) salary administration. * Help in creating a desirable culture and traditions in the organization. * Help identifying employees for the purpose of motivating, training, and developing them. * Generate significant, relevant, free, and valid information about employees. The process of Performance Appraisal System
Establish' Performance Standards:
At the time of designing a job description, performance standards are usually developed for the position. These standards should be clear and objective to be understood and measured. These standards should be discussed with the supervisors to find out which different factors are to be incorporated, weights, and points to be given to each factor. Then these point should be indicated on the Appraisal Form, for appraising the performance of the employees.
Communicate Performance Expectations to employees:
The next step is to communicate these standards to the employees, other wise the employees would find it difficult to guess what is expected of them.
Measure actual Performance:
Four sources of information are frequently used to measure actual performance: personal observation, statistical reports, oral reports, and written reports.