Performance Appraisal

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PERFORMANCE APPRAISAL
Table of Contents
Overview 2
Introduction 4
What is performance appraisal? 4
What is the purpose of performance appraisal? 4
Benefits of Performance Appraisals
Fundamentals of an appraisal system 5
How to conduct a performance appraisal 5
Step 1: Identify key performance criteria 5
Step 2: Develop appraisal measures 7
Step 3: Collect performance information from different sources 10 Step 4: Conduct an appraisal interview 13
Step 5: Evaluate the appraisal process 14
What does best practice in performance appraisal look like? 17 Using performance appraisal to address workforce development challenges 17 Recognise, reward and support effective performance 17
Develop and reward effective teamwork 17
Identify and manage issues likely to impact on retention 18
Monitor and support workers’ wellbeing 18
Summary 18
Resources for performance appraisal 18
References 19

PERFORMANCE APPRAISAL
Overview

Introduction
Conducting regular performance appraisals is an important workforce development strategy for organisations. Given the challenges of working in any sector, performance appraisals offer a valuable opportunity to recognise and reward workers’ efforts and performance, detect key barriers and facilitators to work practice, and identify professional development needs and opportunities. Investing time in regular, structured performance appraisals is a key strategy for supervisors and managers to support, motivate and reward workers.

What is performance appraisal?
Performance appraisal is a formal system that evaluates the quality of a worker’s performance. Performance appraisal is the system by which a formal review of an employee’s work performance is conducted. It is the process of evaluating the contribution of each employee in a factory or organization. An appraisal should not be viewed as an end in itself, but rather as an important process within a broader performance management system that links: • Organisational objectives

• Day-to-day performance
• Professional development
• Rewards and incentives.

What is the purpose of performance appraisal?
The point of performance appraisal is very often lost, which is why it's a hated and avoided process. To quote Robert Bacal: If you look hard at most performance appraisals as they are actually done in real world companies, you'll often end up asking yourself "What is the point?". That's because more often than not, the point is completely lost and employee reviews become an empty paper chase -- hated by all, and simply costing more than they are worth. So what is the point of performance appraisals? Here's a starting point that actually works. The most important purpose or goal of the appraisal is to improve performance in the future...and not just for the employee. Managers can get valuable information from employees to help them make employee's jobs more productive. Work units and organizations can identify problems that interfere with everyone's work (Robert Bacal, 2005). Performance appraisals are useful for organisations in several ways including: • Professional development (identifying strengths and weaknesses in performance, implementing strategies for improvement) • Determining organisational training and development needs • Making and validating administrative decisions (e.g., pay, promotion, placement, termination) • Identifying systemic factors that are barriers to, or facilitators of, effective performance. Some workers can find performance appraisals to be threatening or intimidating. However, with good design and planning, performance appraisals can be rewarding and constructive for both workers and managers / supervisors. When performance appraisals are clearly linked with recognition and rewards, there are also likely to be benefits for workers’ motivation, productivity and retention.

If workers and appraisers do not accept the appraisal system, it will be ineffective...
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