The performance
appraisal system of one organization may vary from other organizations, though
some of the specific steps that an organization may follow are as follows:
1.
Establish
Performance Standards:
It begins by
establishing performance standards i.e. what they expect from their employee in
terms of outputs, accomplishments and skills that they will evaluate with the
passage of time. The standards set should be clear and objective enough to be understood
and measured. The standards which are set are evolved out of job analysis and
job descriptions. Standards set should be clear and not the vague one. The
expectation of the manager from his employee should be clear so that it could
be communicated to the subordinates that they will be appraised against the
standards set for them.
2.
Communicating
the Standards Set for an Employee:
Once the
standards for performance are set it should be communicated to the concerned
employee, about what it expected from them in terms of performance. It should
not be part of the employees’ job to estimate what they are expected do.
Communication is said to be two ways street, mere passing of information to subordinate
does not mean that the work is done. Communication only takes place when the information
given has taken place and has been received and understood by subordinate. . If
necessary, the standards may be tailored or revised in the light of feedback
obtained from the employees.
3.
Measuring
of the Actual Performances:
It is one of
the most crucial steps of performance appraisal process. It is very important
to know as how the performance will be measured and what should be measured,
thus four important sources frequently used by managers are personal observation,
statistical reports, oral reports, and written reports. However, combination of
all these resources gives more reliable information. What we measure is
probably more critical to the evaluation process than how we measure. The
selection of the incorrect criteria can result in serious consequences. What we
measure gives an idea about what people in an organization will attempt to
achieve. The criteria which are considered must represent performance as stated
in the first two steps of the appraisal process.
4.
Comparing
Actual Performance with Standards Set in the Beginning:
In this step of
performance appraisal the actual performance is compared with the expected or
desired standard set. A comparison between actual or desired standard may
disclose the deviation between standard performance and actual performance and
will allow the evaluator to carry on with the discussion of the appraisal with
the concerned employees.
5.
Discussion
with the Concerned Employee:
In this step
performance of the employee is communicated and discussed. It gives an idea to
the employee regarding their strengths and weaknesses. The impact of this
discussion may be positive or negative. The impression that subordinates
receive from their assessment has a very strong impact on their self esteem
and, is very important, for their future performances.
6.
Initiate
Corrective Action:
Corrective
action can be of two types; one is instant and deals primarily with symptoms.
The other is basic and deals with the causes. Instant corrective action is often
described as “putting out fires”, where as basic corrective action gets to the
source from where deviation has taken place and seeks to adjust the differences
permanently. Instant action corrects something right at a particular point and
gets things back on track. Basic action asks how and why performance deviated.
In some instances, managers may feel that they do not have the time to take
basic corrective action and thus may go for “perpetually put out fires.
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