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Performance Appraisals

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A performance appraisal is one of the most commonly used means of evaluating individual performance as part of an overall performance management strategy. It is essentially a continuous process in which the Employee and appraiser (typically the Line Manager) discuss and set a number of performance goals, the Line Managers provides ongoing support, coaching and feedback, and results in a formal evaluation at year-end of how well the Employee has performed in achieving those expectations. An effective performance appraisal approach is one which not only reviews and evaluates past behaviours and actions, but is also utilised as a mechanism for focusing on individual learning and development needs in order to enhance future Employee and organisational performance. Performance appraisals are typically used alongside and support other decision making events relating to promotions, terminations, training and merit pay increases.

Carried out well a performance appraisal process serves a number of purposes and helps to:

  • Focus on the achievement of organisational objectives through alignment to individual performance goals;
  • Facilitate two-way communication between the Manager and the Employee concerning how the Employee is performing;
  • Evaluate performance in a transparent and fair manner;
  • Forward plan and identify key individual learning and development objectives and enable development of these competencies over time;
  • Motivate the Employee by setting challenging and stretching assignments;
  • Is an effective and simple tool to use for both the Manager and the Employee, and
  • Reward performance either through pay or some other type of reward.