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In this blog, we will go over the meaning, objectives, and process of the employee performance appraisal system. We also look over the appraisal comments, appraisal methods, and a sample appraisal form. 

What is Performance Appraisal?

An employee performance appraisal system is a routine review, usually once or twice a year, of the contribution of its employees to their organization. It is popularly known as an annual performance review or performance review. Normally, the company intends to evaluate the contribution, dedication, and self-development of an employee through performance review.

Generally, a company offers increment, bonus, or promotion in every certain period of time. Performance appraisal helps to raise the “employee compensation” in a justified way. The employee appraisal process allows a manager to know the skills, achievement, growth, or lack of the employees so s/he can justify the pay increase or increment of them. It also helps the managers to pinpoint the lackings of every employee therefore s/he can take initiative to eliminate those lackings.

“in many organizations, performance appraisals only occur when management is building a case to terminate someone. It’s no wonder that the result is a mutual dread of the performance evaluation session—something to be avoided, if at all possible. This is no way to manage and motivate people. Performance appraisal is supposed to be a developmental experience for the employee and a ‘teaching moment’ for the manager.”Joel Myers 

Appraisal Process

The employee performance appraisal process involves six steps. They are as follows:

  1. At first, the manager or HR determines what outcome the organization expects from each employee. It is also called the evaluation KPI (Key Performance Indicators). Sometimes the KPIs have been set for each employment tire (job position) of the organization and sometimes it has been set for each individual employee.
  2. After the determination of the KPI, it needs to be communicated with the employees. Each and every employee should know the expectation of their organization towards them. It will help them to perform accordingly. The manager should contemplate the feedback of the employee regarding the KPI. The manager can even modify or revise the KPI in light of employee feedback. In this case, the manager should use the highest standard of ethical practice.
  3. In the third stage, the company measures the performance of its employee. Today, companies mostly use some job tracking or task management system to evaluate employee performance automatically. Also, ACR (Annual Confidential Report), survey forms, and verbal feedback (interview) are massively used for this purpose.
  4. After the completion of the evaluation, it needs to be communicated with the employees. Most of the time the manager of HR personnel finds it as the most difficult task. Because the employees may take the negative feedback resentfully. So, the manager should communicate the report in the most constructive manner. If the manager properly presents the report of his employee it will affect their activities positively in the future. Similarly, unconstructive feedback can affect the future activities of the employees negatively.
  5. The final stage of the appraisal process is the undertakings of corrective action where necessary. After completing the appraisal, the manager can clearly understand where things are not going well. So, it becomes very easy for them to undertake corrective actions to improve those lackings. Generally, managers take two types of corrective actions a) immediately and b) deals predominantly with symptoms. The first one is also called “putting out fires”. The second one involves taking time and identifying the cause of the deviation and adjusting accordingly.

A Sample Performance Appraisal form

Here we have added two sample form of employee performance appraisal

Sample – 01:

Employee Performance Appraisal Form
For the period of From……………… to ……………
Name: ………………………………………. Designation:……………………………………….
Department: ……………………. Date: ………………………….

PERFORMANCE PLANNING AND RESULTS
Performance Review

  • Rate the person’s level of performance, using the definitions below.
  • Review with employee each performance factor used to evaluate his/her work performance.
  • Give an overall rating in the space provided, using the definitions below as a guide.

Performance Rating Definitions

The following ratings must be used to ensure commonality of language and consistency on overall ratings: (There should be supporting comments to justify ratings of “Outstanding” “Below Expectations, and “Unsatisfactory”)

Outstanding – Performance is consistently superior.
Exceeds Expectations – Performance is routinely above job requirements.
Meets Expectations – Performance is regularly competent and dependable.
Below Expectations – Performance fails to meet job requirements on a frequent basis.
Unsatisfactory – Performance is consistently unacceptable.

A.         Performance Factors

Administration – Measures effectiveness in planning, organizing, and efficiently handling activities.Outstanding ❏
Exceeds Expectations ❏
Meets Expectations ❏
Below Expectations ❏
Unsatisfactory
Knowledge of Work – Consider employee’s skill level, knowledge and understanding of all phases of the job and those requiring improved skills and/or experience.Outstanding ❏
Exceeds Expectations ❏
Meets Expectations ❏
Below Expectations ❏
Unsatisfactory
Communication – Measures effectiveness in listening to others, expressing ideas, both orally and in writing and  providing relevant and timely information to management,  co-workers, subordinates and customers.Outstanding ❏
Exceeds Expectations ❏
Meets Expectations ❏
Below Expectations ❏
Unsatisfactory
Teamwork – Measures how well this individual gets along with fellow employees, respects the rights of other employees and shows a cooperative spirit.Outstanding ❏
Exceeds Expectations ❏
Meets Expectations ❏
Below Expectations ❏
Unsatisfactory
Decision Making/Problem Solving – Measures effectiveness in understanding problems and making timely, practical decisions.
 
Outstanding ❏
Exceeds Expectations ❏
Meets Expectations ❏
Below Expectations ❏
Unsatisfactory
Human Resource Management – Measures effectiveness in selecting qualified people; evaluating subordinates’ performance; strengths and development needs; providing constructive  feedback, and taking appropriate and timely action with marginal or unsatisfactory performers.  Also considers efforts to further the university goal of equal employment opportunity.Outstanding ❏
Exceeds Expectations ❏
Meets Expectations ❏
Below Expectations ❏
Unsatisfactory
Expense Management – Measures effectiveness in establishing appropriate reporting and control procedures; operating efficiently at lowest cost; staying within established budgets.Outstanding ❏
Exceeds Expectations ❏
Meets Expectations ❏
Below Expectations ❏
Unsatisfactory
Independent Action – Measures effectiveness in time management; initiative and independent action within prescribed limits.Outstanding ❏
Exceeds Expectations ❏
Meets Expectations ❏
Below Expectations ❏
Unsatisfactory
Job Knowledge – Measures effectiveness in keeping knowledgeable  of methods, techniques and skills required in own job and related functions; remaining current on new developments affecting SPSU and its work activities.Outstanding ❏
Exceeds Expectations ❏
Meets Expectations ❏
Below Expectations ❏
Unsatisfactory
Leadership – Measures effectiveness in accomplishing work  assignments through subordinates; establishing challenging goals; delegating and coordinating effectively; promoting innovation and team effort.Outstanding ❏
Exceeds Expectations ❏
Meets Expectations ❏
Below Expectations ❏
Unsatisfactory
Managing Change and Improvement – Measures effectiveness in initiating changes, adapting to necessary changes from old methods when they are no longer practical, identifying new methods and generating improvement in facility’s performanceOutstanding ❏
Exceeds Expectations ❏
Meets Expectations ❏
Below Expectations ❏
Unsatisfactory
Customer Responsiveness – Measures responsiveness and courtesy in dealing with internal staff, external customers and vendors; employee projects a courteous manner.Outstanding ❏
Exceeds Expectations ❏
Meets Expectations ❏
Below Expectations ❏
Unsatisfactory
Personal Appearance – Measures neatness and personal hygiene appropriate to position.Outstanding ❏
Exceeds Expectations ❏
Meets Expectations ❏
Below Expectations ❏
Unsatisfactory
Dependability – Measures how well employee complies with instructions and performs under unusual circumstances;  consider record of attendance and punctuality.Outstanding ❏
Exceeds Expectations ❏
Meets Expectations ❏
Below Expectations ❏
Unsatisfactory
Safety – Measures individual’s work habits and attitudes as they apply to working safely.  Consider their contribution to accident prevention, safety awareness, ability to care for SPSU property and keep workspace safe and tidy.Outstanding ❏
Exceeds Expectations ❏
Meets Expectations ❏
Below Expectations ❏
Unsatisfactory
Employee’s Responsiveness – Measures responsiveness in completing job tasks in a timely manner.Outstanding ❏
Exceeds Expectations ❏
Meets Expectations ❏
Below Expectations ❏
Unsatisfactory

B. EMPLOYEE STRENGTHS AND ACCOMPLISHMENTS:

______________________________________________
______________________________________________

C. PERFORMANCE AREAS WHICH NEED IMPROVEMENT:

______________________________________________
______________________________________________

D. PLAN OF ACTION TOWARD IMPROVED PERFORMANCE:

______________________________________________
______________________________________________

 E. EMPLOYEE COMMENTS:

______________________________________________
______________________________________________

F. Signatures

              Employee Signature: _______________
Date: ________________                     
(Signature does not necessarily denote agreement with official review and means only that the employee was given the opportunity to discuss the official review with the supervisor.)

Evaluated by: __________
Date: ___________________

Sample 02

[Institution Name]
Appraisal Form for Employees (only full‐time and regular)
To be filled by Section Head/Supervisor

Name of the Employee:
Designation:
Employee ID:
Department/Section:
Evaluation Period:

Annual Performance Report [APR] Total Marks 11

QuestionnairesPointsPoint Range
The employee possesses good communication skills (Verbal & Written)0 – 02
The employee is dedicated in performing assigned responsibilities by the department/Section0 – 02
The employee is regular and punctual in attending official activities0 – 02
The employee takes initiative for developing the department/section
and organization and completes the tasks
0 – 01
The employee develops good interpersonal relationship among others and works in a team0 – 02
Employee possess good technology skills and applies in job0 – 02
Total Marks Obtained0 – 11

Documentation and Backup. Select one from the options below considering the facts. Total Marks 04

FactsPointsTick any one
Creates and maintains necessary documentation on the official
processes and works and backs up those documents in files and
online platforms.
04
Only keeps documents in files and does not keep online backup02
Poor in keeping documentation and backup of official processes and
works
00

Self‐Development. Select one from the options below considering the facts. Total Marks 03

FactsPointsTick any one
Employee takes part in organizing events, conflict management,
takes initiative other than regular tasks and has contribution beyond
assigned tasks.
02
Finish assigned task timely01
Meet assigned work target01
Does nothing00

Name of the Supervisor: ____________________
Signature with Date: __________________

If you are interested to read more HR related blog please read “The Digital transformation of HR” & “7 Reasons Why HR System Fails”

Performance Appraisal Comments

According to the result of a survey by Reflektive in 2019, approximately 92% of American professionals expect feedback on their performance at least once a year. But perhaps one of the most critical tasks of performance appraisal is providing feedback to the employees based on their appraisal score.  Most managers find it difficult to convey the appraisal comments to his or her employees. Because many times the employees understand the exact opposite of what their manager conveys. Therefore, it affects the future activities of the employees. So, while conveying the performance appraisal comments, the managers should apply the highest standard of communication skills. Here are some sample of employee performance appraisal comments –

Attendance
Positive
  1. Punctual in daily in and out.
  2. Never late in any meeting or conference.
  3. Abide by the schedule most of the time.
  4. Motivate others to adhere to the attendant’s policy.
  5. Very reliable about being at work, meeting, conference or other events on time.
Negative
  1. Does not obey the company’s attendants policy.
  2. Found late in many meetings and conferences.
  3. Fails to meet attendance goals.
  4. Not reliable about reporting to work timely.
Attitude
Positive
  1. Has a positive attitude towards his or her colleagues.
  2. Try to solve the problems instead of complaining.
  3. Never involve in office politics.
  4. Try to spread the knowledge and skills among the teammates.
  5. Never gets angry or shouts in an annoying situation.
  6. Always have a smiling face while talking to others.
  7. Inspire teammates towards positivity.
Negative
  1. Get demotivated easily.
  2. Needs to bring a negative attitude under control.
  3. Has a tendency to demotivate the teammates.
  4. Show frustration to the coworkers.
  5. Never trust the company’s vision.
  6. Show dissatisfaction with the company’s policy and culture.
  7. Spend most of the complaining about others.
Performance
Positive
  1. Exceeds expected performance or standard performance.
  2. Always try to take new initiatives for organizational betterment.
  3. Try to add value in day to day work.
  4. Set personal goals and try to achieve them.
  5. Consistently at the top of the evaluation rating scale.
  6. Assist others to do good work.
  7. Always wants to improve the performance.
Negative
  1. Actual outcomes are lower than the expected outcomes.
  2. Reluctant to take new initiatives.
  3. Always remains at the bottom of the employee performance appraisal scale.
  4. Indifferent to assists other teammates.
  5. Do not try to improve the performance.

Regular feedback on employees’ activities helps them to improve their work. It also let them know what exactly the organization wants from them. So, they can act accordingly. On the other hand, if the performance appraisal can not be done in a justified manner it can bring the opposite result. Because any failure in employee performance appraisal causes employee demotivation and even a high employee turnover. Read the similar blog “How to retain useful employees in the organization”

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