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Glossary of Human Resources Management and Employee Benefit Terms
Performance appraisal, also known as performance review or evaluation, is a systematic process used by organizations to assess and evaluate the job performance of employees. It serves as a mechanism for providing feedback, identifying strengths and areas for improvement, setting goals, and making decisions related to compensation, promotions, training, and development.
Performance appraisal, also known as performance review or evaluation, is a systematic process used by organizations to assess and evaluate the job performance of employees. It involves the collection and analysis of information related to an employee's performance, accomplishments, strengths, weaknesses, and areas for improvement.
Performance appraisals serve multiple purposes, including providing feedback to employees, identifying training and development needs, setting performance goals, making decisions related to compensation and promotions, and facilitating communication between managers and employees.
The purpose of a performance appraisal is to provide feedback to employees regarding their performance, identify strengths and areas for improvement, facilitate goal setting and development planning, determine compensation and promotion decisions, and align individual performance with organizational goals.
Performance appraisals are typically conducted annually, although some organizations may choose to conduct them semi-annually or quarterly.
Performance management is a broader process that encompasses setting goals, providing feedback, coaching and development, and evaluating performance. Performance appraisals are a component of performance management, focusing specifically on assessing and documenting employees' performance against predetermined goals and standards.
A performance appraisal typically consists of several components aimed at evaluating various aspects of an employee's job performance. These components may vary depending on the organization's specific requirements and the nature of the job role. However, common elements of a performance appraisal include:
The primary use of performance appraisal information is to make decisions related to employee development, compensation, promotions, training needs, succession planning, and performance improvement initiatives.
The five common methods of performance appraisal include:
The three main types of performance appraisal are:
To avoid surprises during performance appraisals, employees can take proactive steps to manage their performance and communication throughout the appraisal period. Here are some strategies employees can employ:
Performance appraisal serves as a vital tool for organizations to effectively manage their human resources. It helps in aligning individual goals with organizational objectives, fostering employee development and engagement, and improving overall productivity and performance within the workforce.
A merit-based performance appraisal system is a method of evaluating employee performance and determining rewards or compensation based on demonstrated merit, achievement, and contributions to the organization.
In a merit-based system, employees are assessed against predetermined performance criteria or standards, and rewards such as salary increases, bonuses, promotions, or other incentives are allocated based on the quality and quantity of their performance relative to these criteria.
Merit-based performance appraisal systems aim to recognize and reward employees who consistently perform at a high level, contribute to the organization's success, and demonstrate alignment with its goals and values. This approach is intended to incentivize excellence, drive motivation, and foster a culture of performance and accountability within the organization.
Performance appraisal models can be categorized into:
The purpose of a performance appraisal is multifaceted and serves several key objectives within an organization:
Performance appraisals are typically conducted at regular intervals, with the frequency varying depending on organizational policies, industry norms, and the nature of the job role. Common timings for performance appraisals include:
Performance appraisal is important because it helps improve employee performance, facilitates communication between managers and employees, supports career development and succession planning, informs decision-making related to compensation and promotions, and contributes to overall organizational effectiveness.
Performance appraisal is important for several reasons:
These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).
Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.
eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.
Filling out a performance appraisal form involves several steps to ensure a thorough and accurate evaluation of employee performance:
Writing performance appraisal examples involves providing specific, measurable, and objective feedback on an employee's performance, accomplishments, strengths, and areas for improvement. Here are some tips for crafting effective performance appraisal examples:
Performance appraisals are typically conducted by an employee's immediate supervisor or manager, although in some cases, they may involve input from peers, subordinates, or other stakeholders.
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