Feedback is an important factor to boost a person’s performance, be it in any field. Technically, in an organization, it is known as ‘performance appraisal’. There are a lot of methods by which an appraisal can take place.

What is an ‘employee performance?’

The performance of an employee is characterized as how a representative satisfies their work obligations and executes their necessary errands. It alludes to the adequacy, quality, and effectiveness of their yield.

The performance additionally adds to our appraisal of how important a worker is to the association. Every worker is a genuine factor for an organization, so the return that every representative gives should be critical.

Methods of performance appraisal used

1. Management by Objective or MBO approach.

Here, the manager along with the employees discuss the objectives that can be achieved within a given time, work on them, and analyze the ways to achieve the goal. The appraisal is done based on the review that will be given after a certain period on how far the goal has been achieved by the employee.

If one has done a commendable job, then a hike in their salary and even a promotion would be given. On the other hand, if the target was not attained, further training would be done.

2. 360-degree feedback approach.

As the name suggests, a review of a respective employee’s performance would be taken from his/her peers, teammates, secondary managers, clients, and a self-review of his/her work. This will help the managers to look upon their performance and interpersonal skills objectively, which is as important as their performance.

3. A psychological approach.

Yes, You heard it right! This type of psychological appraisal is done in larger organizations with a reputed psychologist who conducts various tests, interviews, and discussions to analyze a person’s interpersonal, intrapersonal, extracurricular skills.

4. An assessment center approach.

A very long and time-consuming as it can be, assessment center analysis includes a pre-assessment to the post-assessment stage where a person’s acceptance, flexibility, integrities, and other factors affecting overall performance are upgraded.

5. Human resource accounting approach.

This is solely an analysis of the income an employee has earned for the company. It is evaluated through the salary given to the company and the profit amount established for the company from the respective employee.

There are other old-style methods of performance appraisal like ranking of employees, grading them, comparison using pairs, and so on.

Why do you need a performance appraisal?  

In any organization, the employees work hard to achieve the targets set by the company. They are given a fixed payment for their work. But, who would not want a hike based on their performance? Who does not like rewards?

Similarly, only when an appraisal is done, one would know where they stand and what they have done on their part to uplift the company’s ROI.

Here is the thing, when performance appraisal negatively affects an employee, some would be left disheartened, which is usual in many organizations. To steer clear of that, a positive approach is needed. A training recommendation, ways to improve oneself, and highlighting a few positives too.

Here is when they try to improve their performance and come forward in an organization. This is why we need a robust performance appraisal in every company!

Productivity and outcomes.  

An employee’s productivity and further outcomes are determined in an appraisal. Everyone equally dismays the appraisal process. It is because of the fear of getting demotivated.

But, when the system is enhanced and adopts new methods with the help of technology, the person’s holistic development in an organization could be elevated. This way, one knows how much hard work was put in or how much is to be done!

How effective is the performance appraisal? 

The consistent and regular appraisals let the employers know their efficiency. This is the same as an exam that would be conducted in the institutions to let the students know where they stand. But, the employees should also note the fact that appraisals are not the end of their professional journey. If one verdict does not favor them, they should be self-motivated to perform better and not feel discouraged.

Appraisals are for the encouragement of employees to work better and achieve the targets for the company. If there is no reward or feedback for the work you have been doing, there would be no productivity. And, this is exactly why they conduct an annual or regular appraisal for the workforce.

Appraisals to know the underperformance of employees. 

This is another important factor of appraisals. Not just to boost the performance of the employees, but the reason why one is underperforming is also made to realize.

The best spot to begin when you need to realize how to further develop an employee’s accomplishment is acquiring an agreement. There are justifications for why workers are not performing at their ideal level. A few reasons are significant and hold signs for fixing the issue without procuring substitutions.

Keep a receptive outlook without making hasty judgments. After all, employees are humans and have to be considered so!

For example, you may see in the most recent participation report that a representative has been inactive. Asking the employee about their inactiveness in a polite manner is very important.

At this point, when the goal is to discover an answer, you may find that the issues of an individual are valid and reasonable. Maybe you can change customary guidelines while the worker works through the issue.

However, ensure that they do not overshare or share anything personal. This is a part of work ethics and should not be violated. This will have an adverse effect and unseen consequences.

Performance appraisals for the company’s growth. A company’s growth is the blood and sweat of every employee working in the respective workplace. The performance appraisal of each employee will also regulate the overall growth and performance of the company. Hence, the appraisals that happen regularly are important not just for the employee but also the company. The growth and position of the company in its business circle are important as it is competitive out there!