Objectives of Performance Appraisals

Performance appraisal is a method of evaluating the job performance of an employee. It is an ongoing process of obtaining, researching, analyzing and recording information about the worth of an employee.

Objectives

The main objective of performance appraisals is to measure and improve the performance of employees and increase their future potential and value to the company. Other objectives include providing feedback, improving communication, understanding training needs, clarifying roles and responsibilities and determining how to allocate rewards. Provide Feedback

The feedback received by the employee can be helpful in many ways. It gives insight to how superiors value your performance, highlights the gap between actual and desired performance and diagnoses strengths and weaknesses as wells as shows areas for improvement. Improve Communication The method of performance appraisals helps superiors strengthen relationships and improve communication with employees. Training Needed

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These appraisals also identify the necessary training and development the employee needs to close the gap between current performance and desired performance. Clarify Expectations

Performance appraisals should clarify roles, responsibilities and expectations of all employees. Allocate Rewards

Performance appraisals reduce employee grievances by clearly documenting the criteria used to make organizational decisions such as promotions, raises or disciplinary actions.
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Performance Appraisal Process

What is Performance Appraisal?
A performance appraisal is a review and discussion of an employee's performance of assigned duties and responsibilities. The appraisal is based on results obtained by the employee in his/her job, not on the employee's personality characteristics. The appraisal measures skills and accomplishments with reasonable accuracy and uniformity. It provides a way to help identify areas for performance enhancement and to help promote professional growth. It should not, however, be considered the supervisor's only communication tool. Open lines of communication throughout the year help to make effective working relationships. Each employee is entitled to a thoughtful and careful appraisal. The success of the process depends on the supervisor's willingness to complete a constructive and objective appraisal and on the employee's willingness to respond to constructive suggestions and to work with the supervisor to reach future goals.

Why Appraise Performance?

Periodic reviews help supervisors gain a better understanding of each employee's abilities. The goal of the review process is to recognize achievement, to evaluate job progress, and then to design training for the further development of skills and strengths. A careful review will stimulate employees interest and improve job performance. The review provides the employee, the supervisor, the Vice President, and Human Resources a critical, formal feedback mechanism on an annual basis, however these discussions should not be restricted solely to a formal annual review.

A Pay-for-Performance Structure
Annually, the appropriate supervisor evaluates each employees performance. In the case where an employee has changed jobs part-way through the appraisal period, both of the employees supervisors during the appraisal period should submit an appraisal of the employees performance. During the performance

evaluation process, the most recent job description on file with Human Resources will be reviewed and updated if necessary, by both the employee and the supervisor. Employees are reviewed for a salary increase, annually, effective July 1st. The amount of the salary increase pool of funds is recommended by the administration and approved by the Board of Trustees. The method for allocating funds is based on rewarding meritorious performance. Merit increases will be awarded on a payfor-performance basis and are based on individual performance. When used as intended, a pay-for-performance structure achieves the goal of rewarding truly top performers with merit increases that match their achievements and contributions.

Additional Performance Appraisal Resources

Performance Appraisal forms Employees and supervisors have the option to choose the form they wish to use for the self-appraisal and employee appraisal processes. Guidelines and recommendations on which forms to use may be found here. SMART Goals An important component of WPIs performance appraisal process is the identification of SMART goals. SMART Goals are widely known and recognized tools in performance management. More information on SMART goals may be foundhere. Mid-year Review In order to facilitate frequent communication and periodic reviews between supervisors and employees, an optional mid-year review tool has been created. More information regarding the Mid-year Review is available here. Request for Promotion/Reclassification Supervisors wishing to request a promotion/reclassification for an employee may do so during the performance evaluation process. More information on the promotion/reclassification process may be found here.

Importance of Performance Appraisal

1. Performance Feedback Most employees are very interested in knowing how well they are doing at present and how they can do better in a future. They want this information to improve their performance in order to get promotions and merit pay. Proper performance feedback can improve the employee's future performance. It also gives him satisfaction and motivation.

Image Credits heartoliver08 2. Employee Training and Development Decisions Performance Appraisal information is used to find out whether an employee requires additional training and development. Deficiencies in performance may be due to inadequate knowledge or skills. For e.g. A professor may improve his efficiency by attending workshops or seminars about his subject. Performance appraisal helps a manager to find out whether he needs additional training for improving his current job performance. Similarly, if the performance appraisal

results show that he can perform well in a higher position, then he is given training for the higher level position. 3. Validation of Selection Process Performance appraisal is a means of validating both internal (promotions and transfers) and external (hiring new employees from outside) sources. Organisations spend a lot of time and money for recruiting and selecting employees. Various tools used in the selection process are application blanks, interviews, psychological tests, etc. These tools are used to predict (guess) the candidate's performance on the job. A proper performance appraisal finds out the validity of the various selection tools and so the company can follow suitable steps for selecting employees in future. 4. Promotions Performance appraisal is a way of finding out which employee should be given a promotion. Past appraisals, together with other background data, will enablemanagement to select proper persons for promotion. 5. Transfers Performance appraisal is also useful for taking transfer decisions. Transfers often involve changes in job responsibilities, and it is important to find out the employees who can take these responsibilities. Such identification of employees who can be transferred is possible through the performance appraisal. 6. Layoff Decisions Performance appraisal is a good way of taking layoff decisions. Employees may be asked to lay off, if the need arises. The weakest performers are the first to be laid off. If there is no performance appraisal, then there are chances that the best men in the department may be laid off.

7. Compensation Decisions Performance appraisal can be used to compensate the employees by increasing their pay and other incentives. This is truer in the case of managerial jobs and also in the case of employees in non-unionized organisations. The better performances are rewarded with merit pay. 8. Human Resource Planning (HRP) The appraisal process helps in human resource planning (HRP). Accurate and current appraisal data regarding certain employees helps the management in talking decisions for future employment. Without the knowledge of who is capable of being promoted, demoted, transferred, laid off or terminated, management cannot make employment plans for the future. 9. Career Development Performance appraisal also enables managers to coach and counsel employees in their career development.