Essentials of an effective Performance Appraisal System

Question

What are the essentials of an effective Performance Appraisal System?

Answer 1

The following are the essentials of an effective Performance Appraisal System:

1. Mutual Trust: An atmosphere of mutual trust should be there to discuss matters frankly between supervisor and employee and acceptance of suggestions to improve organization and employee.

2. Clear Objectives: The aim and use of performance appraisal should be obvious and precise. The objectives should be appropriate, well-timed and open.

3. Standardization: Properly defined performance aspects and criterion should be made. These factors as well as assessment form, measures and methods should be consistent.

4. Training: Evaluators should be trained in philosophy and methods of evaluation. They should have the understanding and ability in documenting evaluation, carrying out post appraisal interviews etc.

5. Job Relatedness: The evaluators should pay more attention on work-related behavior and performance of people.

6. Strength and Weaknesses: The manager should try to examine the strong point and weak point of a worker and give advice to him on correcting mistakes.

7. Feedback and Participation:  Proper arrangements should be done to exchange the ratings between the employees and the raters.

8. Individual Differences: The appraisal system should be made considering of size, nature, needs and environment of an organization.

9. Post Appraisal Interview:  A post-appraisal meeting should be set up so that workers may be given proper feedback and the organization can know the problems under which staff works.

10. Review and Appeal: A instrument for review of ratings should be supplied.