Characteristics of an Effective Performance Appraisal

The annual performance appraisal is something employees and managers alike often dread. Yet, the meeting can be a source of motivation and reward if both parties are knowledgeable about how a performance appraisal works (Bard Kuvaas, 2006). The performance appraisal is an opportunity for the manager to convey to an employee specific expectations and suggestions for future performance. The meeting is also an opportunity for an employee to share with her manager her professional goals and career aspirations (Boswell, & Boudreau , 2000). 

· Explain The Appraisal Process 

· Clarify Job Expectations

· Review and Update Job Skills

· Review Accomplishments and GoalsFinal Steps and Rewards

Importance of effective performance appraisal

It is clearly that the HRM makes a great contribution for either private or public sector organizations to achieve organization goals, therefore, as an important function of HRM, the performance appraisal has significant importance in organizations (Crawford, 2003).If there is no performance appraisal system, an organization can hardly have a clear understanding of its current situation, therefore it cannot get the direction and goals for improvement for future, the situation of the organization will be dangerous. If the performance appraisal system is full of deviation or even error, it can possibly lead the organization into a wrong direction of resource inputting, thus the organization will lose its long-term competitiveness  (Bladen, 2001). On the contrary, an effective performance appraisal system can ensure resources of the organization invested into the most critical processes, which can improve competitive advantage of organization (Michlitsch, 2000). 

Generally speaking, the importance of performance appraisal to organization is mainly reflected in three aspects:
 

1. Affecting the productivity and competitiveness of organization. Performance of employees has a huge effect on productivity and competitiveness of the organization. Performance can be measured from work results, work action and work attitude of employees (Armstrong , 2010);

2. Performance appraisal result is an important indicator of personnel decisions. Performance evaluation offers important reference when organization making personnel decisions, such as promotion or demotion, secondment, salary adjustment and so on (Fletcher C , 2001).;

3. Effectively performance appraisal leads to better staff management. It means that an organization can make better evaluation of staff performance, which results in more reasonable remuneration and incentive. It also means that an organization will be able to offer more help to employees’ self-development since performance evaluation can explore the potential of employees and help them know clearly about what they should do to meet expectations better. Besides, it will help to achieve better communication between superiors and staffs, which promote greater unity of purpose (Samuel, 2013).

The performance appraisal may be one of the few times during the year where an employee and the reviewer, typically the employee's supervisor, can sit down and have a lengthy face-to-face discussion about all aspects of the job (Venclova , 2013). Thus, the appraisal can serve a number of important functions. If done effectively, the appraisal can offer a large degree of satisfaction for both the employee and the reviewer(Greller, and Martin ,1998).

Benefits of Performance Appraisals to the Organization

The performance appraisal is an essential part of the human resources department's contribution to an organization (Javotz, 2006). An effective appraisal may not only eliminate behavior and work-quality problems, it can motivate an employee to contribute more. Often, a company will ask its employees to perform "360-degree feedback” that assesses peers and subordinates as well as supervisors and management. Regardless, the opportunity to give and receive constructive criticism shouldn't be ignored (Mamatglu, 2008).

1. Improving Communication

2. Providing a Career Path

3. Encouraging Good Work and Improvement

4. Improving Decision-Making Ability

When a company has detailed information on employee performance, business decisions become easier. Filling open positions with existing staff strengthens the organization and promotes loyalty. Knowing which employees display what strengths improves the speed with which projects can be assigned (Roberts ,1992). Appraisals also provide a framework when making decisions about compensation – and layoffs. If the organization becomes the unfortunate party to a lawsuit, the performance appraisal can refute or support claims (Smith and Dick, 1998). As a result, the effective use of performance appraisals helps an organization operate efficiently and with focus (Som, 2008).

References

Fox, C. J. (1991). "Employee Performance Appraisal: The Keystone Made of Clay," In C. Ban & N. M. Riccucci (Eds.), Public Personnel Management

Hyde,-Albert-C.; Smith,-Melanie-A. (1982). Performance appraisal and training: Objectives, a model for change, and a note of rebuttal. Public-Personnel-Management.11(4),358-366

Keaveny,-Timothy-J.; Inderrieden,-Edward-J.;Allen,-Robert-E. (1987). An integrated perspective of performance appraisal interviews. Psychological-Reports.61(2): 639-646.