Performance Appraisal

Benefits of performance appraisals

Performance appraisals are a systematic way of evaluating the standard of a worker's performance. Performance appraisals are useful:

• To make employment decisions such as determining pay and promotions
• To identify professional development needs
• To identifying factors in the work environment that help or hinder performance effectiveness.

Fundamentals of an appraisal system

In order to be effective, an appraisal system needs to be perceived by workers as:

• Relevant and applicable to everyday work
• Acceptable and fair
• A mutual collaboration between management and workers.

A performance appraisal system that meets these criteria is likely to have the greatest impact on workers' motivation to improve their performance and satisfaction with the appraisal process.

Best practice in performance appraisal

In essence, best practice in performance appraisals incorporates the following strategies:

• Integrate performance appraisal into a formal goal-setting system
• Base appraisals on accurate and current job descriptions
• Offer adequate support and assistance to workers to improve their performance (e.g., professional development opportunities)
• Provide ratings via aggregated anonymous feedback when multiple appraisers are used
• Ensure that appraisers have adequate knowledge and direct experience of the workers' performance
• Conduct appraisals on a regular basis.