Utilizing employee performance appraisal systems optimally?


Performance Management

In most organizations an employee performance appraisal process runs a few times during the year. If designed appropriately, significantly more information can be captured and analyzed by organizations. This may require some modifications to the appraisal instrument such that it can be used for employee feedback, self development and studying the rating patterns of supervisors besides a host of other analytics. This blog focuses on what organizations can do to extract maximum benefits from this tool.

Performance appraisals are generally used by most organizations to:

  • » Evaluate employee contribution to the organization based on the assigned goals
  • » Determine employee ranking in terms of ‘excellent performer’, ‘good performer’, ‘average performer’ and so on
  • » Know the current employee competencies and skills rating related to job positions and to identify development plans
  • » Capture information about training needs
  • » Finalize incentives such as performance bonus and annual increments
  • » Manage promotions and transfers
  • » Identify succession plans

What more can be done?

Utilize appraisal instrument as a survey tool

Since most organizations carry out annual appraisals, it is possible to gather employee perceptions on organizational issues such as:

  • » Quality of leadership at various levels
  • » Effectiveness of the training provided
  • » Awareness about company policies
  • » Awareness about business objectives and plans
  • » Factors causing concern and dissatisfaction to employees

With some modifications to the existing appraisal instrument, each of the above issues can be modeled in a manner that helps statistical analysis. For example, to gather inputs, employees could be asked to pick and choose any two factors from the table below which in their perception, are major causes for dissatisfaction:

Inadequate safety at workplace
Out dated plant and machinery
Performance goals not clearly defined
No guidance or counseling by the manager
Compensation not linked with performance
Lack of cooperation between departments
Delayed resolution of grievances
Inadequate communications from management

Collect self – development inputs from employees

Employees who take interest in their own development look forward to career growth opportunities. Management can identify such employees as potential candidates for higher level responsibilities, especially if the employees are performing well. If employees can add the following details during a performance appraisal, it can help the management identify employees for growth opportunities:

  • » Educational qualifications acquired during the year
  • » Certification programs / courses attended to improve professional knowledge
  • » Articles contributed to professional journals / magazines
  • » Positions of responsibility held in professional institutions / societies / forums
  • » Contributions as a trainer
  • » Participation in seminars /conferences
  • » Voluntary participation in community development programs
  • » Participation in various sports events /cultural programs

On a risk mitigation front, it may be important to appreciate that an employee investing in self-development may have a higher exit potential. An automated appraisal system which captures the above information can provide valuable insights in terms of planning growth for highly trained professionals and designing suitable employee retention plans.

‘Empxtrack Performance Edition’ offers a solution to the challenges of extracting the most from an appraisal system.

Empxtrack is an integrated web-based solution that meets all requirements connected with Performance Appraisals and Training Management. Both of these modules are also available as standalone modules which can be interfaced with the existing HRMS of an organization.

TAGS: Employee Appreciation, Employee Evaluation, Employee Motivation, Peformance Management, Performance appraisal, Performance appraisal system

16 thoughts on “Utilizing employee performance appraisal systems optimally?”

  1. Learn the banes and boons of the automated recruitment process and equip yourself to embrace the future of HR.

  2. Took me time to learn all the comments, but I actually loved the article. It proved to be very helpful to me and I’m positive to all of the commenters here!

  3. How i wish all companies will have annual appraisal. It is beneficial for both parties, management and employees. I have been working for two years in the same company but haven’t received any appraisal yet. The salary they offered me two years ago, is the same as what you would see in my payslip today.

    Natalie Loopbaanadvies

  4. I love your point on Self-Appraisal. I think this is key to any evaluation. It helps employees feel a greater autonomy and it also helps the manager customize his or her feedback. If an employee is already beating themselves up in a certain area, then the manager can probably go easier on them.

  5. Performance appraisals will bring out the best in your employees. They will know what they need to improve and maintain in their work.

  6. Great information! I’ve been looking for something like this for a while now. Thanks!

  7. Pretty nice post. I just stumbled upon your blog and wanted to say that I have really enjoyed browsing your blog posts. In any case I’ll be subscribing to your feed and I hope you write again soon!


Leave a Comment

1 × 3 =