Types of Performance Appraisals

Deciding how to evaluate an individual’s performance can be diffi cult. The fi rst
step is choosing how to evaluate. One must either evaluate based on a particular
task, such as a project completed by an individual, or evaluate based on a compilation
of work over a period of time, for example, a yearly review.

Uses of Performance Appraisals

A performance appraisal can gauge at what level an individual is performing
and, as a result, provide useful information to human resources professionals to
use in a variety of ways. Understanding whether someone is “over” or “under”
performing, HR can then determine whether further training is an option or a
reassessment of the individual’s job is needed. Also, in relation to over/under–
performing, appraisals permit an HR person to determine whether or not a monetary
adjustment (raise) or a position enhancement (promotion) is warranted.
Performance Appraisals’ Impact on the Individual and the Company
When implementing any type of measurement system, the human resource professional
must weigh the pros and cons of its execution. An HR employee does
not want to adversely affect anyone. Thus, HR must recognize the impact of
performance appraisals at both the individual and organizational levels.
Benefi ts of performance appraisals at the individual level can be seen in
the feedback process. An individual employee will receive both accolades for a
job well done and constructive criticism for making personal improvements. The
feedback process provides both encouragement and a plan for improvement.
Feedback allows individuals to gauge their own performance and how it is meeting
the expectations of management.
Some organizations may base their raises or promotions according to a
person’s success at a task or overall position achievement. In this case, performance
appraisals allow HR to analyze whether expectations have been met.
Furthermore, they permit employees to see how their achievements are measured
and why they did or did not receive a particular outcome.
Human resource professionals can also rely on performance appraisals during
economic downturns. When the tough question is asked about who is pertinent
to the overall success of an organization, performance appraisals can be used
to determine who will be retained and who will be eliminated.
Critique of Performance Appraisals
Depending on the human resource professional who evaluates an individual or
the structure of the performance appraisal, the tool may or may not be appropriate
to use to measure an individual. The evaluator must be unbiased in his
or her approach, showing no favor or prejudice. The tool itself is also subject to
criticism. The evaluator must question whether the appraisal accurately measures
overall performance while eliminating personal biases. In addition to being
Work/Performance Analysis and Rewards 103
checked for accuracy, the tool has to be assessed for its reliability and validity. It
also must be legally sound in its measurement of skill or performance.
Conclusion
Once a performance appraisal is established as an accurate means to measure
an individual’s performance, it can be very useful for both parties. Performance
appraisals can be used as a way to increase morale by providing positive feedback,
a tool to assess abilities and need for training, a device to evaluate an individual’s
value to the organization, and a way to retain employees who are signifi cant contributors
to the success of a company.
In addition to attracting, retaining, and developing top performers, organizations
must also look to the ethical decisions of their top leaders and performers.