A Performance appraisal is a kind of performance review of an employee’s overall contributions to the company and an evaluation of the employee’s skills, growth and achievements within a company. Organizations use performance appraisals to provide an overall feedback to the employees, and to justify any increment and promotion or termination decisions.
They help the company in identifying the strengths and weakness of the employees, in assessing the potential of an employee and further scope for development and in influencing the work habits of the employees. Performance appraisals help in overall employee development, validation of the selection process and in keeping the employees motivated and efficient in their job.
Download BrochureCertain core competencies (skills and abilities essential for effective performance) play a crucial role in the performance appraisal process. While the appraisal process includes ‘what’ all job responsibilities must be accomplished in order to get a positive review, competencies list out the behaviors required to accomplish these goals, thereby explaining ‘how’ they can be achieved. These competencies include:
- Intellectual– These competencies include appropriate knowledge of the functions that an employee needs to perform. An good employee must have the necessary skills, expertise and an in-depth background knowledge to be able to perform effectively. An employee must also keep himself/herself updated with an major changes in his/her technical area.
- Interpersonal skills– This measures if an employee showcases good speaking and listening skills and if he/she seeks out regular feedback and constructive criticism. This competency also includes an employee’s ability to network and build relationships, and be flexible and receptive to new ideas.
- Leadership Skills– This measures if an employee motivates and inspires others, takes charge when a problem arises, influences others’ actions and opinions and if he/she provides appropriate recognition to others. An efficient employee must be able to lead others through changes and adversity and be able to develop faster, better and less expensive ways of doing things.
- Customer Focus– This competency measures an employee’s ability to build customer confidence and work towards measuring and increasing customer satisfaction. Efficient employees must immediately solve the customer’s problems and ensure that the commitments to these customers are met positively, in the form of prompt responses.
- Managing performance and meeting goals– Competent employees must resolve performance issues, set personal performance standards, seek and provide regular performance feedback, be direct but tactful in their approach and develop their skills for better performance and overall personal development. They must also accomplish the goals set out for them within a specific timeframe and meet the performance standards expected of them.
During the performance appraisal process, the employer might assess if the employee’s competencies have met the target, exceeded the target or if he/she needs development and additional training. Based on this evaluation, the employee would then be reinforced with an increment or promotion or other financial incentives, such as a bonus. However, repeated negative feedback and work reviews during the performance appraisal process may result in employee termination.
