Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee.
Organizational Development denotes an overall and comprehensive development of an organization supported by the entire team of employees working for that organization. A useful technique in the management process that serves as a measure of performance and productivity is “performance evaluation” or performance appraisal.
Performance refers to the degree of accomplishment of the task that makes up an individual’s job.
People who work for big corporate companies identify themselves with the objectives of the company and expect feedback, either in the form of a compliment or criticism. Compliments act as morale boosters to perform better and criticism though initially might puncture the ego, induces the potential to perform, to prove oneself.
Managers should never be reluctant on their part to appraise subordinates on the job expectations and demands. In an activity as important as managing, there must be no pitfalls to measure performance as accurately as possible.
The next important aspect in the appraisal process would be deciding the content to be appraised.
Individual task outcomes where performance is evaluated on the outcomes delivered by the individuals, evaluation of personal characteristics and traits or behavior are done to rate the employees as to where they stand in terms of performance.
The widely used managerial technique in the appraisal process is evaluating performance against verifiable objectives, which truly makes sense, because the employees would be blind folded if they don’t have the right direction to proceed.
Evaluation can be done in a comprehensive, periodic or continuous fashion. It all depends on the nature of work done, company practice and other situational factors. Say, for instance, performance review can be done after the completion of a major project, that makes sense, doesn’t it?
Formal reviews can be supplemented and supported with frequent and short informal reviews, for the superior- subordinate relationship to prosper and to keep communication channels open.
All said and done, performance review based on verifiable objectives, although gives better vision and clarity, doesn’t allow the manager or subordinate to grow individually. It does not help in personality development, the emphasis ever being focused on accomplishing the operating objectives.
The latest approach of performance evaluation is the 360 degree appraisal that well suits the managerial cadre. It provides for performance feedback from the full circle of daily contact, that a manager might have, ranging from customers, peers, subordinates, boss etc. ,
This also fits into organizations that have introduced teams, employee participation and total quality management programmes.