Effective Performance Appraisals

by Mike Mirshams

Performance appraisal is a great tool which helps in building efficiency and motivation among employees of an organization. Though often dreaded by managers and employees alike, it provides great knowledge and encourages better performance among these employees and managers. A performance appraisal system is helpful because:

– An employee is better able to understand his job description and what is expected out of them

– It helps identify an employee’s strengths and weaknesses

– Gives relevant feedback to the employee and their development requirements, thus increasing self reflection and therefore helps set future goals accordingly

– Increases communication

– Increases employee commitment towards the organization

This articles provides a brief list of some good appraisal system Must Haves, as well as some essentials of an effective performance appraisal:

Explanation of the Appraisal Process

The entire appraisal process needs to be fully explained by the manager to the employees so that they are aware of what it entails. Normally, an appraisal process is carried out to talk about job expectations, future goals, strengths and weaknesses and any rewards given for accomplishments.

Clarification of Job Expectations

The job expectations should be clarified ideally before the appraisal so that there is no doubt and the employee works according to the manager’s expectations.

Updated Job Skills

The managers need to identify various skills that an employee has gained through his job experience. They also need to identify areas for further improvement and encourage employees according to their capabilities.

Accomplishments and Goals Reviewed

Goals and accomplishments of employees should be reviewed and identified. These should then be enumerated and appraised.

Final Steps and Rewards

This section is the final execution of whatever rewards an employee is entitled to, keeping in mind their accomplishments and goals achieved. If an employee has worked hard and achieved their goals, they should be compensated for it.

Reliability and Validity

The data and information gathered through an appraisal process should be 100% reliable, free from error and consistent. There should be no biasness and it should be valid to a particular employee.


The entire appraisal process including all the procedures, techniques, forms and ratings should be standardized since the process is equally applicable to all the employees of an organization.

Practical Viability

The techniques used by an organization to appraise its employees should be implementable and should be economical enough for an organization to use it continuously.

Legal Sanction

Appraisals should meet the requirements of the law and should comply with the various labor laws of the area.

Training to Appraisers

Training should be provided to all appraisers since the process is difficult and extremely important. This will help ensure reduction in any possible errors and more insight into how to effectively rate performers.

Open Communication

A great appraisal system will ensure that due feedback is provided to all employees so that they know where they stand and how they can improve further.

Employee Access to Results

Employees should have access to their results because hiding these results would mean you do not want your employee to improve on their performance. Once employees review their results, they have a better understanding of where they are and what areas they lack in.

Performance appraisals are a valuable tool for further employee development. If used accurately, this tool can prove to be the betterment for your organization, since your employees are your main strength. If there are any discrepancies in the system or process, nobody would suffer as much as the management, and therefore, the organization as a whole.

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