Performance Appraisal SystemPerformance appraisal is one process that benefits the firm as well as its workforce. It augments understanding among the higher management officials and human resources, boosts job contentment and develops workforce sense of loyalty toward the organization. Performance appraisal aids workforce to understand their roles and responsibilities in that particular organization and the expected contribution to the organization’s overall achievement which therefore amplifies employee’s morale. This will therefore increase the productivity of the workforce, which improves the overall organizational productivity.

Performance appraisal process consists of nine steps. The first stage involves, establishment of performance standards baed on job description and job specification. The standards should be lucid, intent and must incorporate all the aspects. The second step is to notify these standards to the entire workforce including the officers who appraise the workforce. The third phase subsequent to the above is instructions given for appraisal size of employee performance by the appraisers through surveillance, discussion, proceedings and reports.

The fourth stage is discovering the impact of various inside and outside aspects on an employee’s performance. The impact of the above factors can either be inducing or hindering the performace of an employee. The calculated performance may be attuned according to the control of official and informal factors. The performance resultant at this point may be taken as authentic performance. The fifth step is comparing the actual performance with that of other workers and preceding performance of the workforce and others. This gives an outlook where the worker stands. If efficiency of the entire workforce is ranked either too high or too low, there may be something incorrect with the standards and job description.

The sixth point is evaluating the actual performance with the registered set of standards and finding out the divergence. Deviations can either be optimistic or unconstructive. If employee performance is more than the standards, it is positive deviation and vice versa is negative deviation. The seventh stage is communicating, the actual performance of the worker and other workers doing the similar work and converse with him / her about the motives behind positive or negative divergence from that of the predetermined standards.

The eighth stage is signifies the obligatory amendments that are required in performance standards, job analysis in inside and outside environment. Finally, performance appraisal report must be kept in track. This stage includes training, development and directing the workforce in order to guarantee enhanced performance.

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