Author: Dr. Arlian Salmon-Barnett

Performance appraisals are essential tools for measuring an employee's ability to execute duties and identifying areas for improvement (Bayo-Moriones et al., 2020). Managers can help enhance individual and team productivity and development using performance appraisals. The key benefit of performance appraisals is that they provide employees with clear understanding of job responsibilities and performance expectations. When employees are aware of their role within the organization, they can focus efforts on achieving the goals and objectives of the company.

Another benefit of performance appraisals is that they help identify areas where improvements are needed. For example, an appraisal of an employee’s sales target will indicate whether the employee needs to be more aggressive in meeting the target. Additionally, the performance appraisal can help to identify the problem's root cause and develop a plan to address it. Identification of the root cause and the development of a plan to address the issues can help to improve the employee's performance, which can lead to increased productivity and improved results for the company.

Performance appraisals play an essential role in employee development. By identifying areas where employees need to improve, managers can help employees to develop the skills and knowledge needed to excel in their roles. This can lead to increased employee satisfaction and engagement the fuel for improved organizational performance and productivity. Performance appraisals are also necessary for the improvement of team dynamics and collaboration. By providing employees with explicit feedback on performance, managers can foster a sense of teamwork and collaboration among employees. (Budworth & Chummar, 2022), Teamwork and collaboration will form the basis for communication and cooperation among team members, leading to improved organizational performance and productivity.

Delivering performance appraisals can be a powerful tool for enhancing individual and team productivity and development. By providing employees with explicit feedback on performance and identifying areas for improvement, managers can help employees excel in their roles and contribute to the organization's success.

Strategies for delivering performance appraisal in a workplace

There are several best practices for delivering performance appraisals in a workplace:

• Set clear performance expectations: Before delivering a performance appraisal, managers should ensure that employees know the performance expectations and goals for their roles. This can help employees understand responsibilities and focus efforts on achieving the company's goals.
• Use objective criteria: Performance appraisals should be based on objective criteria such as, job responsibilities, goals, and key performance indicators (KPIs). Using objective criteria as the basis for performance appraisals can help to ensure the evaluation process is fair and unbiased.
• Use a mix of quantitative and qualitative data: Performance appraisals should include both quantitative data, such as sales figures or productivity metrics, and qualitative data, such as employee feedback and observations. Data can provide a well-rounded view of an employee’s performance. A well-rounded perspective of an employee will ensure that the employee is presented with information detailing both weaknesses and strengths.
• Provide regular feedback: Performance appraisals should be an on-going process and not a once per year event. Managers should provide regular employee feedback throughout the year to help them improve their performances.
• Use open-ended questions: Managers should use open-ended questions during the appraisal process to encourage employees to share thoughts and ideas on improving performances. Sharing will inform managers of ways in which employees may be assisted, encourage a positive mindset and allow employees to better understand their roles in meeting organizational targets.
• Encourage employee participation: Employees should be encouraged to participate in the appraisal process and provide feedback on their performance. Appraisal is a two-way conversation and participation will ensure that employees are given the opportunity to express feelings, opinions and concerns(Bayo-Moriones et al., 2020). Employees are integral to the organization and it is important for them to be heard and valued.
• Follow-up and provide support: After delivering a performance appraisal, managers should follow up with employees to ensure that they thoroughly understand the feedback. Performance appraisal also provides information which managers can use to provide support for employees. Understanding feedback and gaining support will ensure that employees improve performances and meet the needs of the organization.
• Make it a continuous process: The performance appraisal process should not be a one-time event. It should be a constant process where feedback, progress, and development are tracked regularly. An ongoing appraisal process will ensure that employees are constantly evaluating their performance and are working to make improvements. Improvements made will benefit the organization.

By following these best practices, managers can ensure that performance appraisals are effective tools used to measure employees’ performances, support employees’ development, and improve organizational productivity. A number of organizations have been able to increase workplace productivity through personal appraisals. However, organizations may differ in the approach taken to performance management, and what works for one organization may not work for another (Dangol, 2021). Organizations can improve employee performance and productivity by providing regular feedback, coaching, and development opportunities.

Several popular organizations have been able to increase workplace productivity through personal appraisals. Examples include:

• Google: Google is known for its innovative approach to performance management. The company uses a system called Objectives and Key Results (OKRs), which involves setting clear, measurable employee goals and regularly reviewing progress. This system has been credited with helping to increase employee productivity and drive business results.
• Netflix: Netflix has a unique approach to performance management, emphasizing transparency and candidness. The company encourages employees to give each other direct feedback, which helps to create a culture of trust and accountability.
• Deloitte: Deloitte, a professional services firm, uses a performance appraisal system called Deloitte Development Program (DDP), which focuses on providing employees with regular feedback and coaching to help them reach their full potential. The DDP has been credited with helping to improve employee engagement and productivity.
• Adobe: Adobe has implemented a performance appraisal system called "Check-in," which is a regular, informal, and less formal approach to appraisal. This system provides employees with regular feedback and coaching to help them improve their skills and achieve their goals.
• GE: GE has been known for its performance appraisal system called "Rank and yank," which involves ranking employees based on performance and separating the bottom performers. This approach has been widely criticized for its adverse effects on employee engagement and productivity. However, GE has re-evaluated its strategy to focus on continuous performance management and development.

Limitations of performance appraisals

There are several potential drawbacks to using the wrong approach when delivering performance appraisals in a workplace:

• Low employee morale: A poorly conducted appraisal process can lead to low employee morale and disengagement. Employees may feel that the appraisal process is unfair or that their contributions must be recognized (Ismail et al., 2021). Managers can implement different methods to alleviate such issues.
• Loss of trust: When employees do not trust the appraisal process, they may not take the feedback seriously or may be less likely to act on the feedback provided. This can lead to a lack of improvement in performance and trust in the manager. Lack of trust may affect growth and development of employees as well as organizational productivity.
• Unmotivated employees: A flawed appraisal process can be demotivating for employees. When employees are demotivated, they are less likely to put in the extra effort to improve their performance. Employees who are demotivated can affect the productivity of the organization.
• Inaccurate assessment: A poorly conducted appraisal process can lead to an erroneous evaluation of employee performance. This can lead to employees being incorrectly identified as underperformers. Identifying an employee as an underperformer can reduce the chances of developing professionally and negatively affect career development.
• Biased assessment: If the appraisal process is not based on objective criteria, there is a risk of bias in evaluating employee performance. A bias appraisal can create hostility, conflict and nepotism in the work environment. Employees will also believe that they are being treated unfairly.
• Loss of talented employees: A flawed appraisal process can lead to qualified employees feeling unappreciated and undervalued, resulting in them leaving the company for a better work environment.
• Legal issues: If the appraisal process is not conducted fairly and is biased, it could lead to legal problems, such as discrimination lawsuits. Organizations faced with legal issues run the risk of losing revenues and production. Managers have to ensure that measures are taken to reduce or eliminate unfair treatments that will lead to legal issues.

Using the wrong approach when delivering performance appraisals can have negative consequences for employees, managers and organizations. It is crucial for managers to take the time to understand the best practices for conducting performance appraisals and to use an approach that is fair, unbiased, and based on objective criteria.

Best Tools for Delivery Performance Appraisal

Several tools can be used to deliver effective organizational performance appraisals to enhance workplace productivity including:

• Performance management software: This software allows managers to track employee performance, set goals, and provide feedback throughout the year. Automating the appraisal process and generating employee performance reports are also benefits of the performance management software. Employees and organizations may find performance management software useful.
• 360-degree feedback: 360-degree feedback involves gathering input on an employee's performance from multiple sources, including their manager, peers, and subordinates. This can provide a well-rounded view of the employee's performance and can be used to identify areas for improvement. When areas in need of improvements are identified, organizations can implement strategies to follow through.
• Self-assessment tools: Self-assessment tools allow employees to evaluate their performances and provide feedback on their strengths and weaknesses. Managers can use self-assessment tools to supplement other assessments. Conducting self-assessments can help employees to take ownership of their own development.
• Employee engagement surveys: Employee engagement surveys gather feedback on employees’ experiences. Identifying areas where the organization can improve and enhance productivity is the main benefit of conducting employee engagement surveys. Engagement surveys measure employees' connection, dedication, loyalty, motivation, enthusiasm, and passion for their roles and the organization. Surveys can give thorough insights into areas of the organization that is thriving and areas that are in need of attention (Burnett & Lisk, 2019).
• Key Performance Indicators (KPIs): Managers can use KPIs to measure employee performance against specific goals and objectives. This can help to ensure that the appraisal process is based on objective criteria. KPIs are used to track employees’ progress over time.
• Goal setting tools: Managers and employees can use goal-setting tools to set clear, measurable, and attainable goals which are aligned with the organization's overall objectives. Alignment can help employees to focus efforts on achieving organizational goals. Employees will also be able to measure their progress using goal setting tools.
• Training and Development tools: Managers can use the performance appraisal process to identify training and development needs of employees. Once employees’ needs are identified, managers will be able to provide appropriate resources to enhance their skill and knowledge. Improving employees’ skill and knowledge will benefit the organization.

Managers can, through the use of these tools, ensure that performance appraisals are effective workplace tools for measuring employee performance, identifying areas for improvement, and supporting employee development. This can help to enhance workplace productivity and improve organizational performance.

Creating competency criteria for delivering staff appraisal

Organizations can use the following steps to create competency criteria for delivery staff appraisal:

Step 1

Define the competencies: The first step is to define the essential competencies for the delivery staff role. Essential competencies should be specific to the job and aligned with the organizations overall goals and objectives. Examples of competencies for delivery staff include customer service, time management, problem-solving, and product knowledge.

Step 2

Gather input: Input should be gathered from a variety of sources, including delivery staff, managers, and other stakeholders, to ensure that the competencies are relevant and appropriate.

Step 3

Develop the criteria: Once the competencies have been defined, the next step is to develop the requirements that will be used to evaluate employee performance. These criteria should be specific, measurable, and aligned with the competencies.

Step 4

Assign weightings: Assign weightings to each competency based on its importance and relevance to the role. This will help to ensure that the appraisal process is fair and unbiased.

Step 5

Review and update: Regularly review and update the competency criteria to ensure they continue to be relevant and appropriate for the role.

Step 6

Communicate competency criteria: Communicate the competency criteria to the delivery staff and managers to ensure that everyone understands the expectations and can provide feedback.

By following these steps, an organization can create competency criteria that are fair, relevant, and appropriate for the delivery staff role. This helps to ensure that the appraisal process is effective in measuring employee performance and identifying areas for improvement.

References

Bayo-Moriones, A., Galdon-Sanchez, J. E., & Martinez-de-Morentin, S. (2020). Performance appraisal: dimensions and determinants. The International Journal of Human Resource Management, 31(15), 1984-2015. https://doi.org/10.1080/09585192.2018.1500387

Budworth, M. H., & Chummar, S. (2022). Feedback for performance development: a review of current trends. International Handbook of Evidence-Based Coaching: Theory, Research and Practice, 337-347. https://doi.org/10.1007/978-3-030-81938-5_28

Burnett, J. R., & Lisk, T. C. (2019). The future of employee engagement: Real-time monitoring and digital tools for engaging a workforce. International Studies of Management & Organization, 49(1), 108-119. https://doi.org/10.1080/00208825.2019.1565097

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Dangol, P. (2021). Role of performance appraisal system and its impact on employees motivation. Quantitative Economics and Management Studies, 2(1), 13-26. https://doi.org/10.35877/454RI.qems119

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