Performance appraisal is a process through which performance deficiencies and actions to ratify such deficiencies. It is a continuous process of the following phases:
1.Establishment Of Performance Standards
It is concerned with the establishment of predetermined performance standards that will help in comparing the actual performance of the employees. It can be done through the formulation of human resource planning and job analysis.
2. Communication Of Standards To Employees
Under this step, the set performance standard is communicated to the concerned employees. The employees are assigned with required duties, responsibilities and authorities to do the tasks effectively and efficiently so that the expected standard will be met. Moreover, it provides information relating to what is to be done and how well the task is performed. The communication should be two-way process so that the implementation can be effective.
3. Measure Actual Performance
The actual performance of an individual is measured in terms of its efficiency and effectiveness. The performance is measured on the basis of predefined standards. The information related to actual performance is collected through the application of different qualitative and quantitative techniques; and the relevant criteria for comparison will be determine on the basis of such information.
4. Comparison Of Actual Performance With Standards
This step is concerned with the comparison of actual performance with predetermined standards. It is determined in terms of whether present standard is maintained. The information provided by the report on actual performance is compared with standards in order to identify performance deviations.
Also read: Purposes And Uses Of Performance Appraisal
Also read: Purposes And Uses Of Performance Appraisal
5. Discuss Appraisal With The Employee
This step of performance appraisal process finds out the deviation occurred in actual performance. It also identifies the extent of differences and the causes of such differences. Then the findings of performance appraisal is to discussed with the concerned employees to locate the measure/solution.
6. Corrective Action
If performance differs with the predetermined standards, then a corrective action is initiated in order to improve employee's performance in future. Corrections are remedial measures which are taken to bridge the gap between predetermined and actual performance. The corrective actions can be Do Nothing, Correct Deviations, Change Standards.