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Benefits of performance appraisals to businesses

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If you are a business that has never done performance appraisals, now may be a good time to start.

An effective appraisal can be beneficial to both organization and employee. Not only can it address performance and quality problems, it can motivate employees to be more productive. Managers who take the time to analyze employees’ performance, give clear defined goals and identify performance shortcomings, find that it contributes to change in employees’ behaviours and the overall performance of the business.

However, performance appraisal comes after performance management. When people hear performance management, they immediately think of an annual performance review, but that is only one aspect of performance management. Michael Armstrong in his Handbook of Performance Management, said “Performance management is the continuous process of improving performance by setting individual and team goals, which are aligned to the strategic goals of the organisation, planning performance to achieve the goals, reviewing and assessing progress, and developing the knowledge, skills and abilities of people.”

A successful appraisal is a collaborative effort between management and employee. An appraisal should not be based on an isolated incident or a fresh pattern of behaviour. Instead, data should be collected throughout the performance period.

There are certain qualities an employee can demonstrate throughout the year that may well guarantee an easy and successful review. Here are four of them from Inc. 500 entrepreneur and best-selling author Kevin Daum, “10 things really amazing employees do.

∑ Generate Viable Opportunities. Employees do not have to be in sales or marketing to help their company grow. Strong networkers from all divisions see company growth as a collective effort and constantly keep their eyes open for ways to more than pay for themselves.

∑ Resolve Issues Before They Are Issues. Amazing employees are always looking to improve systems proactively, and they do.

∑ Demonstrate High Standards, With Low Maintenance. Amazing employees drive their own high standards. The manager can trust them to perform a task to the same high standards as he/she would.

∑ Research, Apply, and Refine. The best employee proactively explores options, takes action and then improves without direction from the top.

The performance of each individual employee influences the performance of each department and the organization as a whole.

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