Research has shown that less than 50% of organisations in South Africa use performance-based appraisals. However, organisations that regularly conduct performance appraisals enjoy positive feedback from employees and healthy competition among their workers – in contrast to organisations offering a similar service but without appraisals.

Researchers have found that the following factors contribute to management not using the performance-based appraisal system:

    • Management considering it a waste of time
    • Fear of hurting employees’ feelings by giving negative feedback
    • Managers not skilled in providing constructive criticism.

Performance appraisal is a powerful tool to regulate, refine and reward the performance of the employee.

Positive outcomes of performance-based appraisals

Performance appraisals aim to judge the gap between the desired and actual performance of employees and assist management in identifying the training and development needs of the future.

The following outcomes have been identified in organisations using the performance-based approach:

    • Overall better performances from employees
    • Healthy competition among employees
    • Improvement of the organisation’s financial sustainability
    • Development of employee potential, which leads to personal motivation
    • Employees taking responsibility for actions and starting to build a future in the organisation
    • Development of skills
    • Establishment and cultivation of open and sincere communication lines throughout the organisation
    • Development of a positive climate in the organisation
    • Employees sharing in the organisation’s values.

Achievement-based appraisals nurture creative thoughts and actions while performance-based appraisals are essential for determining salary adjustments and achievement bonuses.

Implementation of performance-based appraisals

Management should plan performance appraisals a year in advance. Managers should take initiative and discuss the process in detail with employees. The following should be a priority:

    • Ensure that employees know what management expects from them
    • Employees should clearly understand their roles and responsibilities; anticipated outcomes should be specified and measurable and should be incorporated in job descriptions. Specific goals to be achieved within certain time constraints should be clearly outlined.
    • Establish sincere and open communication lines
    • Address problems directly and openly. Praise the good performances and then focus on the problem areas that need attention. Employees should know exactly what problems have been identified and where and how they can improve their performance.

Develop an action plan

The manager and employee should develop an action plan together to improve possible deficiencies. This plan should include clearly-defined goals, actions and due dates.

 

Sources
Beeld, 4 May 2011
http://appraisals.naukrihub.com/