Employee Appraisal - Analysing Employee Performance

Published by MBA Skool Team, Published on January 28, 2014

Every organisation is dependent on the most important assets to their company i.e. its employees. The workforce is the most pivotal asset to any business as the right person for the right job gets the company the right business. And like any other process, it is very necessary to understand the needs, progress, requirements and future plans of the employees. Along with that, it is critical to fairly understand the contributions of the employees and appreciate their value addition to the company. This process, known as employee appraisal, is an effective way of motivating the employees by appreciating their work and highlighting the way forward and certain areas of opportunities.


Image Courtesy: freedigitalphotos.net, suphakit73

Employee appraisal is a one-on-one interaction of an employee with his reporting manager. It is an honest two-way discussion where a boss primarily evaluates the performance of an employee over the past one year. The evaluations are carried out on various parameters like below:

1.Achievement of targets: This is the primary evaluation done where an employee's basic targets like financial contribution, timliness of deliverables, quality of work done etc are studied and how an employee has performed in delivering the same.

2.Innovation or contribution to the organisation: Apart from the basis business targets set, what has the employee contributed to the company in terms of valuable process changes, implementation of innovative process or methodologies etc

3.Potential of the employee: The potential areas of strength and weakness of an employee are evaluated. The employer always makes it a point to boost the morale of the employee by appreciating the strengths. However, it is equally important to highlight the weak areas which need immediate attention. Both the employer and employee must understand that there would be certain aspects of a job where performanced might be slightly flawed and constant improvement would be required.

4. Future plans and way forward: An appraisal gives a chance to the employee to frankly discuss various things like promotion to a higher designation, shift of department or profile of interest, hike in salary, relocation preference etc. It then becomes the responsibility of the senior to seriously consider the requests so that it gives the employee a sense of belonging and trust.

Once the above discussions have taken place, the final evaluation of the employee's performance is done. An employer must be fair and professional in judging the performance of an employee as it not only impacts an individuals current position in the organisation but also defines the career growth of a person. But sometimes, if there is a friction between the boss and the subordinate, it becomes a platform for the senior to vent out his or her personal frustration, which doesnot justify the contribution of the employee towards the company.

Mostly the employee is evaluated and rated on the following:

1.Far Exceed Expectation: Excellent and exceptionally hardworking employees who have an immaculated record and performance are rated with this highest honor.

2.Exceed Expectation: Employees whi have done their basic duties and have also added valuable contributions are said to have exceeded their basis duties.

3. Meet Expectations: Most of the work force falls in this category as they stick to their routine job and perform their duties well.

4. Below Expectation: In certain cases, individuals are unable to carry the work assigned to them as they might have limited understanding, skills or expertise to execute the job. Thus, as far as the profile is considered, the performance stands below expectation and their are areas which can be improved.

5. Far Below Expectation: Employees falling in this category have no domain or industry knowledge, and have given absolutely no value addition to the company. These employees are mostly walking the tight rope and are certain to face the axe unless they drastically grasp the work.

Once the ratings are given, then the employee salaries, promotions etc are also considered, and it becomes a fair way of evaluating the employee's contribution.

It is very crucial that employees are always motivated to give their best to the company for it to have a stable and growing business. However, an employee also expects an equal respect and growth in the company where he or she devotes their time, skill and knowledge. Therefore, the best way to carry forward the momentum of business is to understand and have a two-way evaluation discussion, and which can be done through an annual employee appraisal.

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