Performance Evaluation Systems
Performance appraisal is a nine-step process. In the first stage, performance standards are established based on the job description and specification. The standards must be clear, objective and incorporate all factors. The second stage is to communicate these standards to all employees, including appraisers. The third stage follows the instructions given for employee performance appraisal measurement by evaluators through observation, interview, records, and reports.
The fourth stage is to discover the influence of various internal and external factors on actual performance. The influence of these factors may be inducing or hindering the performance of employees. The measured performance can be adjusted according to the influence of external and internal factors. The yield derived at this stage can be taken as the actual yield. The fifth stage is to compare the actual performance with that of other employees and the past performance of the employee and others. This gives an idea of where the employee is located. If all employees’ performance is rated too high or too low, there may be a problem with standards and job analysis.
The sixth stage is to compare the actual performance with the standard and find out the deviations. Deviations can be positive or negative. If the performance of the employees exceeds the standards, it is a positive deviation and vice versa, a negative deviation. The seventh stage is to communicate the actual performance of the employee and other employees doing the same job and discuss with him the reasons for positive or negative deviations from the pre-established standard, as the case may be.
The eighth stage suggests necessary changes in standards, analysis of work in the internal and external environment. Finally, the performance evaluation report is followed up. This stage includes guiding, advising, coaching and directing the employee or arranging for employee training and development to ensure better performance. If the actual performance is very poor and beyond the scope of improvement, it may be necessary to take steps to downgrade, reduce, or any other appropriate measure.