Appraisal: Human Resources - Business Management Milan Rustagi (IB-2)

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Appraisal

Human Resources – Business Management

Milan Rustagi (IB-2)


What is an Appraisal?
• An appraisal is a formal assessment of an employee’s performance
based upon the requirements of the job/responsibilities/tasks.
• It is conducted on an annual/quarterly basis by senior staff members.
Why are they conducted?
• Assess whether the employee has been covering their respective
responsibilities and tasks, and how well it has been done.
• Record an employee’s performance to provide assistance of any kind.
• Identify any training or development needed.
• Record how well an employee is doing for promotions/raises.
Advantages of appraisals
• Can be used to praise staff for contributions and strengths
• Also used to provide constructive feedback for improvement.
• Can also be used to understand where the organization needs to
approve, and the assistance which employees require from the
organization
• Can be used as a job evaluation indicator to understand pay levels.
Disadvantages of appraisals
• Extremely time consuming and costly as appraisals are based on every
individual within the organization
• Requires confidential agreement and also follow up-action which
needs funding. Without these two, appraisals become redundant
• Staff may become offended or defensive
• Many appraisers lack the necessary skills in order to carry out
effective appraisal
Types of appraisals
• Formative: An appraisal which uses evidence of ongoing proceedings
to help employee’s improve their work practices. For example,
appraising staff that have been hired for probationary periods such as
interim doctors, beginning teachers, is helpful to modify their
practices during their training. It is similar to the formative
assessments which students give during the middle of learning a new
topic in order to identify areas of improvement.
Summative Appraisal
• Similar to summative reports students get in schools, a summative
appraisal is a written description of an employee’s performance
during the year. Also includes recommendations and suggestions and
holds accountability for the employee’s.
360-degree feedback
• This type of appraisal is based upon evidence regarding an employee’s
job who have contact with customers, suppliers, etc.
Self-appraisal
• Self-appraisal involves employees appraising themselves based
on predetermined criteria. Appraisees are expected to be honest
about their strengths and weaknesses. They also need to set
realistic targets for improvement. It is also used to compare with the
assessment carried out by a line management for further discussion.
Steps included in a performance appraisal
• Staff records and repots
• A formal and structed appraisal meeting
• A written report of the appraisal, often including a rating system to
judge, such as outstanding, or unsatisfactory.
• Both members of the appraisal have to sign the final report
Steps that are taken if the overall rating falls
below “Moderate”
• Issue an advisory letter to the employee: similar to a warning letter
• Counselling the appraisee and giving advice on their shortcomings
• Closely monitor the performance of the appraisee following the
appraisal
• If no improvement is visible, steps are also taken to dismiss
employees.

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