Ideal structure of performance appraisals in organizations

Performance appraisals can influence both employees and employers significantly. These ratings that decide who will be the next boss. Good performance ratings also go a long way in increasing the credibility of an organization and assuring employees that they will be treated fairly.

A well structured performance appraisal system gives the employee and employer a focused approach on deliverables and its measurements. Further, performance appraisal provides a scope to enhance the skills and competency of an employee through gap analysis and finds opportunity for recommendations to appropriate training and development programmes. The performance appraisal system also provides support and counseling interventions and is a platform for exchange of thoughts and ideas which adds to the enthusiasm and motivation of the employee, especially as in the spirit of belonging.

From an employee perspective, performance appraisal process presents a huge and equivalent opportunity to discuss performance and related issues as well as current and future prospects. Performance appraisal dialogue is the foundation on which the trust levels are established. Performance is directly linked to ones career prospects in an organization. Appraisals provide an opportunity to employees to discuss career prospects in terms of current and future.

Regular appraisals help employees understand their strengths and areas of improvement in order to achieve their career goals. The appraisal is also a platform for employees to share feedback about their manager and the organization. Performance appraisals help employees chart out their career path in consultation with their managers and optimise their goals in accordance with their skill sets and interest areas.

Each year’s performance appraisal is a step towards next year’s growth plan.

The organization must ensure that the appraisal framework designed promotes meritocracy with an open and a transparent approach and the employee too takes a balanced and a professional approach toward the same. Also, employees need to do enough of homework before getting into a discussion. Feedback during this process must be given and accepted to ensure that such contribution through this process not only impacts the employee but the organization at large. Hence, it is important that appraisers must have an ongoing training in the feedback process instead of just before the appraisal process.

Thus, performance appraisals help both employees and organizations and contribute to their growth and improvement in the long run.