Businesses need to stay tuned into their staff, and the staff needs to know how their job related performance is viewed. One effective strategy that can provide answers to both is performance appraisals, but they must be handled skillfully.
If conducted with care, performance appraisals provide employees with valuable feedback in regard to their job performance. It also provides guidance and strategies to improve in weak areas.
This type of feedback offers employees a sense of security, knowing they will be guided on a regular basis in order to develop and strengthen their skills. This fosters employee motivation.
The benefit the company is provided is information. During the interviews, employees may be offered the opportunity to air their workplace concerns. This provides management with needed employee information.
While performance appraisals have the potential to be a useful tool, there is some concern among HR professionals and managerial experts that interviews handled by managers who aren’t skilled or trained for this particular job function, can cause more harm than benefit.
AllBusiness.com warns that “poorly conducted appraisals can seed staff insecurity and encourage dissent or anger. They can also give the appearance of unfair or discriminating treatment.”
Employers are advised to create performance appraisals that are “designed well, with clear guidelines and goals, administered by trained supervisors, and supported by upper management.”
Every business is different which is why there isn’t a one-fits-all appraisal system. An employer needs to design a system that works for his company. Ultimately, the right appraisal system will enhance employee motivation, which in turn will enhance employee productivity.