Performance Appraisal is known as the evaluation of an employee’s performance during current or past relating to his or her performance standard. This help employers make decision about pay, promotion or retention on the employee’s appraisal. Appraisals play an important role in setting work standards, assessing the employee’s actual performance and providing feedback to the employee with the aim of helping him or her to continue to perform. Employees can develop a plan for correcting the deficiencies and reinforce the weaknesses through performance appraisals. Performance Appraisal can use by supervisors to identify training and development needs. (Dessler, 2013)
An effective Appraisals always involves the 3-step performance appraisal process: (1) setting work standards; (2) assessing the employee’s actual performance relative to those standards (this usually involves some rating form); and (3) providing feedback to the employee with the aim of helping him or her to eliminate performance deficiencies or to continue to perform above par. (Dessler, 2013) Setting a work standard is formal and not left to chance. Effective systems provide step-by-step guidance and standardized evaluation forms for all managers to evaluate all employees. This not only lends to consistency, but also allows the results of the evaluations overall to be reviewed and compared to identify areas of strength and areas where there may be opportunities for improvement. Making the process as easy as possible for managers to follow will help ensure that performance appraisal is effective. Providing feedback continuously let employees knows that what they’re doing wrong and doing right. When a performance is getting trouble or facing problem, the time to take action is immediately. If employer or supervisor didn’t provide feedback immediately, the problem will continuously until it cannot be fixed.