The first step in designing an appraisal system is to set the objectives of the system. The criteria and metrics for evaluating successful performance must be determined. The appraisers or reviewers and participants should also be chosen. The appraisal does not end in the measurement of the employees’ performance but there should also be a feedback mechanism so that a reward system can also be properly put in place.
There are several techniques for appraising the performance of employees. One technique is to use a numerical or scalar rating system. The managers are asked to score an individual against several objectives/attributes. Other companies do not only ask the managers to rate the employees but they also ask their co-workers and customers to rate the employee. Sometimes the employee is asked to rate himself too (Admin, 2010).
Another common method of appraisal is the Management By Objectives (MBO) which is the process wherein managers and employees set objectives for the employee then periodically evaluate the performance of the employee and reward him according to the results. The main concern of MBO is the accomplishment of goals rather than the method used in accomplishing them (Ngo, n.d.). The 360-degree method of appraisal is another technique that can be adopted by a company. The 360 Degree Feedback is a system where employees receive confidential and anonymous feedback from the people who work around them. It is called “360-degree” because of the full circle of sources, i.e., the sources of appraisal come from various persons such as managers, suppliers, and customers.
A less commonly used technique for an appraisal is the trait-based system. The trait-based system takes into consideration the traits or personality signs of an employee such as integrity and conscientiousness. The trait-based system is not recommended because the personal behavioral traits of an employee often do not represent his working capability at all. It is also not recommended because of the presence of biases in the sources of information. An example of this is if a manager does not like a certain employee for some reason, he can just give a bad appraisal and there will be no one to question the authority of his review.
In my previous job with a bank, a performance appraisal is done every year. The appraisal is done by one’s immediate boss. An employee is appraised according to his attitude at work, attendance, appearance, communication skills, quality of work, service standards, follow-through (not needing the supervisor to follow up on his work), job knowledge, relationship skills, overall output, and overall performance. The employee is rated according to different levels namely: consistently exceeds requirements (highest level), frequently exceeds requirements, consistently meets requirements, sometimes fails to meet requirements, and needs immediate improvement (lowest level). After accomplishing the form, the supervisor also asks the employee to fill out the same form to appraise himself. Both forms are submitted by the supervisor to the Human Resources Head and they both discuss the results. Feedback is also given to the employee through a one-on-one meeting with his supervisor. This performance appraisal is used as the basis for the yearly increase given by the company to its employees. It is also the basis for promotion and the development and career planning of the employee. I think that the appraisal used by our bank is very effective and objective. I can say that it is an example of a “well-designed performance appraisal system which supports an integrated human resource strategy and enables the attainment of organizational and business goals” (Dattner, 2010).
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