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How Can HR Systems Help Employees Embrace Performance Appraisals?

The importance of having the right people in a company cannot be under emphasised and as companies are learning this, the war for talent keeps escalating. We all know the lifeblood of every organisation is a talented and skilled workforce because no company can function effectively on its own without an efficient workforce, and this points to the reason why HR systems must embrace performance appraisals to encourage a significant boost in employees output.

A performance appraisal gives room for team members to grow professionally, it allows managers to define medium-term and long-term objectives, and it helps companies to make fine decisions that concern promotions, raises, bonuses, and other rewards.

Often providing valuable insights to managers and employees, this evaluation method has a momentous impact on employee's engagement and morale. Performance appraisals can help managers identify their staff's training needs and to spot talent with the valuable insights it provides and, it can as well improve job satisfaction, productivity, and morale of employees when carried out effectively.

Importance of Performance Appraisals

The HR system of an organisation needs to embrace performance appraisals because it helps define objectives, addressing performance issues, and assessing staff's quality. It's a key tool used in helping the employees to reach their full potential as it helps in correcting bad behaviours and understanding their weaknesses and strengths.

Human resource management systems have an abundance of benefits associated with performance appraisals and companies can reap those benefits concerning evaluating employees' performance metrics, which can contribute to decisions being made about promotions and other rewards.

Common Modern Performance Appraisal Methods

HR systems can enhance employee performance within the organization with the implementation of the right performance appraisal methods.

1. Management by Objectives (MBO): It is used to validate objectives, testing if they are specific, measurable, achievable, realistic, and time-sensitive.

It's affected in matching objectives of employees with the overarching organizational goals and both employees and managers work hand-in-hand to communicate, organise, plan, and identify objectives and their feasibility. However, the lack of top management involvement, inadequate corporate objectives, and incomplete MBO program are the common reasons for the failure of this method.

2. 360-Degree Feedback: Offering a clear understanding of an individual’s competence, it as well eliminates bias in performance reviews. With feedback collected from the employee’s circle of influence which includes direct reports, customers, peers, and managers, this method exerts its evaluation on an employee with these. It has five integral components;

  • Customer or client reviews
  • Subordinates Appraising Manager (SAM)
  • Peer reviews
  • Managerial reviews
  • Self-appraisals

Misguided feedback, ineffective planning, competitiveness, cultural differences, and leniency in the review are some of the common reasons for its failure.

3. Behaviorally Anchored Rating Scale (BARS): It's suitable for businesses of all sizes, it ensures fairness throughout the appraisal process and decreases any chance for bias, it emphasises more on observable, concrete, and concrete behaviours, and it offers a consistent evaluation, accurate performance analysis, and improved feedback. This method compares employee performance with specific behavioural examples and it offers qualitative and quantitative benefits.

4. Human-Resource (Cost) Accounting Method: Factors like interpersonal relationships, overhead cost, quality, service value, and unit-wise average are taken into cognizance when the cost accounting method is used to evaluate the performance of an employee. The monetary benefits the employee yields to the company is what this method uses to analyse his/her performance. A company with a good HRIS system can implement this method to identify the financial implications of employees performance and the cost and value they bring.

Benefits of an Online Performance Management System

A web-based performance management process is fast replacing paper-based appraisal processes in most organisations and this is simply because of the many significant benefits of an online performance management system which include;

  • It gives more time and flexibility for managers
  • It helps to streamline goal setting
  • It aids in the increment of employee engagement
  • It provides a high-touch experience
  • It offers better, quality data
  • It encourages a year-round performance
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