Performance Appraisals and Performance Evaluations are commonly interchanged. Although human resources will usually point out the differences between the two, Performance Appraisals and Evaluations both refer to a process of an employer conducting a review of an employee’s job performance to determine the amount of increase in salary that should be merited to an employee or the benefits one deserves to have based on performance. Typically, evaluations come before an appraisal.
Performance Appraisals and Performance Evaluations play a vital role in business as they attempt to assess the overall value of an employee’s work and contributions to determine if objectives have been met and what needs to be done in order to increase employee productivity.
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Employee Appraisals aid supervisors in evaluating their employee’s performance at work and help in developing a fair system in pay increases and promotions. Appraisals also help employees improve their performance level and increase productivity. When done accurately, a Performance Appraisal can assist companies in devising or reorganizing job functions to make it fit the position of an employee and incorporate goals to help improve the employer as well as the employee with appropriate and timely feedback and training.
Types of Appraisals
Trait Appraisals focus on an employee’s character and personality, such as an individual’s helpfulness and punctuality. This type of rating system is usually used in businesses or work responsibilities linked to customer service.
Behaviorally Anchored Rating System or BARS measures an employee’s behavior by using excellent to poor rates. Behavioral Appraisals rely on specific instructions and whether or not an employee is able to follow them to the letter such as “Does the employee use the correct greeting when answering the office phone?”
An unstructured appraisal is a subjective evaluation rather than an objective one because it bases its evaluations on qualities that are reported by superiors or supervisors. This type of method is typically considered to be an unreliable one.
Psychological appraisals focuses on an employee’s intellectual ability, emotional stability, analytical skills, and other traits related to the use of objective psychological processes. This method allows managers to develop training methods and to properly profile employees into departments or teams that allow them to optimize their strong abilities.
Straight ranking allows supervisors to compare one employee from the other by determining top performers and weak or bottom performers.
Management by Objective Appraisal
These types of appraisals allow an employee and his supervisor to create a set of goals that the employee needs to attain to assess him during his evaluation. This allows both parties to establish fixed objectives and enables the supervisor to provide constructive feedback afterward.
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Periodic employee evaluations are performed to provide critical assessments and feedback to employees. This allows employees to determine their strengths, weaknesses, and abilities to help them hone and develop their skills more.
The Advantages of Performance Evaluations
Determines an Employee’s Strengths and Weaknesses
One of the main points of these evaluations is to determine the strength and weaknesses of the employees. It details what these employees should work on, such as their punctuality or their service performance, and reprimand them by helping them improve. Doing so would be very beneficial to both the employee and the company that he or she is working for.
Basis for Compensation Increases
Through the use of these evaluation forms, those who are in charge of evaluating employees, may use these forms to report to their superiors as to which deserves high praise and other necessary compensation for their hard work. That employee may even get a raise or be properly promoted to a position that he or she deserves due to the level of performance.
Allows Growth and Development
Evaluations allow supervisors to gauge an employee’s weak spots and conduct training and development programs to address them in order to help improve employee performance.
Evaluations promote feedback, praise, and constructive criticism in the workplace. Through performance evaluations, supervisors will be able to recognize and reward employees who are performing well and allows employees to communicate with supervisors to express their ideas and thoughts that can help them in performing better.
When conducting appraisals or evaluations, it is important to properly document them using appropriate forms. Our Appraisal Forms, Employee Appraisal Forms, Appraisal Order Forms, and Self Appraisal Forms offer accessible forms to make sure you are able to provide accurate and organized documentation of evaluation and appraisal results.
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