Developing and conducting performance appraisals should not be done in isolation. The performance appraisal is closely related to a number of human resource management activities that should be considered below.
1. Job Analysis: The performance appraisal should be based on a thorough job analysis. The results of the job analysis can be used to produce a job description, which describes the work to be performed, and job specification, which outline the requirements necessary to accomplish the job.
2. Performance Standards: performance standards should be derived from the job analysis information, based on this information; the levels of performance deemed to be acceptable versus those that are unacceptable are developed. In essence, this determiners a standard against which to compare employee performance. A good performance standard describes what an employee should have produced or accomplished upon completing a specific activity.
3. The performance appraisal system: In general, employees should be evaluated on a number of specific dimensions of job performance. Each of the specific dimensions of job performance used to evaluate an individual’s performance should be developed so that it is not deficient, contaminated, distorted, or irrelevant. Job dimensions that fail to measure all of the important aspects of performance would be viewed as deficient. When extraneous factors that are not central to overall successful performance are included in the evaluation of one’s job performance, contamination has occurred. Job dimensions that suffer from distortion do not emphasize each component in relation to its importance to the job. Finally, a job dimension that measures only aspects of performance that are truly important in determining job effectiveness would be considered relevant.
4. Assessing performance: The actual performance assessment is the determination of the employee’s strengths and weaknesses. One purpose of a performance appraisal is to improve the employee’s performance. As a result, performance weaknesses must be determined. However, it is also important to reinforce existing behavior that is deeded to be strong.
5. Performance Review: The performance review is the actual discussion that transpires between the rater and the rate regarding the rater’s performance. Research suggests that the performance review should be approximately 60 minutes long and be a mutual discussion. However, employee responses to an employment survey indicated that most performance reviews are relatively short.
Because the performance review involves two people, the appraiser and the appraiser, the review should entail an exchange of information between these two parties. This information exchange can take many forms. Three of the most common include closed reporting, and coaching.
6. Setting A plan of Action: By this point in the review, the employee should have an accurate idea of his or her performance evaluation. The employee should know his or her strengths and weaknesses.
At this point the supervisor and employee should focus on the future. Job performance objectives should be discussed to establish a plan of action. The employees as well as the supervisor should have input in this process. This is often an appropriate time to explore the employee’s career interest and developmental needs. The employee should be aware of the supervisor’s expectations in regard to the plan.
Finally, the supervisor reviews the job performance and plan of action developed. And then sets objectives, based at least in part on the plan identified for the next rating period. This will provide the employee with direction and guidance about what is expected.
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