Functions and Types of Performance Appraisal in the Company
Human resources departments (HRD) usually make performance appraisals as a tool for employees to advance their careers. They provide feedback to people about how well they are doing. The aim is to ensure that they manage and achieve the set goals and to help them if they fail.
Performance appraisal can also help employees and managers identify areas for improvement and career advancement. The performance evaluation that you give to employees is also a validation of their contribution to the success of the company.
Performance Appraisal Function
In general, there are two functions that can be used in practice in a company.
1. For the organization:
employee assessment provides insight into employee contributions, allows management to improve working conditions, overcome behavioral problems, recognize employee talents, support skills and career development, and improve strategic decision making.
2. For the employees:
recognizing and thanking employees for achievements during their work, looking for opportunities for promotions or bonuses, helping them get training or education to advance their careers, finding potential areas for self-development, encouraging and involving them in career development, and starting conversations about long-term goals.
Types of Performance Appraisal
Matters related to employee performance assessment are no longer based on company revenue alone. Currently, there are many variables and matrices that can be used to carry out performance appraisals. Not only that, this assessment can also be given on several different types of benchmarks, namely as follows.
1. 360 degree assessment (360 appraisal)
Through this type of assessment, each manager usually collects information about employee performance. This type of assessment is the most widely adapted because it can be done through a questionnaire. Each person assessed will receive scores from supervisors, colleagues, group members, and self-assessment.
2. Negotiated appraisal
This assessment will involve the use of a mediator during the employee evaluation. Here, the reviewer shares the good achievements of the employee before offering any criticism. This type of evaluation may be done when the employee and manager may be experiencing tension or disagreement.
3. Peer appraisal
This type of assessment takes the form of feedback when employees write reviews about fellow colleagues. This system is designed to be able to monitor and improve the performance of employees who are in the same team. Team members, work groups, and coworkers are responsible for conducting these performance assessments.
4. Self-assessment
Self-assessment is a performance appraisal method that positions each employee to evaluate their own work, achievements, and areas that need improvement.
It can be used as a stand-alone tool or as part of a multi-source feedback system. Typically, feedback includes input from managers, coworkers, customers, and other stakeholder involvement.
Self-assessment can have several advantages and disadvantages for both employees and organizations. However, this depends on how the assessment is designed, implemented and used.
Each company may use several different types of assessments in the same review. For example, a manager can consult with fellow employees and provide a self-assessment to the employee.
To explore and evaluate employee potential profiles within your company, the Customized Assessment Program service can be used to maximize personal potential. This will really help employees who will receive promotions or transfers to be better prepared to adapt to their new environment.