Performance Appraisal for Newly Start Up Organization
Definition of Performance Appraisal System
Is a method in which an employee performance in an organist ion is being evaluated which will include quality, cost and time. Its also a business way to know how it is performing. Reference source (
Performance appraisal - Wikipedia, the free encyclopedia )
Aim of Performance Appraisal:
The aim of performance appraisal is summarized in the following points
• Give employees feedback on their performance
• Identify employees training needs
• Form a basis for personnel decision, salary increases, promotions, disciplinary action, bonuses
• Provide opportunity for organization to diagnosis on their development
• Facilitate communications between employee and administration
Performance Appraisal Method
There are many methods used to measure employees performance however the most common type of performance measurement which has proven by experience in many industries to be very effective is measuring performance by objective. In brief measuring performance by objectives is explained as follows:
• Organization Set list of required competences to the business to function at 100% capacity,
• Based on their annual business plan the organization decides their annual objectives which are cascaded up to individual objectives,
• The objectives are broken into Key performance indicator for each employee,
• The objectives are been distributed amongst the employee based on their job function and their description in their organization,
• These objectives are been measured by percentage which are tied to a reward system based on the Human Resources Salary scale & method of pay their increments
To sum p the above in order for your performance appraisal to be effective it needs to have the following:
• Outline competencies to measure employees against set of criteria which can be under the following
• Leadership
• Management
• Personal Development
• Self Management
• Set Annual Objectives which are Cascaded into KPI,
• Performance Appraisal should be on a quarterly Basis
• A Reward system should be tied to the performance appraisal in order for it to be effective
• Training and Development is an essential part of performance appraisal measurements
Technical Way of Evaluating performance
• Some organization set their performance measurements against competence and map their employee career against it
• They perform gap analysis in order to know what is the organistion competencies & what are the existing employee competencies then perform a gap analysis by way of using training & development