With performance appraisals becoming the new norm, their importance has grown, and they have become a way to evaluate candidates for job promotions and who gets saved during layoffs. Many different factors go into assessing and performing a performance appraisal; the first one is deciding at what level you need to start evaluating for a performance appraisal. The second factor to take into account is how do you measure your appraisal? Do you differentiate by candidate or who does more and how fast they do it?
Performance appraisals are used administratively whenever they are the basis for a decision about the employee’s work conditions, including promotions, terminations, and rewards. (Gomez-Mejia, 2012, p.223). Performance appraisals compare work performed against measurable objectives that the employee and supervisor agreed to at the beginning of the appraisal period (smallbusiness.chron.com). If the employee does not meet the objectives as agreed upon, this may have a downstream effect on their salary, chances for advancement, and it could lead to termination. The manager plays a critical role in the administrative process of the performance appraisal. When the manager conducts the performance appraisal, it must be thorough, accurate and performed on a timely basis. In a situation where the employee is terminated due to their appraisal and rating, the business might find itself having to defend its validity.
The performance appraisal can be applied to the individual employee or a team/group of employees. Administratively, a performance appraisal for a team should serve as a tool to determine which employee or employees are not pulling their weight in the organization. Team performance appraisals assess the performance of teamwork on organizational. In addition, the performance appraisals can range from recognition of individual performance and their contribution, to group outcomes based only on an assessment of the organization's performance. Managers are then able to promote from the team or provide some form of reward and recognition. While it is not impossible to reward workers based on team evaluation, the process can be tedious and result in demoralization and grumblings. If you base compensation on team performance, members may end up blaming peers for not accomplishing tasks or may feel that others who put in more effort should get more recognition (smallbusiness.chron.com). The organization along with HR’s input should create realistic performance expectations that are clearly communicated to the employees. When only an organization's performance is evaluated, no individual appraisals are completed, and individuals do not receive performance ratings (smallbusiness.chron.com). The process is used for group performance appraisals. An organization must look at the types of developmental performance appraisals to assist the employee in achieving their personal, team, and business goals.