What is performance appraisal?

By Taco Fleur

All organisations, regardless of size or nature, rely heavily on their resources for their day-to-day operations. These resources not only refer to the materials, equipment and facilities they utilise, or the funds they disburse to finance their capital and operating expenditures, but more importantly, the workforce that carries out their transactions. Because of their importance, it is often said that human resources actually fuel the success of a company. It is therefore a must to measure their performance as an indicator of the company’s viability.

What is a human resource?

The term ‘human resource’ is most commonly used in the corporate setting, and refers to a person who is tasked to do a particular set of activities. Because of the critical role they play, responsible companies take good care of their human resources by providing them competitive compensation and benefits packages based on their performance, as well as training and development opportunities for both their personal and professional growth. Employers likewise ensure that they provide a healthy and safe work environment for their workforce.

What is performance appraisal?

Performance appraisal is a regular process in a company that evaluates the output of an employee against specific and time-bound metrics that were agreed upon by the employee and his immediate head or performance manager. For some companies, performance appraisal also includes looking into non-quantifiable parameters such as competencies relating to business sense, people management and communication skills, as well as values, work ethics and attitudes toward colleagues and superiors. Usually, the result of a performance appraisal becomes the basis for career promotion, salary adjustment, additional rewards and incentives, or employee recognitions. Unlike in traditional corporate settings, performance appraisal nowadays is no longer limited to individual employees; instead, teams and units are subjected to the same scrutiny and measurement on a periodic basis.

Team performance management

Managers do well to strike a balance with regard to tracking performance at both the individual employee and team level. On one hand, they have to ensure that each member is responsible for and accountable to a particular key result area and set of targets. On the other hand, they must see to it that each of these individual deliverables is aligned with the overall team goals, and that the team is actually achieving its objectives. Having teamwork, therefore, is imperative, and this is why most managers conduct team building or other activities that can strengthen the working relationships between and among the members of the team.

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Topics: Leadership | Comments Off

Tags: Business, human resource, Leadership, performance appraisal, performance management

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