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Use these 3 steps in deciding which performance appraisal method best suits you

by , 08 January 2016
Performance appraisals (reviews) measure how well an employee is performing at work against specific measurement criteria.

They are important to your company as they can help you:

· Ensure that targets are suitable and achievable;
· See that your employees have adequate resources to do the job;
· Ensure that employees have the necessary skills; and
· Identify and remove any obstacles to achieving targets.

Now, when it comes to performance appraisals, there are various performance-appraisal methods you can choose from. (Click here to find out more).

But how do you know which method will best suit you?

Well, here are 3 steps to follow in finding out just that...

Step#1: Link your performance-appraisal method to your company's strategy

The performance management system should be the planning tool for managers, as it'll ensure that every employee is working towards the company's primary goal. This ranges from the lowest level all the way up to managing directors.

Now, in order for this to happen:

·        The design of the system must fall in line with and support the company's strategy; and
·        There must be a positive link between the success of the company and the actual motivation to achieve that.

NOTE: Companies now realise that employees play a critical role in the success of the business, and often link targets to a profit-sharing scheme.

You're obliged to do performance reviews. That's why you need an extremely easy to use, highly efficient system.

Click here for more details…
Step#2: Decide on the performance-appraisal format

Decide on the format you'll use, as well as how you'll record it.

There are many performance-review systems available, either paper-based or computerised.

Paper-based performance review systems are good for small companies where control of the process is seen to by 2 or 3 managers, while computerised systems are better suited to much bigger companies in which managers have several employees reporting to them.
*Would you like to find out what the third step is? Then subscribe to the Practical Guide to Human Resources Management today.

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