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Six things performance appraisals can help you determine

by , 16 July 2014
Setting meaningful and relevant goals for your employees at the beginning of the business cycle is one of the most critical elements of your job as a manager.

And then, it's equally important to measure how each employee has performed against those goals.

This is where the performance appraisal process comes in.

And you must use it to determine these six things when it comes to your employees' performance...

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Using performance appraisals correctly can help you determine these six things

The performance appraisal is a critical step in the performance management process, says the Practical Guide to Human Resources Management.

If you use it correctly, it can help you determine:

#1: Training needs so you can close knowledge gaps related to the work you require your employee to do;

#2: Whether the set goals are appropriate, relevant and current and whether you need to scrap them, tweak them or carry them through to the next business quarter;

#3: The extent of your employee's performance against pre-determined output quality criteria as well as in terms of the values and ethics of your company;

#4: The extent to which you should pay out performance-based pay;

#5: Whether you require counselling or even disciplinary action (in the case of poor performance) to address the problem; and

#6: The developmental needs of your employee, including career development aspirations.

Just remember that performance measurement must take place on two levels:

  1. You must conduct informal appraisals every four to six weeks. The informal assessment usually takes the form of an informal discussion.
  2. You must also conduct formal appraisals every quarter or every six months. The formal appraisal is a more structured process for reviewing your employees' performance.

There you have it: Performance appraisals can help you determine the six key points we've outlined. So make sure yours are effective.

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