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Three reasons why your current performance appraisal system may not be working

by , 23 July 2014
'Performance appraisal' seems to be the buzzword at this time of the year in many companies. But what does this word really mean?

Well essentially, a performance appraisal is the process of evaluating or judging how well your employee is performing.

The appraisal is a critical step in the performance management process. It determines the effectiveness of your employees' actions and ensures they're on the right track to meet your company's ongoing business objectives.

If you're one of the many companies conducting mid-year performance appraisals, keep reading to discover three reasons why your current appraisal system may not be working so you can tweak it before it's too late.

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Here's a little information on performance appraisals

Before we get to the reasons why your current system may not be working, check out these key points about performance appraisals

The term 'performance appraisal' is also sometimes referred to as a 'review', 'evaluation' or 'rating', and is one of the processes in a performance management system.

Some of the appraisal methods you can use to assess employee performance are the Management By Objectives (MBO) method, the rating scale, as well as the 360 degree method.

Now let's get to why your current performance appraisal system may not be working.

Here's why your current performance appraisal system may not be working

You can have the best performance appraisal system, but it's doomed to fail if it's being implemented by people who:

#1: Don't understand it;

#2: Aren't committed to its objectives; and

#3: Don't have the skills to implement and maintain it.

If these reasons apply to your workplace, make changes now so you can ensure your performance management efforts are a success.

PS: We strongly recommend you check out the Practical Guide to Human Resources Management to get all the information you need regarding conducting useful performance appraisals.

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