The most remembered activity when we talk about performance management is performance appraisal . These concepts are not synonymous, as evaluation is a phase of performance management, which is a broader and more complete process. Performance must be broadly managed and evaluation must not be applied in isolation.
This consideration of performance appraisal being a part of the process does not diminish its importance. In fact, as it is the tool that will measure the performance of employees, it is essential that it be well planned and executed. Thus, the results of the evaluation will be effective bases for improving the organization’s results and for human development .
Given the relevance of the process and the paucity of consistent performance appraisal data, we’ve gathered information on the topic in this guide. We are going to talk about important concepts, types of evaluation, indicators and how to put this process into practice.
What Is Performance Appraisal?
For starters, it’s important to understand what performance appraisal is. Chiavenato (1999) defines the process as “a systematic assessment of each person’s in terms of the activities they perform, the goals and results to be achieved and their development potential”.
Breaking down this definition and its terms, we understand that performing a performance evaluation is measuring the performance of an employee or group of employees over a period of time .
This analysis must be based on the agreements that were established with the professionals regarding their performance at the beginning of the period considered for the evaluation. The alignment of expectations is done considering the function’s responsibilities, the sector’s goals, the company’s cultural characteristics and the potential of each one.
In addition, evaluation must be future-oriented, that is, it must support actions to develop human potential within the organization. Thus, it becomes an excellent way to increase productivity , improve the quality of work and improve the quality of life in organizations.
What Are The Benefits Of Performance Appraisal?
When we understand what management and evaluation is, some benefits of this process come to mind, such as improved results and satisfaction. Although, by itself, these advantages are already quite expressive, the application of evaluation can also bring other consequences. Understand 5 Benefits of Performance Appraisal:
Provide Knowledge
One of the main benefits of performance appraisal is the knowledge it provides for employees themselves. People need feedback on their activities, so they know what to keep and what to change. This systematized measurement provides these data in an objective way and contributes to self-knowledge and improvement of work. Similarly, the organization also knows more about its employees, strengths and limits. Talents can be discovered and recognized.
Reasoning Decisions
The performance data provided by periodic assessments is a powerful input for people decisions such as promotions and relocations. These decisions are sensitive and require more information that goes beyond what is collected by the review. It is important, for example, to analyze the financial possibilities, in addition to the employee’s cultural and behavioral alignment . But if the evaluation process carried out with technical and ethical rigor becomes a good way to bring objectivity to verdicts that may be loaded with doubt or personal and subjective impressions.
Promote Transparency
The fact that evaluation encourages access to the other’s perceptions is another great advantage of this procedure. The feedback is essential in the evaluation process, so that it is already an incentive to return this to happen, even if the leader or the developer does not have the initiative.
Guide Development
data are inputs to development programs , whether at the team level, such as training, or at the individual level , such as coaching and PDI . By collecting information about someone’s performance, it is easier to identify their points of development and invest efforts in the right direction.
Both the company better directs its resources, and the employee, who starts to invest energy for change in points that are really necessary. The evaluation also helps in analyzing the effectiveness of these development programs, since, over time, it is possible to analyze progress.
Enable Strategic Action
All these benefits go in the same direction: a more strategic role for HR . This new behavior expected from the people management sector is precisely to be more objective, based on facts and data and having more knowledge about the organization to direct efforts and make assertive decisions. Appraisal directly promotes this new way of acting.
