Appraisal Meaning, Employee Performance Appraisal Process

Appraisal is a performance review process for employees to assess their goals and achievements. Employee will receive feedback, improvement plan, annual salary hikes, compensations, Increments based on performance rating as part of appraisal process..

What is Performance Appraisal

People Management is a critical aspect for any successful organization and performance appraisal is a crucial process. Organizational leads and managers will review their team’s goals and objectives and employee will do the self-assessment. Annual increments, Bonus, other compensations and feedback will be provided as per the performance rating.


How to do Employee Performance Appraisal

Performance appraisal is a review process for employees to assess their objectives, goals and achievements. Employees receive feedback as part of this process. Gross Salary compensations are purely depends on performance rating and employee contributions to organizations. Performance appraisal is an annual process in most of the organizations and various steps involved in this process as follows.

Appraisal Process

Various Steps involved in this Process

  1. Goals & objectives will be provided start of the year
  2. Mid-Year Review & Check-ins by manager
  3. Each employee must do their self-assessment.
  4. Annual review by Organizational leaders and line managers to assess them their objectives
  5. Performance ratings are provided for all the employees as per their objectives and achievements
  6. Feedback and improvement plan will be provided
  7. Employee salary hikes, compensations, performance increments will be provided as per their performance rating

Benefits and Various Aspects of Performance Appraisal Process

Appraisal Benefits
  1. High level Engagement
  2. Transparent Communication
  3. Constructive Feedback
  4. Identify trainings to upskill
  5. Improvement Plan
  6. Performance Rating
  7. Salary Hike & compensations
  8. Motivation
  9. Employee retention
  10. Strong Engagement
  11. Highly productive and committed resources

Different Performance Appraisal review Processes

Above we have discussed about very generic performance review which is annual. Organizations plans various performance review techniques to keep employees motivated. This will help employees to provide constructive feedback periodically.

Annual Performance Appraisal Review

This is a usual annual review process and performance rating will be provided only during annual review process. Salary Hikes and compensations will be provided based on their rating and feedback.

Line managers will get allocate with certain % of budget from overall remuneration of direct reporting employee. This budget may distributed for direct reporters and team members based on their performance rating and commitment. This complete process called annual appraisal process.

Midyear Performance Review

Previously, Organizations were more adhere to annual appraisal cycle but with change in communities, it may expected to do mid-year review. During this review process employee and manager will go through all the objectives created during start of the year and provide feedback. At times manager may add and modify the existing objectives depends on current road map of the projects.

Mid-year appraisal reviews would help in resetting the goals and making sure employee is aware of organizational goals. This process has helped organizations to provide feedback in 6 months of time rather waiting for 12 months.

Usually, many organizations plan employee Bonus scheme or performance commitment Increment (PCI) during the mid-term. This is also another type of appraisal process, based on mid-year feedback bonus and other compensations will be provided. However, the bonus or mid-year appraisals are purely depending on company performance.

Quarterly Check-ins

Quarterly check-ins are one of latest most popular process as part of appraisals during the virtual and work from home model.

During Quarterly review process, mangers will continue to review all the goals and objectives. This review occurs every 3 months between mid-year or annual process.

This helps employee more engaged and committed to the organizations and teams. This quarterly appraisal process majorly focuses on constructive feedback on timely basis.

1:1 Meetings

One to One meeting meant to keep regular communication between employee and manager.

1-1 meetings should focus on employee well-being, communication, regular appreciation constructive feedback. These meetings proven in many organizations as it drastically improved employee retention and engagement.

360-degree Feedback

This is another performance appraisal technique to capture the feedback from all the aspects. This 360-degree feedback process gets involve the employee, line manager, team member, peer manager, cross team members. This process will conduct by HR (Human resource) team as it is very sensitive process.

Appraisal 360 Degree Feedback
Appraisal 360 Degree Feedback

The feedback from all the angles may reviewed and provide the complete view and improvement plan along with the area where they are performing well.

Why employee Appraisal is important?

Because appraisal will open a window to retrospect ourselves while what we have done during the whole year. This employee appraisal will help to take pause on current work and assess and identify what went well, what can be improved and what went wrong. This retrospection analysis may drive to create some actions to further improve and inculcate best practices.

Who should be doing the Appraisal?

This process will lead by HR team with specified time window. This process usually between Employee and Line manager. Line manager will give the feedback and employee can ask for any queries related work and his aspirations and growth

What should be main target in Appraisal?

The focus of appraisal, line manager should create comfort zone for employee to share his queries and updates on their efforts and achievements. One of the very purposes of this review meeting to build trust relationship between employee and manager.

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