The Best Employee Performance Appraisal System for Employers

Employee-Appraisal-Session

Performance Appraisal is a regular review of an employee’s job evaluation and overall contribution to a company’s achievements and growth. Perhaps you are wondering, or asking yourself about the most effective way to evaluate your staff at work. Organizations adopt several methods in the process of evaluating the performance of their staff.

The most popular method being senior/junior appraisal where there is a direct engagement of one appraisal. This method has proven to be non-effective and biased. This is because personal differences could influence the ratings for subordinates.

After thorough research and considering all elements of an effective appraisal system, the best one is 360 degrees performance appraisal system. On the other hand, it has proved its effectiveness. The finer details of this appraisal are as explained below;

About 360 degrees performance appraisal system

This system takes into account the personal attributes of the individual. It also delivers negotiated and agreed on targets under the overall company performance contract.

This makes it possible to measure individual contributions V/S the overall performance of the company. Two instruments are used in the appraisal of all staff.

The first is an employee working below the rank of appraisee, the customer and self contribute toward scores on personal attributes. The Head of Human resource coordinates this part and carries a 40% score.

Secondly, the Performance Contract assesses staff on the basis of negotiated and agreed targets. It involves, Members of staff and their Heads of Department. The Human Resources Department takes charge and it carries a 60% score.

The 360-degree feedback system is a full circle evaluation feedback system. However, it is based on ratings of performance by people familiar with an employee’s competencies, and behaviors.

It enables organizational members to receive a broad perspective on their performance from subordinates, peers, self-assessment, managers. The modification ensures that appraisees are evaluated objectively on measurable targets.

Performance Appraisal | Benefits of the 360-Degree Feedback System

360-Degree Feedback System Staff evaluation is essential in determining Human Resources capacity gaps. It helps bridge them through staff development and capacity building.

The value of 360-degree feedback is often seen in terms of individual development. the aggregate results provide valuable data for the company. The 360 – degree feedback system allows companies to:

  • Take advantage of under-utilized personnel strengths to increase productivity.
  • Avoid the trap of counting on skills that may be weak in the organization.
  • Make succession planning more accurate.
  • Design more efficient training initiatives, and.
  • Support the organization in marketing the skills of its members.
  • Integrating performance contracting into the appraisal system.
  • Increasing objectivity of the appraisal system through the use of measurable targets.
  • Linking appraisal to the mandate of the University and responsibilities of the University staff.
  • Apply human assets data to the valuation of the organization.

Performance Appraisal | The Role of the Departmental Evaluation Committee

The Departmental Evaluation Committee should comprise of not less than three persons. It is required to coordinate the entire Performance Appraisal process as follows:

  • The HOD shall receive performance appraisal forms from the HOD Human Resource.
  • He or she shall issue appraisal forms to members of staff and ensure they complete personal particulars (biodata) and self-assessment sections, only.
  • The HOD shall constitute a Departmental Evaluation Committee.
  • Departmental Evaluation Committees shall complete their section on the appraisal.
  • The Departmental Evaluation Committee shall ensure each staff nominates a set of three people for each section in the appraisal form.
  • Departmental Evaluation Committees shall independently select one suitable appraiser from the lists of nominees for each section provided by the Appraisee to complete the appraisal sections.

Departmental Evaluation Committees shall convene meetings so as to provide feedback to employees by:

  • Identifying weaknesses and highlighting areas requiring work improvement. These include attitude towards work, dependability and resourcefulness, communication skills, punctuality and attendance, initiative, and creativity.
  • Identifying strengths and drawing attention to prospects for skills development;
  • The HOD shall forward the completed appraisal forms for all staff together with minutes of the meetings held in respect of appraisal to the HOD Human Resource. Note: Departments with less than five members of staff can team up with other departments to form the committee.
  • Design and Format of the Performance Appraisal Form.

The performance appraisal Form should be designed in six sections as follows:

Section I – Biodata | Personal Particulars

This section shall be completed by the member of staff being appraised. He or she shall provide Biodata and a summary of their job description, qualifications, and technical skills. Therefore, this section shall carry no weight.

Section II – Self Assessment

The members of staff being appraised are required to state their strengths, outstanding contributions made to their Department/Division. Likewise, they should provide general comments about the nature of their work. The self-assessment section shall carry a total weight of 5% for all staff.

Section III – Appraisal on Values and Staff competency

This section should be completed by the HOD through Departmental Evaluation Committees constituted as stated above. It is important to maintain the confidentiality of the information compiled. Hence, Evaluations by Departmental Evaluation Committees are the most traditional source of employee feedback.

Evaluation Committees should observe and measure all facets of an employee’s productivity with objective mind-sets to make a fair evaluation. General comments on unique traits, competencies, or inabilities should be written in brief in the space provided at the end of each section.

Section IV – Peer Evaluation

This section should be completed by peers or persons within the same rank/grade as the appraisee. Peers are the most relevant evaluators of their colleagues’ performance. This is because they have a unique perspective on a co-worker’s job performance.

Peers are generally very receptive to the concept of rating each other. Hence, presenting significant contributions such as validity and reliability of the information provided.

Appraisee shall nominate three peers from which the Departmental evaluation committee shall independently select one.

Section V – Evaluation by Employees Working below Rank of Appraisee

Employees working below the rank of the appraiser completes this section. Subordinate evaluation is called an upward Appraisal Process.

Subordinate evaluation is among the most significant yet controversial features of the 360-degree feedback. This is because, this group possesses unique, often essential perspectives that provide valuable data, It provides the analysis, on the performance elements concerning managerial behaviors and the interpersonal skills of managers.

Confidentiality in this evaluation is extremely important as there is usually great reluctance. In addition, there is a fear of the implementation of this rating dimension. Subordinates will simply not participate or will give irrational feedback if they fear reprisal from their manager.

Appraisees shall nominate three persons below their rank. Thereafter, the Departmental evaluation committee shall independently select one.

Section VI – Customer Evaluation

This is completed by people who receive services from persons being appraised. Those involved in the appraisal include suppliers, sponsors, collaborators, staff, or members of the general public.

This section has five attributes with a total score of 15%. The score obtained will help identify the appraisee’s areas of strength as well as the areas of weakness.

Evaluation of Performance Contract

The performance of duties forms a key component of appraising staff. This shall assess the extent to which individual members of staff contribute to the performance of the organization by delivering on set targets. Such evaluation shall be based on negotiated and agreed targets.

This shall be based on actual performance relative to the set targets. Staff Performance Management Office coordinates the process. The rating scale as follows:

Appraisal ratings

Score: Poor 0, Fair 1, Good 2, Very Good 3, Excellent 4

Note: Appraisers should provide explanatory notes for both poor and excellent ratings. The HOD, Human Resource shall receive scores from the various sections and compute the overall scores for each staff.

Performance Grades the HOD; HR shall assign a performance grade based on the overall score as follows:

Overall Score Range (%)

Grade

85-100 – Excellent

70-84 – Very Good

50-69 – Good

40-49 – Fair

0-39 – Poor

Feedback: The Head HR shall write to the appraisee informing them of their performance in the appraisal. Keep a copy of the letter in the Personal File of the appraisee and will form the basis of reward/sanction.

We at Green World Hospitality Consultants will help you develop a working appraisal system for your organization. Click here to find out how we can help you evaluate your employees.

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