Do I Need Performance Appraisal System in my Business?!

What is it? How could it help your business? And what are its types?

Simplit Team

What is the employee appraisal system: The appraisal system helps the managers and employers manage the performance process of the organization to develop a fair system of payment and promotions. On the other hand the appraisal system helps the staff and the employees improve their performance and recognize the job functions better through setting future objectives and giving staff guidance improvements.

It includes measuring qualitative and quantitative feedback then turning them into actionable ideas to improve the overall performance of the organization, the appraisal system could consist of more than the annual review, and it is one of the most important rules of the HR department .

Since there are many types of employee appraisal systems, you should choose the performance appraisal software that suits your business, here are some of the most popular types:

General Appraisal: this system covers the main elements of traditional performance management. This process includes usually the annual performance meeting between the managers and team members to discuss the overall performance in order to improve it in the future.

Management by Objectives Appraisal: MBO appraisals require a prior agreement between the employee and the supervisor on a set of objectives before the evaluation. This process relies on how well an employee has contributed to achieve these objectives.

360 Degree Appraisal: this method requires collecting feedback from many channels like; co-workers, managers, subordinates and customers. It is considered to be quite objective, so it gives the employee a rounded look from many points of view.

Self Evaluation Appraisal: this system is driven by the employees, so it involves the employees more than most systems through putting the responsibility of measuring the performance on the employees themselves, and because the employees may not be so accurate, some external input will be required too.

Psychological Appraisal: this one focuses on psychological traits, intellectual ability, emotional stability and the potentials of the employees. These evaluations are useful in preparing and developing training methods, and for placing employees on appropriate teams.

Not all of these methods will be suitable for every business. The best appraisal system is the one that suits your company culture and helps you taking the best decisions in your company.

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