Determining objectives: The first step in the process is determination of objectives of performance appraisal. Based on the objectives the remaining stages of process are initiated.
- Establishing Performance standard or criteria: The standards are set up for appraising the performance of employees. Job performance standards are the work requirements that are expected from an employee on a particular job. these are the criteria against which to judge results or performance. These standards may be of physical nature. If work performance cannot be measured be measured in quantitative terms for instance, in case of a personal quality then it should be mentioned in the appraisal form.
The person who are required to do appraisal, number of times, criteria, etc must be decided in
- Communicating standards: A after determining the standard, it should be communicated to the
employees. They must be aware of what is expected out of them. It should also communicate to evaluators. If there is any objection, it may be recorded. The standard can be modified in the feedback information obtain from evaluators and employees.
- Measuring performance: In this stage actual performance of employees are measured. With the help of personal observation, written report, face to face interview, etc information regarding performance are gathered.
- Comparison: Actual performance and standards are compared in order to find out the deviations.
- Discussion: the results of the appraisal are then communicated to the employees. The deviations and reasons for deviations are analyzed and discussed with the employees. The discussion will enable the employees to know the strength and weakness of his own.
Corrective action: By way of conducting discussion with the employees, the steps required for improving performance can be assessed and corrective action can be taken. Coaching, training,counseling,etc can be conducted to improve the performance of employees.