Human resource management performance appraisal

1. Human resource management performance appraisal
Today's businesses are under a great deal of pressure to perform. With increasing
customer expectations, global competition, and costs of goods and services, many
companies struggle to meet profit forecasts. As a result, companies are beginning to
discover the powerful link that exists between employee performance and financial
success. Many companies are relying more heavily on human capital to address consumer
demands while lowering operating costs, and improving financial position.
Deploying employee performance appraisal programs that lead to measurable
improvements in employee performance can provide the human capital leverage
companies need to overcome many of today's business obstacles. Companies must
develop and execute initiatives that create a strong linkage between its HR department,
management team and employees.
A large number of companies use formal performance appraisals to measure, recognize
and reward employee performance. How frequently an appraisal is administered has little
influence over whether desired outcomes in employee performance and behavior are
achieved. The key to a successful performance appraisal is clear communication, accurate
information and flawless execution.
Employees generally feel more motivated, empowered and appreciated when
performance appraisals are executed properly. As a result, employers realize the benefits
associated with higher productivity levels, increased employee performance and
improved quality results.
Performance appraisals can help to increase employees' support of company goals and
objectives. An appraisal that contains clearly defined goals, objective measurements, and
an accurate summary of the employee's performance has a higher potential of increasing
employee satisfaction and inspiring ongoing performance than appraisals that fail to
support these elements.
Although there are many steps that have proven to be effective in delivering successful
outcomes, proactively communicating expectations, frequently following up, and
properly aligning goals and objectives should never be omitted.
Proactively communicating clearly defined expectations, goals and objectives to
employees is one of the most important steps. Omitting this step often results in
performance appraisals that are perceived by employees as ambiguous and unfair. In
addition, it is difficult for supervisors to truly hold employees accountable for their
overall performance at the end of the evaluation period.

2. Providing employees with regular feedback regarding their individual performance is
another important step. However, communicating clear goals and objectives, but failing
to provide employees with frequent and ongoing performance related feedback often
results in less than favorable outcomes. Failure in this area has the highest potential of
producing negative results in employee satisfaction, loyalty and performance. Frankly,
this is a critical area where both the employee and the employer suffer equally.
Another extremely important step in the performance appraisal process is the alignment
of department-level goals and objectives with the company's overall business strategy.
Generally, the human resources department holds the responsibility of assisting with the
development of department-level goals and objectives. When executed effectively, HR
ensures that each department's goals are clearly defined and aligned. Often, this area is
commonly overlooked in both large and small organizations.
A performance appraisal that only supports general elements rarely produces high-
performing employees. How the appraisal is communicated to the employee, and how
frequently the employee is given performance related feedback between appraisal periods
play a significant role in the effectiveness of the appraisal process.
Poorly written and executed appraisals often result in employee dissatisfaction,
reductions in productivity, and unwanted employee turnover. Failure to meet the
employee's expectations during the performance appraisal process can be disastrous.
To achieve and sustain exceptional employee performance, companies must engage their
internal resources, and then develop and execute a performance appraisal program that
leads to a strong alliance between its human resources department, management team and
most importantly, its employees. All three groups must have a clear understanding of
everyone's role, responsibilities and expectations. This, combined with flawless
execution, will position companies to achieve desired results in employee performance,
lowering operating costs, and improving financial position.
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