The staff appraisal is the key tool to review and evaluate your staff on development, potential and reliability. Appraisals are a scheduled and systematic evaluation of the employees of an organization. Usually, the timing is in regular reviews of once or twice a year and conducted with the line manager and other employees (360Degree Model) with the objective to evaluate the performance and / or the behavior and the personality in the organization’s context. As long as Appraisal is a stand-alone event and not an integrated part of the general leadership charter, it cannot unfold its full potential as an instrument to grasp the human potential of your employee. The module Appraisal therefore describes the basic principles but must be applied through out the annual business cycle and cannot be limited to 1 or 2 meetings only.
The methods to appraise an employee can be distinguished in two main types, by distinguished features and by target orientation. Other methods as rankings, free assessments etc. exist but are not broadly used. The current practice is often a cross-over of both methods, e.g. a feature-oriented rating combined with goal setting and achievement and additional free comments.
Distinguished features method (classical method)
Using the method to classify by distinguished features, the employee is evaluated against a standardized grid of various preset criteria and a multilevel scale for the second dimension.
Target oriented method
This method evaluated the preset targets against the reaching of the goals (target achievement rate).
Purpose
The appraisal results can offer useful insights for career planning, training & development measures and personal development. The direct implication for salary differentiation, merit cycles and performance feedback/bonus is questionable as it only credits retroactively for performance and does not incentivize sustainable future engagement.