Performance Appraisal Steps To Improve The Working Of A Company

Written by: LoanAdvice Staff

Companies need to adapt employee appraisal practices to help enhance productivity by identifying the team’s strengths and weaknesses. It is crucial to gauge your performance and the company’s progress to check whether you still in line with the set goals. Learning how to conduct a performance appraisal is a daunting task for every manager. However, it is a very crucial procedure that aims at elevating the performance of the employees. The process should help set clear expectations, adequately train the staff, and evaluate their performance later to check their compliance and drive. Proper planning will eliminate any uncertainty and a lot of guesswork when conducting the appraisal.

Let us learn how to carry out performance appraisals.

Set up specific expectations.

The initial strep should be accessing each employee’s job description. The move will help lead you to an effective performance appraisal. Come up with realistic goals and initiate benchmarking exercises so that you form a solid basis to evaluate the team’s performance. Measurable results can only be achieved if you come up with specific objectives and expectations. If you want to revamp and increase sales, you should challenge the sales team to reach a specific target.

The goal should be measurable so that you gauge the performance and progress at the end of the year. Precision makes the evaluation process easy since you’ll be dealing with numbers or facts. If the team in the spotlight fails to deliver desirable results, they should not present lame excuses. Motivation should be deployed to enhance the productivity of the team. You can promise bonuses or awards for teams that hit the target.

Have employees trained on what is expected

Once you come up with realistic goals, incorporate strategies that will help the teams accomplish their feats. Availing resources, tools, and training will help the staff achieve the set goals with ease. Adequate training will broaden their perspectives as well as guide them as they aim to face the challenge. Training promotes parallel thinking among the employees as they seek to accomplish the same goal. You need to ensure that the skills they get are in line with what is expected of them.

Newbies need to catch up with the rest, and adequate training will be vital in creating harmony. It would be unfair to judge a team member without giving them a proper induction and orientation. Offering complex tasks without providing the ideal training will only promote poor performances, frustrations, anger, and poor reviews if you expect productivity to be ready to avail of the ideal resources to help the teams adjust to the new regime.

Appraise each employee individually – Do not compare.

The need to work as a team erases the possibilities of finger-pointing and demeaning individual performances. A comparison should be made between teams. If a particular team fails to accomplish the set goals, it should be blamed and not the members. The goal is not set to expose weakness but foster productivity, teamwork, and cohesion. Avoid public shaming and revealing the weaknesses of individuals to avoid creating a hostile working environment.

The employees will view each other as competitors and not teammates, thus ruining the cohesiveness. The move will have adverse results, and overall performance will drop drastically. Performance appraisals are meant to paint a vivid picture of what is expected from the employees. The appraisals are key to identifying areas that teams need to improve on. Start the process by setting clear objectives that are measurable so that you promote productivity and effectiveness.

Organizations can take advantage of performance appraisal software to help evaluate the performance and productivity of the staff. The software will have a section with the employees’ names, job descriptions, and levels in management, among others. An appraisal solution is mainly divided into four sections which include;

Assessment of job performance

Team and individual ratings are derived based on their performance. Evaluation is a critical step because it seeks to analyze the roles, level of productivity, attitude towards work, problem-solving abilities, and overall performance. Companies perform an individual evaluation to help spot adaptability, leadership quality, self-confidence, and self-improvement. It also seeks to recognize team and individual efforts that help stir remarkable results. It is also an ideal way to determine the competency, efficiency, managerial ability, job knowledge, and professionalism of an employee. An assessment helps to track progress, and an organization poised to succeed needs to work in unison.

Ratings and rankings

At the end of the assessment, teams or individuals are rated and ranked based on their performance. The superior management should provide rankings, insights, suggestions, and appraisals. Genuine ratings and remarks will help the staff members identify their strong and weak areas. The process helps the management identify potential leaders and assets. The staff will work effectively to eliminate chances that will retrogress the company’s goals and objectives.


Remarks are important since they outline the flaws, areas of improvement, and level of expertise. The performance appraisal software comes in handy when delivering genuine remarks to help boost performance. Employees who are driven and focused will easily reach their targets. A negative statement should move in tandem with a positive attribute since the goal is to improve and commend good work.


Effective performance appraisals should have an employee comment and feedback section. The motive is to assess the employee’s response and attitude. The employee should always accept corrections and exhibit a positive attitude after receiving their appraisal results. They have the chance to justify their performance and reveal some of the work-related problems. They also get the opportunity to work on their areas of weakness to help bolster their confidence and productivity.


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