What are the characteristics of an effective appraisal system?

What will be an ideal response?

Answer: The basic purpose of a performance appraisal system is to improve the performance of individuals, teams, and the entire organization. Although a perfect system does not exist, every system should possess certain characteristics.

Job-relatedness is perhaps the most basic criterion needed in employee performance appraisals. The evaluation instrument should tie in closely to the accomplishment of organizational goals. Subordinates must also understand in advance what is expected of them. How can employees function effectively if they do not know what they are being measured against? Firms should use the same evaluation instrument for all employees in the same job category who work for the same supervisor. Supervisors should also conduct appraisals covering similar periods for these employees. A common deficiency in appraisal systems is that the evaluators seldom receive training on how to conduct effective evaluations. Unless everyone evaluating performance receives training in the art of giving and receiving feedback, the process can lead to uncertainty and conflict. Most employees have a strong need to know how well they are performing. A good appraisal system provides highly desired feedback on a continuing basis. In addition to the need for continuous communication between managers and their employees, a special time should be set for a formal discussion of an employee's performance. Because the goal of the company is improved performance sharing appraisal results aligns with the common goal of appraisal systems improving performance. Ensuring due process is vital. If the company does not have a formal grievance procedure, it should develop one to provide employees an opportunity to appeal appraisal results that they consider inaccurate or unfair.