ACCA BT Syllabus D. Leadership And Management - Performance Appraisal - Notes ^{2 / 6}

An appraisal is a process by which the progress, performance, results and sometimes personality of an employee are reviewed and assessed by his or her immediate superior.

It is customary for appraisals to be made by an employee’s immediate superior, and this has an obvious rationale.

The superior has a wider view of the organisation's objectives and his subordinate is responsible for the work to accomplish such objectives.

Thus, the immediate superior is the person best placed to judge how well his junior has done, and help/guide him to do better.

For an effective performance appraisal, employees must know not only what is expected of them, but also the reason for doing the job the way they do it, and how good/bad they are at their work.

Each person will be appraised individually on:

1. the progress they have been making in their job

2. their strengths and weaknesses

3. their future needs as regards training and development

4. their potential for promotion.

The other side of this is that management are fully aware of what the staff are supposed to be doing and how they are actually doing it. 

This can be achieved if performance criteria are established jointly, appropriate on the job behaviour is mutually understood and the review is a continual process focused on growth and development. 

The organisation’s appraisal scheme is inextricably linked to its control structure:

1. it clarifies specific jobs relating them to the objectives of the organisation

2. it develops realistic and appropriate performance standards

3. it assesses competencies

4. it uses feedback and reward to improve performance

5. it links performance to organisational goals.

It aims to make the behaviour of employees predictable and, hence, controllable.

Obviously any rating could only occur in situations where the climate is open, that is, the subordinate is made comfortable and the immediate superior is feeling so as well.

Ideally appropriate performance standards should work under defined procedures.