CAT / FIA FBT Syllabus D. Leading And Managing Individuals And Teams - Effectiveness of Performance Appraisal - Notes ^{7 / 7}

Evaluating the appraisal scheme can involve the following:

1. calculating the costs and benefits of the appraisal process

2. investigating if there have been any improvements in performance by the individual and the organisation

3. asking appraisers and appraisees their opinions on the process

4. monitoring performance results

5. watching take up of training and development opportunities

6. checking succession and promotion processes/results

7. reviewing other factors such as staff turnover – a figure that is too high or too low is an indication that something is wrong in an organisation. 

   Also, the appraisal scheme ought to identify individuals who are ready for promotion and if many talented people leave on the grounds that there are no job opportunities then the overall development system may be at fault.

The process of assessment and staff appraisal should highlight some of the causes of dissatisfaction, find solutions and remedy them before the employee becomes disillusioned, looks for another job and resigns.

The causes of staff leaving fall into three categories:

1. Discharge 

   – as a result of an employee’s unsuitability, disciplinary action or redundancy.

2. Unavoidable 

   – because of marriage, moving house, illness or death.

3. Avoidable 

   – due to pay, working conditions, relationships with work colleagues.

From records, the staff turnover can be calculated by dividing either the total separations (those leaving the organisation) or the total replacements by the average number in the workforce, and expressing the result as a percentage.

Examination of this figure may highlight vital information, e.g. poor selection techniques or poor working conditions.