Procedure of conducting performance appraisal

(1) Establishing Performance Standards:

The First step in the performance standard for appraising the performance of an employee. It is the starting point of the appraising process which involves setting up of criteria to be used for appraising actual performance of employees. The standards decided should be clear, objective and noted in writing. Such characteristics include work quality, honesty, reliability, team work, job knowledge, leadership, initiative, safety consciousness, etc. These standards should be indicated on the Appraisal Form.

(2) Communicating the standards to employees:

In this second step in the performance appraisal process, the performance standards specified in the first step are communicated and explained to the employees so that they will know precisely what is expected of them. If necessary, the standards decide should be modified in the light of feedback obtained from the employees

(3) Measuring actual performance:

In this third step in the performance appraisal process, actual performance of employees is measured in the light of the standards decided and communicated to employees. Data on performance of employees are collecting through different means such as personal observations, written reports and face to face communication. The performance of different employees should be recorded in such a way that the data collected will be easily comparable.

(4) Comparing actual performance with the standards decided:

In this fourth step of performance appraisal process, performance of the worker is compared with the per-determined performance standards. This type of comparison between actual the predetermined performance standards, this type of comparison between actual performance with standard performance will clearly reveal the deviations which may be negative or even positive. Positive deviations occur when actual performance exceeds the standards fixed. Negative deviations occur when actual performance exceeds the standards fixed.

(5) Discussing actual performance:

In this fifth step of performance appraisal, the results of appraisal are communicated to and discussed with the employees. Such discussion is important as it enables an employee to know his weaknesses and strengths (weak and strong points). This will

motivate him to improve his performance in future. Actual Impact depends on how the appraisal feedback is presented and discussed with the employee.

(6) Offering guidance/taking corrective actions:

In this sixth and the last step of performance appraisal process, the corrective steps required to be taken (remedial measures) for improving performance are identified and initiated. For this, appraisal interview as well as post-appraisal interview are necessary and should be conducted properly by the rater. Employee will taken initiative and interest in the corrective measures if he has noted the importance and positive benefits of appraisal and post-appraisal interview.