As a management consultant, you have been requested to design a staff appraisal system for a client firm.Outline the factors to be considered when designing such a system

Factors considered when designing a staff appraisal system
Appraisal systems are often misunderstood and mismanaged. Appraisals are central to human resource and performance management and understanding their role, objectives, benefits and purpose is extremely important. Careful preparation and understanding are required if the appraisal process is to be successful and worthwhile.

i. Management’s understanding of the basic and inter-linked purposes of an appraisal system, which are threefold:
• To measure the extent to which an individual may be awarded a salary or pay increase compared with his or her peers; the Reward review component.
• To identify training needs and plan follow up training and development to enable the individual better to assist the organisation to achieve its objectives; the Performance review component.
• To aid the individual’s career development and succession by attempting to predict the type and level of work that the individual is likely to be capable of in the future; the Potential review component.

ii. The appraisal should establish key results which the individual needs to achieve within a set period of time
iii. The appraisal system should be a well constructed scheme which is fair to both the individual and the organisation.
iv. The availability of the required input documents for the appraisal system i.e. job description, a statement of performance or appraisal form and a record book highlighting the employee’s performance.
v. Modes of assessment that are objective in light of organisational circumstances i.e. whether to use peer assessment, comments from clients and customers, self assessment
,supervisor assessment and in what weighting.
vi. The incorporation of qualitative characteristics into the appraisal system e.g. the employee’s general personal attitude, honesty, motivation, etc

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