Guidelines to effective/successful performance appraisal.
• Have frequent appraisals – The firm should not appraise only at the end of the year but should look for ways of appraising the performance of the employee throughout the year. The end of the year should be a final review. This firm should adopt the Management By Objective (MBO) programme in which managers and their subordinates set yearly targets and work towards them. In MBO the subordinates’ performance is assessed at very regular intervals. Performance Management is also a new technique currently being used as an appraisal tool and like MBO it involves regular assessment of workers and helps to ensure that the end of year review is a true record of employee performance all year round.
• Be objective, avoid personal bias – there is always a possibility that personal prejudices assessment of the evaluator will interfere with his assessment of workers. In this firm there is no objectivity. Even though avoiding bias may be difficult, evaluators must make every effort to ensure their feelings don’t affect the appraisal.
• Encourage frank evaluation – If the appraisers in this firm were frank, then employees would not be getting these high grades, which they don’t deserve. Senior management expects honest and frank reports even if it discredits the individual.
• Most managers do not like giving negative reports but they must be fully aware that the welfare of the organization must take precedence over the individual’s welfare.
• Communicate the method and purposes of appraisal – this firm needs to make employees aware of the methods used to appraise them. It employees are being appraised for other purposes, apart from promotion, as in this case – they should also be made fully aware of these other purposes.
Appraisals can also be done for compensation, termination, transfers, training and other personnel purposes.
• Use appraisal results to improve employees – An appraisal of how well a manager has performed in the past should serve as a guide to helping him perform more effectively in future. In this given case Ngura continues to perform dismally yet his weaknesses should have been identified and improved on.
• Keep the system simple but use the best available method – an evaluation system should be no more complicated than it is absolutely necessary to achieve the objectives stated for it. It should not be too complex but should be able to give the value expected from it.
Besides the designers of the system should know all the methods available and choose a combination of the best since appraisal results are used for very important decisions by management. To make these decisions without the benefit of the best possible evaluation of a manager is a disservice to the organization and an injustice to the manager.