How to Develop a Performance Appraisal Process in Human Resources

employee completing an appraisal

By developing a performance appraisal process, Human Resources can help the company clarify objectives and communicate expectations to the workforce. The performance appraisal process enables companies to evaluate employees on performance related criteria such as job objectives, skills and development activities. The appraisal process helps the company identify top performing employees and reward exceptional performance.

Things You'll Need

• Performance Appraisal Software

Instructions

1. Identify performance benchmarks. This will help you measure the results of the performance appraisal process. The benchmarks should outline the steps required to achieve the desired result of the program and actionable steps you plan to take throughout the performance process. This is the time to determine how often the performance appraisal process will occur and how employees will participate in the program.

2. Write job descriptions for all positions. The job description for each position should outline the required skills and qualifications necessary for the job. The descriptions should include accurate information that provides clarification on all job duties.

3. Outline performance targets for the workforce. The company rates the employees based on the performance targets identified. Targets such as performance objectives, key behaviors and skills, provide examples of performance targets. The performance appraisal process should outline which targets apply to which job descriptions and link them using performance appraisal software.

4. Design the rating scales. Rating scales provide a way to rank employees' performance. The scale is determined by the company and can either be a numerical or alphanumeric scale. The company uses the scale to compare employee performance and provide an overall score.

5. Create appraisal forms. Companies link the rating scale to the appraisal form. The appraisal form includes the previously defined performance targets. Other tasks, such as comments and multi-rater feedback can also be included on the appraisal form.

6. Train employees on the new appraisal process. Employees will need training on the new process. Consider training managers and non-management employees separately, as managers have different tasks to complete during the performance appraisal process. Ensure the workforce has a clear understanding of how to proceed through the entire process.

Tips & Warnings

• Consider creating multiple appraisal forms for different employee groups, such as managers and individual contributors.

References

• Mississippi State University: Designing and Conducting Performance Appraisals