Performance appraisal system is assessment of employee for his/her work. The manager who is closely tied with the employee observes and assesses his/her work throughout the year and provides necessary feedback, guidance and forward looking path. The manager holds formal discussion with the employee narrating his/her input on employee’s good work and places where improvement is needed. Manager also identifies opportunities for the employee to grow professionally. Perhaps it goes without saying that an organization’s success is largely dependent on how well every employee performs. For this, firstly the company should firstly have right kind of employees. On the basis of company requirements and needs the organization can do manpower recruitment.

The primary purpose of Performance Appraisal System is to improve performance at all times in the future. It helps organizations identify and categorize employees based on how they work. This classification helps organizations motivate the performers and provide proper training (core hr training with placement in Mumbai) to under performers. 

In some cases company takes help of top job placement agencies in India. Managing employee performance is one of the key drivers for organizational success in the present context of firms trying to adopt a resource centered view of the organizational. We have seen elsewhere that integrating HRM practices with those of organizational goals and strategy increases the competitive advantages for the firm. Similarly, managing employee performance within the larger framework of organizational goals is critical for organizations that count people among their key assets. Appraisal does not only involve managers. It is more like an exponentially growing curve each vertices are like self, peers, manager on the graph who add value to the employee appraisal process and help them grow along the curve.

The HR department is key to efficient administration of the performance management system. Having an educated HR team (Study abroad consultant in Mumbai) that is well-prepared to train the organization's managers and to assist them when issues arise is critical. To implement performance management in your organization, start by having managers set and monitor goals and tasks for each employee. Performance appraisal deals with how organizations evaluate and measures its employee’s achievements and behaviors. It is an employee review by his manager where his work performance is evaluated and strengths and weaknesses are identified so that the employee knows his improvement areas. Performance appraisal is the right time to set new goals and objectives for the employees. Following are the types of HR performance review system:

1. Behavioral checklist: Behavioral checklist has a list of criteria that an employee should workup to be a diligent worker. The behaviors differ according to the type of job been assessed. This method is considered favorable as the evaluation is done on the basis of individual employee performance without comparisons.

2. 360 degree appraisal: 360 degree appraisal involves feedback of the manager, supervisor, team members and any direct reports. In this method of appraisal, employee’s complete profile has to be collected and assessed. In addition to evaluating the employees work performance and technical skill set, an appraiser collects an in-depth feedback of the employee.

3. Management by objective: This is an objective type of evaluation which falls under modern approach of performance appraisal. In MBO method of performance appraisal, manager and the employee agree upon specific and obtainable goals with a set deadline. With this method, the appraiser can define success and failure easily.

4. Psychological appraisals: This appraisal method evaluates the employee’s intellect, emotional stability, analytical skills and other psychological traits. This method makes it easy for the manager in placing the employees in appropriate teams.

The company can also opt for techniques which can be used to manage employee performance which is listed below:

• Set clear expectations and communicate them well, then continue to manage expectations. Frequent communication is critical. Ensure employees understand their objectives by asking them to explain them in their own words.

• Utilize employee handbooks to keep everyone on the same page and help to ensure employees understanding of company policies. (HR Policy Implementation)

• Use SMART goals. SMART stands for specific, measurable, achievable, realistic, and time-bound. When employee goals are realistic, it gives them ownership and encourages them to achieve their goals.

• Review company hiring procedures to ensure the best candidates are being selected. You can take help of top hr consultant in India.