| Appraisal of employee is the periodical process of | | | | reviewed both, by subordinate and his supervisor. |
| reviewing his/her performance in specific areas | | | | First, employee review himself, grading his own |
| versus predefined standards. This appraisal is | | | | success, the way he see it. After that, his |
| initiated, supervised and collected by HR, but | | | | superior is putting grades on results and activities, |
| essentially is conducted by supervisor with his | | | | and giving feedback to his subordinate. Basically |
| subordinate. | | | | the outcome of the whole process is a good basis |
| There are several steps in the annual cycle of | | | | for next year Appraisal process. This is logical, |
| appraisal. In January the appraisal process starts | | | | because objectives of companies do not change |
| with setting of goals for employees that are | | | | that drastically. On the other hand, the |
| covered with appraisal process. The Appraisal is | | | | competence development is not something that |
| split in two main areas: | | | | requires a few days or months or even a few |
| - Objective setting - target, specified and | | | | trainings. It is rather tough task for somebody to |
| measures, for different areas. These targets | | | | develop his weak spots, and it usually takes |
| depends on position and business priorities, and | | | | several years for ambition person to obtain a |
| can be, for example, Revenue, Sales Volume, | | | | visible progress in his areas identified as gaps, or |
| Cost Control, Customer Satisfaction, Distribution | | | | to put it in more polite way - "areas for |
| Efficiency, ... | | | | improvement". |
| - Competence Development ( activities for | | | | Appraisal should be created on annual level, both |
| development of specific skills, identified through | | | | Objectives and Competence Development. |
| Gap Analysis ). For every skill that development | | | | Generally Appraisal process should be incentivized |
| need has been identified the development plan is | | | | through annual bonus system. ( More under |
| created with main elements: Competence to be | | | | Rewarding Article, within HR section. ) |
| developed, Skill to be Developed, Activities to be | | | | Appraisal process should be cascaded down |
| conducted, and Example of activities. | | | | top-down, until certain level, normally first |
| Competency model can be different, so it is up to | | | | supervision level. To go below it is management |
| each company to decide which model to adopt. | | | | decision, and can have sense in some |
| But the common thing for all models is that they | | | | organizations, but not in all. To go to the bottom |
| should have Core Competency Model ( | | | | would not create real effect, but bureaucratic |
| Leadership, Judgment, Teamwork, ... ) as well as | | | | confusion. |
| Functional ( e.g. for Sales those are Negotiation | | | | The most important thing in this process is |
| Skills, Communication Skills, Planning Skills, ... ). | | | | commitment of all leaders of the process, and |
| After setting objectives it is recommended to | | | | that goes top down. If is not conducted in a valid |
| have periodical reviews, e.g. quarterly, in order the | | | | way, it turns to be happy sheet filled formally to |
| follow up the process, to be able to correct | | | | satisfy the procedure or to justify a giveaway |
| development in case that is not satisfactory. At | | | | bonus at the end of period. |
| the end of year, all scores and activities are | | | | Appraisal process is a powerful managerial tool |
| assembled in the official form, and mutually | | | | and it should be treated as such. |