Performance appraisal – Assessment of performance | stages

A performance Appraisal is a systematic Evaluation on performance of employees and to understand the capabilities of the employees so that it can plan further career development for employees are concerned. In other words, this performance assessment assessing and evaluating the skills, abilities, achievements and growth of an employee.



Companies often use the performance appraisal or Performance Appraisal as the basis for salary increases, promotions, bonus or it could be as a basis to decrease the position and termination of employment relationships. On the other hand, the assessment of performance is well done and professional will be able to increase the loyalty and motivation of the employees so that the objectives of the organization can also be achieve as expect.

Performance Appraisal according to experts

To better understand about this performance assessment, the following are some definitions or notions of performance assessment according to some experts.

Performance assessment is an activity Manager to evaluate the behavior of employees and assigning work achievement of wisdom. The evaluation or assessment of behavior include assessment of loyalty, honesty, leadership, cooperation, loyalty, dedication, and employee participation.

The performance assessment is the measurement of the contributions of individuals in the organization. Important values of performance assessment are the determination of individual contribution level is concern over the performance express in the completion of tasks which become his responsibility.

The Purpose of Performance Appraisal

The purpose of the performance assessment is as follows:

1. As a reference to determine the structure of compensation, wage, salary increases, promotions and others.


2. Identify employee strengths and weaknesses so that management can determine the right people in the right positions.


3. To assess the potential that exists within an employee career development plan so that it can further for the employee in question.


4. Give feedback or feedback to employees about their performance.


5. As a basis for influencing the habits of employees.


6. To review and organize promotional training program or other training programs.

Performance assessment stages

In General, there are 6 stages to evaluate performance. The following are 6 stages in the performance assessment.

Establish performance standards

Performance assessment process starting from the setting of performance standards. The Manager must determine the achievement, Skills or Output what will be evaluate. Performance standards should be incorporate into the analysis of terms (Job Analysis) and the description of the position (Job Description). Performance standards should also be Clearly and objectively in order to be easily understood and can be measure. The standard should not be express in vaguely like "good job" or "quality of work". Because of the vague standard that could not be confirm with clear performance standards.

Communicate the expected performance standards to Employees

After performance standards define, need to be communicate to each employee so that employees know what companies expect from them. The lack of communication would be difficult for performance assessment. Communication must be two-way, meaning that management should get feedback from employees about the performance standards set out for him.

Measure the real Performance

Performance assessment stage of the third is real or actual performance measure performance base on the information that is available from a variety of sources such as observations, statistical reports, reports oral or written reports. Need to be remind that measurement on performance should be base on objective facts and findings, should not enter into the feelings of this performance measurement.

Compare the performance of the real with the specified Standard

At this stage, the performance of the real or actual performance compare with the standard prescribe in advance. This comparison will reveal the deviation between the actual performance with performance standards.

Discuss the results with employees

The fifth step is to communicate and discuss the results with the employee in question. This step is one of the most challenging tasks that have to be face by managers of having to present an accurate assessment so that the employees concern receive the results of the assessment.

Discussion about this assessment allows the employees to know the strengths and weaknesses as well as its impact on its performance in the future. Its effects may be positive or Negative depending on the assessment are present.

Take corrective action (corrective action)

The final step in the assessment process is taking corrective action (repair) where necessary. If there is a discrepancy between the actual performance standards of performance by the employee and has been communicate properly between the two parties, companies or employees should take measures to improve its performance.