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Performance Appraisal Software : Decoding the Essentials

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Employees, especially in the younger generations, want to be associated with organizations where they can have a real influence. They are extremely determined and expect to climb the career ladder all the time. To meet these needs, it is important to focus on conducting meaningful employee interviews, so that employees can find out what their strengths and weaknesses are and improve their performance. If you're looking to establish a comprehensive performance appraisal process in your organization, read on to get answers to all of your performance appraisal questions.

What Is a Performance Appraisal?

A performance appraisal is an important HR function which involves evaluating employees' performances over a certain period of time in order to map how they have developed in relation to their goals, find out what their strengths and weaknesses are, give constructive feedback that helps them to improve, and ensure fair salary increases and promotions. As part of the staff meeting, the managers work together with the staff to set clear expectations and goals for the coming period.

What are The Different Methods Of Employee Interviews?

Here are some methods of employee interviews that HR teams can use to assess employee performance:


Self-evaluations encourage employees to evaluate their own performance. The employees can reflect on how they have tried to achieve their own work goals and adapt to the company's goals. This insight gives the managers additional information, so that they can assess the employees in a fairer way, without implicit prejudices.

There is usually a standardized self-evaluation questionnaire that helps employees clarify what they have achieved and what responsibilities they have. Here are some questions you might consider including in the self-assessment template:

What are the most important goals you have achieved this year? What helped you achieve these goals?

1. In which three areas have you done exceptionally well?

2. In which three areas can you improve?

3. What challenges have you encountered in your work, and how have you solved them?

4. How have your responsibilities and achievements evolved since the last evaluation?

5. What do you like best about your role? What do you like least?

6. Which of the company's values do you reflect in your daily work?

7. How would you rate your performance on a scale of 0 to 8?

360 Degree Feedback

360 degree feedback is another useful evaluation technique that gathers information from the employee's colleagues. The colleagues assess the employee's performance and provide feedback that helps the employee overcome his weaknesses and build on his strengths. Feedback on employee performance is usually obtained from immediate supervisors, team members, colleagues from other teams they have worked with, subordinates, and in some cases even customers they have worked with. Before initiating a 360 degree feedback, it is a good idea to set clear expectations for the raters and help them understand what aspects of the performance and what behaviors they are expected to evaluate. Later, the managers share this feedback with the employees.

Rating Scales

In this performance appraisal technique, managers evaluate each aspect of employee performance, including hard and soft skills, work quality, work quantity, and goal achievement, based on a numerical or qualitative score. Some of the most commonly used rating scales are:

  • Likert scale

A Likert scale consists of a series of statements about an employee's performance, and managers are asked how much they agree or disagree with each of the statements. The response options are usually strongly agree, agree, neutral, disagree and strongly disagree.

  • Numerical scale for performance assessment

In this numerical performance rating scale, managers rate employees on a scale of one to five based on how they meet deadlines, achieve their goals, collaborate with their team, are innovative, take on new tasks and show enthusiasm for professional development. On this scale, five means that the employee makes an outstanding effort, while one means that the employee's performance is poor.

  • Behavioral assessment scale

In this rating scale, employees' performance is compared to a specific set of behaviors, which are then rated using a numerical scale. In a customer support role, for example, certain types of behavior such as clear communication, patience, empathy and adaptability can earn higher marks.

Management By Objectives

In this method of employee interviews, managers and employees set clear goals for the coming period. The manager monitors how the employees develop in relation to the goals, and evaluates them based on the results. The actual performance is compared with the set targets. During this process, managers typically define five to ten goals for their team members based on the duration of the performance period. They also provide a brief description of each individual goal, elaborate on how it relates to the company's goals, explain how employees can achieve the goals, and establish a common timeline to monitor progress. For example, the goals of a salesperson may be to increase sales by 10% during the next quarter or to reduce the sales cycle to three months.

How to Conduct Meaningful Employee Interviews

Conducting staff interviews that are relevant and useful for the employees is essential for increasing productivity and thus improving the organisation's results. Here are some tips on how you can conduct meaningful employee interviews:

  • Encourage managers to provide constructive feedback and recognition to employees regularly in one-on-one conversations, rather than waiting until the actual evaluation period. This will help the employees to improve and achieve their goals.
  • Be sure to start the evaluation process well in advance, so that you have enough time to go through all the projects that the employees have worked on, monitor the achievement of goals and prepare useful feedback.
  • Ensure that the managers are extremely fair throughout the evaluation process so that they do not succumb to unconscious biases. Self-assessments and 360 degree feedback can give managers different perspectives on employees' performances.
  • Allow employees to ask questions and provide feedback during the evaluation process. Also, listen to their concerns and take action to resolve any issues.
  • Encourage the managers to set clear expectations for the employees for the coming period.

In summary, navigating the intricacies of performance appraisals is crucial for organizational success. From various assessment methods to conducting meaningful interviews, a well-structured performance appraisal process ensures continuous improvement and employee development. Explore IceHrm, the comprehensive performance appraisal software, to streamline and enhance your organization's evaluation practices.

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