Use Performance Appraisal to Build a Committed Workforce

Amongst all, performance appraisal is one of the most crucial elements to motivate the workforce.
  • BY Jaspreet Kaur

    Feature Writer, BusinessEx

  • |
  • Jul 29,2019
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  • 11 Mins Read

For leading a company, an entrepreneur requires a committed workforce that helps to achieve its goals. Managing a large company solely is not a viable option, thus, relying on employees is equally important. While maintaining the large employee-size, there are several things that the entrepreneur needs to keep in mind -- employee bonuses, performance appraisals, and perks, to name a few. The above-cited things help incentivise employees to work better.

Amongst all, performance appraisal is one of the most crucial elements to motivate the workforce. Further, it helps to give out valuable feedback to the employees based on their past performance. Witnessing the importance of performance appraisal, it is essential to know how to use it effectively and meet the employees’ expectations.

What is Performance Appraisal?

Performance appraisal, which is also known as an annual review, is a process where an employee’s performance is assessed about the segments and projects an employee has worked for one year. By calibrating performance in the above-mentioned factors, an annual review report is created and consequently, a raise is being offered to the employee.

According to Gallup’s report, managers who received feedback on their strengths showed an 8.9 per cent greater profitability.

The Role of Performance Appraisal in an Employee’s Work Life

In essence, the performance review is a mode to determine employees that are industrious and contributing to the company. On the other hand, this approach has a downside too. It eliminates the unworthy workforce from the organisational system, thus, downsizing the number of employees.

A fundamental way of determining industrious employees are attendance, work quality, time of work and attitude. Identifying physical attributes of the employees is easy with the help of the HR department manager whereas for determining intrinsic attributes, the company owner needs to assess employees’ past work accurately.

According to the cited report, “69 per cent of employees say they would work harder if they felt their efforts were better recognised.”

Positive Traits of a Performance Review

As performance review impacts employees directly, it is important to ensure employees remain motivated. For that, the entrepreneur needs to use the performance review report optimally.

1.Identify Strengths and Flaws



An annual review report helps determine an employee’s role in the organization, which sometimes can be below the expectations. Ignoring bad strands, the entrepreneur try focusing on the positive traits of the employee and accordingly, move him to the right vertical.

As per the cited study, 21.5 per cent of employees who don’t feel recognised when they do great work has interviewed for a job in the last three months, compared to just 12.4 per cent who don’t  recognised.

  1. Improve an Employee’s Work

Once the past work of an employee is assessed, it becomes easy to incentivise him and additionally help him improve his work.

The cited report says that 92 per cent of respondents agreed with the assertion, “Negative (redirecting) feedback, if delivered appropriately, is effective at improving performance.”



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