Is it possible to conduct meaningful performance appraisal without accurate and up-to-date position descriptions and performance indicators?

Before answering the above question, lets us find out what is performance appraisal and performance indicator.

Performance Appraisal.
Performance appraisal is usually considered to be the process and time when manager and employee sit down to review the employee's performance over the last year, or month, or even shorter time spans. Most of the time people think of it as a once a year event, which is a recipe for disaster.
During performance appraisal meetings, a number of methods can be used to document, or record, or summarize performance discussions, ranging from narratives, rating scales, critical incident summaries, etc. Usually there is an expectation that some sort of paperwork will result.

Aims of performance appraisal.
Generally, the aims of a performance appraisal are to:

• give feedback on performance to employees.
• identify employee training needs.
• document criteria used to allocate organizational reward.
• reward such as: salary increases, promotion, disciplinary actions, etc.
• provide the opportunity for organizational diagnosis and development.
• facilitate communication between employee and administration
• validate selection techniques and human resource policies to meet federal EEO requirements.

Performance Indicator.
Performance indicator is defined as a measure of performance.It is quantifiable measurements, agreed to beforehand, that reflect the critical success factors of an organization. They will differ depending on the organization.

Example of performance indicator.

• A business may have as one of its Key Performance Indicators the percentage of its income that comes from return customers.
• A school may focus its Key Performance Indicators on graduation rates of its students.
• A Customer Service Department may have as one of its Key Performance Indicators, in line with overall company KPIs, percentage of customer calls answered in the first minute.
• A Key Performance Indicator for a social service organization might be number of clients assisted during the year.

Based on the explanation given above about performance management and performance indicator, it clearly shows that performance appraisal cannot be meaningful without accurate and up-to date position description and performance indicator.

Performance appraisals are essential for the effective management and evaluation of staff. Appraisals help develop individuals, improve organizational performance, and feed into business planning. Formal performance appraisals are generally conducted annually for all staff in the organization. Each staff member is appraised by their line manager. Directors are appraised by the CEO, who is appraised by chairman or company owners, depending on the size and structure of the organization.

Performance appraisals generally review each individual's performance against objectives and standards for the trading year, agreed at the previous appraisal meeting.

Performance appraisals are also essential for career and succession planning - for individuals, crucial jobs, and for the organization as a whole. Performance appraisals are important for staff motivation, attitude and behavior development, communicating and aligning individual and organizational aims, and fostering positive relationships between management and staff. It provide a formal, recorded, regular review of an individual's performance, and a plan for future development.