Performance Appraisal process in the Agribusiness industry  

Performance Appraisal Process in the Agribusiness Industry
Performance Appraisal Process in the Agribusiness Industry

Performance Appraisal process in the Agribusiness industry  

  1. Definition of Performance Appraisal ( PA)

Employees are evaluated for their performance once they have been hired, trained, and motivated. PA is the stage in which management determines how successful it has been in hiring and placing employees. If any issues are discovered, actions are made to inform staff and correct them.

In order to thrive in a highly competitive world, businesses need their staff to consistently provide high levels of performance. Employee performance is evaluated in most firms in some way. Employee evaluation is one of the most used management strategies. It is applied to all employees, whether formally or informally. It signifies a lot of different things to different people. It’s a measurement method, an exercise in observation and judgment, and a feedback process all rolled into one. It is a control instrument that the organization uses to achieve its predetermined objectives. The accomplishment of assigned responsibilities by an employee is referred to as performance. The term “performance” refers to the ability to complete a task effectively and efficiently.

PA is a method of assessing an employee’s job performance in terms of the job’s needs.

The process of analyzing employees’ performance, communicating that information with them, and looking for ways to enhance their performance is known as performance evaluation.

It serves as the foundation for evaluating employee contributions, providing coaching for better performance, and distributing financial awards. It refers to the result of an employee’s actions. As a result, determining the value of an individual’s labor is referred to as performance appraisal. It is a method by which businesses assess the performance of individual employees.

The following are the main goals of performance appraisal:

  1. Employee performance: It is a tool that helps employees achieve and maintain a satisfactory level of job performance. It makes a significant contribution to more effective or enhanced performance.
  2. Employee Development: The appraisal may identify a person’s growth and development requirements and opportunities. Self-study, formal training, or job-related activities can all help you grow.
  1. Supervisory Understanding: Formal and periodic appraisals motivate subordinates to observe their behavior.
  2. A guide to employment changes: An assessment can help with promotions, transfers, layoffs, and discharge decisions.
  3. Wage and Salary Administration: Pay fixing and raises are often linked to performance appraisal in many workplaces.
  4. Validate human resource program: Performance is frequently used to determine the accuracy of predictions made during the employee selection process.
  5. Training program value: The value of a training program can be assessed by looking at employee performance after completing a specific course of instruction.   
  6. Process of performance evaluation
  • Setting performance standards
  • communicating performance expectations to employees,
  • and evaluating performance is all elements in the performance evaluation process.
  • Assessing real performance,
  • comparing actual performance to standards,
  • debating the evaluation results, and
  • Take corrective action, if necessary.
  1. Establishing performance standards in accordance with the organization’s strategic objectives: The assessment process begins with the formulation of performance standards in line with the organization’s strategic goals. Performance standards, which serve as benchmarks against which performance is judged, are required by appraisal systems. Standards should be related to the desired outcomes of each work to be effective. By assessing the performance of present employees, job analysis might identify unique performance requirements. A documented record of the standards should exist to hold employees accountable, and employees should be informed of the requirements prior to the evaluation. If the performance requirements are not job-related, the review might result in erroneous or biased results, hurting the manager-employee relationship and breaking equal employment opportunity laws.
  1. Communicating performance expectations to employees: Once performance standards have been established, it is imperative that these expectations be communicated to employees; it should not be their responsibility to guess what is expected of them. Employees can play a role in establishing standards. It’s vital to remember that communication is a two-way street: simply passing on information about expectations from the supervisor to the staff isn’t communication. Feedback from subordinates to the manager is required for good communication.
  2. Measuring actual performance: The measuring of performance is the next phase in the assessment process. It is vital to gather information in order to determine what actual performance is. How and what we measure should be of primary relevance to us. Personal observation, statistical reports, oral reports, and written reports are four primary kinds of information that managers utilize to gauge actual performance.
  3. Comparing real performance to standards: The comparison of actual performance to standards is the fourth phase. The goal of this stage is to identify differences between expected and actual performance so that we may move on to the fifth phase of the process, which is to discuss the appraisal with the employees.
  1. Discussing the appraisal results: Employee feedback via an evaluation interview is an essential part of the appraisal process. Employees receive essential input about their past performance or future potential during evaluation interviews, which are performance review sessions. Improvement in human behavior is unlikely without feedback, and the HR department will be unable to make decisions ranging from job design to compensation without reliable records in its HR information system. The evaluator can deliver this feedback in a variety of ways, including telling and selling, telling and listening, and problem-solving. To put employees at ease, managers must create a friendly environment. It’s difficult to provide an accurate assessment to an employee. The evaluation discussion can have both negative and positive motivational repercussions.
  2. Taking corrective action, if required: The final phase in the appraisal is to determine whether or not corrective action is required. Corrective actions can be of two types: immediate and basic. Immediate corrective actions deal with symptoms, while basic corrective actions deal with causes.

The Benefits and Uses of Performance Appraisal: 

Employee performance and accountability are the focus of performance appraisals. Companies require great performance in today’s internationally competitive marketplace. Employees, on the other hand, require feedback on their performance as a guide to future conduct. Employee performance evaluations are beneficial for both growth and administrative purposes. Performance evaluations can be used for a variety of purposes, including:

  • Employees are motivated and rewarded through promotions and compensation increases.
  • In a dynamic environment, allocating resources.
  • Identifying regions in which development is required. Performance appraisal is a crucial technique for identifying skill and knowledge gaps among employees.
  • Employee development and coaching
  • Providing feedback to employees on their work.
  • Keeping a level playing field inside groups.
  • For proper management and personnel growth, appraisal systems are required. Its purpose is to encourage and guide staff growth.

Who is in charge of performance evaluations?

Anyone who is knowledgeable about the performance of individual employees can conduct a performance appraisal. The following are some possibilities: The following people could be raters:

  1. The immediate supervisor: If an appraisal is done at all, it will very certainly be done by this individual. He or she is most likely the most knowledgeable about the individual’s performance and, in most positions, has had the finest opportunity to monitor actual job performance. The immediate supervisor is more likely to be able to connect the individual’s performance to the organization’s goals. It’s not unexpected that feedback from supervisors is more closely tied to performance than input from any other source, given that he or she is in charge of award decisions. In the majority of circumstances, this form of appraisal is carried out.
  2. The peer: Because they do not work with their subordinates every day, managers may find it difficult to evaluate their performance. They may not be making an accurate assessment until they have this information. This issue can be solved through peer review. Employees’ coworkers, who are intimately familiar with the jobs at hand, undertake peer evolutions because they are also doing the same thing. They should be given the opportunity to provide management with feedback because they are the ones who are most aware of coworkers’ day-to-day work behavior. Coworkers provide feedback on the employee’s performance here. This type is mostly determined by the organization’s existing interpersonal relationships.
  3. Group Appraisals: In a group appraisal, the immediate superior’s judgment is complemented by the various perspectives of other executives.
  4. Subordinate evaluations: Here, subordinates evaluate their bosses. Subordinates have firsthand knowledge of how well the supervisor delegated, how well he or she communicated, the type of leadership style he or she prefers, and how well he or she planned and organized. It is used in large companies where supervisors have a large number of subordinates. However, in a small company with few subordinates, it is simple to determine who said what. As a result, a high level of transparency is required before subordinate appraisals can pay off. There are obvious pitfalls. In most circumstances, subordinates have no idea what an executive’s true responsibilities are. They can be too young or inexperienced to understand the scope of their boss’s obligations.
  5. Repeated Raters: The subordinate personnel is rated independently by various other qualified officers in multiple appraisals. The results of such many evaluations are usually consolidated by staff workers. We can dismiss the value of the one unfavorable review if a guy has ten supervisors, nine of them have given him outstanding ratings and one has given him a low rating. Bangladesh’s government ministries have made significant use of this strategy. Individuals who have had ten performance reviews throughout their first five or six years in the service have a lower risk of one or two unfavorable evaluations having a significant impact on actions made based on these performance ratings.
  6. Self-appraisal: If done correctly, self-evaluation is the most effective approach to performance evaluation. It refers to a person’s attitude toward him. If the purpose of the evaluation is to advance self-development, having employees do a self-appraisal might be a valuable evaluation tool. Defensive conduct is less likely to occur when employees examine themselves. It is more prejudiced, lenient, and shows less agreement with other people’s assessments. Self-evaluation that is objective is a difficult task.
  7. 360-degree appraisal or feedback: This is a process in which the employee is evaluated by supervisors, colleagues, subordinates, customers, and others. Supervisors cannot possibly know everything about each of their employees’ jobs. Furthermore, in today’s firms, the rise of project teams and employee involvement places the task of evaluation in the hands of people who are better prepared to provide an accurate assessment. Many managers have no idea how their employees really feel about them or the work they’ve done.

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Md. Masudul Hassan
CEO & Chairman of this Portal. Md. Masudul Hassan is an Assistant Professor and Coordinator of a Reputed University in Bangladesh. Member of Agrilinks is part of the U.S. Government's Feed the Future initiative. He Performed Numerous Research Regarding Agribusiness.