HR Policy Guide: Performance Appraisal
Performance appraisal is an important tool to:
- Evaluate the employees’ performance;
- Reward the employees accordingly (salary adjustment / bonus / promotion, etc.);
- Identify training and development needs of the employees;
- Identify the employees’ potential and develop them accordingly;
- Determine the Company’s manpower and/or ability;
- Strengthen Management-Employee relationship.
Therefore, it is important to have a proper performance appraisal policy, in order to establish a systematic and comprehensive evaluation system for all employees. The following points could be the guides in developing a performance appraisal policy / procedures:
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The period of the Performance Appraisal will be from <duration> (usually financial year of the Company) of each year.
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The Annual Performance Appraisal will be formally conducted in <month> each year.
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The Human Reseource Department will distribute the Performance Appraisal Report to respective Head of Departments.
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The immediate superior will have to conduct an Appraisal Interview to evaluate his/her subordinates.
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Before an interview is conducted, the immediate superior should:
- Give adequate notice to the subordinate prior to the interview and brief him/her on the purpose of the meeting.
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Refer to the main activities of the subordinate’s job and consider the performance of the subordinate on each task.
During the interview, the immediate superior should:
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Discuss and agree on the targets, priorities and action for the next coming period.
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Frankly discuss with the subordinate’s performance and give opportunity for him to comment and inform him on how he could improve.
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Take particular note of the subordinate’s work interest and career aspirations and consider the course of action to be taken by the subordinate in order to improve performance or develop potential.
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Discuss the subordinate’s strengths and weaknesses in a frank and honest manner.
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Refrain from discussing any recommendation for salary adjustment / increment or promotion as these are subject to further review by the Management.
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Record any factors that might have affected his results.
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Consider the target and priorities that will need to be set out in the next period.
Upon completion of the Appraisal Interview, the immediate superior and the Head of Department will have to discuss each assessment which is to be approved and countersigned by the Head of Department.
The Head of Department is responsible for returning all completed Perfomance Appraisal Forms to the Human Resource Department by <deadline> each year.
The Human Resource Department will summarise all recommendations from the Performance Appraisal Forms and tabulate and forward to the Management for approval.
The Human Resource Department will notify all employees in writing of the salary increment / adjustment and/or bonus awarded to them after obtaining approval of such payment.
