1.Inputs: What the individual brings to the job in terms of attributes, behavior, skills and knowledge are inputs.
2.Outputs: The results achieved in terms of outputs or outcomes are referred to as outputs.
Expectations are expressed in terms of objectives, standards, standards, targets or competence and appraisal is made on the basis of inputs and outputs.
Methods Used in Appraisal
Three different approaches exist for appraisals. Employees can be appraisal against absolute standards, relative standards and objectives. In cases where absolute standards are used, the employees are not compared with any other person while in the second category of appraisal methods using relative standards, individuals are compared with other individuals. The third approach makes use of objectives. Employees are evaluated by how well they accomplish a specific set of objectives that have been determined to be critical in the successful completion of the job.
When Appraisals should Take Place
Most large organizations hold formal appraisal discussions annually, while some fast moving organizations prefer to have them twice a year. When employees are working on projects, there may be an appraisal after each assignment has been completed.
Ensuring that Appraisal is a continuous Process
To ensure that appraisal is not just seen as a once-a-year event to be got over as quickly as possible it is necessary to emphasis the continuing nature of the process on briefing and training. Performance appraisal should not be imposed on managers as something special they have to do. It should be treated as a natural process which all managers carry out.
Performance appraisals are an integral part of every organization and if they are properly developed and implemented, they can help the organization achieve its goals by developing productive employees.