As known, the human resources' responsibilities have become more essential and diversified due to the importance of controlling directly the productivity and the set objectives of the organization.
The organizational progress contains physical materials (direct and indirect materials) and human efforts (labors, management, finance..etc), and in order to achieve the objective and obtain a maximum productivity and benefit such factors should be "mixed" appropriately and ultimately.
Waste should be avoided to the best possible, and it could be:
- Wasting time, that means the efforts of employees are not "invested" properly.
- Wasting materials, that means the funds of company are being misused.
However any kind of wasting is considerable lost and an improper act, and it is very important that management controls and watch any level of wasting.
In addition the performance of the employees is the key of how the "assets" of company are being used.
Employees deal with machineries and devices, and perform certain tasks of labors and production's process.
Employees get affected and influence by many factors (social, emotional,…), inside and outside the company.
Employees are in contact with other employees and other people; social and work life.
Employees have different reasons to work (money, security, insurance, promotion and leadership ..etc)
Employees have different levels of professionalism, skills, education, information and intelligence
Therefore the performance of employees should be under the "light spot", and management should watch their performance and evaluate it in order to take the right decisions, like: training – promotion- suspension –firing – warning – bonus …etc
It is not a difficult mission to do the appraisal; Yes it is sensitive and it requires certain type of decisions and strategies to implement and use the best and effective appraisal form or pattern.
Not to Mention here that employee appraisal could be done by:
- The appraise itself (an employee evaluate his peer/co-worker)
- The appraiser who is the supervisor or manager, and who evaluate the employee
- Appraisal form or face to face appraisal
- An agent or orgnization
While employee performance evaluations are rarely any supervisor's favorite task, there's no getting around the fact that employees’ performance, or lack thereof, can make or break any company. Not reacting when employees are underperforming puts a company at risk of failing to meets its goals and ultimate objectives.
Employee performance appraisals, when used effectively, can be tools for identifying and alleviating potential obstacles for and inspiring employees to aim for new heights in performance.
A. Should your company conduct employee performance appraisals?
The responsibility for ensuring that performance evaluations are structured and used effectively almost always sits squarely on the shoulders of human resources personnel. But before that, companies must make the fundamental decision about whether even to have performance appraisals at all. When horribly flawed, performance evaluations can be costly, time-consuming, and may provide employees with damning evidence for an employment claim of some kind, such as discrimination* or retaliation*.
When designed and implemented correctly, employee performance evaluations can help keep the worker and the company focused, avoid potential problems down the pike through increased communication, inspire and reward employees for their achievements, improve employee morale, help arrive at decisions regarding compensation adjustment, and provide a documented history for succession planning or a legal defense for corrective discipline actions with problem employees.
B. Employee performance evaluations and progressive discipline
Employee performance evaluations and progressive discipline go hand in hand as tools supervisors and managers can successfully use to correct behavior, motivate employees, and set employee goals.
Employee performance appraisals, used correctly, can be an effective means of preventing employee lawsuits. They keep employees apprised of how they actually stand with the employer and prevent surprises in the future. An employee who has consistently received low ratings should not be surprised when she is ultimately fired for her poor performance.
Generally, most employers conduct written performance reviews annually or semi-annually. However, all companies should consider conducting unscheduled reviews if changes occur in an employee’s performance or duties. Some important considerations in written performance reviews include: job-related criteria, supervisor training, effective ratings, comments, honesty, objectivity, review, and raises and bonuses

*Discrimination: For the purposes of employment law, is any workplace action such as hiring, firing, demoting, and promoting based on a prejudice of some kind that results in the unfair treatment of employees. With some notable exceptions, such as affirmative action, discrimination is strictly prohibited by a myriad of federal laws.
*Retaliation: It includes any adverse action taken against an employee for filing a complaint or supporting another employee’s complaint under a variety of laws. The most common type of retaliation claim involves an employee who alleges that she was first harassed or discriminated against and later punished for making a complaint to her employer or a relevant federal agency.