Appraisal system to be effective should possess the following characteristics:
1. Clear Objectives:
The objectives of performance appraisal should be clear, specific, timely and open. The appraisal system should be fair and beneficial to both the individual employee and the organization should be linked with other subsystems of personnel management.
2. Reliable and Valid:
Appraisal system should provide consistent, reliable and valid information and date. Appraisals should measure what they are supposed to measure. For example, if the objective of appraisal is to show potential of an employee for promotion, it should supply the date relating to potentialities of the employee.
The appraisal form, procedures and rules should be standardised. There should be well-defined performance criteria and standards. Employees should be made fully aware of these standards as appraisal decisions affect all employees of the group.
Evaluators should be given training in procedures and principles of appraisal. They should be provided with knowledge and skills in designing appraisals, conducting post appraisal interviews and correcting rating errors.
5. Fob Relatedness:
The appraisal system should focus attention on job-related behaviour and performance. It should provide information on job related activities and areas.
6. Mutual Trust:
Before introducing the appraisal system, a climate of mutual trust, cooperation and confidence should be created in the organisation. Under the system, the employees should be treated in a supportive manner.
7. Feedback and Participation:
The ratings should be communicated to both the employees and the raters. The appraisal r system should be open and participative. The employees should get information on their performance. The system should involve employees in the goal setting process.
8. Help Focus:
Appraisal should not judegemental. It should not be purely control- oriented. The evaluator should also play the role of coach and counsellor. He should- help people reach their full potential. The overall purpose of appraisals should be developmental.
9. Recognition of Differences:
Organisation differs in terms of work, size, resources, needs and environment. Hence, the appraisal system must be designed to meet the needs of particular organisation. It should be specific and tailor – made for the particular company.
10. Post Appraisal Interview:
An appraisal system is only as effective as the manager is iii communications. Hence, an interview with the employee should be arranged after appraising his performance. It will help to know the difficulties of work and training needs of employees. In interview, problem solving approach should be adopted and counseling should be provided for improving performance.