Appraisal

Performance appraisal is an important issue in human resource management and has a significant effect in the performance of an organisation. It is the system of evaluating the performance of employees regarding the accomplishment of their responsibilities and determining their potential to grow and develop. Bias in the evaluation process can affect the accuracy and appropriateness of the performance appraisal. Bias is a serious issue because it affects the ability to make appropriate decisions about the promotion of employees. A performance appraisal system that works to the disadvantage of members of a group can also pose legal issues.

159). The evaluation process provides employees the opportunity to give a self-appraisal. Through these appraisals, an employee could justify a salary increase. It is also the time to discuss future plans, goals, aspirations, and career growth. Together with Laura, an employee would decide on goals and objectives for the next review period (Southwell, 2015, Unit 4). In the article “A Discourse Analytical Perspective on the Professionalization of the Performance Appraisal Interview,” the authors discuss how performance appraisal interviews between managers and their employees can resemble a therapy or counseling session (Van De Mieroop & Vrolix, 2014, p. 160). “Performance appraisal, in general, and performance appraisal interviews, in particular, were once rather basic communication processes, but nowadays institutions and organizations increasingly invest resources in them and this results in a growing professionalization of this genre” (Van De Mieroop & Vrolix, 2014, p.

With respect to Scholtes, ( 1993) Performance Appraisal - much have we heard of this word yet many failed to understand what it means. There are various authors, leaders, managers and gurus who have defined PA according to their knowledge. But again, this buzz word appears to be mere a jargon to the ordinary people on the street Probably, the differences in the definition of the word itself are due to the scale of impact it has caused to the people, organization, economy and so forth, individually as defined by (Kumar, 2005; Pettijohn et al., 2001).

As today’s businesses continue to expand, workers are expected to perform well on their jobs. This is what truly happened to management who has a tendency to measure how well they are doing on their job. The job done in a certain period of time is frequently evaluated by performance appraisal. Performance appraisals lead to enhancing employee’s performance, internal communication (relationship), and quality improvements as well. Some experts argue that formal performance appraisal is somewhat useless and many of them contemplate performance appraisals can be detrimental to quality improvement and convey some negative perceptions to the management (David Law, 2007). Albeit many professionals pointed out disadvantages associated

Critical elements of any performance appraisal are its reliability, validity, and objectivity. Reliability is the consistency with which something is measured; validity is the extent to which an instrument measures whatever it is intended to measure (Saal & Knight, 1995). In terms of performance appraisal, questions addressed are if the appraisal is consistent across employees and those doing the appraising, as well as ensuring the appraisal is actually measuring employee performance and not an outlying characteristic. It is in this area that the 360-degree appraisal is effective. Several authors have agreed that one observer does not effectively provide a thorough performance assessment (Rothstein, 1990). Employees possess valid information and insight regarding performance, and are useful because they have an

Performance Management “aims to improve organisational, functional, unit and individual performance by linking the objectives of each” Stone (2013). In order to gain this control, information and a formal review process is required in order to determine individual employee performance. This is when Performance Appraisal is then utilised. Stone (2013) defines performance appraisal as an overall measure of organisational effectiveness. He describes performance appraisal as being “concerned with determining how well employees are doing their job, communicating that information to employees, agreeing on new objectives and establishing a plan for performance improvement”. In an organisational context performance appraisal aims to improve the effectiveness of individual employees which will in turn result in improved business performance and promote the achievement of its objectives. Stone (2013) provides two main objectives of performance appraisal systems as “to provide information for making personnel decisions involving compensation, promotion, discipline or termination” and “to provide feedback to subordinates for improving performance.

Performance appraisal aims at improving employee development, the employees work expectation, assessing workforce development and linking pay with performance (Peter, Matt and Colin, 2011). It prepares employees to be aware of the management expectations after the performance evaluation that helps them to boost their performance (de Waal, 2004). Performance appraisal looks smooth but researches explains that it is generally used in identify individual weaknesses, performance feedback and employee’s strengths (Ruddin, 2010). The practice of performance appraisal system by industry and business has been estimated between 74% to 89% (Idrisb). Performance appraisal systems are used for various purposes, that include feedback, human resource decisions and evaluation (Kline, & Sulsky, 2009).

When doing anything meaningful, humans have a natural desire to know how they are performing. In particular, if they are doing a job, they need to know if they are doing horrible, great, or somewhere in between. One of the best potential ways of providing this feedback is through the use of performance appraisals. By definition, “performance appraisal is the process through which employee performance is assessed, feedback is provided to the employee, and corrective action plans are designed.” (Youssef, 2012) If properly designed and administered, a performance appraisal can provide a great benefit to the

The workforce today is known to have lots of issues regarding the customer satisfaction, competitive advantage, the fight for power, technological advancements, and effective service in order to attain success. Performance appraisal is one of the most crucial and central human resource practices in organizations due to its critical linkage with selection, compensation, training and other employment practices (Elsevier, 2008). Performance appraisal is a Human resource practice which concentrates on the interactions between the supervisors and the subordinates. Performance appraisal is an important tool in order to improve the business performance and also to develop an organizational culture that foster competitive advantage, flexibility and innovation. As the definition explains, Performance appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development (MSG, 2013).Through the method of performance appraisal, the employee or the individual develops himself intellectually and he understands where he went wrong to correct it. The individual is being assessed based on the work he has done and his ability so that he could effectively attain the pre-established criteria and organizational objectives. This method is really important in adding value to the organizational goals and the company’s objectives. It is said to be a key factor of encouragement to the employees and it highly

Performance appraisal is defined by Mathias, Jackson (2005, p106) as ‘the process of evaluating how well employees perform their jobs as compared to a set of standards, and then communicating that information to those employees.’ This evaluation or review is usually carried out periodically. A performance appraisal usually forms an integral part of an organization’s Performance Management System, and although there are criticisms against performance appraisals, its many advantages heavily outweigh their shortcomings.

Erasmus, Swanepoel, Schenk, van der Westhuizen and Wessels (2005: 268,269) state that performance appraisal is a formal and systematic process which the job-relevant strength and weaknesses of employees are identified, observed, measured, recorded and developed. The performance appraisal

In this paper that has been investigated effect of performance appraisal practice on employee satisfaction.

Today, performance appraisal is used for developmental and motivational purposes in the organization. It is not a stand still evaluation activity, but a dynamic process which should be viewed as follows- planning the employee’s performance and evaluation, and improving the performance of employees. The process brings the new concept Performance Management. Performance Management is essential for today’s organization to integrate the management goals and employees performance. It is a system for integrating the management of organization and employee performance in order to support and improve organization’s overall business goals.

Performance appraisal is defined as a systematic and structured system for measuring and evaluating job related behaviours to discover reasons for performance and identify potential for the improvement of an individual, and eventually the performance of the organisation. (Singh, 2015) In this day and age of globalisation, managers tend to extensively use performance appraisals, as a measure of the productivity and effectiveness of the employees. In the case of a positive performance, the manager rewards the employee and on the contrary, the managers can seek to correct the lack of performance. Such exercises, allows the organisation to form a perception about the measures that need to be taken to bolster productivity in the future. Performance appraisals act as a control process for the managers, through which they can monitor the activities of the employees, to ensure they are accomplishing goals, and to correct any significant deviations (Hunsaker and Alessandra, 2008).

Fletcher (2001) describes that performance appraisal has progressively more become part of modern strategic approach to integrating HR activities and business policies and planning. It also has been seen as ‘generic term’ that is usable for broad range to cover up different types of activities, through which organisations use to evaluate employees