Effective Performance Appraisal Program

An effective performance appraisal system strives for as much precision in defining and measuring performance dimensions as is feasible. Some of the major problems with the Darby appraisal system are:

First, we need to ask what performance appraisals are. They are “The identification, measurement and management of human performances within an organization.” (GOMEZ-MEJIA, 2010) Performace appraisals are popular and used world wide to measure personal and team performace. Performance management has increased with the gripping economy and having less to do more. Managers have always thought of optimal performance, yet a poorly written performce appraisal has a devistating impact on the employee, the manager, and the company.

The reasons provided for failure in performance management versus performance appraisal discipline gap, accountability, measurement scarcity or overload, lack of balance and failure to assess impact. “There are two primary purposes of performance appraisal: evaluative and developmental. The evaluative purpose is intended to inform people of their performance standing. The collected performance data are frequently used to reward high performance and to punish poor performance.” (Smither, 2009) The developmental purpose is intended to identify problems in employees performing the assigned task. The collected performance data are used to provide necessary skill training or professional development. “The purpose of performance appraisal must be clearly communicated both to raters and rates, because their reactions to the appraisal process are significantly different depending on the intended purpose. Failure to inform about the purpose or misleading information about the purpose may result in inaccurate and biased appraisal reports.” (Cascio, 1998)

shown marked improvement or progress. Lack of personal performance growth would result in consequences for the employee including a probationary period or dismissal. Personal conflicts between manager and employee should not be reflected in the appraisal process. Manager accountability would be reflected by the performance of the employee; hence, an ineffective manager could as easily be discovered through the process as an ineffective employee could be. The process would actually be a system of checks and balances. Ideally, this would promote team players and identify any weak links. The goal of performance appraisals is utilizing the employee’s performance and their behavior or attitude. With correct implementation, the attitude and behavior will not be the issue or focus of the manager. “For any performance improvement to take place, both parties must agree that improvement is necessary, that a plan for improving performance has been jointly formulated, and that periodic progress improvement sessions will take place, as needed. Thus, improvements in employee performance and attitudes can truly be enhanced.” (Peggy Anderson, 1998)

On the other hand, poor performance, or mediocre performance may lead to negative appraisals and consequences, including job termination or withholding of bonuses, awards, and promotions. Performance appraisals are a systemic means of ensuring quality of work performance, and thus achieving the strategic objectives and advancing the goals of the organization. These performance appraisals, in order to be effective, must be applied in a uniform, objective, fair and consistent manner over time. In addition, the expectations of the performance appraisal must be clearly understood and agreed upon by the supervisor and the employee. Objectivity and fairness in the appraisal system build trust in the organization as well as high morale among employees.

Performance management is the foundation for employee performance and engagement…it is larger than the annual performance review (“Guide to,” 2016). It is not merely a tool, but rather an act – an act of management (Ammons, 2015). One key best practice of performance management is having an effective appraisal cycle, as well as knowing how vital performance feedback is to the appraisal cycle and to the overall wellbeing of the human resources and to the company.

According to Zweig (1991), performance appraisal instruments are tools that are used to measure the performance of employees in the workplace. They are used to put employees up against one another or a predetermined standard, and the appraiser is required to give an evaluation. Practical and effective performance appraisal instruments are drafted when the company has already clarified its philosophy and performance management system. It is also imperative that the performance appraisal instruments are calculated accurately, and that the supervisors are empowered to produce

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

An organizational goals can be attained only when people put their greatest efforts. So the organization has to ascertain whether an employee has contributed his or her best performance. Performance appraisal is an objective assessment of an individual’s performance against well-defined benchmarks. The other terms used for performance appraisal are: performance rating, employee assessment, employee performance review, personnel appraisal, performance evaluation, employee evaluation and merit rating. The performance being measured against such factors as job knowledge, quality and quantity of output , initiative, leadership abilities, supervision, dependability, co-operation, judgement, versatility, health, and the like. Assessment

For managers to be effective and help employees develop skills and capabilities, it is essential to begin the performance management process on the employee first day of work. Create a file for each employee and record the accomplishments, areas for improvement and regular feedback throughout the year (Mayhew, 2014). Another performance appraisal process is to provide regular feedback. The use of regular feedback allows the employer and the employee to know the working aspect of the organization. This feedback could result in disciplinary actions and/or rewards. Performance measures often include both process expectations (how the work gets done) and outcome expectations (the results of the process) (International Journal of Management and

“Performance appraisal” is a discrete, formal, organizationally sanctioned event, usually not occurring more frequently than once or twice a year, which has clearly stated performance dimensions and/or criteria that are used in the evaluation process. Furthermore, it is an evaluation process, in that quantitative scores are often assigned, based on the judged level of the employee‟s job performance on the dimensions or criteria used, and the scores are shared with the employee being evaluated. (Angelo S. DeNisi and Robert D. Pritchard, 2006)

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).

As stated earlier, performance appraisals are an important part of performance management. By itself, it’s not performance management but one of the tools used in managing performance. Common anecdotes tend to state that organisations that conduct performance appraisals have performance management systems which are false. Performance management is broad in the sense that it is a congruence of activities which involve the management of individuals and groups to achieve high levels of organisational performance. Performance appraisals on the other hand are operational activities concerned with the individual and their performance and development. Feedback and data received from performance appraisal activities feed into other elements of performance management to develop a consistent performance language and a high performance culture, but in itself can never be performance management (Risher, 2003).

This essay is to answer the question two: “Critically evaluate the advantages and disadvantages of individual performance appraisals/reviews. Assess to what extent such appraisals can contribute to achieving high performance workplace.”

The goals of the organization cannot be fulfilled without the skills or talent of the employees and a direction to apply them. The employees will have goals, actions, and behaviors to bring the company closer to the organization’s vision. Moving forward requires direction so that new and current employees stay on track. Appraising an employee may affect their base pay, promotional status, and retention decisions. The employees who are found to have deficiencies may be identified and corrected when their appraisal is interpreted. This can also reinforce the employees existing strengths. A performance appraisal reviews an employee’s career plans and identify any training needed. Other components related to performance