Performance Appraisal

4474 Words18 Pages
In some organizations performance appraisal (PA) and performance management systems are treated as unnecesary or routine job. But the evaluation of of employees' job performance is vital human resources function and of critical importance to the organization. In work organizations performance measurement typically takes place in the form of formal performance appraisals, which measure worker performance in comparison to certain predetermined standards. Performance appraisals serve many purposes for the individual worker, for the worker's supervisor and for whole organization. (Cleveland, Murphy, and Williams, 1989). For the Worker: • means of reinforcement • career advancement • information about work goal attainment • source of…show more content…
In the literature, two typical PA uses were examined—evaluative and developmental. The evaluative function includes the use of PA for salary administration, promotion decisions, retention-termination decisions, recognition of individual performance, layoffs, and the identification of poor performance. This is similar to Ostroff's (1993) conceptualization of the administrative PA purpose. Cleveland, Murphy, and Williams (1989) contend that evaluative functions all involve between-person decisions. Developmental functions include the identification of individual training needs, providing performance feedback, determining transfers and assignments, and the identification of individual strengths and weaknesses. These are all proposed to encompass within-person decisions. Evaluative PA use is going beyond salary discussion and instead defined to include determination of poor performers, layoff and termination decisions, and promotion decisions. This is consistent with Cleveland, Murphy, and
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