Performance Appraisals: To Go or Not to Go?
Introduction
Performance appraisals (PA) have long been considered fundamental to the organisational effectiveness of human resources (Yee & Chen, 2009). However, a macro shift towards a knowledge-based economy, the advancement of technology, and generational workforce changes, have prompted an evolution of the traditional PA practise. The purpose of this literature review is to highlight the reasons why traditional PA practices are inadequate and unfulfilling for today’s millennial employees. Firstly, an overview of the traditional PA process will be presented followed by a discussion regarding the drawbacks of PA. The literature review will then discuss millennials and PA, followed by research
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There are many different systems used for PA purposes, which can be categorised as either comparative or absolute. With most systems requiring the supervisor to rate the employee via methods such as ranking, forced distribution, or behaviour checklists, in addition to alternative methods, such as 360-degree appraisal and management by objectives (Yee & Chen, 2009;Aguinis, Performance Management, 2014). A relatively formal occasion, PA are typically conducted biannually or annually (DeNisi & Pritchard, 2006; O 'Boyle, 2013), and generally include a formal meeting between a manager and their direct reports (Zheng, Zhang, & Li, 2012). It is during these periodic meetings that the focus falls on identifying the strengths, weaknesses, successes, and failures, demonstrated by the employee throughout the review period, as well as any relevant opportunities, or threats present (DeNisi & Pritchard, 2006; Payne, Horner, Boswell, Schroeder, & Stine‐Cheyne, 2009; Zheng, Zhang, & Li, 2012). The PA meeting will include discussion of future employee goals and objectives, as well as the need for further training and development. Finally, the outcome of an employee’s PA allows for other administrative decisions to be made. For example, some organisations use PA as a basis of measurement to determine bonus payments, pay rises, promotions, and termination of employment (Davis, 2011;
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.
A performance appraisal is a key element in organization and can be one of the greatest tools used to record employee production. Organizations can establish their goals and objectivities, while involving the employees in the process. Conducting a performance appraisal increases productivity and morale and can prove to be effective in performance production.
An appraisal is one of the most commonly used methods of formal assessment and is used to evaluate and assess the performance of an employee against agreed targets and objectives, with the aim of improving employee performance. Where an employee has been able to achieve their targets, the appraisal can be used to recognise successes. This often helps to increase an employee’s confidence and motivation and can lead to better organisational performance. Many organisations will use the outcomes of an appraisal to identify potential candidates for promotions or even an increase in pay. At the same time, an appraisal meeting may include discussions on underperformance, identifying why this has occurred and how this can be avoided in the future.
Performance appraisal is a method which is increasingly used to evaluate employees to determine the degree to which they are performing effectively and encourage them to direct their energies towards organizational performance. Although the appraisal is being practiced, there are criticisms made against the system which generally arise from within the Orthodox and radical management frame work.
Development of a performance appraisal system that is effective in a human service organization is of benefit for the organization and the employees. For a performance appraisal system to be effective, the system has to be strategic, designed to fit the specific needs of the organization, non-discriminatory, non-bias, with correct implementation and administration. Many different components, must to be incorporated to make this type of system beneficial for all who use it, and all who are evaluated by the system.
Performance appraisal is an evaluation and grading exercise undertaken in organizations to achieve several objectives such as employee motivation, identification of training needs, rewards and remuneration, employee development through feedback etc. [Fig. 1]. All methods for performance appraisal have several advantages and disadvantages based on location of the firm, socio-economic environment, vision and mission of the firm, organizational structure and other factors. Organizations in different industrial sectors may have different focus areas of work and different values and thus, expectations from employees vary across sectors.
Communication: Effective communication is very important because it effects relations and objectives of the organization. Following are the points which tells the relationship between employers and employees
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
Despite not being looked upon unfavorably by employees, performance appraisal systems have become common place in businesses today as a way for the employees and managers to determine if an employee is accomplishing their assigned duties and tasks. It is designed as a vehicle to convey what is expected of the workers and supervisors as well as establish standards of achievement (Lawler, Benson, & McDermott, 2012).
What is performance appraisals, how are they beneficial or damaging to the key characteristics of an effective system; and how does this system effect one’s own experience as to their own performance evaluation. So, what is performance appraisal, “it’s the evaluation of a person’s performance” (Kelly & Williams, 2016, pg. 92). This performance evaluation helps one’s manager in compiling information as to an employee’s conduct as to their performance and work ethics, through the usage of systematic process that was designed to rate their performance using one’s own
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
an appraisal system is a regular review of employees performance in work. The main objective of this study therefore, is to examine performance appraisal and workers performance.
By 1959 the automotive division of BMW was in financial difficulties and a shareholders meeting was held to decide whether to go into liquidation or find a way of carrying on. It was decided to carry on and to try to cash in on the current economy car boom enjoyed so successfully by some of Germany 's ex-aircraft manufacturers such as Messerschmitt and Heinkel. The rights to manufacture the Italian Iso Isetta were bought, the tiny cars themselves were to be powered by a modified form of BMW 's own motorcycle engine. This was moderately successful and helped the company get back on its feet. The controlling majority shareholder of the BMW Aktiengesellschaft since 1959 is the Quandt family, which owns about 46% of the stock. The rest is in public float.
recruiting available to them to avoid some of the poor hiring decisions and they are: “current employees, referrals from current employees, former employees, formal military, customers, print and radio advertisements and internet advertising, career sites, and social media, employment agencies, and temporary workers” (p. 174). However, the hiring process does have costs attached to it, recruitment cost – acquiring applicant campus visits; selection cost – interviewing applicants; training cost – investing in applicant; and separation cost – layoffs, which also has to be taken into consideration during the hiring process because it has a major
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