Introduction
Hendry et al (2000) suggest that appraisal is a “misused” process, designed to control employees’ activities. Nevertheless, past and recent scholars have regarded performance appraisals as a strategic and integral part of an organization (Longenecker and Goff 1992; Coutts and Schneider 2004). Performance appraisal is referred as two simple terms that provoke and propel strong responses, sentiments, opinions and judgment in the organizational context of formal appraisal procedure when mutually used together (Pettijohn L. et al 2001 and Kumar 2005). Most organizations of the world, irrespective of its size, type and product distinction employ the use of performance appraisal; but with different level of accomplishment as an
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This suggests that performance appraisal is a dominant tool to evaluate, assess, develop and compensate the performance of employee/subordinate helping to create goal congruence between the organization and it employees.
Research has identified a gap amongst the managers and employees’ perception about performance management theory and its actual practice (Bratton J. and Gold J. 1999). In practice, most organizations do not employ the performance management process to its full capacity in motivating employees (Morris et al. 1991). Though in theory, the general acknowledgment that performance management is a tool used to promote employee understanding of its contribution to organizations strategic goals; while also ensuring that the right talent and skills are centered on the things of importance. Yet in practice, it is regarded as just a documentation phase that is used to fulfill basic organizational and statutory requirements (CIPD 2009). In simple terms, performance management can be described as a strategic part of human resource management; which is an all-inclusive process that aims to bring together various aspects including performance appraisal (Boxall and Purcell, 2003). Noticeably, an important aspect of performance appraisal is enhancing performance, which is a key element of organizational life and performance
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.
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.
As stated by Peter F. Drucker, “Management is about human beings. Its task is to make people capable of joint performance, to make their strengths effective and their weaknesses irrelevant.” Performance management is essential to achieving an organization 's mission statement and business goals, and also in attracting, retaining, and motivating qualified employees. There are many benefits and reasons why an organization should execute a performance management system. Performance appraisals establish the basis for qualifying, recognizing, and rewarding employee contributions. In this paper, I will discuss what performance management is, the problems with the current performance management system at my organization, how other organizations have succeeded in their performance management system and how I would advise management at my current organization to improve our performance management system.
In this paper I will be describing effective performance appraisals and how they can increase employee performance. I will provide examples of strategic advantages in the performance appraisals process and also give examples of potential unfairness in the employee appraisal system.
At too many organizations, the performance appraisal has degenerated into a mere formality. Employers and employees are jointly complicit, dutifully sitting across from one another but simply going through the motions, ticking off goals and targets achieved over the past 12 months, those that weren’t, and a new set of goals and targets for the next 12 months. As performance management tools, these by-the-numbers appraisals don’t hold much value for most companies, and they do little to raise employee engagement, commitment or satisfaction levels. However, rather than simply abandoning performance appraisals altogether, as some have implied, a growing number of employers are turning around this state of affairs. They’re reinventing performance reviews and reaping substantial rewards.
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.
Throughout every organization, there is a system set up for effective performance management. It is known that there is a continuous process associated with performance management. In order have success in the process; managers must have extensive knowledge of the mission and goals of the organization. Once the mission and goal is set in place, there should be a cascading effect that trickles down to each employee within the organization. This paper summarizes an article titled “Performance Management Done Right: It’s Not the Form, It’s the Process” (Murray, n.d.) The published article breaks down what performance management actually entails and introduces a variety of ways to implement the tool that helps build
Motivations: Performance appraisal serves as a motivation tool as employees are aware that their efforts will be recognized they work efficiently for attainment of goals and targets , this improves job performances .
In today’s business world, performance appraisals are still widely used, yet at the same time very criticized. One of the reasons appraisals are criticized is some feel that they are a waste of time and are not value added. Samuel Culbert, author of the book,“Get Rid of Performance Reviews” states, “This corporate sham is one of the most insidious, most damaging, and yet most ubiquitous of corporate activities” (Culbert). He goes on to say that, “Everybody does it, and almost everyone who’s evaluated hates it” (Culbert). He feels that appraisals are worthless and should never be a method used for giving employees feedback. After doing more
The annual performance review seems ineffective, a waste of time, or it becomes demotivating for employees and thus counterproductive. Employee appraisal is a method of measuring and evaluating employee job performance. The employee evaluation consists of regular reviews at different intervals every six months or yearly reviews. The evaluations are a pre-determined set of criteria centered on organizational goals. A manager conducts performance evaluations and discusses the employee’s strengths, weaknesses, employee behaviors, productivity. A performance appraisal is essential for refinement, maintaining, or increasing job performance. These reports give the employee insight to where improvement is needed, and it provides an opportunity for development.
“Performance appraisals can enhance employee performance as well as advance the mission and goals of an organization. There are many advantages of performance appraisals if they are applied fairly, consistently and objectively. Performance appraisals not applied fairly can be counterproductive and even destructive to
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
Performance management is the process of management that contributes to the effective management of individuals and teams to achieve high levels of organizational performance. Some see performance management as performance related pay schemes and others as the performance appraisal systems. In simple terms, performance management provides the means for people to improve their performance or apply their abilities more constructively.
But somehow ‘performance appraisal’ is the most hated organizational practice by the employees. No one is ever happy with the results of their performance appraisals. Many solid, successful, and happy employees find their ratings discouraging. At the same time we find the managers and HR to be fidgeting uncomfortably even after doing everything they could to ensure that the performers are well fitted in the bell curve. There has to be a better way. Have the companies like Microsoft, Cisco, Accenture and IBM found the better way by doing