Project Report on Performance Appraisal System

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.

An important element of the appraisal process is the setting of targets and objectives for the next period. An employee cannot be expected to perform well if they do not have a clear understanding of what is expected.

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.

An effective performance appraisal system supports our desire to create a productive, motivated, accountable, reliable, creative, dedicated, and happy workforce.

What are performance appraisals? Simply put, they are the evaluation of goals that are pre-determined and set by both the employee and organization (Harvard Business Press, 2009). They are used to measure an employee’s performance and team performance.

A performance appraisal is one of the most important factors in any organization and can be one of the greatest tools used to record employee production. Every organization has to have goals and objectives established and the employee has to be involved in this process. By conducting performance appraisal will improve productivity and also the morale of the employees.

Performance Appraisals will help to monitor standards, objectives, expectations, responsibilities, tasks, training needs and career succession planning. Also the employee appraisals are used for the evaluation of annual pay and grading reviews, which also coincides with the next year business planning.

Criteria for performance appraisals is an appraisal free of bias, documented results on file, strategies implemented by development of performance measures, feedback, and information for an employee to maximize their performance. Rating factors, effectiveness, and results used to either terminate employees or identify those with potential for advancement.

Interviews - This is often the second step in a selection process, it is often used after a group of applicants have been short listed and allows the recruiter or hiring manager an opportunity to ask further questions about an applicants experience and get a feel for their personality, and fit into the organisation and role.

The purpose of a performance appraisal is to be used to improve employee performance. It should be used as a guide for recognizing outstanding behavior that is in line with departmental policies and work objectives, but should also be used as a tool for feedback to improve observed employee deficiencies. Performance appraisals should never be a surprise when it is presented to the employee. It is important for subordinates to understand what they are being evaluated on and what it takes to be successful.

The performance appraisal process allows the Firm to discuss your overall performance with you and to summarize the formal and informal performance discussions held throughout the review period. The performance evaluation will review your strengths and also identify ways to improve your performance.

Performance appraisal is a process of assessing, summarizing and developing the work performance of an employee. Every career employee should receive a written performance appraisal at least annually using the appropriate UCSD Performance Appraisal Model.

Performance Appraisal can be problematic to define however, (Grote, 2011) defines performance appraisal as the review and discussion of an employee’s duties and responsibilities, the measurement of skill and accomplishments within reasonable accuracy. The appraisal helps identify areas which need to be improved and areas which employees already excel in.

“Performance appraisal can be viewed as the process of assessing and recording staff performance for the purpose of making judgments about staff that lead to decisions. Performance appraisal should also be viewed as a system of highly interactive processes which involve personnel at all levels in differing degrees in determining job expectations, writing job descriptions, selecting relevant appraisal criteria, developing assessment tools and procedures, and collecting interpreting, and reporting results.”( The University of Georgia, & VirginiaTech, 2008)

Performance appraisal process if made clear and transparent can help a lot to avert low morale in employees. Fair, trustworthy, and transparent processes for performances management and resource allocation help to meet people’s drive to defend.