The Bell curve conundrum
It is a well-established fact that employed human capital provides the competitive edge to the firms operating in the same competitive space. Organizations that have motivated and talented individuals are likely to forge ahead of the pack, even if they have similar products or services. That is why it is important that we manage the performance of the employees well. We discuss the goals to be achieved during the year; provide feedback to employees on their progress and modify the direction as the year progresses and organizational direction shifts. At the end of the performance year, start pulling together information and evidence of how well the employees have achieved the goals. Then apply a rating which will govern their payouts, promotions and compensation and create development plans for the next year. We cannot fathom anything to go wrong in this textbook laid process. It has been a best practice after all! 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
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.
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.
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.
Whether you wish to start a new performance appraisal system in your organization - or improve an existing one, I have a few tips:
By the end of 2015, at least 30 of the Fortune 500 companies had stopped using performance evaluations (Goler, Gale, & Grant, 2016). In fact, companies worldwide have begun to question their rigid ratings systems and once-a-year appraisal processes,
After reading the article Time to Scrap Performance Appraisals? I was able to see the bigger picture of how effective the performance evaluation process actually is. I do agree with the article that we should step away from the traditional performance ratings. If we are seeing a more positive trend, then why not change the performance appraisal process for the better. With so many problems with the process I agree with companies wanting to let the process go. Unfortunately I have not had the opportunity to experience the performance evaluation process, but I did go through an experience like it.
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.
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.
Performance appraisal is important to any organisation as this is the optimum way of achieving goals and set objectives by the business. The organisation will have constant supervision of employees and how they are performing, this creates a relationship which can have a positive influence rather than a negative one as the employees will see firsthand what they are doing wrong and will strive to improve. In the organisation these appraisals can be used to determine the weaker and stronger employees, successful organisations today have strong performance appraisals as this allows them to recruit, develop and maintain their employees and keep them at a high standard which allows the organisation to grow.
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)
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
Performance appraisals are a tool that most companies use when assessing their employees. A well prepared and well delivered performance appraisal can be beneficial to both the employee and the company. The company benefits in many different ways when they deliver this type of performance appraisal. The performance appraisal process
“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