The Consequences Of Performance Appraisal

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 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.

The processes demonstrates a commitment to people within the business by showing them that they are valued members of the company and their success is important to the entire organization.

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.

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.

Effective performance appraisals for developing and sustaining a high- performance appraisal system are based upon two key tenets. The first tenet suggests that if appraisal processes operate as a system. The second tenet is that individual manager’s play a pivotal role in achieving effective appraisals and that they need the right tools and support to be effective.

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 .

shown marked improvement or progress. Lack of personal performance growth would result in consequences for the employee including a probationary period or dismissal. Personal conflicts between manager and employee should not be reflected in the appraisal process. Manager accountability would be reflected by the performance of the employee; hence, an ineffective manager could as easily be discovered through the process as an ineffective employee could be. The process would actually be a system of checks and balances. Ideally, this would promote team players and identify any weak links. The goal of performance appraisals is utilizing the employee’s performance and their behavior or attitude. With correct implementation, the attitude and behavior will not be the issue or focus of the manager. “For any performance improvement to take place, both parties must agree that improvement is necessary, that a plan for improving performance has been jointly formulated, and that periodic progress improvement sessions will take place, as needed. Thus, improvements in employee performance and attitudes can truly be enhanced.” (Peggy Anderson, 1998)

“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

According to Zweig (1991), performance appraisal instruments are tools that are used to measure the performance of employees in the workplace. They are used to put employees up against one another or a predetermined standard, and the appraiser is required to give an evaluation. Practical and effective performance appraisal instruments are drafted when the company has already clarified its philosophy and performance management system. It is also imperative that the performance appraisal instruments are calculated accurately, and that the supervisors are empowered to produce

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).

In the International Journal of Advance Research in Computer Science and Management Studies, an article entitled Performance Appraisal in the Contemporary World gives a great overview of how important performance appraisals are. The way that its employees perceive an organization in important.