A central reason for the utilization of performance appraisal Pas is performance improvement (initially at the level of an individual employee, and ultimately at the level of an organization. Other fundamental reasons include as a basis for employment decisions eg promotion, terminations, transfers, as certain criteria is reached to aid expectations and to establish personal objectives for training programs, transmission of objectives feedback for personal development. As a mean of documentation to aid in keeping track of decisions and legal requirements named in wage and other fringe benefits administration. And is used for formulation of job criteria and selection of individual who is best in performing organization tasks.
Cook, S., & Macaulay, S. (2007). How an integrated approach to performance appraisal and the
“Performance appraisal encroaches upon ‘one of the most emotionally charged activities in business life – the assessment of a man’s contribution and ability” (Narcisse & Harcourt, 2008, p. 1152; Thompson & Dalton, 1970, p. 150). The performance management process is a tool organizations use to align the mission and strategic goals with the employee’s expectations. Furthermore, the process can groom employees to perform at their optimum potential (Schanie & Kemper, 2008). There are six primary components of the performance management process that intertwine with each other; without one the system is not whole.
As stated earlier, performance appraisals are an important part of performance management. By itself, it’s not performance management but one of the tools used in managing performance. Common anecdotes tend to state that organisations that conduct performance appraisals have performance management systems which are false. Performance management is broad in the sense that it is a congruence of activities which involve the management of individuals and groups to achieve high levels of organisational performance. Performance appraisals on the other hand are operational activities concerned with the individual and their performance and development. Feedback and data received from performance appraisal activities feed into other elements of performance management to develop a consistent performance language and a high performance culture, but in itself can never be performance management (Risher, 2003).
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 appraisal is defined as “a structural formal interview between subordinate and supervisor, that usually takes the form of periodic interview (annually or semi-annually), in which the work performance of the subordinate is examined and discussed, with the view of identifying the weaknesses as strengths as well as opportunities for improvement and development” (DEcENZO and Robbins, 1995).
The performance appraisal system can sometimes connect to biases or prejudices that increase discontent, lack of motivation, resistance especially on the part of
Performance appraisal - this expansion worker duty and fulfillment since representatives are offered an opportunity to talk about their work execution. This, thus, will lead them to perform more prominent in inventive exercises. for bosses advantages of execution examination is that, in the surge and clamor of day by day working life, it offers an uncommon possibility for a director and subordinate to have "time out" for a one-on-one discourse of imperative work issues that may not generally be tended to (Performance-appraisal.com, 2016)
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 utility and use of performance appraisals. Why are performance appraisals important? What function do they serve?
Performance appraisals are an aid to creating and maintaining a satisfactory level of performance by employees on their jobs. Chatterjee, B (2002: 216) has argued that “the mere knowledge that their performance is being assessed and that such an assessment will have an important bearing on their future within the organisation is a powerful incentive for them to sustain and if possible better their present level of performance”. Therefore performance appraisals help management in motivating and maximising the potential of its employees.
Although Performance Management evolved from performance appraisals few decades ago, most literature still intensely focuses on performance appraisals when addressing performance management.
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.
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.