The Problems with Performance Appraisal

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.

Looking at the developments in the work organisations and consideration of whether the appraisal is fair and accurate as outlined under orthodox critique, I am of the view that, to the large extent it offers a means to overcome the traditional limitations of appraisal, due to the following reasons.

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.

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.

The reality is that most appraisal systems in organizations today are very procedural and bureaucratic in nature and involve a lot of tedious form filling which typically takes more time than the conversations themselves. As pointed out by the late management guru and author, Peter Drucker, both managers and employees dislike the process. Managers loathe it because of the mounds of paperwork and the fact that they are set up in a way that requires managers to spend a lot of time criticizing others. Employees generally dislike the process because they know their manager is compelled to criticize them to justify any pay increase which is average or below average and because most

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.

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.

The utility and use of performance appraisals. Why are performance appraisals important? What function do they serve?

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)

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 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 appraisals are an essential element of the general performance management procedure. A performance management structure involves having an appraisal technique or method, substantiated by job types, colloquial and continuous feedback, leadership training, performance expectations, punitive policies, as well as employee productivity and acknowledgement. In addition, both positive and negative feedback are elements that are instrumental in the arena of performance management. However, the paramount cause of performance appraisal efficiency as well as effectiveness is how well each of these elements correlates with one another.

Despite not being looked upon unfavorably by employees, performance appraisal systems have become common place in businesses today as a way for the employees and managers to determine if an employee is accomplishing their assigned duties and tasks. It is designed as a vehicle to convey what is expected of the workers and supervisors as well as establish standards of achievement (Lawler, Benson, & McDermott, 2012).

Performance appraisals are needed in the healthcare facility to ensure that the staff members can perform according to the organization’s standards. Performance appraisals help managers prepare their staff to walk in excellence. The performance appraisal process is one that few look forward to. However, understanding the process can help managers and employees conduct a more fruitful appraisal. At the University of Texas at Dallas, managers are taught that "A chief purpose of any performance appraisal program is employee development. This goal is accomplished by helping the employee to do a better job and by developing in the employee the knowledge and skill to meet the future needs of the work unit and the institution." (Mayhew, 2014)