Developing a 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.

* Set developmental goals with each employee. These goals focus on building the employee’s expertise, skills, and abilities. The idea is to make strengths even stronger, as well as to develop the areas in which the employee’s knowledge and skills are deficient. As you provide your team members with these developmental goals and support them to attain them you will be building the company’s future and displaying to your team that you are there to support and develop their career.

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.

An effective performance appraisal system strives for as much precision in defining and measuring performance dimensions as is feasible. Some of the major problems with the Darby appraisal system are:

Appraisals are carried out on an annual basis and actively involve employees understanding of what is expected of them. By setting agreed objectives with your line manager and then reviewing the results at an agreed later time, the staff member is made responsible for their own performance. Appraisal is an opportunity to review strengths and weaknesses, to take an overall assessment of work content, loads and volume and to look back on what has been achieved already and to set realistic goals and objectives for the following period.

It can be observed that major focus of assessment is on personality traits and many of the methods suffer from lack of clarity for employee with respect to expectations and targets. Table 4 shows description, advantages and disadvantages of modern appraisal methods. These methods focus more on employee development, setting achievable goals beforehand and leadership development.

On the other hand, poor performance, or mediocre performance may lead to negative appraisals and consequences, including job termination or withholding of bonuses, awards, and promotions. Performance appraisals are a systemic means of ensuring quality of work performance, and thus achieving the strategic objectives and advancing the goals of the organization. These performance appraisals, in order to be effective, must be applied in a uniform, objective, fair and consistent manner over time. In addition, the expectations of the performance appraisal must be clearly understood and agreed upon by the supervisor and the employee. Objectivity and fairness in the appraisal system build trust in the organization as well as high morale among employees.

The definition of the term ‘performance management’ varies in different literatures. As Hutchinson(2013) summed up, combined with Den Harton’s theory(2004), it is a continuous process which links individual and team objectives with organizational goals by measure and improve employee’s skill and performance. According to Armstrong (2012), human resource management aims at making sure the organization has the most talented, skilled and engaged people in order to attain its goals. In this context, performance management is one staple practice helping managers identifying and retaining most competent employees as well as correcting poor performance.

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.

Conducting appraisals is a task that must be delivered with accuracy, trust, and a sense of projection. An employee must be afforded the opportunity to prepare for their appraisal and at the same time the manager must give themselves enough time to prepare and deliver the appraisal with the sufficient information that the employee will walk away with a clear path forward and the manager will notice an eager employee ready to expand their value to the organization.

Performance appraisals are a good way to increase employee motivation and productivity. On the other hand depending on the type of performance appraisal the employee receives may cause resentment and displeasure within the company. This paper will discuss a new appraisal process that can help employees understand and accept the appraisal process more.