Introduction: 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. Fig. 1 Aspects of Performance Management System Performance Appraisal methods: There are multiple ways to classify the methods such as: i. …show more content…
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. Table 3. Advantages and Disadvantages of Traditional performance appraisal methods Appraisal Method Description Advantages Disadvantages Ranking Method All employees are ranked relative to each other on the characteristic being measured • Simple to use • Useful for direct comparison between employees • Does not indicate how much better or worse employees are relative to each other. Paired Comparison Employees are compared with all other employees on a one-on-one basis • Useful when employees have varying behavioral traits • Does not work with large number of
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.
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.
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 an organization employees are the important asset and play a significant role in the progress of an organization. Nowadays firms usually focus on the human capital in the form of the employees by giving them training, assisting them in career development and also work on performance management in order to keep the employees motivated and dedicated by giving them feedback through performance appraisals. Through these performance appraisals the employees are informed about their strengths that they can enhance and about their weaknesses that they can improve in the future.
“Performance appraisal is the process through which employee performance is assessed, feedback is provided to the employee, and corrective action plans are designed.” (Youssef, 2012). Performance appraisals can be very effective, by doing them carefully it will improve employee performance. Consistency with the evaluations is an important part of the process. During the evaluation express positive and negative accomplishments from the employee by using examples. Use goals, job related data that support ratings and focus on outcomes the employee can control and work towards. List specific areas the employee can improve on. Also it is important to compliment and show your appreciation to the employee.
“Performance appraisal can be viewed as the process of assessing and recording staff performance for the purpose of making judgments about staff that lead to decisions. Performance appraisal should also be viewed as a system of highly interactive processes which involve personnel at all levels in differing degrees in determining job expectations, writing job descriptions, selecting relevant appraisal criteria, developing assessment tools and procedures, and collecting interpreting, and reporting results.”( The University of Georgia, & VirginiaTech, 2008)
An appraisal system may provide a Human Service organization in numerous of techniques. The main reason for effective appraisal can serve for development and administrative for an organization of Human service. From the viewpoint of the administrative the main reason of the appraisal presentation system can take in numerous of decision making in regards to changes in job responsibility, reward, or promotion choices. The development reasons consist of helping and achieving employee’s best routine, appraise staffs weaknesses or strengths and figure out if other alternative for
The annual performance review seems ineffective, a waste of time, or it becomes demotivating for employees and thus counterproductive. Employee appraisal is a method of measuring and evaluating employee job performance. The employee evaluation consists of regular reviews at different intervals every six months or yearly reviews. The evaluations are a pre-determined set of criteria centered on organizational goals. A manager conducts performance evaluations and discusses the employee’s strengths, weaknesses, employee behaviors, productivity. A performance appraisal is essential for refinement, maintaining, or increasing job performance. These reports give the employee insight to where improvement is needed, and it provides an opportunity for development.
“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
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.
The performance appraisal is very important to smooth the development of the organization and the employees itself. It helps the workers know and develop their performance, knowledge, skills and ability to ensure they can develop themselves better in the future. By doing the performance appraisal evaluation, the organization can identify their workers strength and weaknesses easily. Basically in organization, every individual have the different attitudes, characteristics, skills, ability and knowledge that makes them different among each other. Maybe some of the workers are excellent in the accounting; so they can work at the financial department and many else. If the workers are lack of knowledge in some field or related department and do not know how to complete the task given, the manager of the organization can know what kind of training needed by the workers and send them to the training centre to helps them develop their skills, knowledge and ability to avoid the workers do the same mistake besides can improve their performance to a better level in the future. (Snell & Bohlander, 2010). For example, the CIMB Group was conducted CIMB-Insead Leadership Programme to develop leadership skill sets and competencies as leaders transition from business management to group management and understand individual leadership strengths and weaknesses and develop improvement action. At last, it is the duties of Human Resource Management in CIMB Group to formulate the best training program for each of the employees to develop their talent, strengthen their skills and better understanding about their job in order to achieve the organization’s
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).