Disadvantages Of Performance Appraisal Evaluation

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.

What are performance appraisals? Simply put, they are the evaluation of goals that are pre-determined and set by both the employee and organization (Harvard Business Press, 2009). They are used to measure an employee’s performance and team performance.

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.

The purpose of a performance appraisal is to be used to improve employee performance. It should be used as a guide for recognizing outstanding behavior that is in line with departmental policies and work objectives, but should also be used as a tool for feedback to improve observed employee deficiencies. Performance appraisals should never be a surprise when it is presented to the employee. It is important for subordinates to understand what they are being evaluated on and what it takes to be successful.

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 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.

The performance appraisal system used by our organization is done annually. The purpose of the review is for employee as well as manager, to aptitude performance from the past year relating to the specific responsibilities and objective of that employee. This gives the opportunity for managers to give feedback on the strengths and development areas that are summarized from that previous year. Employees must also use this opportunity to give feedback on how they can best perform and develop themselves. This

A performance appraisal is an evaluation done on an employee’s job performance over a specific period of time. It is the equivalent of a report card on an employee and how their manager assessed their performance over the prior year. It is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development.

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 appraisal is the performance of staff duties and responsibilities assigned for reviewing and discussion. In this assessment is based on his / her income about the employees where work in, rather than the result of employee personality characteristics. Assessment of skills and achievements measured with reasonable accuracy and consistency. It provides a way to help identify areas of performance improvement, and help promote professional growth. It should not, however, be considered the only means of communication competence. Communication will help open lines to effective working relationships.

Erasmus, Swanepoel, Schenk, van der Westhuizen and Wessels (2005: 268,269) state that performance appraisal is a formal and systematic process which the job-relevant strength and weaknesses of employees are identified, observed, measured, recorded and developed. The performance appraisal

Performance appraisal is a process where employee’s performances can be assessed. This is where the employee will be under review so that they make better judgments with the evaluation of the employee. “The performance appraisal system has to be based on clearly specified and measurable standards and indicators.” (www.fao.org)

Murphy and Cleveland (1995) believe that performance appraisal needs to be a communication process that occurs in a well-defined organizational context rather than a measurement process. Moreover, Deepa et al (2014), in their study, concluded that the use of performance appraisal can lead to increased employees and organizational productivity.

Purpose of Performance Appraisal Performance appraisal aims at clarifying the employees work expectation, improving employee development, linking pay with performance and assessing workforce development (Mathus and Jackson, 1998). It makes employees to become aware of the organizations expectations after performance evaluation which helps them in improving their performance (de Waal, 2004). This is further emphasized by Gabris and Ihrke (2000) who found out that the main aim of performance appraisal is the provision of periodic and formal feedback to individual staff members.