Performance appraisal aims at improving employee development, the employees work expectation, assessing workforce development and linking pay with performance (Peter, Matt and Colin, 2011). It prepares employees to be aware of the management expectations after the performance evaluation that helps them to boost their performance (de Waal, 2004). Performance appraisal looks smooth but researches explains that it is generally used in identify individual weaknesses, performance feedback and employee’s strengths (Ruddin, 2010). The practice of performance appraisal system by industry and business has been estimated between 74% to 89% (Idrisb). Performance appraisal systems are used for various purposes, that include feedback, human resource decisions and evaluation (Kline, & Sulsky, 2009).
For attaining high performance goal for organization, performance appraisal is an important tool of human resource management (MGS experts,2014). Performance appraisal provide support for selection and recruitment, development and training of current staff, and maintaining and motivating a quality human resource through proper and correct rewarding of their performance (Kumar, & Sumangali,2011). Generally, Performance appraisal includes performance management system that align and manage all the resources, systems in order to obtain the highest possible performance (Harris, 1998). (Kuvaas, 1994; Bård, 2002) argued that performance management engage in determining the plan of performance
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.
Performance management relates to an organization’s ability to implement a system to evaluate and advance employee performance. Achieving peak performance requires consistency, clear objectives, and constructive employee evaluation. According to Mithas, Ramasubbu, & Sambamurthy (2011), an organization must design the performance management system based on extensive research about the organization’s mission, and then properly communicate the purpose of the system to employees, stakeholders, and decision makers. After the performing the research, the information should be used to establish the appropriate performance management specialized for the organization. In addition, an effective performance management system should align
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.
As stated by Peter F. Drucker, “Management is about human beings. Its task is to make people capable of joint performance, to make their strengths effective and their weaknesses irrelevant.” Performance management is essential to achieving an organization 's mission statement and business goals, and also in attracting, retaining, and motivating qualified employees. There are many benefits and reasons why an organization should execute a performance management system. Performance appraisals establish the basis for qualifying, recognizing, and rewarding employee contributions. In this paper, I will discuss what performance management is, the problems with the current performance management system at my organization, how other organizations have succeeded in their performance management system and how I would advise management at my current organization to improve our performance management system.
Seiden, S., & Sowa, J. E. (2011). Performance Management and Appraisal in Human Service Organizations: Management and Staff Perspectives. Public Personnel Management, 40(3), 251-264.
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.
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 Management Within the Workplace The basis of the mainstream of performance appraisals within the modern workplace is one person (a manager or executive) rating one more, an intrinsically individual process. There are distinction such as 360 degree appraisals that include the judgment of others such as clientele and peers/colleagues in the process but it is the action of one person transitory judgment upon another that is subjective in nature and the root cause of many of the problems encountered in the research associated with performance appraisals. Performance appraisals are of importance to the organisation, as they often provide the only measure of an individual's contribution and
“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
Performance appraisals are constantly viewed as burdensome tasks that employers would like to avoid despite understanding the significance of evaluating the performance of employees. This consideration is further fueled in organizations and companies with minimal pay raises and bonuses as well as those with downsized compensations. Organizations that take similar initiatives to deal with current economic challenges also experience difficulties in task of conducting performance appraisals of employees. However, there is need to ensure that the performance appraisal process remains a priority for the employers through focusing on its advantages and effect on increasing employee performance. While the effectiveness of performance appraisals is influenced by various problem areas, effective performance appraisals enhance employee performance.
Today, performance appraisal is used for developmental and motivational purposes in the organization. It is not a stand still evaluation activity, but a dynamic process which should be viewed as follows- planning the employee’s performance and evaluation, and improving the performance of employees. The process brings the new concept Performance Management. Performance Management is essential for today’s organization to integrate the management goals and employees performance. It is a system for integrating the management of organization and employee performance in order to support and improve organization’s overall business goals.