Performance Management & the Employee Appraisal Process

I chose the topic of performance management to research because I currently work in a performance based environment as a customer service representative for Toyota Financial Services. I came across a lot of articles and information on this topic and due to the nature of my job, this topic was very interesting for me. Performance Management means managing the performance of an organization or individual. It is an assessment of employees, progress and other factors that are geared towards company goals. It is the process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with organizational goals. Performance management can be the key to creating an employee, team, company and/or

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.

Appraisals are a positive way for an employer to let the employee know how well they are performing the duties that are assigned to them, and an appraisal is a good indictor of how an employee needs to improve in a certain job task.

“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.

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.

Leadership training helps supervisors and managers understand the importance of giving equal attention to operations and employees. Effective performance appraisals rely on performance standards to determine how well employees complete their job duties, tasks and responsibilities. Performance standards indicate what level of effort is required for an employee to meet or exceed her job expectations. For instance, a performance standard for an accountant might state: "Conduct two audits every 30 days." Accountants who conduct four audits every month are exceeding the company 's expectations, and accountants who conduct two audits every month receive evaluations that indicate they are meeting expectations. Performance standards are simple measurements used in the performance appraisal process. Discipline and recognition appear to be opposite ends of the performance management spectrum. Nevertheless, both are integral parts of a performance management system. Effective performance appraisals consist of constructive feedback for improvement as well as recognition for strong performance. The ability to address both within the performance appraisal enables a balanced employee assessment. In addition, both constructive feedback and recognition are requirements for determining employee skills and aptitude, training and development needs. Another element of an effective appraisal is what effect performance has on

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)

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.

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.

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 management is the process of management that contributes to the effective management of individuals and teams to achieve high levels of organizational performance. Some see performance management as performance related pay schemes and others as the performance appraisal systems. In simple terms, performance management provides the means for people to improve their performance or apply their abilities more constructively.

Performance appraisal system followed in (AL TANMIA) has motivated employees to perform better. More than half of respondents are aware of the importance of performance appraisal system in improving one’s performance.

Performance management system is a set of instructions to ensure employees about the level of performance which they are expected to follow. Their individual goals which they are expected to follow to achieve the objectives of the organizations. “Employee performance is the competitive advantage for creating a successful business. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product of service, as well as many other areas” (www.sucessfactor.com).