Introduction
As (Drucker,1994; Barney, 1995) stated, the achievements of staff members can conclude the success and survival of a business, and as (Orpen, 1997; Martin and Bartol, 1998; Cook and Crossman, 2004) also concluded that appraisal is a method in which those achievements can be coordinated with the targets of an enterprise, where employees could be motivated and their performance managed and improved.
Among all the human resource (HR) practices, performance appraisal is the most important of all (Boswell and Boudreau, 2002; Judge and ferris, 1993; Yehuda Baruch, 1996) and is one of the most discussed and researched topics in the sphere of psychology for over 70 years (Fletcher, 2002; Landy and Farr, 1980). Although many companies still express exasperation with their appraisal schemes (Fletcher, 1997). As Fletcher (2001) indicated, this lack of satisfaction may lead to deficiency of success of performance appraisal as a tool for progressing and inspiring people. Among performance appraisal researchers and practitioners, there is an agreement that assessment of appraisal reactions is important (Keeping and Levy, 2000). For instance, it is often argued that in order for performance appraisal to efficiently influence staff attitude and future establishment, they should experience effective appraisal reactions. If not, any appraisal system would be wrecked to failure (see, e.g Murphy and Cleveland, 1995; Cardy and Dobbins, 1994). As (Giles and Mossholder, 1990; Keeping and Levy, 2000) claimed, “performance appraisal gratification is the most often measured appraisal response”.
Definitions of performance appraisal system
“Performance appraisal” indicates the method in which an individual’s work performance is evaluated. It ha...
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...t it is progressively becoming common for subordinates to evaluate the performance of their coworkers. This is because there is a significant increase on the use of teams in the workplace.
Stubblebine advocates that noble evaluation may be inspired by social similarity practice , because of the visibly different manager-employee relationship, managers evaluation will not follow a social similarity process.
Fandray (2001) proposes, that companies are fighting the old-fashioned performance evaluation process and approving total performance management. He recommends, an approach that concentrates on feedback and training. In such approach, the subordinate and manager agree for certain goals. In order to mirror modifying circumstances in the workplace, goals must be elastic. Employees must consider their managers as coaches that are willing to help them attain success.
The performance assessment and appraisal forms are crucial within the performance management system (Aguinis, 2014). However, the appraisal form within the case study provided is designed for the supervisor’s use thus missing one vital factor throughout the entire process, employee participation. Thus, questioning the validity and reliability of the process. This is especially concerning as the bottom 10 per cent of employees are being fired and the top 20 per cent are being rewarded with $5,000.00 based on what their supervisor records on the form without consultation with employees. Thus, supervisors may not provide accurate scores as they do not have to justify their responses (Aguinis,
Performance appraisals are used administratively whenever they are the basis for a decision about the employee’s work conditions, including promotions, terminations, and rewards. (Gomez-Mejia, 2012, p.223). Performance appraisals compare work performed against measurable objectives that the employee and supervisor agreed to at the beginning of the appraisal period (smallbusiness.chron.com). If the employee does not meet the objectives as agreed upon, this may have a downstream effect on their salary, chances for advancement, and it could lead to termination. The manager plays a critical role in the administrative process of the performance appraisal. When the manager conducts the performance appraisal, it must be thorough, accurate and performed on a timely basis. In a situation where the employee is terminated due to their appraisal and rating, the business might find itself having to defend its validity.
Performance appraisal in most organizations is perceived as a critical human resource management function. It is believed that a well-designed and implemented performance appraisal system can offer the employee, the supervisor, and the organization several benefits, such as providing supervisors a useful communication instrument for the employee goal setting and performance planning, increasing employee
There is an array of key components and factors involved in making an organization a successful business. One of those elements consists on evaluating employee’s performance; this sole component is critical in determining how effective is the organization’s productivity and which are the necessary steps to ensure proper functioning. “The performance appraisal may be one of the few times during the year where an employee and the reviewer, typically the employee's supervisor, can sit down and have a lengthy face-to-face discussion about all aspects of the job” (Joseph, 2016). Employees’ performance assessment serves as an instrument to gather important information as to which areas of the job description are being performed according to standards
Appraisal shows results which is useful for the administrative area. Those results are useful in complete range of personnel decisions. Decisions on some categories like salary, promotion, retention/termination, recognition of performance, layoffs, and identification of poor performers can be made by the results.
Performance Appraisals are integrative assessment tools which are advantageous to organizational effectiveness. The administrators of the performance appraisals usually are managers or human resource professionals. Making sure the appraisal tool is valid, reliable, standardized, and appropriate for the position is only part of the process. Unfortunately it’s not uncommon for employees to be in the dark regarding their performance, or areas of weakness, if a lack of communication exists. The ability to be proactive with one’s employees is where I feel the success lies. “Research shows that managers with poor communication or interpersonal skills are often the downfall of a company's otherwise sound performance management program (“Setting up a performance management system”, 1999). Communication skills are of high importance when communicating scoring results and giving constructive feedback. When constructive feedback is handled professionally and with empathy, employees build trust and are more eager to improve on areas of weakness. Training, workshops, and shadowing others can help with both weaknesses and strengths. The performance appraisal tool can provide insight into strengths that can be of importance to the organization. Strengths can be honed in on, and often an employee can be an asset within another position or department within the organization.
Performance feedback is considered very important tool in the performance management system, as it aims to not only improve performance but to also provide motivation for those receiving it. As a result, it will eventually help the receiver’s of such feedback acquire job satisf...
Performance appraisal is perceived by most as a tool to reward or penalize employees for their good or bad work respectively by the end of a year. This notion is a challenge in itself to deal with. The whole exercise becomes dull for both supervisors and their subordinates and they tend to look at it as an additional responsibility which they have to finish. In the end, there is little or no value addition for either the employee or the organization. There are, however, better ways of looking at and conducting performance appraisals. It can give much needed feedback to both performers and laggards to improve upon and if done properly can even boost their motivation. More importantly, they provide a chance to employees to have a say in their goal setting and thus aligning it with the departmental and organizational goals. Also, the process itself has a value in team making.
Performance appraisal provides the employer an opportunity to communicate with the employees about the mission, strategy, vision, values and objectives of the organization, and it personalizes organizational strategy into individual performance criteria (Chattopadhayay, Rachana, Ghosh, Anil Kumar, 2012). It has been observed that employee motivations to perform, to develop capabilities and to improve future performance are influenced by the performance appraisal system (Landy et al., 1978; Kanfer, 1990). According to Saiyadain (1998), the basic purpose of performance appraisal is to judge the relative worth or ability of an individual employee in performing his/her tasks. There are many advantages to using a formal system if performance appraisals are designed and used properly (Murphy and Cleveland, 1995). If objectively done, appraisal can help to identify a superior, moderate and poor performance. The methods chosen and the instruments used to implement these methods are crucial in determining whether the organization manages its performance
Therefore, it is suggested that employers participate in two types of appraisals: supervisors rating employees and employee self-rating. These should each be conducted annually, one at mid-year and the other at year-end. The former assessment should be in narrative form, while the latter assessment should be in the form of a likert scale. These assessments should be reasoned, transparent, consistent, objective, reliable, valid, and relatively structured for ease of use. It should also consider the avoidance of wrongful discharge or discrimination claims in the case of employee termination. Again, both appraisals should fundamentally focus on the duties detailed in the job description.
Improving staff efficacy and effectiveness is only possible in light of their performance appraisal (Torabi and Sufodeh 2010). Performance Appraisal does not always increase productivity, it may be biased, not accurate and not accepted by users. Occasionally, performance appraisal system has been linked to increase in dissatisfaction, lack of motivation, resistance especially on the part of the appraiser/employees. This condition is due to other errors in the content of evaluation biases in the process of evaluation, disharmony between employee needs and appraisal goals or the absence of clear and independent dimensions (Grangreio, Caruguti, Sebastiano and Tamimi
The performance method can be used to evaluate the effectiveness of employee at work through performance appraisals
Although performance is a major objective at top organizations, successfully addressing poor performance is also a key focus. Although many employees feel or dread performance appraisals they are directed to enforce clarity with individual employees day-to-day work-load, performance appraisals develops responsibility while making employees accountable for performance expectations, reinforces future career planning, helps the organization with determining training needs, and provides a stem of documentation for legality purposes. Performance management in detail is much broader than many employers, and employees assume and necessitates so much more. Proficient appraisals should represent a summary of on-going dialogue. Focusing only on an annual performance evaluation leads to misrepresentation of the performance management process in its
Organization is a group of people brought to gather to achieve specific goals. Goals can be achieved if team member are performing well. Performance is the results of activities given to the employees in an organization to be achieved within specific period of time. Evaluating the current performance of employees against past performances and organizational standards is known as Performance Appraisal (Dessler, 2005). Furthermore performance appraisal helps the company know how individual employees are performing and how to improve their performance thus improving the performance of the company (Grubb, 2007). A performance appraisal is propose in which the performance management system in an organizations set work goals, determine performance standards, provide performance feedback, determine training and development needs and distribute rewards as well as evaluating an employee’s job performance during a period of time. The performance of team member is much more than appraising individuals’ works, it is managing the business, so the performance of an employee is influences by the performance of an organization. It is target to achieve the best results for the planned strategic by managing activities of employees. There are many different opinions on the performance appraisals, some organizations do performance appraisals without any aim just follow others., where some organizations do performance appraisals to make sure they have a record of a piece of paper in the employee’s file – they are careless about do corrective action. But successful organizations understand the importance of combining performance appraisals into their performance management process and strategy plan as the success of any organizatio...
Banner, D. K., Graber, J. M. (1985). Critical issues in performances appraisal. Journal of Management Development. Issue 4. Pp. 27-35.