Introduction
Performance appraisal is the systematic evaluation of employees with respect to their performance on their job and their potential for development. In other words, it is the process of measuring productivity in terms of efficiency and effectiveness (Brumbatch 1988).
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 (Asmu , 2008). Thus, the appraisal can serve a number of important functions. If done effectively, the appraisal can offer a large degree of satisfaction for both the employee and the reviewer. (Benadin et al 1995).
Most employees are interested in knowing how well employees are doing at present and how employees can do better in a future. Employee want this information to improve their performance in order to get promotions and merit pay. Proper performance feedback can improve the employee’s future performance. It also gives employee satisfaction and motivation (Bates and Holton,1995).
Video Clip 01 - Performance Appraisal
Video Clip 01 - Performance Appraisal
(Source : Gregg , 2018)
Employee Performance Appraisal Process
If handled correctly, the performance appraisal process is a mutual exchange between an employee and manager (Toppo & Prusty,2012). The process allow the employee to get direct feedback about what employee is doing well and a clearer understanding of what employee needs to improve upon. It provides the manager a chance to share manager’s expectations and give the employee valuable feedback. Nothing should be a surprise in a performance appraisal, as all issues are best handled when they occur (Walsh and Fisher, 2005).
Company Process
Many companies, especially larger corporations, as the organization I work for, which is engaged in Equipment finance have a process in place for conducting performance appraisals. Work with Human Resources department to ensure employees are following the company sanctioned process. Base feedback only on aspects of the employee’s job, which can include soft skills that include communication and teamwork. Apply the process consistently across all employees and ensure the employee understands her role in the process.
Timing And Forms
After an employee has been on the job for a minimum of 90 days or a maximum of six months, deliver employee’s first round of feedback. After the first evaluation, most companies complete a mid-year and year-end appraisal. Adjust this as needed to accommodate individual learning curves and challenging employees. Most companies provide a standardized form for managers to use. If not, then create one using an easily updated word processing document.
Manager Input
Document each area or task the employee is responsible for and indicate how the employee is doing in respect to each. A numbered rating scale and a section for comments is sufficient. Include both areas for improvement as well as those items the employee is doing well. Showing the direct link between the employee’s tasks and company goals or missions reinforces how employees’ actions affect the company as a whole.
Employee Input
After the manager documents feedback, the employee will review and respond to the rating and comments. Employees will get more out of their appraisal by not being defensive. Certainly factual errors should be corrected, but placing emphasis on future changes is the way to approach an appraisal. The employee should also document accomplishments who wants to emphasis and any training or resources employee needs to more effectively complete employee’s job.
Six Steps of the Performance Appraisal Process
Business owners must be able to gauge whether or not an employee is meeting performance standards. Developing a process that enables managers to appraise performance through objective metrics is imperative, so that a manager can define any underlying human resource issues versus operational issues. It is possible to customize the process, although there are six primary steps in the performance appraisal process, (Torrington, Hall and Taylor, 2002).
1. Establish Performance Standards
Performance standards are not arbitrary. These standards are necessary with each job position, because the performance standards are used to fulfill the mission and vision of the company. Performance standards are established through job descriptions, employee handbooks and operational manuals. Standards are subject to adjustment, based on changes in business needs.
Performance standards include everything from attendance to sale goals. Businesses must set a company culture of expectation fulfillment that is consistent for everyone. Giving some people a pass on meeting standards creates problems with team morale and potential legal issues when firing employees.
2. Employee Communication
Establishing performance standards isn't enough. Business leadership must clearly communicate these standards to employees. Even though standards are written and distributed in company manuals, there also should be a specific on boarding process that summarizes the company's expectations. Regular meetings reviewing the standards and expectations reiterates to employees that everybody must meet certain minimum requirements to retain employment or to be eligible for raises or promotions.
3. Measure Employee Performance
Clearly defined standards are easy to measure. Leaders track and regularly review how employees are performing. Attendance might be reviewed weekly when the schedules are made, whereas sales goals might get reviewed monthly. Business leaders need to determine how often different performance standards are reviewed, based on how it affects business achievement. For example, if a florist has a production line and one person does not keep up with the daily flower arrangement quotas, a manager needs to review that employee's performance sooner rather than later, before it negatively affects sales or morale among the others on the team, who must absorb the negligent employee's workload.
4. Compare to all Employee Metrics
Employers usually set performance standards, based on experience and industry data. Every business and its employees are unique. However, comparing one employee against all others who perform the same tasks gives an employer an idea about whether or not the underlying issue is the employee or if it's a bigger issue of training or operations obstacles. As with the example of the floral production line, one employee who is not keeping up differs considerably from the entire team not performing. In the latter situation, a manager must look at improved training or must hire more people to keep up with demand.
5. Employee Feedback
Performance appraisals must be reviewed with employees to be effective. Sit down with each employee to review the standard expectations and provide feedback about what has been done well and what areas need improvement. Make sure all feedback is written in objective terms and speak to employees in a professional, positive manner. Use performance review meetings to not only give employees feedback but also to gather feedback from employees about personal performance, sales goals, professional goals and feedback on company protocol.
6. Action Plan Development
Set an action plan for future performance appraisals. Build bigger goals around areas of employee success and provide specific plans of action where improvement is needed. Get employees invested in growth by asking them to include personal expectations and goals as part of the development plan. Have employees sign the plan, and to accept its contents, including agreeing to the action plans. Once signed, make a copy for the employee and make another for the human resources file.
Characteristics of an Effective Performance Appraisal
The annual performance appraisal is something employees and managers alike often dread. Yet, the meeting can be a source of motivation and reward if both parties are knowledgeable about how a performance appraisal works (Bard Kuvaas, 2006). The performance appraisal is an opportunity for the manager to convey to an employee specific expectations and suggestions for future performance. The meeting is also an opportunity for an employee to share with her manager her professional goals and career aspirations (Boswell, & Boudreau , 2000).- Explain The Appraisal Process
Clarify Job Expectations
Review and Update Job Skills
Review Accomplishments and Goals
Final Steps and Rewards
Importance of effective performance appraisal
It is clearly that the HRM makes a great contribution for either private or public sector organizations to achieve organization goals, therefore, as an important function of HRM, the performance appraisal has significant importance in organizations (Crawford, 2003). If there is no performance appraisal system, an organization can hardly have a clear understanding of its current situation, therefore it cannot get the direction and goals for improvement for future, the situation of the organization will be dangerous. If the performance appraisal system is full of deviation or even error, it can possibly lead the organization into a wrong direction of resource inputting, thus the organization will lose its long-term competitiveness (Bladen, 2001). On the contrary, an effective performance appraisal system can ensure resources of the organization invested into the most critical processes, which can improve competitive advantage of organization (Michlitsch, 2000).
Generally speaking, the importance of performance appraisal to organization is mainly reflected in three aspects:
1. Affecting the productivity and competitiveness of organization. Performance of employees has a huge effect on productivity and competitiveness of the organization. Performance can be measured from work results, work action and work attitude of employees (Armstrong , 2010);
2. Performance appraisal result is an important indicator of personnel decisions. Performance evaluation offers important reference when organization making personnel decisions, such as promotion or demotion, secondment, salary adjustment and so on (Fletcher C , 2001).;
3. Effectively performance appraisal leads to better staff management. It means that an organization can make better evaluation of staff performance, which results in more reasonable remuneration and incentive. It also means that an organization will be able to offer more help to employees’ self-development since performance evaluation can explore the potential of employees and help them know clearly about what they should do to meet expectations better. Besides, it will help to achieve better communication between superiors and staffs, which promote greater unity of purpose (Samuel, 2013).
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 (Venclova , 2013). Thus, the appraisal can serve a number of important functions. If done effectively, the appraisal can offer a large degree of satisfaction for both the employee and the reviewer (Greller, and Martin ,1998).
Benefits of Performance Appraisals to the Organization
The performance appraisal is an essential part of the human resources department's contribution to an organization (Javotz, 2006). An effective appraisal may not only eliminate behavior and work-quality problems, it can motivate an employee to contribute more. Often, a company will ask its employees to perform "360-degree feedback” that assesses peers and subordinates as well as supervisors and management. Regardless, the opportunity to give and receive constructive criticism shouldn't be ignored (Mamatglu, 2008).
1. Improving Communication
2. Providing a Career Path
3. Encouraging Good Work and Improvement
4. Improving Decision-Making Ability
When a company has detailed information on employee performance, business decisions become easier. Filling open positions with existing staff strengthens the organization and promotes loyalty. Knowing which employees display what strengths improves the speed with which projects can be assigned (Roberts ,1992). Appraisals also provide a framework when making decisions about compensation – and layoffs. If the organization becomes the unfortunate party to a lawsuit, the performance appraisal can refute or support claims (Smith and Dick, 1998). As a result, the effective use of performance appraisals helps an organization operate efficiently and with focus (Som, 2008).
The Effects of Performance Appraisal on Organizational & Employee Performance
Performance appraisal doesn't benefit only employees (Strauss, & Shore, 2008). Organizations that use the results of performance appraisal to identify areas of strength and opportunity can benefit as well. Performance appraisal can provide an indication of areas of training need as well as direction for leadership development, performance improvement and succession planning ( Kuvaas, 2006).
The employee performance appraisal is an important career development tool for the manager and employee (Fletcher, 2001). The manager can help guide the employee on the path to corporate advancement, and the employee gets a clearer understanding of what is expected from her in her daily job duties. Performance appraisals have a wide variety of effects on employees that managers must identify and understand ( Javotz, 2006).
Table 01 : The Effects of Performance Appraisal on Organizational & Employee Performance
Effects on Organizational Performance
|
Effects on Employee Performance
|
Identifying Areas of Strength
|
Motivation
|
Identifying Training Needs
|
Clarity
|
Leadership Development and Succession Planning
|
Take Responsibility
|
Teamwork
|
(Source : Mamatoglu , 2008)
Methods of Performance Evaluation
A comprehensive employee appraisal is often made up of several different methods of performance evaluation (Armstrong, 2010). Employer can choose to use just one evaluation process when judging an employee's performance, but when you use multiple evaluation methods employer is able to get a broader picture of the areas where the employee needs improvement and what recommendations manager should make to support employee development (Armstrong, 2010).
Self-Evaluations and Reviews
The self-evaluation is often effective when teamed up with a performance review. The employee is asked to judge his own performance by using a form that requires multiple choice answers, essay-type answers or a combination of the two. One of the benefits of a self-evaluation is that employer can compare the self-evaluation to your own appraisal and see the areas where there is a discrepancy in an understanding of employee performance. This opens up conversations that can be beneficial to employee development.
360 Evaluation
An employee's development consists of progress made within employee’s own department, and the effectiveness of employee’s interactions with the rest of the company (Mamatoglu, 2008). A 360 degree performance evaluation is one that involves input from managers in other departments that the employee works with on a regular basis. Employees are evaluated on their effectiveness within their own department based on their job descriptions, and employees are also evaluated based on how effectively employee work with the rest of the company (Mamatoglu, 2008).
Graphic Scale
The graphic scale of performance evaluation is commonly used by managers (Fox, 1991). The employee's performance in various areas of his job duties is graded on a scale. The value in a graphic evaluation system is that it allows manager to compare the performance of several employees simultaneously (Fox, 1991). The system can be done with numbers or letters, and it usually consists of a range, running from poor to excellent.
Checklist Evaluation Method
A checklist evaluation method is simplistic but effective (Mamatglu, 2008). Checklist evaluation method consists of a series of performance questions that are traditionally given the option of yes or no. An excessive number of negative responses indicates developmental training is needed for that employee. The checklist can be used as a quick way to identify employees that have deficiencies in too many performance areas (Mamatglu, 2008).
Critical Incident
Keep an ongoing log throughout the year of an employee's performance, and then use that information to fuel discussion during the employee performance review (Fox, 1991). This method of keeping a list of good and bad incidents of employee performance is known as critical incident evaluation (Fox, 1991).
Advantages and Disadvantages of performance appraisals
Table 2.0: Advantages and Disadvantages of Performance Appraisals
Advantages
|
Disadvantages
|
Documentation
|
Create Negative Experience
|
Structure
|
Time Consuming
|
Feedback
|
Natural Biases
|
Clarify expectation
|
Waste of Time
|
Annual Planning
|
Stressful work place
|
Motivation
|
(Source: Crawford, 2003)
Conclusion
The performance appraisal is a central part of performance management in organizations. It is only one component and links to the entire performance management cycle. Supervisors who carry out the assessment of employees performance must have a clear understanding of the process and need to be motivated to do a good job. Staff play a role too in making the process effective. HR managers, carry the bulk of the responsibility for implementing a performance appraisal process that adds value to their organization. They must constantly monitor to ensure the system is moving well. Designing a clear process and monitoring how it is working and making adjustments as needed, are smart steps to ensure the performance appraisal adds value.
This is the time for the employee to make the manager aware of his career aspirations and skills he would like to learn. The manager and employee will sign the appraisal document and receive copies. An official copy will also go into the employee’s personnel file. Remember to keep an electronic copy; this will make the next appraisal easier.
As one of the most important functions of the HRM, performance appraisal plays a large role in the success of the organizations’ HRM. Performance appraisal affects the productivity and competitiveness of organization, the results of performance appraisal is an important indicator of personnel decisions and effectively performance appraisal leads to better staff management. Performance appraisal has a big importance to either private or public sector organizations and an effectively performance appraisal system does offers great help for either private or public sector organizations to achieve strategic goals. However, since the complicated relationship within the organizations and the complications in establishing well-designed appraisal system, performance appraisal cannot always be effective and useful as we expected it. Hence much planning and proper implementation is necessary for a successful performance appraisal, which benefits both the employer and employee.
References
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Monitoring the goals process ensures that there are no surprises when the employee appraisals are appraised. The monitoring process provides information for the employee assessment. according to Armstrong and Baron (1998) checking on progress in achieving objectives and responding to new demands are vital.
ReplyDeleteHi Andrea , Point taken you have commented on my blog . However , The performance appraisal is a central part of performance management in organizations. It is only one component and links to the entire performance management cycle. Supervisors who carry out the assessment of employees performance must have a clear understanding of the process and need to be motivated to do a good job. Staff play a role too in making the process effective.
DeleteHi. Ajantha, furthermore it is vital to grasp that challenges are avail in any organization related to Performance Appraisal. The evaluation may not be in a way that reflect actual performance due to fear. If the evaluation system is poor, it will not give adequate effect and result about the actual performance of employees. Rater’s problems like leniency or harshness error, central tendency error, personal bias error, contrast error are also affecting the performance appraisal of an employee (Rasch 2004).
ReplyDeleteHi Samanthi , Agree with your comments . However Since we are all human, it is common for managers to make “errors” when assessing employee behavior and writing performance appraisal documents. These rater errors are reflective of our unconscious biases toward the employee.
DeleteHi, Ajantha, An organization is effective to the degree to which it achieves its goals. An effective organization will make sure that there is a spirit of cooperation and sense of commitment and satisfaction within the sphere of it influence.Employee training and development has emerged as a major educational enterprise over the past three decades.
ReplyDeleteThis increase is associated with a demand in the workplace for employee at all levels to improve performance in their present jobs to acquire skills and knowledge to do new jobs, and to continue their career progress in a changing world of work (Armstrong, 2001; Craig, 1987). Therefore performance appraisal will help the employee to inline him self according to situations that will lead to monitor the efficiency of the workforce effectively.
Hi Lasitha , You have mentioned how help the Performance appraisal if i endorsed further , Depending on the role, formal employee training may be required to ensure competency and even excellence. Create a knowledge-base of critical information and best practices to pass on to new hires as you grow your team. This will be time-consuming at first, but will pay off in the long run.
DeleteYour blog regarding Importance of effective Performance appraisal is well outlined with most of its areas and would like to add that according to (Lyster and Arthur, 2006) it further mentions that performance appraisals include several essential ingredients or components that appraisal process includes, such as 1) Planning 2)Performance evaluation 3) Employee Appraisal or Interview. This system could also vary from company to company based on size, industry and culture.
ReplyDeleteHi Ruwini , Agreed with your comments on my blog . However 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. Thus, the appraisal can serve a number of important functions. If done effectively, the appraisal can offer a large degree of satisfaction for both the employee and the reviewer.
Delete,
Performance appraisal is a crucial factor for the overall performance of an organization. The collaboration of individual performances will create the overall performance of an organization. Therefore I agree with your statements regarding the positive side of the performance appraisal. But at the same time, the management will tend to compare one employee to another. That’s something which the management should not do. This weakness will lead to an unsuccessful performance appraisal (Samuel, 2013).
ReplyDeleteThis comment has been removed by the author.
DeleteDear Vayanga , I agree with your comments. However , An appraisal system should have a clear sense of direction, honest and meaningful feedback. There should be immediate and honest reinforcement and it should give an opportunity for employees to participate in setting the goals and standards for performance. The aim of every appraisal system must be to allow for continuous communication between management and teachers about job performance and should be geared for the total improvement of the organization as a whole. It is important that the appraisal system be consistent and that appraisal results be assessed, analyzed and reviewed to classify competencies and development needs across all departments (Armstrong ,2010)
DeleteAccording to Macky and Johnson (2000), that the importance of performance management system is on continuously improving organizational performance, and this is achieved by improved individual employee performance. Therefore, improving employee performance by using performance management system is a way to improve organizational performance with employee engagement and employer motivation.
ReplyDeleteHi Gayani ,Aggreged with your comments. Armstrong( 2006) describe the role of the performance appraisal as a tool for looking forward to what need to be done by people in the organization in order to achieve the purpose of the job to meet new challenges .Better use of technology skills and attributes (Szilagy &Wallace 1990) in addition will develop both organizational and individual capabilities and reach agreement on areas where performance needs on the effectiveness of its employee generating information which influences many of the organizations decision.
DeleteDear Ajantha,you have structure your Blog very well to describe the topic of Importance in performance appraisal system. The contents are much more matching for the current context of the business environment.Further you have critically evaluated rather compare the advantages and dis-advantages of the core theory.
ReplyDeleteThe Source(Crawford, 2003)is very transparency in listing out the two dimension of same to the reader.
Hi Shiran, Thanks for your appreciation and comments on my blog and further The effectiveness of any endeavor depends on how it is correctly done and implemented to serve the highest value of the organization as a whole. Perhaps the most crucial element of an effective performance appraisal system is employee development. While it is a fact that the appraisal system identifies the weakness of an employee, the employee development part of the overall performance appraisal system is utilized to identify the best way to bring improvement to success (Mohamed Ahmed, 2007).
DeleteA comprehensive statement on Performance Appraisal Ajantha. The context of the blog is valid for any organization irrespective of the industry, size, revenue level & most importantly the geographic location. However, apart from the above customary methods, the use of Future Oriented Appraisal Methods illustrated by Singh (2015) I presume, will further comprehend your assessment. They are Management by Objectives (MBOs), Psychological Appraisals, Assessment Centers & finally 360 Degree Feed-back system and these are being frequently used in modern organizations with proven, positive outcomes.
ReplyDeleteHi Amal, Agree with your comments on my blog . Thus , Performance appraisal is one element of the performance management process which involves different measurements throughout the organizations but it is the element which is important if organization is to take advantage of their most important asset employees and gain human capital advantage. There are other processes within the organizations such as technology and design but it is the human factor which is the most difficult to replicate and therefore the most valuable (Armstrong & Baron 2005) strategy implementation and delivery of the organizational strategic target is the best accomplished through high performance people (Michlitsch 2000) and it is the development of these people which performance appraisal seek to advance. This is not the only identified purpose for performance appraisal
DeleteHi Ajantha, your blog on importance of effective performance appraisal is well structured and it provides a lot of valuable information on effective performance appraisal. As you have correctly mentioned, using multiple performance evaluation methods provide a broader picture and 360 degree evaluation can be considered as one of the effective method of performance evaluation. This multisource appraisal method helps organizations better manage employee performance. However, it should not be assumed that these systems will always accomplish the goals intended to address (Denisi and Kluger, 2000).
ReplyDeleteDear Dinuka , Agree with your comments. As you correctly said ,multisource appraisal method helps organizations better manage employee performance and Thus , The organization’s key aims, goals and objectives become an embedded part of the process in the performance management and communicated through the performance appraisal process. (Marchington and Wilkinson, 2005) Baron et al ( 2005) defend the performance appraisal is “ a more limited approach which involves managers making top-down assessment and rating the performance of their subordinates at an annual performance appraisal meeting” .Likewise, Chapman( 2009) said that Important changes relating to age discrimination in UK employment law became effective in October 2006, with implications for all types of appraisals and job performance and suitability assessment. Ensure training and materials for appraisals reflect current employment law.
DeleteHi Ajantha, Your blog gives proper understanding about the performance management system, according to Rudman (2003) performance management system is a means of integrating HRM activities with the business objectives of the organization, where management and HR activities are working together to influence individual and collective behavior to support the organization's strategy. Therefore always it must be linked with organization's strategy
ReplyDeleteHi Suresh, Your comments is 100% correct because HR activities should be aligned with the organizational strategy. unless it will not effective. Further , A performance appraisal system is a good instrument that can be used to improve the quality of an organization’s work force performance of which it is considered as an important aspect in human resources management and as part of the control process in administration (Kavussi Shal, 1999).
DeleteHi Ajantha,your blog comprise with A to Z on Performance appraisal system. Performance appraisal is a part of the performance Management process. As much as it has a gravity towards employee performance, it too has certain concerns as well. Performance management and getting the required behavior is one of the core issues which most of the organization fails to analyze in order to achieve the required goals, (Nicholas L. Weatherly; Richard W. Malott 2008). Organization behavior should be developed among the individual in such a way which is performance oriented and behavior should be analyze and then modified to develop the required behavior,(Hal J. Whiting; Theresa J.B. Kline; Lorne M. Sulsky 2008).
ReplyDeleteHi Akila, Agree with your comments. an appraisal can be considered as an important factor in identifying the people's talents and capacities and its results can make them aware of advancements, plans and goals. An organization, it self, needs to detect the employees efficiency to improve the manpower's status, for the purpose of increasing the volume of the production and services and making positive changes in its trend (Kavussi Shal, 1999).
DeleteAjantha, you have well demonstrated the importance of performance appraisal in your blog. However, according to (Longenecker & Nykodym, 1996) highlights that although most would recognize the perceived benefit, in principle, of documenting, communicating, and setting goals in areas of performance, many are also frustrated concerning the actual benefit received from performance appraisal in their organizations. The benefits and rewards of performance appraisal appear to be often overstated (Cintron & Flaniken,p.32).
ReplyDeleteHi Bernadine , Agree with your comments..The performance appraisal method applied must be sensitive in distinguishing effective performers from ineffective performers/ the performance appraisal method should be reliable in that different raters using the same method will rate the same employee similarly. The performance appraisal method should be easily understood by both raters and the employees (Fletcher, C. 2004)
DeleteHi Ajantha a good read. Accordingly performance appraisal help the employee to measure his knowledge for better commitment.As defined by Burgoyne (2010: 43): ‘Leadership development in the widest sense involves the acquisition, development and utilization of leadership
ReplyDeletecapability or the potential for it.’ Leadership development programmes prepare people for leadership roles and situations beyond their current expedience
Hi Mohan , Thanks for your comments on my blog , Actually one of the result of performance appraisal is Leadership development program me . Performance appraisal identifies employees who are to be developed as future leaders and will start the programme to develop them. That is why , Performance appraisal is important to the company (Armstrong , 2007)
DeleteDear Ajantha , You have well communicated importance of performance appraisal to the organization even employee. Thus As one of the most important functions of the HRM, performance appraisal plays a big role in the success of the organizations’ HRM. Performance appraisal affects the productivity and competitiveness of organization, the results of performance appraisal is an important indicator of personnel decisions and effectively performance appraisal leads to better staff management. Performance appraisal has a big importance to either private or public sector organizations and an effectively performance appraisal system does offers great help for either private or public sector organizations to achieve strategic goals. However, since the complicated relationship within the organizations and the complications in establishing well-designed appraisal system, performance appraisal cannot always be effective and useful as we expected it. In one word, establishing an effective appraisal system is not an easy task and it can never be completed overnight (Caruth and Humphreys, 2008). The only way to develop a useful and effective performance appraisal system is to work hard, think carefully, plan seriously and design accurately as what Rother Homes has done, it is not easy but is definitely worth to do.
ReplyDeleteHi Sumedha, Your comments on my blog are mostly welcome and well valid. Agreed with your comments. Organizations that use the results of performance appraisal to identify areas of strength and opportunity can benefit as well. Performance appraisal can provide an indication of areas of training need as well as direction for leadership development, performance improvement and succession planning. The results of performance appraisal can be assessed to identify areas of strong performance across all employees, by department or by demographics. Standardized performance assessments allow companies to aggregate, calculate and analyze results to show where performance is strong. These areas of strength then can serve as benchmarks and opportunities for sharing of best practices for other areas of the organization (Roberts and Reed, 1996).
DeleteYou have well organized the blog on importance of effective performance appraisal. When we considered the history of the performance appraisal, 'Performance Appraisal became a widely used management tool in business around 1980's. Its modern uses had previously been restricted to Army Officers and Senior Management' (Taylor, 2005, p291). However appraisal has been present throughout history and has advanced significantly over time.
ReplyDeleteAccording to Redman and Wilkinson (2009)the critics of performance appraisal believe it is an expensive process, that it can cause conflict between the appraiser and appraisee, is not hugely valuable and might also be debilitating the development of employee performance. Carroll and Schneier's (1982) research established that performance appraisal ranks as the most unpopular managerial activity.
Considering the prevailing situation in the banking sector, it is noted that performance appraisal system is not the popular tool of the management to do the annual appraisal of their employees to betterment of the organization and also for the employee motivation.
Dear Udeni, Actually most bank use performance appraisal system to evaluate their employee annually. However there are several method to do that. So firms should use the behavioural performance appraisal system as it was statistically significant in influencing employee's relationship through increased inter-personal relationships, fostered Integration and team work, reliability of the employees who may work without much supervision, adaptation of employees to changing environment and through individual staff development plan which would enable the staff to plan for their career development hence.
DeleteEvery organization should monitor the performance of their workers in order to assess the capabilities, weaknesses and opportunities that the individual possesses and this is where “performance appraisal systems”(PMS) comes in to handy. Performance appraisal systems determine their employees standards in order to make important decisions such as compensation, rewards, promotions, skill/competency levels, training needs, and disciplinary action. But however, selecting the perfect appraisal system is on of the main challenges that organizations face. Having the wrong PMS and or unethical use with non-transparency will cost the organization losses while losing employee enjoyment towards the firm (Nickols 2007, p-13)
ReplyDeleteHowever. The blog discuses vital facts with regard to its title in a successful manner which does a great deal of justice for its title.
Hi Chaminda , organizations should establish and adopt performance appraisal systems that would enable effectively appraisal of the employees and therefore providing opportunities to the management in identifying staff training needs, identify performance targets, improve employees performance and helping employees on time management through planning and setting of deadlines. From the findings the study recommends that firms should adopt behavioural performance appraisal system and management by objectives as the appraisal systems were found to be statistically significant in influencing employee’s relationship and improving employee’s productivity
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ReplyDeleteAjantha very descriptive. You have harped on the value of employee appraisal where the respective authority of the organization allocates a considerable period of time to discuss, acknowledge achievements, competencies and what training and development that require to be done to fine tune, impart, equip and or energies, what he she or he could be in time to come in terms of rank, shouldering responsibility in the organization and the organization intention to grow as a concern as well. However, generally more often than not the interview conducted to appraise the employee takes a negative turn ending up in further demotivating one who is already demotivated and demotivates afresh the one has been motivated up to that point.
ReplyDeleteConstantly instances are found, where the appraising is used to punish mistakes, innovative behavior which is greatly discouraging (Jong, Deanne and Hartog, 2009).
Hi Saliya, Agree with your comments . behavioural performance appraisal was used in the organization and influences employee's relationship in the organization as it lead to increase in inter-personal relationships, fosters Integration and Team Work, reliable employees who may work without much supervision, enables the employees to adopt to changing environment and that through individual staff development plan, staff are able to plan for their career development hence affecting the employees productivity to a very great extent , employees enhance job knowledge improving their performance, ensures the effective use of resources, able to produce and deliver quality results to the clients and Create an empowering and motivating environment thus affecting the productivity of the employees in the organization
DeleteRaters need to be aware of these biases so that their effect on the appraisals can be limited or eliminated.
ReplyDeleteWe all make compromises in our decision-making strategies and have biases in evaluating what other people do.
it would probably result in unfair appraisals because the traits and degrees of merit are open to interpretation.
different supervisors would probably define "good" performance.
rating supervisors should he completely objective in their appraisals of employees (Sims, 2002).
Dear Sheriff, However, researches show that many organizations are not satisfied with their employees' performance evaluation plans. They suggest that performance evaluation systems have not been successful in creating motivation and improvement of employees’ performance (Fletcher, 2001). Given the importance of performance evaluation, it is essential that organizations take action for more effectiveness of it. Periodical evaluation in a system and its components can increase its effectiveness. Such assessments are essential because, on the one hand, they specify the extent to which the related purposes of the appraisal and development have been realized and on the other hand, based on these assessments we can rectify the current performance assessment practices (Dolan & Schuler, 1997).
DeleteHi ,Ajantha . Well explained Blog on Performance Appraisal [PA] and its Impact to the Employees and the Organization . Most of the time Performance Appraisals do not provide a balance assessment of the particular employee relating to the individual performances and organizational performances ,which justifies with the weakness of PA in your blog, Ex- 1.Can be Bias 2. Comparison with others 3.Recent errors may consider instead of performance related to the entire period , .Performance appraisal has been discredited because too often it has been operated as a top-down and largely bureaucratic system owned by the HR department rather than by line managers. According to Townley (1989) , Performance Appraisal is solely a means of exercising managerial control. . Performance appraisal tended to be backward looking, concentrating on what had gone wrong, rather than looking forward to future development needs. Performance appraisal schemes existed in isolation. There was little or no link between them and the needs of the business. Line managers have frequently rejected performance appraisal schemes as being time-consuming and irrelevant(Armstrong, 2006) . Performance management is a continuous and much wider, more comprehensive and more natural process of management that clarifies mutual expectations, emphasizes the support role of managers who are expected to act as coaches rather than judges, and focuses on the future.
ReplyDeleteAttractive interpretation about Performance Appraisal which is the systematic evaluation of the show of employees and to understand the abilities of a person for further intensification and improvement.
ReplyDeleteAppraisal system is directly impact to the employee by way of a self assessment ,measurement of own effectiveness and efficiency is in line with the organization standards and vision or any improvement needed Cappelli (2008: 196)
Performance appraisal (PA) refers to the methods and processes used by organizations to assess the level of performance of their employees and to provide them with a feedback. This process can be used for both developmental and administrative purposes.
ReplyDeleteAlthough PA is an important tool for managing employees, managers, and workers are rarely satisfied with it. Therefore, clearly defining the purposes of the PA and addressing the employees’ reactions are essential to the success of the PA(Diena V,2015)
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Hi Ajantha, Nice blog related to one of the most important subject in an organization. PA may lead to have many benefits to the organization and the employees as well. "Employees are reluctant to confide any limitations to and concerns with their
ReplyDeletecurrent performance as this could impact on their merit-related reward or promotion" (Newton and Findley, 1996, p.43).
In the present highly competitive environment, organizations have to ensure peak performance of their employees continuously in order to compete and survive at the market place effectively (Biswajeet 2005). Performance of an individual can be defined as the record of outcomes produced as specified job functions or activities during a specified time period (Bernardin 2007). The term performance refers to a set of outcome produced during a certain period of their job time and does not refer to the traits, personal characteristics, or competencies of the performer.
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ReplyDeleteHi Ajantha,Great work on Performance Appraisal well illustrated with a proper flow of data.A performance appraisal is a regular review of an employee's job performance and overall contribution to a company. According to Hossain(2014)Here are few objectives of Performance Appraisal tool
ReplyDelete-To provide a feedback to employees regarding their performance and related status.
-To maintain records in order to determine compensation packages, wage structure, salaries raises.
-To review and retain the promotional and other training programs.
-It serves as a basis for influencing working habits of the employees
Agreed with your statement; planning and proper implementation is necessary for a successful performance appraisal, which benefits both the employer and employee.The best performance appraisals offer positive feedback and advice for improvement, and typically consist of a conversation between management and the employee (Martin, 2018).
ReplyDeleteThank you For Sharing useful information. performance Management
ReplyDeleteThe performance appraisal Process concept is central to effective management. ... That development process requires: (1) a dynamic job description, (2) a critical .
ReplyDeletePerformance appraisal process
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